Assignment 2 IFP Research The following research has been carried out to reinforce all decisions made throughout the International Fashion Promotion project; furthermore it shapes creative decisions and outputs. Various case studies and examples have been examined to showcase the importance of Corporate Social Responsibility (CSR), sustainability, ethical consumption and other issues that the fashion industry face today.
SECTION 1 what is business ethics? Business ethics is the study of business situations, activities and decisions where issues of right and wrong are addressed. Business ethics is concerned with those issues not covered by law. (Crane and Matten, 2007)
Why is business ethics important? • • • • • •
Increasing power and influence of business Potential contribution of business to society Business malpractices can have enormously harmful consequences Increasing complexity of stakeholder demands Lack of education/training Helps to understand the reasons behind ethical malpractices in business
Key Terms and Definitions
Morality: norm, values & beliefs which define right & wrong. Moral teachings are found in many major religions and belief systems. (Perry & Ahmad, 2016) Ethics: study of morality and application of reason to develop specific rules & principles that determine right & wrong. Ethical theory: rules & principles that determine right & wrong.
The Role of Ethical Theory
Moral principles translated into a set of guidelines to aid business decision-making. Two extreme positions: •
•
Ethical absolutism – claims there are eternal, universally applicable moral principles o Right and wrong are objective qualities that can be rationally determined o Typically traditional ethical theories e.g. consequentialism Ethical relativism – claims morality is context dependent and subjective o No universal right and wrongs that can be rationally determined & depends on o
person making the decision and culture in which they are located Typically contemporary ethical theories e.g. virtue ethics
Ethical Absolutism in Business This view assumes that: • • •
Certain actions are always right or wrong There are universally applicable moral principles Right & wrong are objective qualities that can be rationally determined
“We will never resort to bribery under any circumstances” “It is wrong to pay ransom for hostages” This is a perfectly ethical stance, but it may be difficult to maintain
Ethical Relativism in Business This view holds that ethical propositions do not reflect objective and/or universal moral truths. Morality is subjective and context-dependent. An ethical stance depends on the circumstances surrounding it or which led to it, which also includes cultural boundaries. So, for example, what we regard as bribery may, in a different country, is regarded as gift-giving. A business is ethical despite treating two sets of employees differently e.g. minimum working age
“BUSINESS ETHICS: ANTECEDENTS OF CSR & SUSTAINABLE DEVELOPMENT” The normative case: ethical theory / moral philosophy •
‘It’s the right thing to do’
• •
e.g. Utilitarianism (greatest good for greatest number) e.g. Deontology – Kant’s Categorical Imperative (inviolable human rights, means to end cannot be justified)
The business case: competitive advantage • • •
‘It’s good for the business’ Enlightened self-interest Strategic CSR TODAY, THE BUSINESS CASE TAKES PRECEDENCE OVER THE MORAL CASE “The antiwar activists who, during the 1960s, pressured Dow Chemical to stop producing
napalm, framed their arguments exclusively in moral terms: they neither knew nor cared whether producing napalm would affect Dow’s earnings. In contrast, the contemporary environmental activists who are working with Dow to reduce its carbon emissions argue that doing so will make Dow more profitable by lowering its costs” (Vogel, 2005)
Traditional Ethical Theories These generally offer a certain rule or principle which one can apply to any given situation Can be differentiated into 2 groups:
(Crane and Matten, 2007)
So how can we apply ethical theory to business decision-making?
Virtue Ethics Driving force for ethical behaviour is character of moral agent (individual or firm), rather than act or outcome.
Values: • •
European – Christianity – honesty, kindness, prudence, charity, mercy and humility Eastern – Confucianism, Hinduism, Buddhism – benevolence, honesty, loyalty, wisdom, integrity, propriety
Concept of ‘managerial discretion’ – how managers exhibit their personal values (Hemingway & Maclagan, 2004) • •
Religious values e.g. Muslim values of duty to community (Worthington et al, 2006) Personal values e.g. changing societal norms
CASE STUDY EXAMPLE: CSR IN SRI LANKA Global reputation for ethical garment manufacturing •
World-class eco-manufacturing facilities & strong social compliance record
70% of population are Buddhists •
Buddhist morality: virtue-oriented, character-based, communityfocused ethics – aligns with Western virtue ethics
Buddhist concept of Śīla refers to virtue, good conduct and moral discipline: the overall principles of ethical behaviour “The mindset is that you can’t exploit people who are under you ... the Buddhist culture is demanding fairness and social justice and equity between all” (Senior Operations Manager, Company A, 2009) So, even with “no such demands, no rules and regulations, no standards, still I would say that 70-80% of the things which we are practising could have been there” (Senior Operations Manager, Company A, 2009)
CASE STUDY EXAMPLE: HOUSE OF COMMONS BIS COMMITTEE REPORT INTO EMPLOYMENT PRACTICES AT SPORTS DIRECT (2016)
“The way the business model at Sports Direct is operated, in both the warehouse at Shirebrook and in the shops across the country, involves treating workers as commodities rather than as human beings with rights, responsibilities and aspirations. The low-cost products for customers, and the profits generated for the shareholders, come at the cost of maintaining contractual terms and working conditions which fall way below acceptable standards in a modern, civilised economy. There is a risk that this model - which has proved successful for Mr Ashley - will become the norm.” (p.27)
CASE STUDY EXAMPLE: KATHARINE HAMNETT’S FASHION BUSINESS
In 1989 KH did some research into social and environmental issues in the fashion supply chain and found “a living nightmare” She said: “I wasn’t prepared to make my living at the expense of environmental degradation and human suffering at the bottom of the supply chain” Implementation of CSR into her business was based on a moral imperative to alleviate human suffering in the production of fashion clothing.
