Corporate Governance & Sustainability: A Case on H&M

A case on H&M.”3 INTRODUCTION 3 Corporate governance & Sustainability3 Purpose and Significance of the research 4 Research Aim 5 Research Objectives 5 Research Questions 5 Literature Review 5 Corporate governance structure 5 Importance of sustainability for a company6 Concept of green-washing 7 Analyse the impact of green-washing on brand image of H&M 8 Research Methodology 9 Secondary Data Collection 10 CRITICAL REVIEW OF RESULTS12 Critical review on the basis of secondary research 12 THEMATIC ANALYSIS

To measure the effect of green-
washing practices on brand
image of a company. A case on
H&M

Table of Contents
TOPIC - “To measure the effect of green-washing practices on brand image of a company. A
case on H&M.”................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Corporate governance & Sustainability..................................................................................3
Purpose and Significance of the research...............................................................................4
Research Aim.........................................................................................................................5
Research Objectives...............................................................................................................5
Research Questions................................................................................................................5
Literature Review.............................................................................................................................5
Corporate governance structure..............................................................................................5
Importance of sustainability for a company...........................................................................6
Concept of green-washing......................................................................................................7
Analyse the impact of green-washing on brand image of H&M............................................8
Research Methodology....................................................................................................................9
Secondary Data Collection...................................................................................................10
CRITICAL REVIEW OF RESULTS............................................................................................12
Critical review on the basis of secondary research..............................................................12
THEMATIC ANALYSIS..............................................................................................................12
THEME 1 - Knowledge related to corporate governance structure.....................................12
THEME 2 - Ascertain the importance of sustainability.......................................................12
THEME 3 - Understand the concept of green-washing and effectiveness of brand image for a
business organisation like H&M. ........................................................................................13
Critical review on the basis of primary research..................................................................13
Recommendation..................................................................................................................21
Gantt Chart.....................................................................................................................................24
Conclusion.....................................................................................................................................25
REFERENCES..............................................................................................................................26

TOPIC - “To measure the effect of green-washing practices on brand image of
a company. A case on H&M.”
INTRODUCTION
Corporate Strategy is being considered as both scope and directions of a business
company towards attaining long term sustainability. This basically aid in grabbing a good
position at marketplace even when it is carrying a rapid changing nature and with the help of
this, an organisation could easily fulfil all the requirements in of stakeholder in specific time
frame (De Vries and et. al., 2015). In the same way, H&M developed strategy to show public
that they are more environmentally friendly but in reality it is not. In April month of 2016,
strategy of H&M was to collect 1,000 tons of used clothes and called it as World Recycle Week.
Effort which was made by H&M was some how played a crucial role in developing an effective
brand image at marketplace but this action was taken to distract customers (public) from the
extent of the harm the company was doing to environment.
Away with this, it has also been analysed that most of the time business organisations
specifically develops a range of strategies in order to improve sustainability at marketplace.
H&M has done the same and kept its focus on developing strategies in order to gather
competitive advantages. Here, not every single strategy works in positive sense and this H&M
has already understood where, they did a green-washing practice act, which impacted negatively
on all over performance level of H&M because the act, where organisation was collecting 1,000
tons of used clothes from customers (Carrero and Valor, 2012). This impacted negatively on
their brand image and affected profit margins because behind that H&M was polluting the
environment immensely from their manufacturing plants which was showed by various news
reports of different channels. Thus, it can be said that organisations basically do not develops
corporate strategies for welfare of the society but they do it to benefit themselves so that
sustainability could be improved.
Green-washing is introduce to the use of marketing to portray an enterprise's activities,
policies or products as environmentally or friendly when they are not. The act of green washing,
also called as "green sheen," entails the deceptive or misleading of customers regarding the
environmental advantages of a goods or policy via specious public relations, advertising and

