Matilda's Clothing: A Case Study on Business and Society Concepts

This case study solution analyzes Matilda’s Clothing, a fictional women’s clothing business, through the lens of several key business and society concepts. It explores how the company incorporates cosmopolitanism by sourcing materials from both local and international suppliers, shared value by focusing on employee well-being and ethical sourcing, and the triple bottom line by considering financial, environmental, and social impacts. The analysis also examines the company's adherence to the UN Global Compact principles related to human rights and labor standards, as well as its overall commitment to ethical business practices by respecting stakeholders and adhering to established principles. The solution highlights how Matilda's Clothing strives to balance profitability with social responsibility and ethical considerations in its operations and supply chain management.

Running head: BUSINESS AND SOCIETY
Business and Society
Name of the Student:
Name of the University:
Author Note:

1BUSINESS AND SOCIETY
Cosmopolitanism
Cosmopolitanism is a concept applied in business where distance and diversity in work
force and culture is utilized as a core value in both profit generation and decision making. It is in
effect the opposite of protectionism. In other words, companies that follow cosmopolitanism
believe in the existence of one business continent which does not contain any geographic
boundaries (Skrbis and Woodward 2013). In this particular case, it is noted that the raw materials
and services are not only obtained from Adelaide but also from Bangladesh. The supply chain
being based in Bangladesh, allows for Matilda’s Clothing to obtain products at a cheap rate and
generate easy profits.
Shared Value
Shared Value creation is a new business concept that is being increasingly applied in top
companies all around the world. The concept asserts that business goals which are in sync with
the social and communal health promote greater economic progress for the firm (Pfitzer,
Bockstett and Stamp 2013). In this particular case, the entrepreneurs are concerned with
retaining the employees and providing them safe working conditions along with proper pay for
maintaining economic viability. They are also focusing on taking service from “Gwendolines”a
firm that locally employs people and makes sure that they can work from home itself. The firm
also made sure that labour standards were maintained in the manufacturing process.
Triple Bottom Line
Triple Bottom Line is an accounting concept consisting of three aspects which are
financial, environmental and social (Savitz 2013). On considering the financial aspect, it is seen
that the firm is very focused on the fact that the supply chain includes “Gwendolines”, even

2BUSINESS AND SOCIETY
though the process in which they manufacture is not something Matilda’s would usually take, so
that the raw materials and the final products obtained are both cheap and meets their quality
standards. They also cater to the environmental standards as most of the products are home
manufactured and do not pollute or harm the environment. At the social level, the firm has set up
online portals and has extended services to include a bigger cohort of customers and keep the
employees safe all at the same time.
Global compact
Implication of the global compact, involves adhering to the 10 principles laid by the
United Nations (UN) which involves human rights, labor standards, environment and anti-
corruption (Ruggie 2017). In this case, of Matilda’s Clothing, both human rights and labor
standards by making sure that its employees are working under safe conditions with enough pay.
Also, no corruption cases have been mentioned in the case study and as it is mentioned that the
manufacturing involve the warehouse and the retail outlets and the products are home-made, so it
can be assumed that no environmental harm is meted out.
Ethics
Ethics in business relates to following of certain courteous principles which include
respecting co workers as well as clients, adhering to the business principles set at the time of
origination of the firm, committing to excel and abiding the laws of the state (Crane and Matten
2016). In this case, the company takes care of employees and customers and tries to excel by
including a larger client base and opening an online portal. It also sticks to the rules and
principles it set at the beginning of the firm and retains the supplier. Hence, the fact that the firm
has a strong ethical base can be claimed.

3BUSINESS AND SOCIETY
References:
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Pfitzer, M., Bockstette, V. and Stamp, M., 2013. Innovating for shared value. Harvard Business
Review, 91(9), pp.100-107.
Ruggie, J.G., 2017. The theory and practice of learning networks: Corporate social responsibility
and the Global Compact. In Learning To Talk (pp. 32-42). Routledge.
Savitz, A., 2013. The triple bottom line: how today's best-run companies are achieving
economic, social and environmental success-and how you can too. John Wiley & Sons.
Skrbis, Z. and Woodward, I., 2013. Cosmopolitanism: uses of the idea. Sage.