The Dilemma of an Objective Standard of Morality “I have been to factories all over the Pacific rim - Korea, Japan, Hong Kong, Szechwan, Singapore. I have seen workers in all kinds of situations but have never seen what I would call hazardous or abusive conditions. But the issue is complicated. Take child labor. Child labor is child labor: it is
disgusting. I went to Morocco and saw seven year olds working in the kilim factories. In Morocco, that is not against the law, that is fine for them. I found it disturbing ... However, nobody in Morocco is picketing in the streets about their daughters working in a rug factory. It is not slavery and the families have donated the girls to do this kind of work. Little boys working in leather dyeing are running around in tanning acid; it cannot be good for them, but this is what they do. So am I going to rewrite the social conduct of Morocco?� (CEO of Nicole Miller Inc., quoted in Smestadt, 2010)
EXAMPLE: REMUNERATION OF SENIOR MANAGERS
Salaries are significantly higher than employees at lower levels, with generous benefits, golden hellos and goodbyes, enhanced pension & expenses allowances etc. Why? Because they have greater responsibility, can potentially add significant value to the firm and they take a significant amount of risk. Is this justified in terms of equality, fairness or deservingness?
Cultural Relativism The counter argument – due to differences in social context between cultures, there can be no objective standard of morality. •
‘Food comes first, then morals’ (Bertolt Brecht)
IKEA removed images of women from its catalogue in Saudi Arabia (Oct, 2012)
Should business adhere to local norms where they conflict with corporate values? IKEA response: “We should have reacted and realised that excluding women from the Saudi Arabian version of the catalogue is in conflict with the Ikea Group values”
CONTEMPORARY ETHICAL THEORIES Virtue ethics • Morally correct actions are those undertaken by actors with virtuous characters Feminist ethics • acknowledges individual is deeply embedded in network of interpersonal relationships, prioritises empathy, care, avoidance of harm above abstract principles Discourse ethics • focus on rational reflection on real life experiences of all relevant participants Postmodern ethics • Rejects rational approaches to morality, focus on ‘moral impulse’
IN PRACTICE: How Are Ethical Dilemmas Resolved By Small Business Owners? (VYAKARNAM ET AL, 1997)
SECTION 1 REFERENCES Crane and Matten (2010) Business Ethics, OUP, Oxford, Chapters 1 & 3
Perry and Ahmad (2016) ‘Islamic and Buddhist perspectives of Corporate Social Responsibility’ in Örtenblad, A. (Ed.) Handbook of Research on Corporate Social Responsibility, Edward Elgar, UK Adams (2002) ‘Retail profitability and sweatshops: a global dilemma’, Journal of Retailing and Consumer Services, 9 (3), pp.147-153 Smestad (2010) ‘The sweatshop, child labour, and exploitation issues in the garment industry’, Fashion Practice, 1 (2), pp.147-162 Hemingway & Maclagan (2004) ‘Managers’ personal values as drivers of corporate social responsibility’, Journal of Business Ethics, 50 (1), pp.33-44 Worthington, Ram and Jones (2006) ‘Giving something back: a study of corporate social responsibility in UK South Asian small enterprises’, Business Ethics: A European Review, 15 (1), pp.95-108 Vyakarnam et al (1997) ‘Towards an understanding of ethical behaviour in small firms’, Journal of Business Ethics, 16 (15), pp.1625-1636 Vogel (2005)
CORPORATE SOCIAL RESPONSIBILTY SECTION 2 What Is CSR? • • •
Ethical behaviour of a company towards society Avoiding exploitation of workers and destructive environmental practices Consideration of stakeholders (as well as shareholders)
“Actions that appear to further some social good, beyond the interests of the firm and that which is required by law” (McWilliams and Siegel, 2001)
Carroll’s Pyramid of SR The firm’s responsibility to society is underpinned
by
economic
responsibility to make a profit, but it
also
has responsibilities that go beyond the firm’s immediate interest e.g. ethical and
philanthropic.
(Blowfield
&
Murray, 2011)
DEFINITION OF CSR World Business Council for Sustainable Development (1999): “The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”
DAHLSRUD’S (2006) 5 DIMENSIONS OF CSR DEFINITIONS
WIDER ISSUES ADDRESSED BY CSR • • • • • • • •
Human rights (universal declaration of human rights, ILO core conventions) Workplace and employee issues including occupational health and safety Unfair business practices including bribery, corruption and anti-competitive practices Organisational/corporate governance Environmental aspects Marketplace and consumer issues Stakeholder involvement Social development
CSR & SD (WARHURST, 2001)
3 main areas: • Product use in society and the contribution of industrial products to improved health, wellbeing and quality of life. • Business practice: the way in which the business is run – corporate governance - and in particular the extent of social (including environmental) responsibility integrated within corporate strategy.
• Equity and the intra- and inter-generational distribution of the benefits of industrial production across different societies, especially within host communities.
