Impact of CCI on Fashion Retailers

This report investigates the impact of Corporate Community Involvement (CCI) on the brand reputation of fashion retailers H&M and Primark. It explores the relationship between CCI and supply chain management, examining how stakeholder partnerships and transparent information influence brand image. The study uses a mixed-methods approach, incorporating a literature review and primary data collected through a questionnaire. The findings suggest a positive correlation between CCI, effective supply chain management, and brand reputation, highlighting the importance of stakeholder engagement and transparent communication. The report concludes with recommendations for H&M and Primark to further enhance their CCI strategies and build stronger brand reputations.

THE IMPACT OF CORPORATE
COMMUNITY INVOLVEMENT ON
THE BRAND REPUTATION OF
FASHION RETAILERS (H&M AND
PRIMARK

AKNOWLEDGEMENT
For conducting this research, support and guidance has attained from different individual
and I want to thank them for the same. Firstly, my mentor who supported and guided me
throughout the project without which this research was not possible. Further, I am thankful to my
parents who supported and helped me whenever I was in need of it. Last but not least, my friend
and relatives who supported me and helped me in some or the other way for completing this
project.

EXECUTIVE SUMMARY
Corporate Community Involvement is a phenomena which refers to involvement of
society into practices of businesses. CCI is a measure where the business units make effective
efforts including charitable donations, community development projects, quality production,
employer support, sponsorship, cause-related marketing and gifts-in-kind etc. to involve
community in business development. CCI help companies in creating positive business relations
through enhancing stakeholder’s partnership in the economies and create an effective impact on
organizational growth and development. H&M and Primark intend to involve society in their
business practices in order to know about their own business performance. This research will
help to understand efforts made by these two firms in ascertaining ideas about their own
performance through involving customers in their business practices. This report will explain
how societies will impact on supply chain activities of H&M and Primark like production,
distribution, storing and selling of goods and services.
It can be articulated from the study that Corporate community involvement is one of the
most crucial and significant part if the business growth and promotion. The secondary research
and analysis of the report helped the researcher in analysing that CCI is adopted by the company
to enhance the reputation and growth of the business unit. Effective CSR communication and
well defined business relations helps the business units in developing high and effective
measures of promotion within the market. On the basis of findings it has been evaluated that
consumers of the fashion retail keenly observes the actions of the companies for community
involvement and development as well which helps the companies in developing effective brand
image and consumer loyalty within the market.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Background of the study...................................................................................................1
1.2 Rationale of the Study......................................................................................................2
1.3 Research aims and objectives...........................................................................................2
1.4 Research questions...........................................................................................................3
1.5 Significance of research...................................................................................................3
1.6 Research structure............................................................................................................4
CHAPTER 2 :LITERATURE REVIEW.........................................................................................5
2.1 Introduction......................................................................................................................5
2.2 Corporate Community Involvement.................................................................................5
2.3 Corporate Community Involvement and Supply-chain management..............................7
2.4 Role of Stakeholder partnership in CCI...........................................................................9
2.5 Impact of CCI on H&M and Primark.............................................................................11
2.6 Crucial factors to be undertaken by H&M and Primark during implementation of CCI in
Supply-chain management...................................................................................................12
2.7 Conceptual Framework..................................................................................................14
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................16
3.1 Introduction....................................................................................................................16
3.2 Research Approach.........................................................................................................16
3.3 Research Philosophy......................................................................................................16
3.4 Research Design.............................................................................................................17
3.5 Data Collection...............................................................................................................18
3.6 Sampling Techniques.....................................................................................................18
3.7 Data Analysis..................................................................................................................19
3.8 Ethical Consideration.....................................................................................................20
3.9 Reliability and Validity..................................................................................................20
CHAPTER 4: DATA ANALYSIS................................................................................................21
4.1 Introduction....................................................................................................................21
4.2 Data analysis for H&M..................................................................................................21
4.3 Data analysis for Primark...............................................................................................28

CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................34
5.1 Introduction....................................................................................................................34
5.2 Conclusion......................................................................................................................34
5.3 Recommendation............................................................................................................36
REFERENCES..............................................................................................................................39
APPENDIX....................................................................................................................................43
QUESTIONNAIRE..............................................................................................................43
CONSENT FORM...............................................................................................................46

CHAPTER 1: INTRODUCTION
1.1 Background of the study
Globalization has enhanced the growth and development of the business widely within
the competitive economies. Business units are seeking the effective measures to develop a
competitive market position to sustain the growth and development of the organization. Creative
measures of promotion have helped organizations in enhancing the sales and profitability of
business. Quality ascertaining, society development, stakeholder partnership, managing positive
business relations, indulging in CSR activities etc. are some of the common and most effective
measures which the business units have adopted in order to enhance profitability and
development. These measures help them in developing a competitive edge within the market.
