H&M’s Ethical commitments

H&M’s ethical actions

Corporate Social Responsibility is becoming increasingly popular amongst businesses. Many firms now use a “greener” approach by seeking ways to minimize the consequences of their actions. H&M’s sustainable method of production includes using organic cotton, recycling fabrics, reducing the use of chemicals…

However, i feel that most firms do so only to avoid critics, and i perceive it as an unethical move. This shows that they think money-wise, which gives them no credit. In my opinion, an ethical firm is one who changes its business operation with the idea of improving stakeholders’ life, and not because pressure groups force them to do so.

While most people think that acting morally correct is costly, they do not realize that it has long-term benefits. Not only will the customers have a better perception of the business, (which may increase customer base as a result), but the firm itself will have a better working environment. Employees will be more willing and motivated to work with that particular firm, and cost may be cut in terms of pigovian tax.

CSR does not only imply being environmentally-friendly. It also involve providing good working conditions to employees, setting prices accordingly for customers, supporting good causes… and this is what H&M aims at. Even though it implies increasing their variable cost, H&M is negotiating raising the minimum wages for workers in Asia and investing in safety and trainings. In addition, they monitor their supplier’s ethical  behaviour and work towards their business concept to “offer fashion and quality at the best price”

I encourage other firms to start thinking and acting more like H&M to bringing a positive change to the society as this is the whole point of behaving ethically.

Image source: http://about.hm.com/en/About/sustainability.html#cm-menu

3 Comments

  1. I disagree that companies only act ethically in order to gain customers and improve their image. Those are only positive side-effects of companies trying to do the right thing.

    1. I share your opinion that some companies act ethically as they want to do the right thing. H&M is a good example as even though they show that they recycle fabric to reduce waste, they also have other social responsibilities that most customers are not aware of, such as fighting for the workers’ rights. This shows that they genuinely care for the other stakeholders and it is a very ethical behaviour coming from them. However, when you read Lawson Parker’s blog, (http://blogs.ubc.ca/lawsonp/2014/09/10/coca-cola-accused-of-greenwashing/) you will see how some companies’ main objective is to maximize profit, hence they exaggerate on their ethical practices and only use CSR as a marketing tactic.

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