BUSINESS BENEFITS OF CSR
Employee recruitment, motivation and retention Reputation management – brand value • •
Potential for ethical/eco-marketing e.g. American Apparel – ‘Made in Downtown LA, Sweatshop free’
Investor relations and access to capital • •
Reduced risk viewed positively by financial community e.g. Wal-Mart’s share price rose by 2% in Sept 2008 following its announcement to cease using Uzbek cotton in its supply chain on grounds that it was harvested by forced child labour
Competitiveness and market positioning Licence to operate •
Social contract between business and society
Operational efficiency • •
Less waste, higher productivity Higher productivity – e.g. New Look Bangladesh
Effect of CSR on firm profitability is undecided Strategic CSR • Contribute to competitive advantage – added value (Blowfield & Murray, 2011)
STRATEGIC CSR
(Good Fashion Report, OXFAM, 2009)
Confers benefit to firm as well as society – contrast with economic philanthropy (Porter & Kramer, 2006) Corporate success + social welfare Moving towards the creation of shared value: a higher form of capitalism that creates a positive cycle of company and community prosperity (Porter & Kramer, 2011)
HOW TO ASSESS STRATEGIC CSR? Burke & Logsdon (1996) 5 measures of strategic CSR
CSR AS PART OF BUSINESS STRATEGY: TESCO’S BALANCED SCORECARD
CASE STUDY THE ROAD TO CSR: CASE OF NIKE (ZADEK, 2004)
CASE STUDY M&S PLAN A JOURNEY
SECTION 2 REFERENCES Blowfield & Murray (2011) Corporate Responsibility, Chapters 2 & 6 Blowfield & Frynas (2005) Setting new agendas: critical perspectives on corporate social responsibility in the developing world, International Affairs, 83 (3), 499-513 Freeman (1994) A stakeholder theory of the modern corporation, in Beauchamp & Bowie (Eds.) (2001) Ethical theory and business, Prentice Hall Friedman (1970) The social responsibility of business is to increase profits, New York Times Magazine, September 13, 32-33, 122, 126 McWilliams & Siegel (2001) Corporate social responsibility: a theory of the firm perspective, Academy of Management Review, 26 (1), 117-127 Porter & Kramer (2006) Strategy and society: the link between competitive advantage and corporate social responsibility, Harvard Business Review, 84 (12), 78-92 Porter & Kramer (2011) Creating shared value, Harvard Business Review, 89 (1/2), 62-77 Sethi (2003) Setting global standards: guidelines for creating codes of conduct in multinational corporations, Wiley, Hoboken, New Jersey Zadek (2004) The path to corporate social responsibility, Harvard Business Review, 82 (12), 125-132 Warhurst (2001) Corporate Citizenship and Corporate Social Investment: Drivers of Tri- Sector Partnerships, Journal of Corporate Citizenship, Spring, 57-73 Davis (1973) The case for and against business assumption of social responsibilities, Academy of Management Journal, 16 (2), 312-322
Burke & Logsdon (1996) ‘How corporate social responsibility pays off’, Long Range Planning, 29 (4), 495-502
SECTION 3 Corporate Social and Environmental Responsibility issues, barriers and drivers in global garment manufacturing
•
•
Social responsibility – garment production: the ‘sweatshop’ issue o Sri Lanka: ethical garment manufacturing, Turkey: health and safety in denim sandblasting Environmental responsibility – textile pipeline: use of sustainable resources, reduce consumption of water, pesticides and chemicals in growing and processing. o Uzbekistan: resource management and human rights in cotton production, Sri Lanka: eco garment factory
Typical global garment supply chain (Perry & Towers, 2009)
INFLUENCE OF WIDER CONTEXT GARMENT MANUFACTURERS ON CSR
Garment Manufacturers Poor supervisory & management skills, Acceptance of orders without assessing requisite capacity & capabilities, Lack of modern technology & equipment, Inefficient processes & operating practices, Insufficient understanding of labour laws & standards, Lack of regard for workers’ rights.
BUYERS (BRANDS & RETAILERS) Unreasonable expectations of cost & speed, Lack of understanding of factory conditions & how business decisions impact them, Inefficient buying practices, Insufficient emphasis on labour standards in sourcing decisions, Inconsistent labour standards & means of enforcing them
INDUSTRY CONDITIONS Fragmented nature of garment industry, intense competition & focus on cost reduction, Lack of uniform code of conduct & industry coordination & resolve, Chronic price deflation
COUNTRY CONDITIONS Inadequate or outdated labour laws, insufficient enforcement by local government, Lack of understanding of rights among workers, Poor economic, financial & civic infrastructure
INTERNATIONAL CONDITIONS Global trading requirements, including complex bi- & multi-lateral restrictions, Tariffs, Geographic shift in production following quota removal, Increasing expectations of consumers on cost & choice Factors contributing to poor working conditions in garment factories - taken from (Gap Inc. 2004 Social Responsibility report)
SOCIAL RESPONSIBILITY: LABOUR ISSUES
•
Wages
•
Working hours
•
Working conditions (health & safety)
•
Freedom of association
•
Discrimination
•
Forced labour
•
Child labour
HOW DO RETAILER BUYING PRACTICES IMPACT ON FACTORY LABOUR CONDITIONS
Retailer buying practices undermine efforts to implement CSR at factory level in globally dispersed supply chains •