unsupported claims. Greenwashing is a act on the term "whitewashing," which defines to gloss
over wrongdoing or exonerate or dishonesty without decent investigation or spurious
information. It is a biggest issue in H&M that highly impact on brand image of company at
market as well as in customer's mind also.
Corporate governance & Sustainability
It has been analysed that both corporate governance & sustainability plays a crucial role
for every single business organisation. Away with this, it can be said that good governance not
only important for a business organisation but it is also necessary for society as well. This could
be done through, bringing improvements among both public and governmental faith. On the
other hand, it can also be understood with assurance that legislative processes were designed to
protect societies from known threats and to keep problems from occurring or reoccurring. There
were many cases came in front and many business organisations are also developing Recent
corporate scandals shed light on the effect that corporations have on social responsibility. The
new focus on corporate social responsibility increases corporations’ responsibility and
accountability to their stakeholders (Wilson, 2018).
As a result, corporations like H&M are basically increasing places pressure on
themselves to improve best practices for corporate governance with the goal of enhancing their
relationships with stakeholders. The largest attraction for corporations to direct some of their
attention on sustainability is that it ultimately improves corporations’ ability to thrive and
prosper. It can be said that, business companies like H&M and more basically consist with a
range of corporate strategies in order to improve sustainability at workplace. H&M was found in
the year of 1947 by Erling Persson and is a Swedish multinational clothing-retail company.
Company is specifically known for fast-fashion clothing and because of this, organisation has
become famous and started operation in among 62 countries with over 4,500 stores. Organisation
is also having around 132,000 employees that are serving both company and targeted customers
as well in much more effective ways. H&M has build a corporate strategy in 2016 but was
considered as an act of green-washing by various economists (Wright and Brown, 2013).
Purpose and Significance of the research
The primal reason behind adopting the issue of green-washing which was done by H&M
downed their position in clothing market at international level. H&M used different campaigns to
collect left out clothes from their targeted customers. This act was done to hide emission of

pollution that their manufacturing plants were making (Maas, Schaltegger and Crutzen, 2016).
Corporate social responsibility is essential for an organisation because it will help them in
enhancing its brand image and goodwill in marketplace. Being a socially responsible
organisation can bolster a business's image and make its brand more strongly. The public
perception of an organisation is critical to shareholder and customer confidence in the enterprise.
By projecting a favourable image, an organisation can create a name for itself for not only being
fiscally profitable, but socially awake as well. Also, by being more active in the society, a
organization workers are engaging with potential clients and in doing so, indirectly marketing the
organisation in the process. H&Ms' approach of collection of 10,000 tons of garments which
they dumped and produced electricity for themselves, this statement was right in some way but
behind this, they were hiding the fact that they were emitting pollution immensely. Along with
this, it can also be said that the action was taken by H&M to embrace the brand and
sustainability in all parts of the fashion production life cycle, including the way their fabrics are
made, the conditions under which their employees work and the manner in which their clothing
arrives at their stores (Marquis and Lee, 2013). Here, it can be said that issue which came in
front because H&M did not followed the international guidelines and i.e. UN guiding principles
on both business and human rights as well. This is why, researcher chose this topic in order to
improve knowledge level of both research worker and readers.
Research Aim
To main aim of present research is “To measure the effect of green-washing practices on
brand image of a company. A case on H&M.”
Research Objectives
 To understand the concept of corporate governance structure.
 To analysis green-washing practices and sustainability.
 To measure the effect of green-washing practices on brand image of a company.
 To measure the effect of green-washing practices on brand image of H&M.
Research Questions
 What can be defined as a corporate governance structure?
 What is the green-washing practices and sustainability?
 Evaluate the effect of green-washing practices on brand image of company?

Literature Review
Corporate governance structure
Corporate governance is a systematic structure of rules and policies for directing and
controlling a firm. It is a way or process of governing a corporation. In corporate governance,
balancing interest of organisations stakeholders is taken into consideration (Sethi, 2012).
Stakeholders are companies shareholders, suppliers, government, customers, financiers,
management and society. This technique guides companies towards attainment of its objectives.
Good corporate governance ensures growth and success, minimize wastage, and helps in brand
formation.
Corporate governance structure of H&M consist of Board of directors on behalf of
shareholders which includes two employee representatives and two deputies. Further, BOD led
by chairman of board. Board also appoints CEO, who is responsible for routine management
according to instructions issued by board. Audit committee monitors companies reporting and
main channel of communication. Corporate governance strategy used by company includes
Green-washing, social responsibility, and sustainable development of stakeholders. Along with
this, if it is talked about H&M, than company is coming under Swedish business rules and
regulations and it's code of corporate governance is specifically relying upon principle of both
comply and explain (Amran, Lee and Devi, 2014). Thus, it can be said that companies like H&M
if needs to properly manage themselves then application of Code needs to be deviated among
rules that are given. Through this, code means that H&M’s annual report specifically
supplemented with a range of separated reports which is linked with corporate governance and
sustainability of business at marketplace.
Importance of sustainability for a company
As mentioned by Strähle and Müller, (2017), businesses are making strategic decisions in
order to improve the overall extent of their corporate sustainability policies. Companies started
focusing on developing strategic decisions which improves the corporate sustainability policies
for a company. On the other hand, when it comes to think on individuals, community
organisations and governments are all prioritising sustainability. Through this companies that are
doing business at international level might gain a good position for a longer period of time
frame. Sustainability is now becoming more important and necessary for all the companies

