UGB264 - Business Ethics, Responsibility & Clothing Industry Analysis

This report examines business ethics, responsibility, and sustainability within the clothing industry, focusing on challenges, best practices, and recommendations for improvement. It begins by defining business ethics and sustainability, then explores key challenges such as stiff competition, cost-cutting pressures, price fluctuations, and the increasing demand for trendy clothes. The report analyzes best practices like honesty, integrity, trustworthiness, loyalty, fairness, and compassion, suggesting ways businesses can demonstrate responsibility by considering global implications. It concludes with recommendations for clothing businesses to enhance their ethical and sustainable practices, ensuring long-term viability and positive societal impact. The report uses Marks and Spencer as an example for the clothing industry.

Business Ethics,
Responsibility and
Sustainability

Table of Contents
INTRODUCTION...........................................................................................................................3
Examine and discuss the key challenges relating to corporate responsibility and sustainability
relating to your chosen sector.................................................................................................3
Analyse and explain what you consider to be 'best practice' within the sector, making
references to ethical and moral issues....................................................................................6
Make recommendations for businesses in the sector to show they are being more responsible
by taking into account global considerations.........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................12

INTRODUCTION
Businesses ethics is a two different word that is business which means buying or selling
of product to make a profit and ethics means as division of philosophy that deals with both moral
values and morality. Business ethics refers to as the taking the right course and doing business
which comprises of business processes, production and behaviour of the organization including
their consumers and also the communities where they operate. It is regarded as doing the things
in a right manner in everything the firm does. Sustainability is refers to as appropriate balance to
the economic activities, environmental responsibility as well as societal benefits. It is the
challenges that met in ensuring the coming generations could enjoy the similar sort of life that
people enjoy in present days. This includes the long term view points of the economic,
environmental and societal beliefs (He and et. al., 2019). With a strong business ethics and
sustainability structure is essential for both the present scenario as well as future situation of the
organization. The chosen industry for this report is clothing industry. Marks and Spencer is
taken as base company. Marks and Spencer is a British retailer store which specialises in selling
of home products, clothing and food products. This organization was established in 1884 by
Michael Marks and Thomas Spencer in London, UK. In report, it covers the challenges relating
to corporate responsibility and sustainability with the best practice within the sector in context to
ethical and moral issues and recommendations showing how they are being more responsible by
taking into account global considerations.
Examine and discuss the key challenges relating to corporate responsibility and sustainability
relating to your chosen sector
Corporate social responsibility has become a successful contribution in an organization to
make sure that its ability for gaining competitive edge in the marketplace. It is considered as an
effective mean in effort to mitigate the threats that is known as social risks. Also it is a
continuous commitment by the organization for using the resources in an ethical manner and also
give contribution towards the economic development and also improving the quality of life of the
personnel as well as local community and also society as a large. Sustainability is the capability
for maintaining several systems and procedures (Dodds, Novotny and Harper, 2020). Many
organization reject the idea of corporate social responsibility as it implied as law to the society as

