Corporate Responsibility in Fashion Retailing in Europe - Essay Example

Corporate Responsibility in Fashion Retailing in Europe Introduction Corporate responsibility is a term that refers to the activities that organizations undertake to ensure that their environment is safe. Responsible organizations take care of both their internal and external environment because all of them are critical to the society. Corporate responsibility also involves following ethical rules because they direct organizations on how to adopt and practice acceptable behaviour (Graham, 2010). The European fashion retail industry is faced with all these corporate responsibility issues; for example, fashion retailers have to reduce their environmental pollution and provide safe working places for workers. Fashion retailers in the industry also have to ensure that they conduct their businesses while following ethical guidelines. This paper argues that the European fashion retail sector is socially responsible and follows ethical rules known as best practice. Corporate Responsibility Issues Environment The European fashion retailers are faced with the responsibility of reducing environmental pollution (Grace, & Cohen, 2013). This is because these organizations conduct numerous activities that harm the environment, and thus need to be reduced. For example, the industry deals with clothes that are made with inputs such as nylon, synthetic, and acrylic that are made from non-renewable mineral oil (Balsiger, 2014). This means that the use of these resources leads to the disappearance of mineral oil from the environment. Synthetic fibers also do not degrade when disposed off in landfills, thus they cause pollution in the environment when they release harmful gases and particles to the air (Dupuis, & Dawson, 1999). The fashion industry handles the problem of the non-degradable materials by recycling them. The fashion retail sector also practices social responsibility to the environment by reducing the use of toxic chemicals, too much energy, and water. The industry uses these resources especially in the end processes of processing that include dyeing, bleaching, and cleaning (Martinuzzi, Kudlak, Faber, & Winam, 2014). Fashion retailers are also minimizing environmental destruction by minimizing the sale of clothes made from fabrics such as cotton that contribute to high amounts of pollution. The industry does this by selling apparel made from friendly inputs such as organic cotton and bamboo; Eco-Fiber is a retail organization that specializes in selling these types of clothes. European retailers such as Kuyichi have also adopted internal environmental audits that help them to keep track of the harm they cause to the environment (Choi, & Cheng, 2015). This helps them to maintain low levels of environmental destruction. Workplace The European fashion retail is also faced with the corporate responsibility of providing workers with safe working tools and conditions, fair payments, workforce diversity, human rights, and equal employment (European Agency for Health and Safety at Work, 2005). Retailers such as those who specialize in haute couture employ workers equally and based on their skills. Haute couture retailers also balance male and female workers, and they also give equal employment opportunities to individuals from all ethnicities (Joy, Sherry, Venkatesh, Wang, & Chan, 2012). This enables these retailers to get customers from all ethnicities and genders and this means that they are accepted by the society. Fashion retailers also have to ensure that they provide workers with secure workplaces and tools. For example, these businesspersons have to ensure that each worker has working uniform and sewing machines (Silverman, 2013). The businesses also have to ensure there are enough ventilation in the working rooms, non-slippery floors, and enough spaces between two workspaces to allow free movement. The ventilations help to provide fresh air in the work stations while non-slippery floors help to prevent employees from falling down while at work. Fashion retailers also have to pay workers wages that reflect the effort that they put in producing clothes (Haerens, & Zott, 2014). The organizations do this by paying workers hourly rates multiplied by the number of hours they work in a month. For example, Inditex fashion retailers from Europe pay their sales assistants an hourly rate of five Euros (Stern, & Ander, 2013). The organization argues that this is a fair wage rate although some critics argue that it is low for highly skilled and experienced workers. Retailers dealing with vintage collections and Nike also practice social responsibility to workers by preventing them from being abused by others (Gardetti, & Torres, 2013). These retail shops have codes of conduct that direct individuals on how they should behave towards others while at work; for example, they require male employees to refrain from abusing female workers sexually. These organizations end contracts with workers who abuse others and take legal action against them (Gardetti, & Torres, 2013)s. Community Retail organizations are also faced with the issue of ensuring good relations with the community. The companies do this by partnering with local communities so that they may present their grievances to the company. Partnerships also help the retailers and their communities to formulate techniques of doing business successfully (Paulins, & Hillery, 2009). For example, this enables members of the society to accept organizations in their locality and buy products from them. TJX Europe is an example of a fashion retailer that partners with its local community. In 2010, the fashion retailer partnered with the Irish community to raise funds for helping the disadvantaged children in the society. This partnership helped in raising three hundred thousand Euros that were spent in providing meals to the targeted children (Haerens, & Zott, 2014)s. Fashion retailers may also be accountable to their communities by donating funds that help in undertaking development projects in the surrounding. TJX Europe also donated £17.6 million in 2005 to the UK state to help in conducting research about cancers that affect children (Ayers, Odegaard, & Taylor & Francis, 2008). This donation indicates that the organization has helped to end cancer among children who live in the community where it operates. Tom’s Shoes is another organization that helps the community by donating a pair of shoes to the poor children of Africa and Europe who cannot afford to buy them in the market. The organization matches the pairs it donates with those that are bought; for example, when customers buy one hundred pairs, the organization donates the same number of pairs to needy children (Skov, 2008). Marketplace European fashion retailers are also faced with the responsibility of being accountable at the marketplace. These organizations have to conduct fair business with customers and suppliers of inputs. The companies, for example, have to form partnerships