across the world. Business sustainability is an approach which helps in creating long term values
and image of a company at competitive market place. Some business organisations use Corporate
Social Responsibility which affect the overall environment and society.
CSR activities refers to the contribution made by companies from the revenue they
earned for the development and welfare of society. Sustainability covers some common factors
which affects the overall society (Khan, Muttakin and Siddiqui, 2013). These factors includes
social issues, economic aspects, environmental impacts and governance consideration. In today's
world external environment is continuously changing, so as the needs and requirements of
customers. For maintaining sustainability at market place company need to make investment in
CSR activities that helps in improving their brand image as well. For example- Greenwashing,
which is introduce as an effective practice of making an misleading or unsubstantiated claim
regarding the environmental welfare of service, product, technology or practice of H&M.
Position of different organisation is transition to digital as material and further, that they are
playing in an environmentally friendly way. It is essential and significant for H&M to follow all
practice systematically which will help an organisation to sustain their business operations and
activities systematically. Through this CSR activity, a company can improve and enhance its
brand image as well. This would also help in reducing the impact of any scandal which are
associated with a company in their past and effect their present and future performance. For
example- H&M has faced some issues due to an incidence as 'monkey hoodie' that show
respective company as racist (After 'monkey hoodie' scandal, H&M hires diversity leader, 2017).
This scandal has made a serious impact on H&M where various protestants especially of South
Africa has demanded to shut its stores, which damages its reputation at international platform.
Therefore, after making investment in CSR activities, respective company has overcome from
such scandals and gain opportunity to improve its brand image as well.
Concept of green-washing
According to Watson, (2017), green washing refers to a concept that deals in misleading
or confusing people about a business concern. It is a practice of doing false advertisement and
promotion of a product which influence people to buy that product. By using green washing
concept company looks more environmental friendly and protective than it really is. It is an act
of conveying false message to their customers about all those products and services they offered
to them. It can be used as a strategy which helps the company in differentiating their own

products and services with their rivalry company's. For doing so businesses show or portray in
front of customers that they undertake legal, ethical and environment friendly practices in a
business. These benefits can be in the form of products, services, innovative technologies or
organisational culture of a company as well. It is basically done to improve overall market
control and brand image of a company. In this process businessmen can even differentiate
between their goods and services by promising regarding providing more effective and
environment friendly goods and services. This helps in improving overall market base of a
business but for a quite smaller span of time. To maintain the sustainability at market place
companies invest huge amount of money on advertisement and promotion of products
(Fernando, 2012).
On the other hand, organisation has been considered for framing this report and studying
various impacts of green washing. Green washing refers to a concept which is a deceptive
practice undertaken by business concerns to promote their policies along with goods and services
in competitive market as well. In reality these brands and companies are not concerned about the
overall external environments. The impact or consequences of green washing are it encourages
or promotes scepticism. In this case customers may get discouraged and loose their trust if they
come to know that a certain brand is misleading them. Also such practices of fraud may tend to
be a harm for environment and degrade its quality in higher amounts. Another significant impact
in this case has been seen that when customers realise this unethical behaviour of a brand it
greatly hampers sales value and reputation of a firm. Positive impact of green washing is that
customer influence to buy products and services, which increases the brand image, profitability,
productivity. Using green washing practices for promoting products and services have some
negative effect on company. These negative effects can be decrease in good will, brand image
and market position of the company as well as reduce their loyal customers. A similar example
in this context can be observed in the case of Nestle, where people stop consuming its products
after there were reports which said that it had a high content of lead in it. On the other hand,
another example can be taken of H&M, where company started taking old or used clothes from
their customers. The main reason behind this act was to simply to hide their negative image
which was created due to the excessive amount of pollution generated by their production units.