Buyers unwilling to factor in the increased cost of ethical production – disconnect between CSR department & buying department
•
Summed up by Senior Exec from Bangladesh Garment Manufacturers and Exporters Association: o
“Buyers need to also consider the fact that all these come at a cost and we are helping the buyers to protect their brand image. But buyers are not contributing anything”
Product nature of fashion garments – unpredictable demand profile, short PLC, high level of product variety especially low-cost fast fashion business model can result in squeeze on cost, lead time and labour standards at factory level •
Retailer pressure on suppliers to achieve target price
•
Demand for flexibility in meeting customer demand – peak seasonal orders as well as changing, increasing, decreasing or cancelling orders at short notice
•
difficult to forecast demand so buyers want to minimise risk and wait until last possible minute to commit to orders – especially in recession when buying becomes more cautious
•
Historically, adversarial ‘win-lose’ relationships between buyers and suppliers – short-term, multiple sourcing, competitive bidding, price orientation
Late orders and decisions •
Late sample approval
•
Late order placement
•
last minute design changes
(Cashing in report (2009) Clean Clothes Campaign)
RESPONSIBLE BUYING PRACTICES
Development of long-term, stable relationships with suppliers • • •
Supports business sustainability, supplier can invest in business e.g. machinery, training Move towards collaborative, cooperative, mutually beneficial partnerships, ‘win-win’ Seamless, synchronised supply chain e.g. through technology
Sustainable pricing and timely payment •
Supports business sustainability and enables supplier to pay wages on time
Realistic delivery schedules • •
To avoid excessive amounts of overtime To avoid supplier having to pay for air freight
The
agreement
consists of
6
key
components: 1. A five year legally binding agreement between brands and trade unions to ensure a safe working environment in the Bangladeshi RMG industry 2. An independent inspection program supported by brands in which workers and trade unions are involved 3. Public disclosure of all factories, inspection reports and corrective action plans (CAP) 4. A commitment by signatory brands to ensure sufficient funds are available for remediation and to maintain sourcing relationships 5. Democratically elected health and safety committees in all factories to identify and act on health and safety risks 6. Worker empowerment through an extensive training program, complaints mechanism and right to refuse unsafe work.
THE DIFFICULTIES OF IMPROVING HUMAN RIGHTS IN THE SUPPLY CHAIN
Living wage •
Difficulty in establishing a figure. Based on 1 earner in family, and on a diet of 3000 calories per day (Labour Behind the Label, 2009)
Freedom of association • • •
Sometimes illegal under national law Sometimes suppressed by government e.g. Bangladesh, Egypt, Colombia Sometimes not allowed in Export Processing Zones (EPZs) e.g. Bangladesh
Monitoring and verification • •
Welford and Frost (2006) - issues in Asian supply chains Human Rights Watch report (2015) - Cambodia on BB
DRIVERS OF CSR: THE CASE OF SRI LANKA & ‘GARMENTS WITHOUT GUILT’
5 guiding principles of the scheme: 1. 2. 3. 4. 5.
Ethical working conditions Free of child labour Free of forced labour Free of discrimination on any grounds Free of sweatshop practices, in terms of working hours and overtime, pay and benefits, freedom of association, health and safety
“It's almost impossible for Sri Lanka to compete with low cost but we can offer competitive cost with environmental and social sustainability” (JAAF spokesman)
Stylish Garments, Sri Lanka (M&S Fair Trade T-shirt Supplier) FACTORY ENVIRONMENT IN GUANGDONG, CHINA
CASE STUDY: UZBEKISTAN: A COUNTRY DEVASTATED ENVIRONMENTALLY AND SOCIALLY BY COTTON PRODUCTION FOR EXPORT MARKETS Institutionalised forced child labour & the draining of an ocean through mismanagement of irrigation for cotton production.
Barriers to CSR implementation Big cotton supplier (exports 70% of crop) Lack of visibility ‘Out of sight, out of mind’ Corrupt, brutal, dictatorship government Poverty Lack of education & training Drivers of CSR implementation Coalition of retailers to lobby Uzbek government Boycott of Uzbek cotton by major retailers NGO activity e.g. EJF (White Gold report – The True Cost of Cotton in Uzbekistan)
ENVIRONMENTAL RESPONSIBILITY Pollution prevention and control • • •
Bio-degradable materials Environmentally friendly processes Proper disposal of waste
Lean manufacture – less waste, less cost Sustainable raw material resources
CASE STUDY: BRANDIX ECO CENTRE: WORLD-LEADING ECO-FRIENDLY GARMENT MANUFACTURING FACTORY
The world’s first (and only) platinum-rated garment factory under the Leadership in Energy and Environmental Design (LEED) Green Building Rating System of the US Green Building Council http://www.usgbc.org/ •
achieved a score of 76 out of 85 points
Supports Marks & Spencer’s ‘Plan A’ •
a five-year, 100-point 'eco' plan set up in 2007 to encourage suppliers around the world to make their supply chains carbon-neutral through green manufacturing processes (since increased to 180 points over 8 years)
Achieved global benchmark ratings in energy and water conservation, solid waste management and low carbon emissions • • • •
