Management - H&M Question and Answer

Running head: MANAGEMENT
Assignment 2: Case Study
Name of the Student:
Name of the University:
Author Note:

MANAGEMENT1
Question 1: Assessing Impact of H&M’s CSR Policy and Evaluating Initiatives for
Achieving Environmental Protection and Sustainability Goals of the Firm
H&M had been a multinational Swedish retail clothing brand found in the year 1947
(Ksiezak 2016). It is known for fast fashion clothing for women, men and children. Presently, the
company is a global brand owning close to 6 brands and operating in close to 57 countries and
having more than 3600 stores. The organization had the mission of driving a long lasting and
positive change along with improving the living conditions through investing in communities,
people and innovative ideas. The company has however believed in sustainable fashion not only
for present but also for the future generations. Since, the year 2002 it composed the CSR reports
as per the GRI G4 guidelines. In the year 2009, H&M published a social responsibility report
named “Conscious Actions Sustainability Report”. The company made sure that close to 170
employees were appointed for dealing with the aspect of sustainability as the core task. The CSR
policy of H&M is designed around seven commitments that helps it in achieving its
environmental protection and the sustainability goals. These are mentioned as follows:
1. Providing fashion for the conscious customers: H&M remained committed towards
offering shoes, transportation of clothing and accessories and sold and procured products with
utmost care for the environment and the people. H&M understand that the desire and need of the
customers needed to be placed at the center of the business for establishing close association
with the customers and thereby deliver accurate value for them. The company is also aware that
now the public increasingly demand corporate conscience that can act in the way of making
sustainable approach as a corporate strength for driving customer commitment and commitment,
better performance in business and finally leading to the competitive advantage. This is where
the ‘Conscious Actions’ of the retailer fit in thereby demonstrating the fact that green fashion

MANAGEMENT2
does not challenge the design or the looks. For instance, one such CSR target for the company
remains in sourcing everything in cotton but within sustainable range by the year 2020.
2. Choosing and rewarding the liable partners: The fashion retail company from
Sweden do not have its own factories. Its production is however outsourced to close to 800
factories across Europe and Asia. In becoming a sustainable company, H&M needs to take
responsibility of the entire value chain, since responsibility do not stop with the immediate
activities of the company. H&M is however able to recognize this and thus work closely with the
supply chain in providing better conditions of working, avoiding the violations of the human
rights and reducing the negative impact of the environment. This has been outlined in the code of
conduct of the company for guiding the day to day work and remains evaluated by the auditors
of H&M who frequently check work process in the factories across the entire supply chain for
ensuring that each of the things are done as per the standards which also helps in promoting good
practice.
3. Being Ethical: Social integrity and obligation represent the values which must guide
the business on the way towards sustainability. These corporate values helps in determining
ethical approach of Swedish brand that holds the belief of “showing respect towards everyone
who contributes to H&M’s success is fundamental to our business”. This includes employees,
customers or the business partners. Boosting diversity, combating against corruption, engaging
employees and ensuring their happiness, remaining fair towards the suppliers and remaining
compliant with the regulations and laws acted as driving ethical force behind retailer operations.
4. Being Climate Smart: In addition to the people who hold moral responsibility
towards the environment and nature, it is also the brands that holds the resources and power of