Effectiveness of Green-washing on brand image of a company
According to perception of Fernando (2012), it has been identified that green-washing
proves beneficial for a company in improving its brand image and gain sustainability in
marketplace. It has positive impact on business while they follow all practices in systematic
manner. Brand image and their customers’ green brand loyalty wholly mediate the unfavourable
relationship between their green wash and their clients’ green purchase behaviour. It means that
organisation’ green-wash does not only have a straightforward unfavourable effect on their
clients’ green purchase activity, but also has an indirect unfavourable impact on it through their
green brand picture and their users’ green brand loyalty. This concept also allowed companies to
look forward to expand their business and builds corporate strategies, in order to build up their
brand image in an effective period of time. But, these majorly takes place as a green washing act.
Based on the statements that were given by Johansen, (2015), in today's scenario, it is
essential trying to be effective and improve its brand image by bringing in ethical and
environment friendly business practices. It has been observed that sustainability is an important
tool which has helped in enhancing role and function of a company to a great extent. On the
other hand, organisation can also keep its focus on adopting ethical practices more as compared
to any other fast fashion retailer. Adopting ethical and environmental friendly practices has
raised performance and productivity of business thereby providing it a stable market position
against its rival firms. This study, which has been done by researcher has been less effective as in
depth knowledge is not being carried out yet. Thus, the concept could only be understood with a
short span where a distinction can only be made among macro level and through which
relationship between Green washing practices can easily be carried out of all over performance
and micro level studies that focuses on the effects of green washed technique which was used by
H&M.
Conceptual model and hypothesis of the effect of green-washing practices on brand image of a
company
It is introduces as an effective model used by an organisation to improve their brand
image and reduce impact of green-washing practices.

From the above mentioned model, it can be concluded brand image is most essential and
effective part for the success of an organisation. Green-washing practices has negative effect on
brand image, loyalty of an enterprise. In order to overcome such type of impact, company should
use corporate social responsibility which will help them by retaining strong and long term
position of company in marketplace.
Research Methodology
Methodology is defined as systematic and theoretical analysis of methods which are
applied in field of study. It consists of theoretical analysis of principles and methods which are
linked with branch of knowledge. This is being considered as one of a crucial part for every
single investigation (research) that a researcher needs to understand and adopt right methods in
order to pull out favourable outcomes. It renders information about various modes of collection
of data, which assist to gather, analyse and interpret information related with research work. This
comprises of secondary and primary resources for collecting information on particular topic of
research. These methods give possibility to researchers by which they can carry out research in

specific and precise d manner. By this they have have effectual consequences by which
objectives related with chosen topic can be acknowledged and recommendations can be give to
make improvements in future.
Research Philosophy: It can be described as belief about the way in which data should be
analysed, gathered and used. It is a important part of research methodology. It can be categorised
as ontology, axiology and epistemology. These approaches enables to decide which approaches
should be adopted by the researcher and which is derived, why. Here, Ontology is categorised on
subjectivism and objectivism also based on nature of reality.
Purpose: Main purpose of research methodology is to help a researcher to collect accurate and
reliable data about the topic. It will help an organisation to make effective decision and
accumulate important data about the study.
Method: The term qualitative can be used to describe as primary research where no secondary
source is used in it. It is used to gain opinions, understanding reasons and motivations which
insights into problems to resolve it by quantitative research. This is a data collection methods
vary using unstructured techniques. Here are some of the common methods used in it like, group
discussion, observations and individuals interview. Samples are small in size and random
respondents are chosen to answer the questions mentioned in the sample. Whereas, quantitative
research means that quantify hurdles by the means of generating facts and figure or data that can
be transformed into understandable data or statistical facts.
Logic and approach: There are two types of research approach inductive and deductive. Both
are essential approach of research which will help a researcher to collect in-depth and accurate
information about the study. According to the topic, inductive approach will be used because it
help an investigator to drive valid conclusion about the study.
Data Sources: For collecting accurate information, there are two forms of data sources such as
primary and secondary. For accumulating primary data, questionnaire will be applied by
researcher because it provide reliable and valid information about the topic. Under, secondary
source, books, magazines, articles etc. are used to gather in-depth and proper information about
the research.
Data collection strategies: There are different types of data collection strategies or techniques
such as interviews, questionnaire and survey, observations, focus group, documents and records

etc. All these are most essential for researcher to collect accurate amount of information from the
respondents.
Population and sampling and sample: It is termed as unit of objects, people or items that are
collected from huge population for measurement. It should be used to describe the population
that can be unspecialised the collection from the research sample to the crowd as a whole. It is
widely used to draw conclusions about the populations from the collected samples as well use
the inferential statistical data or information to enables population's characteristics by directly
perceptive a portion or sample of the population. There are two types of sampling method
probability and non-probability. According to the topic probability method is used because in
this respondents are selected on random basis. With the help of probability method 60
respondents are selected.
Data analysis: Thematic analysis is consider one of the best method of data analysis which is
used by researcher to analysis accurate data about the issues. In this case, different themes are
made on every questions which will help an researcher to analysis response from respondents
about the topic.
Ethics, limitation of research methods: There are mainly three principles of ethics which
should be followed by researcher such as informed consent, confidentiality and anonymity. All
these principles should be follow by researcher winch will help them to complete all activities
and task of research systematically. Time is identify one of the biggest limitation for this project
because for identifying issues, specific time period is require by researcher.
Research Instrument: Questionnaire is consider one of the best instrument of research used by
investigator to collect reliable and valid data about the study. It is essential instrument of primary
research and give valid results about the field of study or topic.
Time plan: Gantt chart is identify one of the best tool of time plan. It is applied by researcher to
identify starting and ending time for completion of research activities within given time duration.