80% reduction in carbon emissions 46% energy saving 58% reduction in water consumption zero solid waste to landfill
SECTION 3 REFERNECES Welford & Frost (2006) Corporate social responsibility in Asian supply chains, Corporate Social Responsibility and Environmental Management, 13, 166-176 Adams (2002) Retail profitability and sweatshops: a global dilemma, Journal of Retailing and Consumer Services, 9 (3), 147-153
Smestad (2010) The sweatshop, child labour, and exploitation issues in the garment industry, Fashion Practice, 1 (2), 147-162 Perry & Towers (2009) Determining the antecedents for a strategy of corporate social responsibility by small- and medium-sized enterprises in the UK fashion apparel industry, Journal of Retailing & Consumer Services, 16 (5), 377-385 Perry & Towers (2013) Conceptual framework development: CSR implementation in fashion supply chains, International Journal of Physical Distribution & Logistics Management, 43, 5/6, 478-500 Perry, Wood & Fernie (2015) Corporate Social Responsibility in Garment Sourcing Networks: Factory Management Perspectives on Ethical Trade in Sri Lanka, Journal of Business Ethics, 130 (3), 737-752 Pretious & Love (2006) Sourcing ethics and the global market: the case of the UK retail clothing sector, International Journal of Retail & Distribution Management, 34 (12), 892-903 Yu (2008) Impacts of corporate code of conduct on labor standards: a case study of Reebok’s athletic footwear supplier factory in China, Journal of Business Ethics, 81, 513- 529 Hoskins (2014) Stitched Up: The Anti-Capitalist Book of Fashion, Pluto Press (Chapter 4) Koksal et al (2017) Social Sustainable Supply Chain Management in the Textile and Apparel Industry – A Literature Review, Sustainability, 9(1), 100, http://www.mdpi.com/2071-1050/9/1/100
SECTION 4 Waste Fabric & Circular Economy
(Carrico & Kim 2013; Gwilt 2014)
Pattern Cutting Waste • • • •
Every fabric has its own texture – some can only be used in a certain flow Knitted fabrics – technical face – pattern cutting needs to accommodate Fibres may need to point in same direction Leather, sheepskin, and fur produce even more waste
Upcyling versus Recycling Upcycling • • •
Reusing material without degrading quality and composition of materials for its next use Making something new, different out of an old item Re-claimed, pre-loved
(Dickson et al 2013; Henninger et al 2016)
Recycling • Considered as prolonging the material’s disposal by taking it out of the waste cycle and reusing it • Eventually the material will return to waste cycle in modified form
(Dickson et al 2013; Henninger et al 2016; Rethink 2016)
Linear versus Circular Economy From a Linear Economy:
• •
Common stages in life of any garment Social and environmental impacts at every stage
Circular
Economy
All materials and products in society are used and circulate among its users for as long as possible, in environmentally safe, effective, and just manner. This is what we hope to achieve and raise awareness for with our MFI Campaign. • •
Waste is looked upon as a resource or ‘nutrients’ Natural resources, including energy, are used effectively during both production and
• •
consumption Use of virgin materials is kept at minimum Any undesired environmental impact is prevented or minimized
Opportunities and Challenges of the Circular Economy
SECTION 5 Sustainability “Is a concept that everyone purports to understand intuitively, but somehow finds very difficult to operationalize into concrete terms” (Gunder 2006) “Is fuzzy and wide concept and the discussion what to sustain continues, the resources or lifestyle” (Niinimäki, 2015) Milestones: • Brundtland Commission – ‘Our Common Future’ •
Meeting the needs of the current generation without compromising the needs of future ones.
• Rio de Janeiro Earth Summit (1992) •
Environmental protection becomes a key issue on the agenda.
THE TRIPLE BOTTOM LINE
Facts and figures about the fashion industry
•
150 billion garments produced annually o 20 new garments per person / per year
• •
30kg of clothes binned per person / per year On average we wear garments less than 5 times and keep for 35 days o Produce over 400% more carbon emission per item/per year than garments work 50 times and kept for full year
(Chua 2015) • •
360kg of fabrics in landfill every 2 minutes 70million trees logged annually and turned into fabrics o Rayon viscose, modal, lyocell
•
Cotton world’s single largest pesticide-consuming crop o Uses 24% of all insecticides and 11% of all pesticides globally Affects soil and water
• • •
•
Cheap synthetic fibres emit N2O o 300 times more damaging than CO2 Plastic microfibers shed from synthetic clothing into water supply account for 85% of humanmade material found along ocean shores o Threatening marine wildlife o Ends up in our food supply Fashion industry 2nd biggest polluter of freshwater resources on planet (Conca 2015)
SECTION 4 & 5 REFERNECES
Carrico, M., & Kim, V. (2013) Expanding zero-waste design practices: a discussion paper, International Journal of Fashion Design, Technology and Education, pp. 1-6 Circular
Fashion
(2017)
Origin
of
the
concept,
Circular
Fashion
(online),
