The fashion industry often receives bad press concerning the working conditions of workers employed to create garments. So, in the wake of the Rana Plaza Factory collapse in Bangladesh, over a hundred retailers and brands have teamed up to improve conditions in such clothing factories; creating benchmarks and standards to inspect and regulate factories in Bangladesh on.
image source – http://conversation.which.co.uk/money/marks-and-spencer-banking-bank/
I feel there’s a lot to learn from companies working together for the better. In particular, I commend the work of Marks and Spencer’s, one of the retailers, who is a veteran in terms of ethical practices following the launch of its ‘Plan A’ Initiative in 2007. The ultimate goal for the initiative is to become the world’s most sustainable retailer and the commitments put in place to achieve this consider a broad array of stakeholders in the organisation. For example, after researching their supply chain, M&S launched a Fair Trade range of coffee which is packaged at the source – allowing more of the profits to be kept within the communities and therefore improve local living standards.
image source – http://ecoscene.info.yorku.ca/sustainability-accreditation/fair-canada-logo/
Business ethics have been growing in importance due to consumers being better informed and also wanting to use their purchasing power wisely. The market for ethical and Fair Trade products has also continued to experience growth. My analysis of this is businesses need to consider ethics in their decisions when operating, not only because of the positive influence they can have on sales but also due to the reputation of the business being at stake. After all, a business doesn’t want to be the last one to jump onto the band wagon!
References:
- http://hereisthecity.com/en-gb/2014/09/07/big-business-will-force-change-in-garment-trade-vows-wall-st-bos/
- http://www.theguardian.com/world/2013/oct/23/factory-safety-bangladesh-rana-plaza
- https://uk.finance.yahoo.com/q?s=MKS.L
- http://annualreport.marksandspencer.com/#plan-a
- http://www.independent.co.uk/life-style/fairtrade-market-experiencing-explosive-growth-in-uk-and-us-2236449.html
- http://fairtrade.org.uk/press_office/press_releases_and_statements/archive_2008/december_2008/fashion_industry_urged_to_scale_up_commitment_to_fairtrade.aspx
- http://business-ethics.com/2011/05/12/does-corporate-social-responsibility-increase-profits/
- http://www.insidebusiness360.com/index.php/business-ethics-can-be-profitable-sustainability-competitive-advantage-21997/