Respondents will be customers of H&M for this research and information is going to be
carried out related to issues that has been faced by customers after using products and services
which is being made by H&M (Gantt Chart Software, 2019).
Research Design:
It is an important tool which provides detailed and significant answers for almost all
research questions. An effective research design is quite useful and aids researchers in finding
appropriate answers in respect of their issues or questions. Any research design that is chosen
should be such that examination of issues is possible within specified time frame. Examples of

research tools that a researcher considers for resolving issues are questionnaires, surveys, group
analysis, data analysis etc. Results of a research depend upon population size and may even vary
with variations in sample size (Rao and Tilt, 2016).
Data Collection:
In present context, primary and secondary data can be obtained through several
techniques. Secondary data collection includes Magazines, Websites, Blogs, Newspapers. On the
other hand, Primary data can be collected by following two ways:
 Quantitative research: Result is obtained using numeric data. This gives a statistical and
logical data analysis with hard core facts. This is based on Various mathematical
calculation like correlation regression methods, mean, median, mode. This research can
be further divided into Descriptive, Experimental, Correlation, Diagnostic and
explanatory Research design.
 Qualitative Research: In this, Researcher collects data from human interaction, emotions,
feelings, words. This method includes questionnaire, personal interviews, Group
discussions, role plays, focus groups, observations etc. (Ottman, 2017).
In present report, qualitative research method has been utilised for conducting the overall
investigation so that right amount of information could be carried out right on time. For this
research, both primary and secondary data is used for obtaining effective result within the given
time frame.
Secondary Data Collection
In this method, data is collected from other sources which are either published or non
published. This contains publication of public records, magazines, government, reports from
bank and journals. For carrying out seconadry research, research maker collect data from
external and internal sources. They includes: customer details, financial statements, feedback
from distributors, retailers and many more. They are internal sources which renders knowledge
about H&M. Likewise, Government reports such as tax reports and population census, internet
access, business journals etc. These are external sources by which secondary information can be
obtained. By this reliable and specific information related with specific research topic can be
gained (Van den Berghe, 2012).

Questionnaire is presented below which is filled by 20 respondents from total population,
they are stakeholders, for measuring the effectiveness of greenwashing practices on brand image
of a company.
Questionnaire
Name:
Age:
Gender:
Q1) Do you have any knowledge related to green-washing
a) Yes
b) No
Q2) Do you think, if customer loyalty may get affected by any green-washing act done by
a company?
a) Yes
b) No
Q3) In what manner, green washing effects brand image?
a) Highly effected
b) Moderate effects
c) Null effect
Q4) What is the main reason behind green washing actions done by H&M?
a) To mislead public
b) To improve profit margins
c) To gain competitive advantages
Q5) According to you, what actions could be taken by H&M to regain the lost reputation?
a) Perform CSR
b) Offer customers with heavy fashion at low cost
c) Improve strategies to improve customer loyalty
Q6) Which is the most effective strategy H&M can use to reduce emission of pollution?
a) Use the utilized clothes which company received from customers in World Recycle Week
b) Promote an effective organisational culture
c) Build effective corporate strategy
Q7) Is sustainability plays a crucial role for H&M according to its size?

a) Yes
b) May be
c) May be not
Q8) What are the main factors, H&M need to concern while formulating corporate
strategies?
a) Removal of green-washing act
b) Improvement of skills
c) Removal of unethical approaches
Q9) Do you think corporate strategy that H&M developed in improving profit margins?
a) Yes
b) No
Q10) Do you have anything to recommend for H&M to improve its brand image?