p://circularfashion.com/circular-fashion-definiQon/, accessed: 28/04/2017 Dickson, M., Cataldi, C. and Grover, C. (2013) The Slow Fashion Movement: reversing environmental damage, NotJust A Label [online]p://www.notjustalabel.com/editorial/the_slow_fashion_movement, accessed:08/03/2017 DEFRA (Department of Environment Food and Rural Affairs) (2010) Sustainable Clothing Action Plan, DEFRA [online], retrieved from: h]p://www.defra.gov.uk/publicaQons/files/pb13206-clothing-acQon-plan100216.pdf, [accessed on: 10/02/2017] DEFRA (Department of Environment Food and Rural Affairs) (2011) Sustainable Clothing Roadmap: Progress
Report
2011,
DEFRA
[online],
retrieved
from:
h]ps://www.gov.uk/government/uploads/system/uploads/a]achment_data/file/69299/
pb13461-
clothing-acQonplan-110518.pdf, [accessed: 05/05/2017] Europa
(2017)
Circular
Economy
Strategy,
Europa
(online),
retrieved:
h]p://ec.europa.eu/environment/circular-economy/index_en.htm, (accessed: 28/01/2017) FFF (Forum for the Future) (2007) Fashioning Sustainability, FFF (online), retrieved: https://www.forumforthefuture.org/project/fashioning-sustainability/overview,
(accessed
29/01/2017.) Freitage (2017) The Freitag Story, Freitag (online), retrieved: h]ps://www.freitag.ch/en/about, accessed: 28/01/2017 Gwilt, A. (2014) A practical guide to sustainable fashion, Fairchild Books: London Henninger, C.E., Alevizou, P.J., Oates, C.J. (2016). What is sustainable fashion? Journal of Fashion Marketing and Management, 20(4): 400-416. Hvass, K.K. (2014) Post-retail responsibility of garments – a fashion industry perspective, Journal of Fashion Marketing Management, 18(4): 413-430 Lieder, M. & Rashid, A. (2016) Towards circular economy implementation: a comprehensive review in context of manufacturing industry, Journal of Cleaner Production, 115: 36-51
McDonough, W. & Braungart, M. (2002). Cradle to Cradle: Remaking the Way We Do Things. North Point Press;New York, USA. Meinhold, B. (2014) Finally a 3D-printed dress that drapes, moves like actual fabric, Ecouterre (online),
retrieved:http://www.ecouterre.com/finally-a-3d-printed-dress-that-drapes-moves-like-
actual-fabric/, accessed: 28/01/2017 Nayak, R., Padhye, R., Wang, L., Chaerjee, K., & Gupta, S. (2015) The role of mass customisation in the apparel industry, International Journal of Fashion Design, Technology and Education, 8(2): 162-172 Niinimäki, K. (Ed.) (2013). Sustainable Fashion: New Approaches. Aalto ARTS Books; Helsinki, Finland, retrieved from https://aaltodoc.aalto.fi/handle/123456789/13769 (accessed: 01/03/2017.) Rethink (2016) Rethink Fabrics partners with Black Eyed Peas, Rethink (online), retrieved: http://rethinkfabrics.com/news-blog/rethink-fabrics-partners-with-black-eyed-peas,
(accessed:
28/01/2017) RSA (2016) Design for a circular economy: Lessons from The Great Recovery, RSA (online), retrieved: https://www.thersa.org/globalassets/pdfs/reports/the-great-recovery---designing-for-a-circulareconomy.pdf, (accessed: 28/03/2017) Texyloop
(n.d.)
Here
we
are
recycling,
Texyloop
(online),
retrieved:
http://www.texyloop.com/index.php?lang=EN, (accessed: 28/01/2017) WRAP (Waste & Resources Acorn Programme) (2013a) DEFRA & WRAP receive prestigious international award,WRAP [online], retrieved from: h]p://www.wrap.org.uk/content/defra-wrapreceive-presQgious-internaQonal-award, [accessed on: 05/05/2017]
SECTION 6 Eco-fashion
“Sustainable Fashion implies a commitment to the traditional techniques, not just the art, of making clothes” (Oscar de la Renta in Friedman, 2010) “Locally sourced materials that don’t pollute in their creation or demise (preferably recycled) and with limited transportation to achieve the complete product” (Anya Hindmarch in Friedman, 2010)
Eco-fashion • • • •
Associated with bio and/or organic materials Eco-, bio-, environmentally friendly, organic-fashion used interchangeably Reduce environmental impact on natural environment Companies seek to reduce use of chemicals and CO2 emission
Ethical-fashion •
Not only focus on natural environment, but also social implications, such as working conditions, well-being of workers
Slow fashion • • •
Companies change their infrastructure to have local focus and reduce output More expensive to reflect true ecological and social costs Incorporates eco- and ethical fashion aspects
(Joergens 2006; Fletcher 2008; Niinimäki 2010; Henninger et al 2016)
Sustainability in Fashion Industry This is not simply about slowing down product life cycle, not only about time but a philosophy based on sustainability values.
Slow Fashion “Progress can be made seeking and implementing methods to ensure greener packaging, greener channels of distribution, greener source materials, and greener communication strategies” (Prothero & Fitchett 2009)
Slow fashion challenges 1. 2. 3. 4. 5.
The existing hierarchical structures between the designer, producer, and consumer The idea of fashion being associated with timely aspects The notion of fashion being reliant on image Current behaviour that sees fashion as a mandate rather than a choice The egocentric view of the company by emphasising collaborations and empowering workers
“It is a misconception that affordable products cannot be sustainable. H&M maintains affordable prices by having small mark-ups, buying in large volumes, having effective logistics, having no middlemen, designing the products ourselves and having our own stores” (Catarina Midby, H&M Head of Fashion and Sustainability)
Primary research The following questions were asked to an industry based fashion lecturer. ‘Is ‘Slow Fashion’ the future?’
What does the term ‘Fast Fashion’ mean to you?
