Ethical Approaches in the Retail Clothing Industry

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Table of Contents

Introduction
Ethical Theory Discussion
Firms Under Review
Ethical Stance in the Fashion Industry
Impacts of the Ethical Stance
Competitors’ Actions
Recommendations to the Firms
Conclusion
References

Introduction

Businesses encourage ethical behaviors among employees for profitability and doing the work correctly. Communities often surround companies with different cultures and various approaches to ethical values. Technological advancements and other trends in various industries encourage a change in the way businesses approach consumer and employee behaviors. The clothing business is one of the most lucrative industries, with new trends every day. The consequential ethical theory judges whether something is right or wrong based on its results. Non-consequential ethical theory judges an action’s rightness or wrongness based on intrinsic actions and not consequences. Clothing industries have adopted ethical and sustainable fashion, which maximizes the benefits to industry and society and minimizes the negative impact on the environment. Therefore, ethical and sustainable approaches have enabled fashion companies to operate for the benefit of society and the environment while remaining profitable.

Ethical Theory Discussion

Consequential v Non-consequential Ethical Views

Ethics involves a set of principles that guide employee and employer behaviors when carrying out business activities. These behaviors can result in different consequences affecting the companies. Historically, clothing industries were associated with sweatshop labor, dangerous working environment, and environmentally degrading supply chain, among other ethical issues (Bagus Daumann, and Follert, 2021). Consumers would shy away from companies that infringe on their rights and campaign against them. With increasing civilization, many fashion companies adopt ethical and envioronmentally friendly practices. For instance, greenwashing is highly discouraged, and companies are expected to be genuine in their marketing activities. Moreover, fashion companies dissociate themselves from unethical practices like racism and any other form of prejudice against a specific group. Two ethical approaches are significant when adopting normative principles: consequentialism and non-consequentialism.

Companies use various ethical perspectives when analyzing problems. Often companies may find themselves in problems like employee-employer disagreements. Such problems may lead to distortion of companies’ reputations and consequently decreased profitability. Consequentialism is an ethical approach that allows companies to judge whether something is right by its consequences (Anashari et al., 2021). For instance, it is generally agreed that telling a lie is wrong. Therefore, companies avoid duping consumers into believing that their products are good, and in reality, the products are detrimental to consumers’ health. However, the theory permits telling a lie as long as it is beneficial. Therefore, the consequentialist view weighs behavior solely on its outcomes and nothing else.

Non-consequentialism is a widely accepted ethical theory since it considers the welfare of society as a whole. While consequentialists focus on how good or bad actions are, the non-consequentialists propound that persons should weigh their welfare regarding other persons’. Therefore, the perspective requires companies to develop an ethical framework that is inclusive and recognizes the welfare of other people. When adopting consequentialism, the companies are likely to disregard society’s significance in consumer-based brand equity (Anashari et al., 2021). However, by adopting non-consequentialism, the companies present moral values that everyone accepts. Therefore, non-consequentialism is more effective on companies than consequentialism.

Clothing Industry Ethical Perspectives

The fashion industry is one of the fastest-growing industries across the globe. The industry manufactures and designs clothes that are basic for human needs. Technological advancements and moral behaviors among societies shape the kind of clothes designed in the fashion industry. For instance, technology has influenced the use of environmentally degrading products like plastics in manufacturing shoes and clothes. Although fashion companies help conserve the environment, they are involved in activities that degrade it. For instance, water and air pollution are caused by waste materials from the textile industries. Different societies have different ethical perspectives on the kind of clothes worn (Nagano, 2021). The Islamic countries discourage revealing clothes among women, while in the Western countries revealing clothes is common (Anashari et al., 2021). However, companies try to limit their adverse effects on the environment and culture by adopting a non-consequentialist ethical perspective.

Marketing help companies identify market gaps and improve the company’s turnovers. Although technology has dramatically influenced marketing activities among companies, ethical behaviors have allowed companies to reach more audiences. Practicing ethics in marketing involves the application of reasonable standards and moral rights in marketing decision-making. Moreover, ethical marketing involves using the proper channels and words in describing products. Consequently, the companies use morally accepted messages to convince potential consumers to purchase their products. Furthermore, ethics guides companies in competing with other industries in similar categories. The businesses avoid the use of language that discriminates against their competitors. Instead, companies focus on selling their products to the consumers by communicating the advantages of their products.