CRITICAL REVIEW OF RESULTS
Critical review on the basis of secondary research
Information which is collected under secondary research has been analysed by
considering perception of assorted researchers in this part. In this research concept of green
washing has been evaluated within H&M. Critical review of articles is determined below:
THEMATIC ANALYSIS
Under this section, researcher is going to develop a range of themes and will discuss
different findings that has been brought through literature review section. Some of themes
covering a number of theories are given beneath:
THEME 1 - Knowledge related to corporate governance structure.
Based on the information which has been covered under first, second and third objectives
it can be said that a company needs to focus on different factors like sustainability, green-
washing and corporate governance structure of literature review. It can be said that a company
needs to have a proper structure related to corporate governance, work in an ethical way and also
keep there focus on improving sustainability as well. It is necessary for H&M to have adequate
knowledge of corporate governance by which they can carry out their functionalities in moral
way and thereby enhancing their chances to stay within market for longer run of time.
THEME 2 - Ascertain the importance of sustainability.
According to the data, if analysed properly it can be said that H&M has developed a
customer centric strategy through an effective advertisement, but this led them to face a range of
problems like decrease in customers base, negative impact on profit margins and so on. This
happened because advertisement which was developed and came in front as a green washing
issue. This has also impacted negatively upon overall performance level of H&M. Organisation
like H&M needs to evaluate the value of sustainability within market. This will enable them to
render quality services which will have direct positive impact on their growth within market. If
organisation want to gain profit then it is essential for them to remain competitive and this can be
done by providing their customers with enhanced services (Bell, Filatotchev and Aguilera,
2014).

THEME 3 - Understand the concept of green-washing and effectiveness of brand image for
a business organisation.
Considering above mentioned themes, it can easily be said that corporate strategy do not
works positively for a business organisation every single time. Thus, in order to sustain at
marketplace for a longer period of time, it is essential for every single business company to
structure its corporate strategies and governance right on place so that, it do not affect company
at both the times (present and future). Through this, maximum benefits could be gained by
companies like improved sustainability and so on. It is necessary for an enterprise to analyse
green-washing by which they may be able to gain competitive edge within market. Moreover,
this will lead to enhancement in brand image.
On the other hand, correct things at right place could help business organisations in
reaching to new heights like improvement in brand image and so on. Green-washing has
negative impact on brand image and goodwill of an organisation by reducing number of
employees and customers. Both are consider main part of the organisation success and they play
vita role in improving brand image of an enterprise.
Critical review on the basis of primary research
This section comprises of feedback and review which is obtained from respondents. From
total population (sample set), these respondents have been picked up randomly. They have
provided their viewpoint on topic which is being chosen by researcher, this will aid organisation
to formulate decisions by which they will be able to resolve certain issues. In present scenario,
data is analysed which has been gathered by conducting primary research. This has been
provided below:
Theme 1: Knowledge related to green-washing
Q1) Do you have any knowledge related to green-washing Frequency
a) Yes 18
b) No 2

Interpretation: Considering the above mentioned graph, it can easily be said that
respondents (18 out of 20) were in favour of the suggestions and said that they do have
knowledge related to green washing and also said that people in all over the world faces issues
related to this. On the other hand, only 2 mentioned that they do not have information related to
green-washing
Theme 2: Customer loyalty may get affected by any green-washing act done by a company
Q2) Do you think, if customer loyalty may get affected by any green-
washing act done by a company?
Frequency
a) Yes 17
b) No 3
Interpretation: According to the above graph, it can easily be said by the researcher that
17 respondents out of 20 are in favour that if any company practices green washing activity this
may affected customers loyalty. Reason behind this is by false advertisement of any product
a) Yes
b) No
a) Yes
b) No

company can influence customers only for a short period of time. Remaining 3 respondents said
that customer loyalty may not affect by any kind of green washing activity. These people think
that if customer is loyal towards any product no advertisement can affect their loyalty towards
company and its offered products.
Theme 3: Green washing effects on brand image
Q3) In what manner, green washing effects brand image? Frequency
a) Highly effected 8
b) Moderate effects 5
c) Null effect 7
Interpretation: According to the above graph, it is clearly stated that out of 20, 8
respondents says that green washing highly affect the brand image of a company. Reason behind
this is people influenced by the good act of a company which attract them towards brand and its
products. 5 respondents says that brand image of a company moderately effected by this act of a
company. It is because some people buy products and services of a company because of their
high brand image at competitive market place. Remaining 7 respondents says that green washing
activities done by a company can not affect brand image.
Theme 4: Green washing actions done by H&M
8
5
7
a) Highly effected
b) Moderate effects
c) Null effect

