“Out vision is that all business operations shall be run in a way that is economically, socially, and environmentally sustainable”

Being ethical, as described in the dictionary, is described as “being in accordance with the accepted principles of right and wrong that govern the conduct of a profession.” With that being said, it seems that the clothing giant, H&M, seem to be continually trending on the accepted principles of what is right.

For the year of 2013 H&M was dubbed one of the two most ethical apparel retailers in the world by the world-wide business ethics website called the Etisphere. Some recent ethical initiatives that have been launched by H&M are as follows:

1. The increased usage of organic cotton in garments
2. The increased usage of recycled polyester in clothing
3. A conscious effort to promote diversity in the workplace and to combat corruption
4. The active ensuring of a safe workplace
5. A strong awareness in marketing to prevent misadvertisment

Employing over 100,000 employees across the globe, H&M sets a global example in the running of a ethical business. Despite the minor increase in costs due to more ethical practices, I am thoroughly convinced that these practices bring good karma back, time and time again. For one thing, consumers now a days are a lot more conscious and sensitive about where they shop– it’s not only about the price of the article of clothing any more. Should another company repeat the Nike incident of mass-employing underpaid child labourers, consumers would be infuriated and boycott the company, which in turn would cause the company’s overall sales to take a nosedive. It is interesting because the investment H&M is taking in making the company a more ethical can also be seen as a smart marketing strategy as it can increase customer loyalty through positive brand imaging.