Strategic Management and Corporate Responsibility

STRATEGIC
MANAGEMENT AND
CORPORATE
RESPONSIBILITY

Strategic Management and Corporate Responsibility 1
Contents
Introduction............................................................................................................... 2
How CSR contribute to company’s success........................................................................2
Analysis of the advantages and challenges of moving manufacturing to an emerging market..........4
Critical evaluation of the proposal................................................................................... 7
References.............................................................................................................. 10

Strategic Management and Corporate Responsibility 2
Introduction
H&M (Hennes & Mauritz AB) is a Swedish fashion retail company runs worldwide.
The company is known for its fast fashion clothing for women, men, teens and children.
H&M operates in 62 nations with more than 4500 stores. H&M is the 2nd major multinational
clothing retailer behind Inditex which is parent company of Zara. The company is having its
significance presence worldwide.
H&M is responsible since its initiation and contributes in the social activities aiming
to improve life of the communities in which it conducts operations. The company is
associated with general sustainability vision and activities are assumed to address several
requirements of the communities. H&M has worked on CSR for the long time. The company
has even managed to execute CSR policies into the daily routines majorly in the field of
sourcing. The climate change has been a biggest challenge for H&M. The consequences of
climate change affect to the whole planet and persons living on it. The recent 2018 CSR
policy of H&M purposes to usage recycled material by 2030 and likely to be 100% climate
optimistic by 2040. H&M is recently using 35% of its materials from the recycled material
(Bonilla, Del Olmo Arriaga & Andreu, 2019).
H&M has engaged factories in the project to avert child labour and defend young
workers. This initiative of H&M aims to raise insight among workers on the deterrence and
remediation of child labour. H&M also engages and assists to UNICEF and NBIM’s work for
the children’s right principle un garment and footwear supply chain. It concentrates on the
style’s industry influence on the children with working parents. With the child labour
approach of H&M, it is incessantly monitoring compliance with the complete least
requirement so that all the factories producing for the company can be free from the enforced
labour. H&M also make sure that all workplaces in business and supply chain are in place to
prioritise health and safety for the employees. The company takes preventive measures to
protect worker’s safety whenever hazards take place. H&M even minimises social security
limitations by working with suppliers to enhance terms provided to the workers.
How CSR contribute to company’s success
CSR contribute to the company’s success by boosting profits and enhancing customer
relations along with the employee relations. Being socially liable, the companies can
reinforce its image and construct brand. The socially responsible company inspires personnel
to leverage the corporate resources at disposal to do good. It even led to boost employee self-

Strategic Management and Corporate Responsibility 3
esteem and greater output in the personnel. CSR creates culture of engagement and assists in
attaining business goals. The stakeholders are the individuals or group who are affected by
the attainment of company’s purposes. It is the responsibility of a business to offer a decent
return on the investment to the stakeholders. The wellbeing of the broad set of stakeholders
like employees, customers, suppliers, community and environment is also looked after.
Hence companies are required to fulfil the expectations of the stakeholders by effective
business operations (Księżak, 2016).
Before execution of CSR activities in the company, the purpose of CSR activities
should be internalising the management viewpoint and core values of the company. The
sufficient internal agreement should be made among the employees in the organization
concerning necessity and purpose of CSR activities. The suppliers also like to sell products to
the company which conduct operations in the ethical manner and fulfil CSR activities
towards the community. Therefore, the goodwill of the company is deliberated by the way it
carries out operational activities. Embracing CSR goes a lengthy way in appealing and
retaining customers. The customers like to purchase products from the company which is
contributing towards the betterment of community. Moreover, companies even gladly pay
premium for the goods when it finds out that part of the incomes will be channelled to the
social concerns. The companies comprise activities like occupied in the partnership with the
domestic communities and comprising actions for the environmental conversation and
sustainability. A company can easily win the approval of the local communities by being
socially responsible and operating tranquil. CSR fulfils the environmental responsibilities in
the framework of sustainable development by minimising administrative costs over the long
run (Ritch, 2018).
The climate change is the greatest challenge faced today by H&M. The CSR policy of
H&M defines to take deed and working together with high drives. The goal of the policy is
intrepid and clear and become climate positive by the year 2040. To fight with the climate
change, H&M has supported a greener transport. Although the transport of company is
having relatively small impact on climate among the supply chain. It stands out just 1-3% of
all emissions. The company is likely to usage size and scale to initiate optimistic change
towards greener solutions in the commercial transport. H&M concentrates on fulfilling the
transport requirements with the least influence on the environment along with being supple to
the online and offline customer’s needs (Singh, 2016). The company has even collaborated
and multi-stakeholders’ alliances with the goal to push the confines of commercial transport