SECTION 6 REFERNECES Allison, C. and Carter, A. (2000) Study on different types of Environmental Labelling (ISO Type II and III Labels): Proposal for an Environmental Labelling Strategy, DG Environment, European Commission
[online], retrieved from: http://ec.europa.eu/environment/ecolabel/about_ecolabel/reports/erm.pdf, [accessed on: 07/05/2017] EC (European Commission) (2008) Green Public Procurement and the European Ecolabel: Fact Sheet, Europa [online], retrieved from: http://ec.europa.eu/environment/gpp/pdf/toolkit/module1_factsheet_ecolabels.pdf, [accessed on: 07/05/2017] Elkington, J. (2004) Enter the Triple Bottom Line, Chapter 1, in Henriques, A. and Richardson, J. (eds) The Triple Bottom Line, Does it all add up?, Earthscan: London, UK, pp. 1-16 Fletcher, K. (2008). Sustainable fashion and textiles design journeys, Earthscan: London, UK Fletcher, K. 2010. Slow fashion: an invitation for systems change. Fashion Practice: The Journal of Design, Creative Process and the Fashion, 2(2): 259-266 10.2752/175693810X12774625387594 Gunder, M. (2006) Sustainability: Planning’s Saving Grace or Road to Perdition?, Journal of Planning Education and Research, 26, pp. 208-221 Henninger, C.E., Alevizou, P.J., Oates, C.J. (2016). What is sustainable fashion? Journal of Fashion Marketing and Management, 20(4): 400-416. Joergens, C. (2006). Ethical fashion: myth or future trend? Journal of Fashion Marketing and Management,10(3): 360-371. Niinimäki, K. (2010). Eco-clothing, consumer identity and ideology, Sustainable Development, 18(3): 150-162 WCED (1987) Our Common Future (The Brundtland Report), World Commission on Environment and Development, Oxford University Press: Oxford, UK
SECTION 7 Ethical Marketing and Consumption
Ethical / green / sustainability marketing is marketing a product or service on the basis of its ethical / green/sustainability credentials. There is a wide spectrum of issues within this: • • • •
Exploitation of labour Environmental harm Animal rights Fair-trade
Brand Communicate ethics by: • • • • •
Advertising Sustainability report / CSR section on website Social media Labels PR
COMMUNICATING SUSTAINABILITY: TIMBERLAND NUTRITIONAL LABEL
COMMUNICATING SUSTAINABILITY: FASHION PR (EDITORIAL)
COMMUNICATING CSR: TRACEABILITY
Honest by Bruno Pieters Complete transparency of supply chain: full breakdown on the materials used (including their certification), manufacturing details, price calculation and carbon footprint Mission: “to offer our customers the opportunity to shop in a completely conscious way�
COMMUNICATING SUSTAINABILILTY: SOCIAL MEDIA & STORYTELLING
“Sustainability is no longer only of interest to niche stakeholders. For companies, that poses an intriguing opportunity of communicating sustainability to a large audience and a thorny problem of how to do that in an engaging, compelling manner. A smart editorial approach isn't the only best practice theme highlighted in the research. Companies on the index are also embracing games, apps and maps along with new and emerging social media platforms as well as reimagining the way their sustainability reports can be packaged and shared” (Yeomans, 2013)
“Effective sustainability storytelling must move beyond the ‘save the planet’ messaging that frankly has not engaged most consumers” (Levi’s VP of Sustainability, 2015)
H&M’s Close the Loop, Sept 2015
(Niemtzow, 2016)
COMMUNICATING ETHICS AND THE PROBLEM OF GREENWASHING
Green marketing is the tactical instrument by which companies derive value from CSR: hyping their green credentials in a poorly regulated environment where most claims cannot be corroborated ... these “green” messages regularly clash with the truth, producing “greenwashing” (Alves 2009)
6 Types of Greenwashing: • Sin of the Hidden Trade-Off • Sin of No Proof • Sin of Vagueness • Sin of Irrelevance • Sin of Lesser of Two Evils • Sin of Fibbing
Ethical Consumer Behaviour To be differentiated from ‘consumer ethics’, which studies consumer perceptions of & reactions to unethical purchase behaviours or situations e.g. counterfeit goods, shoplifting, using an expired coupon, deshopping etc. (Papaoikonomou et al, 2011)
Ethical consumer behaviour implies making consumption decisions based on animal, social and environmental welfare (Low and Davenport, 2007)
Ethical Consumerism Personal consumption where choice has been informed by a particular ethical issue – be it human rights, social justice, the environment or animal welfare. (Williams et al, 2005)
The moral principles & standards that guide the behaviour of individuals or groups as they obtain, use & dispose of goods & services (Muncy & Vitell, 1992)
(Ethical Consumer Markets report, 2012)
WOMEN’S ATTITUDES TOWARDS CLOTHING: MINTEL WOMENSWEAR RETAILING REPORT UK - JULY 2008
• • • •
43% of all women worry that cheap clothes were made in sweatshops Ethical concerns more prevalent in higher socio-economic groups and older age groups 41% of 15-24s never think about where/how clothes are made 25% of 15-24s would buy something they liked regardless how it was made
DOES ETHICAL CONCERN LEAD TO ETHICAL PURCHASING?
Ethical trading is a strong emotive issue in the UK apparel market with growing concern about ethical issues from consumers in the womenswear market in particular (Mintel, 2008) Although - Joergens’ (2006) study into consumer fashion purchasing behaviour in UK and Germany found that young people’s concern and knowledge about ethical issues in the apparel industry did not necessarily translate into ethical purchasing behaviour – style and price demands must be satisfied before ethical considerations.