well as future generations that included in the legal requirements of the organization. Now a
days, organization are coming up with their corporate social responsibility. Some organization
make investments in CSR as reputation management as well as to sustain the effectiveness and
productivity of the firm and also some firm make investments in CSR for moral obligation to the
society. All these assets and resources concentrate on the corporate social responsibility as well
as sustainability in regards to the moral obligations and provide key knowledge in ethics which is
relevant to economic sustainability, environmental sustainability and social equity (Cancela and
et. al., 2020).
The organization under clothing industry faces many challenges in adopting business
ethics and sustainability. There are various challenges that clothing industry is facing in business
ethics as well as sustainability which are mentioned below:
Ethical challenges
Stiff competition: In a stiff competition environment, there would be pressure to perform
well and gain a competitive edge in the marketplace. Also, the pressure to explore the trending
fashion styles than the competition and its unique style for maximizing their effectiveness as
well as profitability. To effectively and efficiently implement, ethical considerations needed to
be taken for achieving the set aim and objectives of the organization. Moreover, there is also
competition from in terms of the quality of the cloths.. The losing of their footprint by the
clothing sector in the marketplace would leads to threat to the clothing industry (Naciti, 2019).
However for maintaining the stability, some ethical considerations could be looked for the
clothing organization. It could recognise as an outcome as course of action. When the results are
beneficial for the organization and also to affect the other individuals, these actions would not
matter a lot.
Cost cutting: The reduction of costs of production is actually assists the organization to
profit maximization. This reflect the cost of production which is to be kept minimal for
increasing the profit margin of the organization with the help of their commodities. In the
clothing industry, the cost cutting means to jeopardizing some another issues and concerns such
as environmental and safety issues.
Increasing pressure to focus on value creating instead of output: There is always a
increasing pressure by the shareholders for concentrating on the value creation for the customers
as opposition to the focusing on results owing to a low return on investment. This leads to a

ambiguity for the unethical personnels for taking advantages and lunching a standard procedure
for personal gaining (Kong, Witmaier and Ko, 2021). Moreover, the organization under clothing
industry have been experiencing personal, professional, societal, organizational as well as global
ethical challenges and this make the organization stop in order to adopt and stuck to the ethical
standards regarding their day to day operations.
Sustainability challenges
In the clothing industry, all organization should keep an eye on the future markets as well
as the economy in the future. Also, the clothing sector make sure that it could continue to be in
the future too. The production procedure and their related costs also has to be sustainable for
beneficial as well as survival of the organization. In the clothing industry, through the increased
trendy and fashionable clothing across the globe, it will automatically promises a sustainability
and also the future survival is assured (El-Bassiouny and et. al., 2020). Both growth and survival
are the challenges which revolves around factors such as cost reduction, political and geological
challenges and also improving the environment concerns. The challenges to sustainability are
mentioned below:
Price fluctuations: The altering economic world offers unstable sector. The costs of the
cloths are continuously changing and doesn't have a stable cost. It directly creates impact on the
key players in the clothing industry on the production cost and also to the profit margins which is
to be accepted. It directly creates influence on the decision making particularly on the financial
terms (Cohen, 2017). Along with this, future planning is also considered as very difficult a it
could be unable to properly forecast the costs of its commodities. Furthermore, the organization
send them, in distinct amounts of dividends at a distinct times based on the price of the product
in the markets which is considered as unfavourable situation with several investors.
Increased demand of trendy cloths: There is increasing demand of trendy and
fashionable cloths across the globe which could be affordable. As many nations has improved its
economy, the more number of people have the capability to spend their money in buying of the
cloths. Also, there many organization under clothing sector which are already established
themselves and drives the customers to demand the products. The main challenge is the
increasing the closeness of the neighbourhood shops to the customers.
Protection of the social license of operation and corporate social responsibility: For
improving and enhancing the public image, organization in the clothing industry are essential

across the globe. In order to improve the public image, the clothing sector has taken many
initiatives for the society as well as environment (Hansson, 2017). Owing to the commodities
deed and environmental protection measures, the clothing sector has been gained a social license
of operations and it count towards both for the production as well as financial aspects. The
production operations and financial spending is related with CSR, the organization would have to
go some losses and also to make some investment which could be heavy for altering the
production processes. The in occurrence of losses and the heavy investment at the similar time
frame would be unsustainable over time.
Unstable partnership: In order to enhance business and also make the clothing
organizations high, they have to create strategic partnerships with multiple groups and this could
be government, other organization in the clothing industry or some another firms in another
sectors. It is essential to make sure about the production as well as delivery of the commodities
is flawless and also uneventful. However, owing to several reasons, some of the partnerships
might be unstable and could not easy to hold in place. It can too costly or inconveniencing to one
or both units in the partnership and could also lead to dissolution of the agreement (Ferro and et.
al., 2017). More often the dissolution is the costly and inconveniencing task that necessitates the
development of new partnerships to cover for the new gap. The development of partnerships and
eventual dissolution that necessitates creation of new partnerships has resulted to be costly and
detrimental to the production procedures clothing organization.
Analyse and explain what you consider to be 'best practice' within the sector, making references
to ethical and moral issues
Business ethics is important for promoting moral and ethical values in the business
environment. Business ethics helps in creating a better relationship with employees, improves
satisfaction of customers, enhance profitability, society protection and better decision making.
Business ethics vary from company to company. Some common ethical practices Marks and
Spencer could adopt are discussed below:
 Honesty: Honesty involves a transparency in all the dealings and communication. The
company should not mislead or deceive its customers by overstatements, selective
omissions, misrepresentations or any other confusions. Honesty is the foundation of a
secure relationship with consumers, which strongly impacts its stability and success