Ethical practices are significant among clothing firms since they establish fair competing grounds and improve consumer-based brand equity. Competition help improves creativity and innovation among companies. Businesses thriving in a competitive ethical environment can become more creative and innovative. Consequently, the consumers benefit from the improved products. Meanwhile, ethical practices among companies enhance financial and environmental sustainability. Moral values promote a production chain that is environmentally sustainable. The companies are encouraged to take part in social responsibilities (Nagano, 2021). Production of unique and innovative products leads to improved profitability among companies. Therefore, ethics are significant among companies for profitability and sustainability.

Firms Under Review

Various fashion companies have adopted ethical practices for sustainability and profitability. Toms Shoes, Levi Strauss & Co., Adidas AG, and Lucy & Yak are global fashion companies that are ethical and sustainable. Toms Shoes manufactures shoes, eyewear, apparel, and handbags that can be purchased in retail by consumers from different parts of the world. The company has adopted a ‘one for one’ business model that considers the needy. Meanwhile, Levi Strauss & Co. is an American fashion company specializing in denim jeans (Nagano, 2021). The company is famous for its durable men’s and women’s jeans. Levi Strauss & Co. has participated in various social campaigns, increasing its popularity and consumer-based brand equity. Adidas and Lucy & Yak have adopted ethical practices as manifested by Levi Strauss & Co. and Toms Shoes.

Adidas AG is a German company famous for its quality shoes, accessories, and clothing. The company has been ranked as the largest sportswear manufacturer in Europe and the second-largest globally. Adidas AG sponsors many football teams at clubs and national levels to realize its social responsibility. Moreover, Adidas is one company that recycles pollutants to produce quality footwear (Patras, 2021). Meanwhile, Lucy & Yak is a fun and playful clothing brand that manufactures dungarees. The company adopts Global Oragnic Textile Standard (GOTS) cotton-like many other sustainable and ethical companies. The use of eco-friendly materials has attracted many clients to the company. Therefore, Adidas AG, Toms Shoes, Lucy & Yak, and Levi Strauss & Co. have taken various ethical stances for sustainability and profitability.

Ethical Stance in the Fashion Industry

The fashion industry involves complex designing, manufacturing, and supply chain processes. Highly advanced technologies are applied in the fashion industry’s production processes (Colucci and Vecchi, 2021). Moreover, technology is significant in the supply chain, making products readily available to consumers. However, the technologically enhanced production can be detrimental to the employees and the environment. Furthermore, the increasing demand for fashion products has led to increased industry human resource demand. Therefore, fashion companies may exploit employees and degrade the environment. However, the companies have taken stances on contemporary ethical issues like health and safety, environmental degradation, and animal cruelty.

Health and Safety Risks

The manufacturing process in the fashion industry involves the use of chemicals that are hazardous to human beings. Fashion companies have adopted various procedures and processes for the ethical handling of chemicals. The adopted actions are meant to protect employees, the public, and the environment from health risks. Adidas AG has adopted highly advanced technology, including robotics, in mixing chemicals to manufacture shoes (Salahuddin and Lee, 2022). The company has made compulsory personal protective equipement (PPE) compulsory among employees working in hazardous departments. The PPE is provided by the company and must be worn according to the company’s ethical code. Furthermore, the company’s employees working in harzadous sectors are subject to medical insurance and check-ups. Therefore, the non-consequential approach in protecting the employees from the chemical effects makes Adidas AG sustainable since few cases of employee deaths are reported.

Meanwhile, the use of chemicals can degrade the public and the environment. It is a general ethical value and behavior to protect the environment for future generations. Lucy & Yak is one of the companies that has adopted GOTS cotton. GOTS helps in ensuring organic textile status for quality assurance of the end-user. Consequently, the company avoids using inorganic textile that is environmentally degrading. Growing organic cotton involves limited use of fertilizers and chemicals that pollute the environment. Furthermore, the use of GOTS ensures that the companies eliminate toxic chemicals from their products. Therefore, Lucy & Yak regards human life and health status through GOTS adoption. Adidas AG and Lucy & Yak use a non-consequential ethical approach in solving health and safety risks problems.

