Analysis of Sustainability Factors: A Case Study of H&M's Business

This case study examines the sustainability factors within H&M's business operations, focusing on the company's efforts to minimize its environmental impact and contribute to a sustainable economy. The analysis explores the challenges H&M faces, including transitioning to a low-carbon society, addressing stakeholder needs, conserving the natural environment, and implementing a circular economy. The study highlights the importance of the circular economy, emphasizing the reuse, sharing, repair, refurbishment, remanufacture, and recycling of resources. It also discusses the impact of sustainability factors on organizational decision-making and provides recommendations for companies aiming to achieve a circular economy, such as engaging stakeholders and defining key performance indicators (KPIs). The study references several academic sources to support its findings and provide a comprehensive overview of the topic.

SUSTAINABILITY
FACTORS Case of
H&M

BUSINESS SUSTAINABILITY
Sustainable business refers to
the green business that guides
the business organisations to
have a minimal negative
impact upon the
global and local environment
Society (Clayton and
Radcliffe 2018)
community
Economy
This type of business meets
the triple bottom line
measures
People
Planet
Profit

CONTRIBUTING FACTORS TO
THE SUSTAINABILITY
PROBLEMSSociety and humanity now faces sustainability
challenges.
The elements of human and environmental
sustainability mainly relate to the sustenance
of humanity, ecosystem and civilisation of the
earth (Glavas and Mish 2015).
Various companies face various challenges that
include:
Transition to low carbon society
Addressing needs of society and stakeholders
Conserving natural environment
Procuring and supplying in sustainable manner

CIRCULAR ECONOMYIn the sustainable decisions making, the theory of
circular economy can play an important part.
This type of economic system helps the organizations
to eliminate wasted and use resources many times
(Gou and Xie 2017).
This system incorporates
Reuse
Share
Repair
Refurbish
Remanufacture
Recycle
Of all the resources for creating a closed system (Tate
and Bals 2018).

IMPACT UPON
ORGANISATIONAL DECISION-
MAKING
Sustainability factors have
direct connection with the
organisational decision
making (Paulraj and Blome
2017).
The managers of the
companies in such case aim
to manage the transition of
the operations greatly.
Changes come in the internal
as well as external aspects as
more stakeholders get
involved with those type of

PROFESSIONAL
RECOMMENDATIONS
The management of the companies that aims to achieve circular economy
need to follow the steps like-
Identify specific ambitions
Engaging more with the stakeholders
Provide top management support
Educate employees
Empower business unit
Focus on innovative practice
Collaborate with external partners
Define KPI around business case (Laszlo and Zhexembayeva 2017).

REFERENCES:
Clayton, T. and Radcliffe, N., 2018. Sustainability: a systems approach. Routledge.
Ellenmacarthurfoundation.org (2019). H&M Circular Economy Strategy. [online] Ellenmacarthurfoundation.org.
Available at: https://www.ellenmacarthurfoundation.org/our-story/partners/global/h-m [Accessed 4 Oct. 2019].
Glavas, A. and Mish, J., 2015. Resources and capabilities of triple bottom line firms: going over old or breaking
new ground?. Journal of Business Ethics, 127(3), pp.623-642.
Gou, Z. and Xie, X., 2017. Evolving green building: triple bottom line or regenerative design?. Journal of
Cleaner Production, 153, pp.600-607.
Hussain, N., Rigoni, U. and Orij, R.P., 2018. Corporate governance and sustainability performance: Analysis of
triple bottom line performance. Journal of Business Ethics, 149(2), pp.411-432.
Laszlo, C. and Zhexembayeva, N., 2017. Embedded sustainability. In Embedded Sustainability (pp. 116-140).
Routledge.
Paulraj, A. and Blome, C., 2017. Plurality in environmental supply chain mechanisms: Differential effects on
triple bottom line outcomes. International Journal of Operations & Production Management, 37(8), pp.1010-
1030.
Tate, W.L. and Bals, L., 2018. Achieving shared triple bottom line (TBL) value creation: toward a social
resource-based view (SRBV) of the firm. Journal of Business Ethics, 152(3), pp.803-826.