APPLYING ETHICAL CONCERNS IN CONSUMPTION
• • •
•
•
One of many attributes (Nicholls and Lee, 2006; Ritch, 2014) For fashion, style & price factors must be satisfied first (Joergens, 2006 Streit & Davies, 2013) Consumers do not feel empowered to make change (Levitt, 2009) o Insufficient information “Clothes shopping, is the area where I feel least able to make choices which are ethical” (Ritch, 2016) Requires a sacrifice (Auger et al, 2003) e.g. style, convenience, affordability o “Ethical fashion was often associated with ethnic clothing that was poorly tailored o
and disconnected from the latest trends” (Blanchet, 2017, p.2) “[even] if I won the lottery, and finance was absolutely no objective, then
o
convenience would still trump” (Ritch, 2016) “I tend to buy cheap clothes actually, for the kids. They go through them so quickly
so I don’t see the point in buying more expensive ones” (Ritch, 2016) Confusion over which ethical concern to prioritise
o
“A Plan A eco-factory, carbon emissions, renewable. But how much were the people being paid? Because it can be as eco as it likes, but if they are working a fifteen hour
•
day, then slightly different” (Ritch, 2016) Denial – of responsibility, victim, injury (Chatzidakis et al, 2007)
ATTITUDE-BEHAVIOUR GAP: PROBLEMS OF SHOPPING FOR ETHICAL FASHION (SHAW ET AL, 2006)
(Savers, 2017)
FASHIONING CHANGE BUSINESS MODEL – MAKE IT EASY FOR THE CONSUMER
ETHICAL FASHION: A MISNOMER? For ‘hippies’ only? Is it possible to wear fair-trade/ ethical / eco fashion and look as though you’ve just walked off the catwalk? How can we engage different types of consumers for MFI? NOIR Luxury Danish fashion brand incorporates ethical principles. Fabrics derived from organic and fair-trade sources. Leather comes from animals used in food farming. Fur used on the basis that it is sustainable (not a scarce resource and it will decompose).
Does ethical consumption make a difference? “Conscious consumerism is a lie. Small steps taken by thoughtful consumers—to recycle, to eat locally, to buy a blouse made of organic cotton instead of polyester—will not change the world. Instead of buying expensive organic sheets, donate that money to organizations that are fighting to keep agricultural runoff out of our rivers. Instead of driving to an organic apple orchard to pick your own fruit, use that time to volunteer for an organization that combats food deserts (and skip the fuel emissions, too). Instead of buying a $200 air purifier, donate to politicians who support policies that keep our air and water clean. Instead of signing a petition demanding that Subway remove one obscure chemical from its sandwich bread, call your local representatives to demand they overhaul the approval process for the estimated 80,000 untested chemicals in our products.” (Wicker, 2017)
SECTION 7 REFERNECES Joergens (2006) Ethical fashion: myth or future trend?, Journal of Fashion Marketing & Management, 10 (3), 360-371 Alves (2009) Green spin everywhere: how greenwashing reveals the limits of the CSR paradigm, Journal of Global Change & Governance, 2 (1), 1-26 Williams et al (2005) The Ethical Consumerism Report, The Cooperative Bank, UK Muncy & Vitell (1992) Consumer ethics: an investigation of the ethical beliefs of the final consumer, Journal of Business Research, 24, 297-311 Peattie & Crane (2005) Green marketing: legend, myth, farce or prophesy?, Qualitative Market Research: An International Journal, 8 (4), 357-370 Carrigan & De Pelsmacker (2009) Will ethical consumers sustain their values in the global credit crunch?, International Marketing Review, 26 (6), 674-687 Low & Davenport (2007) To boldly go ... exploring ethical spaces to re-politicise ethical consumption and fair trade, Journal of Consumer Behavior, 6, 336-348 Blanchet (2017) ‘We make markets’: The role of the Ethical Fashion Show in categorising the ethical fashion, Recherche et Applications en Marketing, 1-20
Chatzidakis et al (2007) Why people don’t take their concerns about Fair Trade to the supermarket: The role of neutralisation, Journal of Business Ethics, 74, 89-100 Streit & Davies (2013) ‘Sustainability isn’t sexy’: an exploratory study into luxury fashion, in Gardetti & Torres (Eds.) Sustainability in Fashion & Textiles, Greenleaf, 207-222 Papaoikonomou et al (2011) Mapping ethical consumer behavior: integrating the empirical research and identifying future directions, Ethics & Behavior, 21 (3), 197-221 Nicholls and Lee (2006) Purchase decision-making in Fair Trade and the ethical purchase ‘gap’: Is there a Fair Trade ‘Twix’?, Journal of Strategic Marketing, 14 (4), 369-386 Shaw et al (2006) Fashion victim: the impact of fair trade concerns on clothing choice, Journal of Strategic Marketing, 14, 427-440 Bray et al (2011) An exploratory study into the factors impeding ethical consumption, Journal of Business Ethics, 98 (4), 597-608 Auger et al (2003) ‘What will consumers pay for social product features?’, Journal of Business Ethics, 42, 281- 304 Levitt (2009) The psychology of climate change: why we do nothing, The Ecologist http://www.theecologist.org/News/news_analysist/301036/the_psychology_of_climate_change _why_we_do_nothing.html Ritch (2014) Extending sustainability from food to fashion consumption: the lived experience of working
mothers,
International
Journal
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Management
Cases,
16
(2),
18-31
http://www.ijmc.org/ijmc/Vol_16.2_files/16.2.pdf Ritch (2016) Fashion Brand Management: Fashioning Value Through CSR, in Vecchi & Buckley (Eds.) Handbook of Research on Global Fashion Management and Merchandising, IGI Global.