Corporate Community Involvement is a phenomena which refers to involvement of
society into practices of businesses. According to Seitanidi and Ryan, (2007) CCI is a measure
where the business units make effective efforts including charitable donations, community
development projects, quality production, employer support, sponsorship, cause-related
marketing and gifts-in-kind etc. to involve community in business development. These are the
most effective exclusive measures of promoting organizational activities of the company. CCI
help companies in creating positive business relations through enhancing stakeholder’s
partnership in the economies and create an effective impact on organizational growth and
development. H&M and Primark intend to involve society in their business practices in order to
know about their own business performance. This research will help to understand efforts made
by these two firms in ascertaining ideas about their own performance through involving
customers in their business practices. This report will explain how societies will impact on
supply chain activities of H&M and Primark like production, distribution, storing and selling of
goods and services.
Supply chain management is the process wherein goods flow from manufacturing point
to consumption point via different levels. These levels play the most dominant role in delivering
success to business firms. According to Rehbein, Waddock and Graves, (2004) suppliers of the
company are one of the major and significant stakeholders. Retail units focus on maintaining
effective supplier relations to promote business growth and enhance cost effectiveness of the
business units. These strategies help the companies in enhancing business relations to develop
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brand reputation within the economy. Supply chain management helps the business unit in
creating wide sales measures within the economy. This strategy developing community
involvement of the company by analysing the needs of suppliers and adopting measures to fulfil
those needs and requirements. In the study, two clothing retail firms H&M and Primark have
been concerned which are engaged supplying their produced goods across different countries
(Ballou, 2007). Supply chain management of the said firms includes suppliers from countries
where they can get cheap labour such as India, Sri Lanka, Pakistan, Bangladesh, Indonesia etc.
Across all the aforesaid countries, H&M and Primark can get suppliers at very low prices and
both the firms can acquire huge benefit by employing them. The study will analyses the issues
that can be faced during CCI in H&M and Primark that can be in the terms of language barrier,
insufficient funds to involve community in their programs, inadequate facilities to organize
participation of community in business development program, cultural changes. Moreover it will
also focus on analysing the perception of consumers for the business operations of the stated
firms in order to evaluate the impact on these measures on the brand image of mentioned fashion
retail.
1.2 Rationale of the Study
This study has been undertaken to provide a clear understanding of CCI for readers.
Moreover, the main purpose of choosing this topic is to clarify the reasons that are creating gap
between CCI and supply chain management in the retail firms H&M and Primark. The present
study will focus on analysing the issues that companies face while adopting the stated measures
for the organizational growth and development within the market. Therefore, this research will
help to examine the benefits achieved by the said firms after implementing CCI in their supply-
chain activities. The increasing demand of fashion retail segments will be effective for the
analysing the research on the stated topic and understand the core concepts as well. However,
supply chain includes demand management, communication, integration and collaboration
between two firms (Haniffa and Cooke, 2005). These are some elements of supply chain which
must be considered by companies at the time of involving CCI into their operational activities.