Environmental Degradation

A conducive environment is significant for human survival. Therefore fashion companies have taken ethical steps in conserving the environment—environmental degradation results from factory waste and other unwanted materials in the manufacturing processes.The production of raw materials like cotton results in environmental pollution through pestisides and fertilizers. Environmental conservation among companies is done at the raw material production, product processing, and supply chain levels. For instance, the use of recycled materials helps conserve the environment. Moreover, adopting efficient technologies help in reducing production wastes.

Toms Shoes and Levi Strauss & Co. are on the frontline of environmental conservation through the production of durable shoes. Toms Shoes are made from environmentally friendly raw materials that are organic. For instance, their Earthwise collection is made from vegan and environmentally friendly materials. The company makes the collection using hemp, cotton, and recycled polyester. The Earthwise shoes are dyed using a natural dye that does not pollute the environment. Toms Shoes has participated in environmental sensitization through charitable activities like shoe donation. Levi Strauss & Co. is at the frontline of pioneering water conservation, and has installed a system that uses less water during the manufacturing process. The company, like Toms Shoes, has adopted the use of cottonised hemp to reduce the use of polyester in the manufacturing process. Moreover, Levi Strauss & Co. manufactures durable jeans that reduce jeans’ excess production. Therefore, Levi Strauss & Co. and Toms Shoes protect humanity from environmental degradation.

Animal Cruelty

Animals’ skin is used in apparel manufacturing, and many activists are against the practice. The manufacturing of fur coats requires the killing of minks and foxes, among other animals whose skins are significant in the production. The immoderate execution of the animals for fur has led to the extinction of some species. Adidas AG is one of the many companies that have been accused of animal cruelty. The company was known for using Kangaroo skin in the manufacture of football boots. However, the company has taken steps to protect animals’ welfare by banning fur in its supply chain. Similarly, Levi Strauss & Co. avoid using animal skin in its production system. The company’s approach to protecting animals’ welfare is purely non-consequential since they are not focused on their profitability but on all conditions surrounding the killing of animals.

Impacts of the Ethical Stance

Ethical stance among the apparel industries has led to conducive working conditions, animal welfare protection, fair competition, and environmental conservation. Various stakeholders, including policymakers, have formulated rules and regulations that enhance conducive working conditions. For instance, decent pay, medical insurance, and a safe working environment have been enhanced. Meanwhile, the companies have formulated ethical codes that guide employee behaviors at work. The codes promote respect for inclusivity and human rights, including the right to self-dignity. The banning of animal fur within the fashion industry’s supply chain has enhanced the promotion of animals’ welfare. Consequently, animals like kangaroos and minks have increased in population. Furthermore, society is encouraged to embrace animals’ welfare which contributes to nature conservation.

Meanwhile, a conducive environment is significant for human life and survival. Many companies have adopted ethical environmental conservation mechanisms. The mechanisms have led to the protection of water catchment areas and reducing global warming. Moreover, sustainable products are dominating the fashion industry. Improved healthy conditions among human beings are significantly attributed to companies with ethical codes on environmental conservation. Fair competition in the fashion industry results from ethical behaviors among companies. Many companies are selling their products at prices relative to their product value. Therefore, apparel made from organic products attracts many consumers despite its high prices. Moreover, the elimination of generic and inorganic products leads to unfair prices in the market. Therefore, ethical stance among companies in the apparel industry has significantly impacted the environment, animal welfare, and market competition.

Competitors’ Actions

Although Adidas AG and Levi Strauss & Co. have taken ethical measures to address corporate social practices, their competitors’ actions are admirable. Nike is a direct Adidas AG’s competitor. Meanwhile, Calvin Klein is one of the closest competitors of Levi Strauss & Co. Adidas AG has taken part in banning the use of fur in its production chain and actions that promote employee welfare. Meanwhile, Nike has received bad ratings due to its alleged forced labor activities. In 2020, the company was accused of using forceful labor in its supplier factory, Qingdao Taekwang Shoes Co. However, the company reviewed its supplier hiring process to limit unethical behaviors. Unlike Nike, Adidas is taking more strict steps in reducing toxic chemicals in its production chain. The company uses some organic cotton and Better Cotton Initiative that is not 100% sustainable cotton. Adidas AG is more ethical than Nike, attracting better consumer ratings.

