Corporate Social Responsibility Problems of The Global Fast Fashion Industry

Corporate Social Responsibility Problems of The Global Fast Fashion Industry
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Corporate Social Responsibility Problems of The Global Fast Fashion Industry
The global fast fashion industry is plagued by corporate social responsibility (CSR) issues including environmental degradation and labor right violations. This essay will investigate three leading global fast fashion companies: Zara (owned by the Spanish-based Inditex), H&M (a Swedish company), and SHEIN (an emerging Chinese cross-border e-commerce retailer). These three fast fashion companies sell their products globally and the large-scale nature of their operations can result in environmental pollution challenges, exploitation of poor employment laws in developing countries, and social responsibility issues. According to BRIGHTLY ECO, H&M Group was ranked higher than Zara or SHEIN: H&M Group scored 11/25 in the Conscious Consumer Scorecard, Inditex (Zara) scored 9/25, and SHEIN scored 6/25 (Class Text, 2022a; Class Text, 2022b; Class Text, 2022c). The Financial Transparency Index 2022 report also rated H&M above Zara and SHEIN: H&M was awarded a score of 66% in terms of overall sustainability, Zara 43%, and SHEIN 2% (Fashion Revolution, 2022). The Fashion Accountability Report evaluates 58 of the globe’s leading firms in fast fashion, luxury, and big box retail in six sustainability areas: traceability, wages and wellbeing, governance, raw materials, commercial practices, and environmental justice.
H&M was largely awarded a relatively high score of 34 because of the shortcomings in its competitor’s sustainability progress and not because of its significant improvement. However, the company made progress in the wages and wellbeing category by revealing the extent of trade union representation within its factories. The company also improved in the environmental justice category by updating its science-based emissions targets. However, the company was found guilty of greenwashing by over-implying its ability to completely recycle its products. Moreover, H&M has not yet made binding commitments to participate in business practices that ensure all its suppliers obey all labor standards it sets out for them. Inditex (the parent compan...