1.3 Research aims and objectives
The main aim of conducting this research proposal is to examine the impact of Corporate
Community Involvement on the brand reputation of two fashion retailers (namely H&M and
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Primark) during a period of enhanced transparency of business information and increasing
partnership relationship in supply chain activity.
The main objectives to be ascertained through this research proposal are:
 To determine the role of clothing retail firms H&M and Primark by involving Corporate
Community Involvement in their business practices.
 To ascertain the interrelationship between CCI and Supply-chain management of clothing
manufacturers regarding activities performed by suppliers of H&M and Primark.
 To look into factors between CCI and SCM which creates impact over the brand
reputation of the mentioned firms.
 To measure the impact of CCI on brand reputation of H&M and Primark through various
qualitative measures.
 To analyses primary data regarding involvement of customers in activities of H&M and
Primark clothing retail firms.
1.4 Research questions
The research will base on certain key questions which will assist in achieving aims and
objectives. They have been discussed below:
 What is the role of retail firms such as H&M and Primark when they apply Corporate
Community Involvement in their business performance?
 What is the relation between CCI and supply chain management in context of the
activities performed by suppliers including H&M and Primark?
 What are the key factors that should be taken into account while implementing CCI into
the supply chain activities for building reputation of a business organization?
 What is the impact of CCI on the brand reputation of retail stores?
 How to collect primary data regarding involvement of customers in clothing retail firm?
1.5 Significance of research
Involvement of CCI in the supply chain activities of H&M and Primark can create several
impacts over their brand reputation. However, both these companies can identify and monitor
issues that are important for their operations and reputation. H&M and Primark can build and
maintain trust with community as CCI is one of the most critical component of retail firms
strategies and operations (Hess, Rogovsky and Dunfee, 2002). Another major impact of CCI
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over the cloth brands of said firms can be observed in the alignment of different roles of and
responsibilities.
There are number of CCI strategies that can be adopted by H&M and Primark in order to
conduct business effectively in communities. They are: donation, employee volunteering, non-
partnership and partnership. For the purpose of increasing brand reputation, it is very necessary
for the said firms to implement the aforesaid strategies (Hess, Rogovsky and Dunfee, 2002).
Positive impacts of CCI can be seen in the form of, increase in positive attitude of people
towards the company and its brand. Corporate Community Involvement programs which can be
undertaken by H&M and Primark are: Dow Corning, Patagonia and Team One.
1.6 Research structure
A systematic structure is one of the major requirements for conducting investigation on
supply chain management and its impact on brand image of H&M and Primark. The present
report will adopt the following structure to develop an effective study. Chapter 1: Introduction- This section of the research will evaluate the overall research
investigations by analysing aims, objectives and rationale of the study. Chapter 2: Literature Review- This section of the research will carry out the extensive
secondary research to analyses the core concepts and terminology of the research. It will
help in understanding the subject of the research and issues associated with the same. Chapter 3: Research Methodology- This section will evaluate the overall research
designs and methodologies that the company used in order to structure the report and
attain research aim. This section use different tools and techniques to structure the
research report. Chapter 4: Data Analysis and Findings- This section of the report used various methods
and tools to analyses the primary research for the study and evaluate the findings in order
resolve the research aim.
 Chapter 5: Conclusion and Recommendation- After getting appropriate findings author
will make appropriate conclusion for the whole investigation.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
The present study attempts to create a clear and in depth understanding about supply
chain management and significance of corporate community involvement for the same. The
research attempts to deliver a clear analysis of the topic and impact on the growth of the
business. This section of the study carries out a valid and effective secondary research for the
selected topic. It delivers a motive to the researcher to evaluate and investigate previous
researches and discuss its finding to reach to a new spectrum of understanding. The effective
information and extensive research helps in understanding the crucial terminologies and research
paradigm. The necessary information needed for the research has been collected from books,
journals and online content have been used to collect necessary secondary information. This has
helped the researcher in finding the effective research gaps and seeking effective ways to fill
those to deliver an effective result for the study.
