UNDERLYING MOTIVATION THAT IS TRIGGERING SOCIALLY RESPONSIBLE BEHAVIOR
THE CORPORATE SOCIAL RESPONSIBILITY (CSR)MOVEMENT has grown in recent years from a small practice by a few earnest companies, like The Body Shop, and Ben & Jerry’s, to a highly visible priority for traditional corporate leaders from Nike to McDonald’s.
There is an increase in the importance of social compliance in making sourcing decisions by buyers. Global consumer is becoming conscious about working conditions, fair pay rate, and labor rights after well-publicized disasters like Rana Plaza. On 24 April 2013, the collapse of the Rana Plaza building in Dhaka, Bangladesh, which consisted of five garment factories, killed at least 1,132 people and injured more than 2,500. Only five months before this, around 112 workers had lost their lives in another tragic accident, trapped inside the burning Tazreen Fashions factory on the outskirts of Dhaka. The concentration of labor in the apparel industry and the environmental impact of the textile industry (energy use and wastewater are two examples) has made ethical labor and environment observance important. Leading firms like Levi have aimed to reduce the emission of greenhouse gas in the supply chain as a response to social complaints. Many buyers have developed a code of conduct to ensure brand security.
Organizations that establish social standards in supply chains, such as the Fair Label Association in the United States or commencement of ethical trading in the United Kingdom have been successful. The prediction behind CSR is that business performances and social objectives can be made parallel. The underlying reasoning behind this assumption goes back to the concept of free-market capitalism according to which people are impartial actors who are driven to maximize their self-interest. Since wealth, healthy societies and environments are part of the self-interest of individuals, they will eventually invest, consume, and function both profitable and socially responsible ways. In short, the market will ultimately balance itself. This gives the brands today, the liberty of disclosing their CSR activities and advertising their products simultaneously.
I feel a brand that would benefit the most from an open disclosure of its CSR activities while at the same time advertising its products is Nannacay by Marcia Kemp. The founder was inspired to launch the brand by her volunteer experience at the “Children’s Institute” in Brazil and her visit to the Maasai tribe in Africa. Nannacay, the brand name which means the sisterhood of women began as a social fashion project that would connect artisanal products to the luxury fashion market. This approach would employ people in need and showcase their artisanal arts and crafts to the rest of the world. The brand is very successful up to date and now employs 120 artisan families in different regions of Peru, Colombia, Ecuador, and Brazil.
On the other hand, Zara is a brand that I think should keep its commitment to social responsibility and the promotion of their products separate. They pride themselves on giving consumers the latest fashion trends every 13 days. Instead of CSR, the brand should promote on their efficiency. It would not be favorable for the brand to promote CSR activities and products at the same time. Especially after the Rana Plaza incident and numerous stories about poor working conditions, unpaid garment workers, and child labor that has brought immense bad publicity to Zara, the brand should avoid publicizing the products along with CSR activities.