Q4) What is the main reason behind green washing actions done by
H&M?
Frequency
a) To mislead public 7
b) To improve profit margins 6
c) To gain competitive advantages 7
Interpretation: It is clearly identified with the help of above graph, that 7 respondents
said that misleading and influencing public is the main reason behind doing green washing
activities by H&M. By misleading people company can attract ample amount of customers. 6
respondents says that company started doing green washing actions to improve their profitability
and productivity at market place. Green washing activities influence the mindset of people and
attract them to buy those products and services offered by company. According to the remaining
7 respondents, reason behind doing green washing activities by H&M to gain competitive
advantages at market place.
Theme 5: Actions could be taken by H&M to regain the lost reputation
Q5) According to you, what actions could be taken by H&M to regain
the lost reputation?
Frequency
a) Perform CSR 9
7
6
7
a) To mislead public
b) To improve profit margins
c) To gain competitive
advantages

b) Offer customers with heavy fashion at low cost 6
c) Improve strategies to improve customer loyalty 5
Interpretation: From above graph it can be interpreted that, H&m needs to carry out
CSR activities. It has been suggested by 9 respondents. As per 6 respondents, they need to
provide their customers with latest fashion at reasonable or affordable prices by which they can
enhance their customer base. Furthermore, 5 respondents thinks that H&M needs to improvise
their strategies by which they can enhance loyalty of their customers. By this they can gain their
lost reputation and moreover, they need to focus on issues which have resulted in this situation.
Theme 6: Most effective strategy H&M can use to reduce emission of pollution
Q6) Which is the most effective strategy H&M can use to reduce emission
of pollution?
Frequency
a) Use the utilized clothes which company received from customers in World
Recycle Week
8
b) Promote an effective organisational culture 5
c) Build effective corporate strategy 7
9
6
5
a) Perform CSR
b) Offer customers with
heavy fashion at low cost
c) Improve strategies to
improve customer loyalty

Interpretation: As per above graph it is found that, H&M needs to have strategies by
which they can eliminate pollution from environment which they have created and they are
creating. According to 8 respondents it is evaluated that they need to use those clothes which
they have collected from customers in World recycle week. By this waste clothes can be
recycled. As per 5 respondents it is found that they need to promote enhanced working culture
within their working place so that they can gain competitive edge and provide their customers
with quality services. Furthermore, 7 respondents says that H&M needs to formulate effective
strategies by which they can take into consideration different factors which creates negative
impact on them.
Theme 7: Sustainability plays a crucial role for H&M according to its size.
Q7) Is sustainability plays a crucial role for H&M according to its size? Frequency
a) Yes 5
b) May be 8
c) May be not 7
8
5
7
a) Use the utilized
clothes which company
received from
customers in World
Recycle Week
b) Promote an effective
organisational culture
c) Build effective
corporate strategy

Interpretation: As per above graph, it has been observed that for being sustainability
plays essential role. According to 5 respondents, it has been found that it is crucial factor but 8
feels that it may be important and 7 says that it is not important. As per respondents it has been
found that not only size but services which they provide and what kind of damage they are doing
to environment ensure that whether they will stay within market for longer run of time or not.
They need to make sure that their services are of high quality and they manage effective
standards of waste management.
Theme 8: Corporate strategies helps in retaining workers
Q8) What are the main factors, H&M need to concern while
formulating corporate strategies?
Frequency
a) Removal of green-washing act 15
b) Improvement of skills 3
c) Removal of unethical approaches 2
5
8
7
a) Yes
b) May be
c) May be not

Interpretation: As per above graph it can be interpreted that, H&M needs to consider
different factors before they are creating their strategies. Out of 20 respondents, 15 thinks that,
they need to focus on removing green-washing act. 3 respondents think that there is requirement
of improvement of skills of employees by which they can enhance their services and have better
working culture. As per 2 respondents it has been observed that H&M needs to remove unethical
approaches which they are carrying out. They need to depict exact functionalities rather then
creating misconception among people.
Theme 9: Corporate strategy that H&M developed in improving profit margins
Q9) Do you think corporate strategy that H&M developed in
improving profit margins?
Frequency
a) Yes 15
b) No 5
15
3
2
a) Removal of green-
washing act
b) Improvement of skills
c) Removal of unethical
approaches

Interpretation: By considering above graph, it has been evaluated that (15 out of 20)
respondents think that corporate strategies which are formulated by H&M will aid them to
enhance their profit margins but (5 out of 20) feels that is not enough. As per 5 respondents it has
been found that they still need to improvise their strategies in which they have to consider all the
factors which can lead to any kind of disruption within future. Their strategies should not be only
based on what conditions are prevailing within market.
a) Yes
b) No

