Corporate Social Responsibility in the clothing industry

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! ! !

Corporate!Social!Responsibility!in!the!

clothing!industry.!

MSc!BA:!Strategy!

Supervisor:+Dr.+Arno+Kourula+

Sjoerd+Peijster+

6132766+

Pages:+54+

! ! ! ! ! ! ! ! !

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Statement+of+Originality+ This+document+is+written+by+Student+Sjoerd+Peijster+who+declares+to+take+full+ responsibility+for+the+contents+of+this+document.+ I+declare+that+the+text+and+the+work+presented+in+this+document+is+original+and+ that+no+sources+other+than+those+mentioned+in+the+text+and+its+references+have+ been+used+in+creating+it.+ The+Faculty+of+Economics+and+Business+is+responsible+solely+for+the+supervision+ of+completion+of+the+work,+not+for+the+contents.+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +

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Abstract(

+ Corporate+Social+Responsibility+(CSR)+is+about+the+responsibility+of+companies+ for+their+impacts+on+society.+Employees+are+a+part+of+the+CSR+related+conducts+ and+practices.+The+clothing+industry+is+particularly+interesting+in+relation+to+CSR+ and+the+employees,+as+the+suppliers+of+clothing+companies+are+often+located+in+ lowScost+labor+countries.+These+countries+have+different+laws,+rules+and+ regulations+in+regard+to+employees.+Clothing+companies+therefore+try+to+realize+ CSR+practices+within+these+suppliers.+They+take+responsibility+for+the+product+ total+supply+chain+management+(TSCM).+The+following+research+question+is+ answered:+‘’How&do&firms&discuss&employees&in&their&CSR&communication?’’.+By+ means+of+a+narrative+(discourse)+analysis,+ten+clothing+companies+are+analyzed+ on+how+employees+are+discussed+in+their+CSR+communication+with+the+use+of+ Nvivo.+Employees+in+this+research+consist+of+both+employees+of+the+reporting+ firm+as+well+as+the+employees+of+the+manufacturers.+Four+themes+appear+to+be+ the+major+pattern+found+in+the+reports:+development,+benefits,+engagement,+and+ nonSemployees.+There+seems+not+to+be+significant+differences+in+these+reports,+ even+though+the+companies+are+from+different+geographical+locations+and/or+ varying+types+of+brand+(highSend,+sports+or+casual).++++ ! ! ! ! ! !

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! !

Table(of(Contents(

ABSTRACT!...!3+ 1.!INTRODUCTION.!...!5+ 1.1+ BACKGROUND+...+9+ 1.2RESEARCH+PROBLEM+AND+GAP+...+10+ 1.3+ RESEARCH+OBJECTIVES+AND+QUESTIONS+...+11+ 1.4+KEY+DEFINITIONS+...+11+ 1.&Corporate&Social&Responsibility&(CSR)&...&12+ 2.&Total&supply&chain&management&(TSCM)&...&12+ 1.5+STRUCTURE+OF+THE+STUDY+...+12+ 2.!LITERATURE!REVIEW!...!13+ 2.1+CORPORATE+SOCIAL+RESPONSIBILITY+...+13+

2.2+CLOTHING+INDUSTRY+AND+THE+CSR+POTENTIAL.+...+18+

2.3+INHIBITORS+AND+DRIVERS+OF+CSR+AND+TSCM+...+19+

2.4+CSR+IN+PRACTICE+...+20+ 3.!METHODOLOGY!...!23+ 3.1+RESEARCH+DESIGN+...+23+ 3.2+SAMPLING+...+23+ 3.3+DATA+GATHERING+...+25+ 3.4+DATA+ANALYSIS+...+25+ 3.5+EVALUATION+OF+RESEARCH+QUALITY+...+27+ 4.!EMPIRICAL!FINDINGS!...!29+ 5.!DISCUSSION!...!40+ 6.!CONCLUSION!...!47+ 6.1+SUMMARY+OF+MAIN+FINDINGS+...+47+ 6.2+MANAGERIAL+IMPLICATIONS+...+48+ 6.3+LIMITATIONS+OF+THE+STUDY+...+49+ 6.4+SUGGESTIONS+FOR+FURTHER+RESEARCH+...+50+ BIBLIOGRAPHY!...!51+ + ! !