Meanwhile, Levi Strauss & Co. and its competitor Calvin Klein have taken different ethical approaches. Although Levi Strauss & Co. has taken steps to reduce environmental degradation, Calvin Klein has taken better steps. Calvin Klein has set science-based targets that reduce greenhouse gases released to the environment from its operations (Bragge et al., 2022). Moreover, it is one of the companies with a deforestation policy approved by CanopyStyle. However, unlike Levi Strauss & Co., Calvin Klein has taken minimal actions to reduce textile waste from its product manufacturing. The various companies have adopted different approaches to ethical and social responsibilities. While some companies have gained competitive advantages, some like Nike have attracted a lousy sustainability reputation.

Recommendations to the Firms

Adoption of innovative Incubators

Innovative incubators are excellent sources of sustainable ideas for companies. The incubators bring creative and innovative minds from different parts of the world. The participants can help the companies solve the most intricate ethical issues. Moreover, the companies can identify their weaknesses and adopt the newly invented mechanisms through the incubators. Therefore, apparel companies can adopt innovative incubators searching for creative and innovative sustainable ideas.

Take part in Global Sustainable Challenges

Global organizations like the United Nations, among other non-profit organizations, champion environmental sustainability and human rights. The sustainability issues at the helm of global discussion include global warming and environmental conservation activities like afforestation. The global organizations encourage the use of chemicals that are less harmful to human beings. Moreover, the organizations promote human rights, including workers’ rights. The companies can take part in the sustainable challenges at global levels. Companies can learn how to formulate sustainable and ethical policies through the challenges. Moreover, the global arena is a significant source of innovative ideas.

Champion Animal Welfare through their Marketing Activities

While many fashion companies have banned animal fur in their manufacturing chains, other companies have taken advantage of the rarity of animal skin apparel. Consequently, apparel made from animal fur is still standing in the market but at exorbitant prices. Animals like kangaroos whose skins are used in manufacturing apparel are becoming instinct.The non-consequential ethical approach involves the companies protecting every society member and the environment. Therefore, companies can adopt a campaign against animal cruelty through their social programs and marketing activities. The campaign will allow the companies to promote a sustainable society.

Conclusion

Ethics is significant among companies since it promotes profitability and sustainability. Companies can take different ethical approaches: consequentialism or non-consequentialism. The latter approach allows companies to regard other members of society when making decisions and carrying out their activities. Consequently, the apparel companies have taken various ethical stances about environmental degradation, animal cruelty, and health and safety risks. Adidas AG, Levis Strauss & Co., Toms Shoes, and Lucy & Yak are some of the companies that have adopted sustainable, ethical measures. However, the companies can adopt innovative incubators, global sustainable challenges, and promote animal welfare for an ethical society.

References

Anshari, M., Almunawar, M., Masri, M. and Hrdy, M., 2021. Financial Technology with AI-Enabled and Ethical Challenges.Society, [online] 58(3), pp.189-195.

Bagus, P., Daumann, F. and Follert, F., 2021. Toward a total morality of supply chain acts. Management Decision, [online].

Bragge, P., Becker, U., Breu, T., Carlsen, H., Griggs, D., Lavis, J., Zimm, C. and Stevance, A., 2022. How policymakers and other leaders can build a more sustainable post-COVID-19 ‘normal’. Discover Sustainability, [online] 3(1).

Colucci, M. and Vecchi, A., 2020. Close the loop: Evidence on the implementation of the circular economy from the Italian fashion industry.Business Strategy and the Environment, [online] 30(2), pp.856-873.

Nagano, A., 2021. Applying Storytelling Approach to Analyze Kojima Jeans District Based on Slow Fashion Perspectives.Sustainability, [online] 13(24), p.13651.

Patras, V.,2021. Sustainability in the shoe market: Adidas on a move to sustainability.

Salahuddin, M. and Lee, Y., 2022. Automation with Robotics in Garment Manufacturing. Leading Edge Technologies in Fashion Innovation, [online] pp.75-94.

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