RECOMMENDATION AND ACTION PLAN
Recommendation
With the help of above mentioned report, it can easily be said that H&M would directly
develop build effective corporate strategies. This strategic plan will clearly define goal and ways
for achieving strategic management. In this regard, it is important for organisation to implement
and make strategy and through this H&M basically faced a range of issues in order to perform
well at marketplace. Through this, maximum benefits can be gained by them. Along with this,
there were a range of problems like green washing and others which impact negatively on
performance level. Along side this, rumours could directly impacts negatively upon organisation
and this needs to be reduced to minimal so that effective corporate strategy do not get affected.
On the other hand, it has also been examined that managers of H&M would require to use Porter
Value Chain Model at the time of developing a corporate strategy. This model will describe
activities through which respective company can resolve its issue and gain high competitive
advantage as well. As per this model which is given by Michael Porter, it has analysed that major
activities of business can be described into two main aspects as given below:-
(Source: Value chain model, 2018)
Illustratio
n 1: Value chain model

Primary Activities
There are a range of activities like sale and support, physical creation, product and
service, maintenance and so on. It consists of inbound logistics, outbound logistics, marketing
and sales, operations, service. Such elements are very important for H&M in order run different
activities in organisation. It improve corporate performance of entity effectively and efficiently.
Support Activities
If it is talked about H&M there are a range of support activities that basically helps in
reaching to new heights and help them in developing a range of benefits through which
maximum benefits could be gained by H&M in specific time frame. On the other hand,
procurement helps in operations activities of organisation and also supports marketing, sales etc.
It has been analysed that, this primal factor consist with technological development,
purchasing, human resource and infrastructure as well. Value chain model is being considered as
one of the effective tool that basically aid in developing or evaluating the values in specific time
frame. In context to H&M, value chain model would help in developing or creating a link among
key value adding activities, supporting activities and interface, which enhance total business'
value. By removing all the actions that are linked with a range of issues, organisational culture
has affected in vast manner. It arise negativity in perception of other staff which impact on their
performance also (Muchlinski, 2012).
Therefore, this would affect entire primary activities that are inbound and outbound
logistics, operations, marketing & sales, services more adversely. In this regard, it is
recommended to management of H&M to concern on modifying firm infrastructure. If this
company wants to reduce its costs then instead of bringing new technologies, it must modify
existing system that are linked with different acts like green washing and so on.
Action Plan
In this portion of project, actions which are required for completion of project are
specified by formulating them in appropriate time frame. At present scenario issues related with
Green-washing within H&M are analysed. Activities which must be carried out for analysing
problem are described below:
Steps Description
Step 1: Identification It is initial step of action plan, in this researchers determine intellect

of reason behind happening of issues within organisation. In this research
makers have conducted research on H&M in which green-washing
has occurred which creates problem of pollution. It will aid manager
of organisation to eliminate these risks.
Step 2: Formulation of
strategies
When issues are identified then, effective strategies must be
formulated by which green-washing can be removed thereby
enhancing satisfaction of customers and provide them with healthy
environment. For this it is necessaryto build cooperation between
employees, job satisfaction to employees, giving them recognition,
etc. H&M must also need into consideration Value Chain Analysis by
which value of business can be increased. H&M needs to provide
their employees with effective salaries by which they can gain job
satisfaction.
Step 3: Offer
employees options
It is other step in which management of H&M needs to have effective
strategies by which they can manage their waste and save
environment from getting polluted. For this they need to use different
laws depending on country where they are rendering their services. In
this aspect, training is provided to employees so that they have
knowledge about this perspective and utilise it in effective manner. It
will aid them to provide healthy environment.
Step 4: Enhance
organisational culture
and environment
In this stage, researcher will formulate different activities by which
organisational environment can be improvised. When green-washing
was started, people felt that it was done to recycle waste clothes. But
this was not so, those clothes were taken to mislead population. The
pollution due to waste from organisation was same rather than
decreasing it increased with passage of time. For this H&M needs to
implement different laws which are related with management of
waste and elimination of waste products which cannot be recycled. It
will assist them to stay within market for longer period of time.
Step 5: Execution of After completion of entire activities which are mentioned above,

corporate strategies
and governance
managers must frame effectual corporate strategy and execute them
effectively in proper manner. By this they can eliminate certain issues
which are leading to decline in their services within workplace.
Conclusion
Considering above mentioned report, it is being summarised that an organisation requires
to work in ethical manner. Through this, maximum benefits like improvement in customer
loyalty, enhancement in profit margins and increase in brand image can easily be seen at
marketplace for a business company. Corporate strategy play crucial role for giving effective
guidelines to organisation by which they can achieve their objectives in stipulated time.
Corporate strategy analyse current as well as future risks which are involved in formulation of
objectives by which targets can be attained. By this organisation can enhance their productivity
by which they can gain competitive edge within market. Furthermore, corporate strategy aids
organisation to handle various issues which they face in external environment. These all factors
must be considered when they are carrying out their functionalities.

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