(Aramburu and Pescador, 2019). Transparency in business will increase the reputation
of the company within the customers.
 Integrity: Marks and Spencer must stick to its decision about what is right even when
there is any pressure. The company must fight for its beliefs, principles and honour.
The company should not sacrifice its principle for profitability or unscrupulous or be
hypocritical. The company must take actions against anyone doing unethical actions
against the principles or values of the company.
 Trustworthy: Marks and Spencer must fulfil commitments and keep their promises to
their employees, customers and business investors. Trustworthiness is a massive part of
success in business as people like to do business or buy from those companies which are
principled and trustworthy (Jarboui, Saad and Riguen, 2020). The company must
remain trustworthy towards its products or services as it should not sells or manufacture
defective products to the customers.
 Loyalty: Loyalty encloses all relationships a company has including all employees,
investors, customers and partners. All these relationships of Marks and Spencer should
not disclose or use any confidential information for personal advantage. The employees
and company must be loyal with each other as if the company wants to appoint new
employee it must provide a notice to their former employee or if an employee wants to
left the company the individual must give prior notice to the company. Thus, loyalty
allows a company to make beneficial decisions and helps in overcoming any outside
conflicts.
 Fairness: The company must not practice actions irresponsibly and do not use obscene
means to become popular. The company must be fair and should treat all the individual
equally without any discrimination. The company should have an open mind
environment in which everyone will be treated equally. The company must be fair
towards every one without any discrimination or favouritism towards any one. The
company must provide fair chance to everyone and appoint candidates on their talents.
 Compassion: Compassion means to show understanding, caring and kindness for others
(Henninger and et. al., 2017). The company must take decision with careful
considerations of choices and how these decision may impact an individual or
community. This will create a healthy work culture in the company where all the

employees will understand each other without being judgemental. The kindness and
caring nature of employees will create better work environment.
 Respect: The company must have respect for its employees regardless of their sex,
caste, religion, nationality or gender. Having respect for all individual outside and
within the company is a crucial ethical standard. The company must maintain a level of
privacy of customers, this represent respect and increases the trust of people. The
respectful environment within the company will encourage employees to work in the
company with full dedication. The employees will exchange their ideas and values
without any hesitation with each other.
 Lawfulness: The company must follow all the legal rules and regulations regarding the
business such as taxes, labour law and employees safety (Gopal, 2021). This makes a
company more honourable and credible which could set up a positive status as an
employer that motivates talented candidates to apply in the company. By following all
the laws properly the company will be able to create a better image in the eye of
customers and candidates.
 Providing excellence: The company must motivate its employees to deliver quality
products or services to their customers. The employees must be well prepared and
informed. They must improve their performance to achieve desired goals and meet
customers satisfaction. The motivated environment provided by company will enhance
the growth of company and performance of employees.
 Responsibility: The responsibility of the company is to lead its employees with its
mission and value to make reasonable decision that is in favour of everyone (Banerjee,
2017). The company is responsible for giving a safe and healthy environment for its
employees. This will motivate the employees to work without any insecurities. The
responsibility of a company is to provide all the correct information of products or
services to its customers.
 Upholding Reputation: The company must maintain a good reputation in the eye of
customers, investors and employees. The company must engage its customers by
offering exceptional services, its employees by motivating healthy work culture and its
investors by innovative ideas. If there is any unethical actions happens in the company
than it could undermine its reputation. The company must be prepared to handle such

