H&M Business Ethics Report: Utilitarianism and Ethical Practices

This report provides an analysis of H&M's business ethics, focusing on the company's adherence to ethical principles and its application of utilitarianism. The report examines H&M's commitment to ethical practices, including its animal welfare policy and use of sustainable materials. It explores how the company positions itself as an ethical solution in the fast-fashion industry. The study delves into the ethical philosophy employed by H&M, particularly the utilitarianism theory, and how it influences the company's decision-making process. The report also highlights the roles of employees and senior management in maintaining business standards, emphasizing their contributions to the company's ethical framework and overall success. The conclusion summarizes H&M's efforts to operate ethically and its strategy to satisfy its customers while complying with ethical standards.

Business ethics
• Cited firm is also heading in the
right direction for animals by
having a formal animal welfare
policy aligned with Five Freedom.
• it is clearly shows that company is
actually following all the ethical
consideration and that is why, it is
stay ahead in the competition.
Ethical
philosophy
company follow
• Ethical philosophy involves
systematizing and recommending
the concepts of being right and
wrong behavior.
• There are many theories used by
many companies and it is depend
upon the behavior of the company
through which the firm run its
business operations in smooth
manner.
• H&M uses Utilitarianism ethical
philosophy in which company is
based on the one’s ability to predict
the reason of an action.
Introduction
• Business ethics is all about
professional ethics and examine
ethical principle and moral
problem that arises in the
business
• The current study is also
focused upon the business ethics
and understand the importance
of ethics to run a business at
further level of success.
Overview of the
company and reason
of being ethical
• H&M is Swedish clothing
company who sells fast fashion
at low rates.
• The company is recognized
under top brand because of its
brand image and high quality
• It is the second largest retailer in
the world and it operates in 62
countries.
• It uses eco-friendly materials like
organic cotton and recycled
polyester in some products.
• H&M’s exclusive conscious
collection has made from
sustainable material and after it’s
audacious move quoted firm is
positioning itself as ethical
solution.`
Marketing strategy: For that, Blue air may use the P’s of marketing such that under product, company will add new
product in this services such that inflatable cushion. On the other side, price of new product is minimal i.e. company uses
penetration pricing style (Wu and Li, 2018). Also it is available in those operation where Blue Air is operated. Lastly it
uses digital marketing promotional strategy in order to improve the results,

• It is stated that actions are right infosar
because they promote happiness instead of
unhappiness
• In this modern era, every company uses
utilitarianism because it is sole method for
moral decision making
Business Ethics
Also management at all level shall also demonstrate its commitment to establishment, implementation and assessment of management system. Along with this, company also allocate
adequate resources in order to carry out these activities.
CONCLUSION
By summing up above report it has been concluded that company follow all the ethical principle and also tries to run a business by complying ethical principles. Moreover, it is also
concluded from the study that H&M follows the Utilitarianism theory in which they want to stay their customer happy by offering a good variety of products.
Role of senior management team to maintain business standards
The senior management of H&M should comply with Henry fayol principles which clearly stated the roles of every management team
and manager should also comply with the same.
• The theory is quite easy to implement and
also focus on happiness as a society without
harming others.
• Basically there are two type of utilitarianism
which is adhere by the firm such that act
utilitarianism and rule utilitarianism.
• For example, as per the act utilitarianism, a
person performs the act which benefits most
of the people and it is the personal feelings
or societal constraints i.e. law.
• H&M uses the theory in order to meet the
demand of a company and it provide range
of facilities to their customers.
• Moreover, by complying the same, company
also faces many issues which somehow
affect the overall business. Such that there is
a possibility of conflicting rules. For
instance, there is a meeting running and at
that time CEO of H&M arrive late. During
this time, most of the members felt that
ethically it is not correct because the
meeting is conduct for benefit of society.
Role of employees to maintain business
standards
• Employees are considered as a trust assets
of an organization and they are the one who
contribute the work in positive manner
towards successful functioning of an
organization. Senior management share the
roles and responsibilities to them in order to
meet the define task of a firm.
• In addition to this, it is also examine that
employee should exercise care for the
facilities, equipment and overall property of
an employer because they belongs to the
company and that is why, it is necessary for
the employees to take care of such property.
• Moreover, it is examine that employees are
the pillar of H&M who contribute
effectively towards successful functioning
of an organization. Further they strive hard
to deliver their best and achieve the
assigned target within a stipulated time
frame.
• Therefore it is stated that employees play an
important role to decide the culture of a
workplace. Further, it is also analyzed that
employers of the company also make sure
that their employees are happy and this in
turn improve the results and maintain the
relationship with employees as well.