2.2 Corporate Community Involvement
Uyan-Atay (2011) defines Corporate community involvement as one of the most
significant and crucial factor for the success of business growth and development. It is a process
which helps businesses to share its resources with community at large in order to create an
effective impact on the same. It encompasses all forms of company support for the community,
including charitable donations, community projects, employer supported volunteering,
sponsorship, cause-related marketing and gifts-in-kind (Muthuri, Chapple and Moon 2009). This
helps the businesses in creating a wide impact on the overall growth and development of
business by developing its brand image and creating effective measures to gain consumer loyalty
within the market. Companies have been adopting these measures to enhance their relationship
with the society and develop an effective understanding about their needs and requirements.
According to Hąbek (2008) traditionally businesses used to operate to earn core profit
ignoring the cost of environment, society and needs of the people. However with evolution of
business practices these measures have been developed and regulated by legal and regulatory
authorities. With changing times and needs the practice has gained effective significance for the
growth and development of business practices.
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Illustration 1: Types of CCI activities
(Source: Brammer and Millington, 2003)
JONES, WILLNESS and MACNEIL, (2009) stated in various researches and studies that
there are many measures that the companies have adopted in order to enhance Corporate
community involvement. There are various types CCI activities that the business units carry in
order to deliver effective impact on the growth of the companies. These include activities such as
parenting which focuses on parenting and family development skills where companies focuses
on evaluating the needs of families and understanding the family conditions. Communicating
measures on the other hand focuses on developing a two way communication with the public at
large in order to develop an effective impact of organizational messages to enhance better means
of communication with people (Azim, Ahmed and Islam, 2009). Volunteering, learning at home
and collaborating with community are yet another measures which has helped the companies in
creating a wide and effective impact on the overall growth and development of the company.
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CCI adds value to the business operations as it helps the business in creating an effective
impact in the overall growth and development. Studies and surveys and supported the common
belief that proper and well managed corporate community involvement help businesses in
enhancing consumer relationship. According to Zadek Evans and Pruzan, 2013 high involvement
of community and consumers helps the companies in evaluating the actual needs and
requirements of the buyers. Business units address those and help the society to develop and
grow as well. This enhances the trust and loyalty of the consumers within the company. This
helps the business in enhancing its brand image within the competitive world (Cronin and
Zappalà, 2002). By developing an effective commu8nication and partnership measures with the
consumers and society helps the company in adding up the value of the firm by generating high
awareness among the buyers.
CCI do not adds up to much of the financial losses because investment because this
measure seeks carefully measured and assumed way to develop the plan for the organization. It
prevents the companies from disrupting stakeholder's values and beliefs within the firm. The
effective performance of the company in turn enhances the value of the company which results
in the beneficial opportunities for the companies and people as well (Kotler and Lee, 2008). This
also helps the companies in strengthening internal business environment as the well developed
and effectively operating business unit develops wide demand of job seekers as well. CCI help
companies in enhancing services to develop a well-developed community involvement and
communication measure. Corporate social performance aids recruitment and retention of
employees thus enhances organizational growth overall.
2.3 Corporate Community Involvement and Supply-chain management
Corporate Community Involvement (CCI) has consistently become a popular business
concept which is adopted by many of the business organizations. This process helps business
unit in sharing the organizational resources with communities to create a wide and effective
impact on the growth and development of the business (Brammer and Millington, 2003). Supply
Chain Management (SCM) on the other hand is the practice where the business unit creates
effective measures to reach the ultimate consumers and develop an effective business
relationship. This practice helps a company in enhancing the sales of the company by making
high availability of the product within the market (Hąbek, 2008). CCI is a deliberate act of
serving society in order to enhance and develop the brand image of the company within the
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