with suppliers so that they may provide environmentally friendly inputs (Battaglia, Testa, Bianchi, Iraldo, & Frey, 2014). The retailers also have to ensure that they pay suppliers on time so that they may also provide raw materials early. H&M is an example of an organization that is socially responsible to suppliers. The organization has an auditing department that assesses the businesses of suppliers to ensure they are run in the right manner. The department accepts inputs only from suppliers who meet the standards that H&M has set for producers (Choi, & Cheng, 2015). H&M also partners with suppliers in countries such as Bangladesh in building safe factories, paying workers fair wages, and providing safe working tools (Dupuis, & Dawson, 1999). The company also offers efficient customer service to its customers and it seeks feedback from consumers. These practices indicate that H&M is responsible to stakeholders at the marketplace. Best Practice in the Sector Best practices in this industry refer to the actions that are ethically acceptable. Various ethical theories define best practice differently; therefore, this section will define best practice using different theories of ethics. Utilitarian Theory The act theory argues that best practices are actions whose outcomes are beneficial to majority of individuals in the society (Adshead, 1997). The actions whose costs are greater than benefits to the society are unethical in this theory; thus they are not the best practices that organizations may undertake. For example, in the retail industry, reducing pollution or avoiding it is beneficial to all members of the community. Fashion retailers should therefore practice minimizing pollution because its benefits are exemplary to the society. Rule utilitarian hypothesis, on the other hand, indicates that best practices are those that follow a pre-determined set of rules (European Agency for Health and Safety at Work, 2005). This is because these rules are set for the benefit of the majority members of the community. For example, the European Union High Commission has set a rule that requires fashion retailers to provide correct details about their apparel in advertisements (Bickerton, 1999). This means that advertising products correctly is a good practice in this industry. Theory of Egoism This theory argues that best practices are those that provide benefits to individual interests (Graham, 2010). For example, if a person has an interest in purchasing and owning clothes made from cotton, then the organization involved should fulfill this desire of that person. The egoism theory is best applicable in fashion retail when the interests taken into consideration are those of all consumers instead of individuals. This is because a practice that is best to one individual may be harmful to others in the society. Therefore, best practices in fashion industry are those that conform to the desires of numerous individuals (Paulins, & Hillery, 2009)s. For example, numerous individuals in Europe desire fair prices for clothes so that they may be able to purchase them. Fashion retailers such as Dior and H&M should therefore charge fair prices for their products. Theory of Virtue Ethics This theory argues that businesses should undertake practices that would be acceptable to a virtuous person. This is a person who performs actions that lead to well-being (Stern, & Ander, 2013). Therefore, organizations should perform activities that are acceptable to ideal people. Businesses also need to analyze the activities they intend to undertake and determine if they are right to an ideal person. If the activities are not right then they do not represent best practice and they should not be undertaken. Deontological Theory of Ethics This hypothesis argues that best practices are those that rationally right. This means that they are the best decisions that rational organizations and individuals would make. For example, rational individuals treat others equally and ensure their safety (Skov, 2008). Therefore, rational fashion retailers should adopt the best practice of treating workers equally and enhancing their safety by giving them working tools. Rational organizations also do not copy the fashion trends of other companies because this would lead to conflicts, and it is morally wrong. Recommendations for Business Fashion retail stores in the European Union need should be socially responsible to their internal and external environments. This will enable these businesses to thrive for long periods in the regions where they operate because consumers will support them. Companies should be socially responsible to the environment, customers, suppliers, workers, and the community at large. Fashion retailers should be highly responsible for workers in the supply chain to avoid catastrophes such as the collapse of garment buildings that took place in Bangladesh in 2011. This disaster led to the criticism of European fashion retailers who were blamed for not being responsible for all stakeholders in the supply chain (Haerens, & Zott, 2014). Retailers in the industry also need to conduct their businesses ethically. This means that they should follow rules that have been set by the government, for example, the regulation of ensuring the safety of workers at the workplace. These organizations also need to analyze their decisions before implementing them to find out their benefits and costs. If the decisions lead to higher costs than benefits to the society, then they should not be implemented. However, decisions that are more beneficial to numerous individuals in the society are viable and thus they should be implemented. Businesses should also be rational when making decisions whose benefits equal the costs. Conclusion European fashion retail organizations are faced with issues of social responsibility to all stakeholders and the environment. Being socially responsible enables these companies to be endorsed by both consumers and the government, and this helps them to be successful. For example, the companies are supposed to provide consumers with safe products and minimize pollution on the environment. Fashion retailers also need to conduct their businesses ethically. For example, they should implement ideas that lead to higher benefits than costs. These companies also need to be rational when making decisions to ensure they implement only the best ideas. References Adshead, S. A. M. 1997. Material culture in Europe and China, 1400-1800: The rise of consumerism. Basingstoke: MacMillan. Ayers, J. B., Odegaard, M. A., Taylor & Francis. 2008. Retail supply chain management. Boca Raton: Auerbach Publications. Balsiger, P. 2014. The fight for ethical fashion: The origins and interactions of the clean clothes campaign. Battaglia, M., Testa, F., Bianchi, L., Iraldo, F., & Frey, M. 2014. Corporate social responsibility and competitiveness within SMEs of the fashion industry: evidence from Italy and France. Sustainability 6, pp. 872-893. 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