situations by using some ethical standards such as accountability, responsibility and
transparency. The company must take all the appropriate actions or measures to correct
the inappropriate actions of others.
 Accountability: The company is accountable for all its decision and mistakes of all the
persons related to it. The company must stand by for all the consequences, actions and
decisions of its employees, colleagues, partners and communities (Wong and Kim,
2020). It must give justification or explanation to investors for anyone's actions,
intentions and judgements within the company.
Make recommendations for businesses in the sector to show they are being more responsible by
taking into account global considerations.
In the present time companies are focusing on becoming socially responsible whether its
for protection of environment, raising voice for women's right or eradicate poverty on domestic,
national or international level. The social responsibility programmes motivate employees morale
and helps in building productive environment at the workplace (Swarnapali, 2020). Besides
morale factor and positive environment it also attracts customers towards company as consumers
expect that companies must help the communities in which they are situated. The following
measures are recommended for Marks and Spencer to build a sustainable socially responsible
environment:
 Inform employees: Marks and Spencer must inform its employees about every actions
the company is taking in order to create a socially responsible organization. The
employees must know about the issues company is addressing and what steps it is taking
and how (Kong, Witmaier and Ko, 2021). The company could arrange meetings or
deliver informative memos to its employees in order to answer their queries about the
issues.
 Arrange an in-house social responsible team: Marks and Spencer could set up an in-
house socially responsible team of employees who can dedicate their some time in
figuring out the right ways of creating a positive impact on society. These employees
should be passionate about helping others and must launch some internal and external
awareness campaigns about the ongoing issues.
 Direct contribution: Marks and Spencer could donate the money directly to some
charities. This action could make a big difference in their every day actions and

community in which the company is operating. The company could arrange some
fundraising programmes or set up a donation box in their stores.
 Ethical Labour Practices: Marks and Spencer could follow ethical labour practices such
as the company must treat its employees with dignity and respect, value their work, give
them fair compensation for their work and build a secure and healthy environment at
workplace for them (El-Bassiouny and et. al., 2020).
 Collaboration with other companies: Marks and Spencer could collaborate with other
organizations with same mentality in order to create impact on society. The company
could organise events or fundraising programmes with other organizations. This
partnership could help the company in raising more funds for charity.
 Reduce unsustainable practices: A company must take responsible actions to protect
the environment. Marks and Spencer could focus on sustainability while doing overall
operations. Marks and Spencer could launch some recycling programmes, create energy
efficient policies or demoralize any unsustainable practices.
 Encourage Volunteering: Marks and Spencer could reward their employees who
participate voluntarily in the social programmes. Participating as a team would help the
employees in developing a strong bond between them while doing a good cause (Cohen,
2017). Furthermore, the employees who are volunteering during the work hours the
company can give rewards or paid off for their work.
CONCLUSION
From the above analysis, it can be concluded that business ethics builds an
unquestionable amount of trust within the customers, employees, shareholders and companies
by providing a fair and equal treatment to everyone. It creates an awareness on social,
governance issues and environmental issues. As in this report key challenges related to
sustainability and responsibility a company faces is described in detail. Furthermore, what
beneficial ethical practices a company could adopt to create a good reputation in every one's eye
has been discussed. In the last section of this report some recommendations are given in the
context of Marks and Spencer to build a sustainable and ethical environment within the
company. It is very important to have business ethics as it will create a cultural workplace for
employees, develop trust of customers on the company and investors will invest more money for
the growth of the company.

REFERENCE
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