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‘’Creating&a&strong&business&and&building&a&better&world&are&not&conflicting&goals&–& they&are&both&essential&ingredients&for&longEterm&success’’+–+William+Clay+Ford+Jr.+

1.(Introduction.((

+ Corporate+social+responsibility+(CSR)+is+becoming+a+term+used+and+applied+more+ commonly+nowadays.+The+European+Commission+(EC)+defines+CSR+as+‘’+The+ responsibility+of+enterprises+for+their+impacts+on+society’’+(European+ Commission,+2014).+But+it+spawns+more+than+just+taking+responsibility+upon+ ones+own+actions.+It+is+clear+that+organizations+must+ensure+that+CSR+practices+ are+realized+throughout+the+entire+supply+chain.+Besides+the+ECs+definition+of+CSR+ there+is+another+definition:+‘’+ContextSspecific+organizational+actions+and+policies+ that+take+into+account+stakeholders’+expectations+and+the+triple+bottom+line+of+ economic,+social,+and+environmental+performance.’’+(Aguinis+&+Glavas,+2012,+pp.+ 2).+These+actions+and+policies+can+be+implemented+by+actors+from+different+ levels;+institutional,+organizational+and+individual.+ + Many+organizations+already+incorporate+CSR+conduct+and+reports+into+ everyday+business+and+try+to+ensure+CSR+practices+along+the+entire+supply+chain+ as+well.+However+it+seems+that+a+problem+arises.+Having+the+proper+written+ documents+does+not+seem+to+be+enough+to+let+the+actual+ideas+and+processes+that+ follow+CSR+become+reality.+Empirical+evidence+shows+that+even+officially+certified+ organizations+and+suppliers+still+aren’t+living+up+to+the+desired+standards+(Ellis+&+ Friedman,+2012).+ + Consumers+like+to+buy+clothes,+and+any+other+product+for+that+matter,+that+ are+soScalled+‘’guiltSfree’’,+which+means+that+customers+would+rather+have+a+ certain+product+that+is+chosen+due+to+its+ethical+attributes+than+to+have+a+product+

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that+has+only+selfSbenefitSoriented+attributes+(performance+and+price).+This+can+ be+accomplished+by+heightening+selfSaccountability+and+showing+that+the+ consumers+can+live+up+to+their+own+internal+selfSstandards+by+buying+these+ products+(Peloza+et+al.,+2013).+Clothing+companies+that+comply+with+those+basic+ principles+can+then+publish+transparently+their+actions+and+don’t+make+use+of+ some+horrible+known+conditions,+such+as+child+labor+and/or+destroying+the+ environment+in+the+production+process.+However+an+issue+arises,+since+the+ clothing+companies+use+different+channels+of+production+it+is+difficult+for+the+ consumer+to+actually+see+and/or+know+what+happens+at+every+stage+of+ production+or+distribution.+Thus+some+sort+of+CSR+is+needed+throughout+the+ entire+supply+chain+for+the+clothes+to+be+truly+guilt+free.++ There+is+a+difference+between+businessStoSbusiness+(B2B)+companies+and+ the+businessStoScustomer+(B2C)+companies.+B2B+being+particularly+interesting+ for+CSR+as+it+is+about+businesses+influencing+each+other.+The+second+organization+ form+is+between+organizations+and+customers.+Consumers+only+know+and+see+ companies+that+sell+straight+to+them+(a+reason+for+implementing+CSR),+what+ happens+between+organizations+is+much+more+difficult+to+follow,+know+and+see.+It+ seems+evident+that+suppliers+need+to+be+more+transparent+and+therefor+ implement+CSR+practices+in+order+for+their+reputation+to+uphold+and+in+turn+to+ keep+their+business+with+clothing+companies+that+expect+this+to+be+so.+Another+ interest+here+is+how+do/can+companies+influence+the+employees+of+suppliers+ (Leppelt+et+al.+2013).++ + There+are+two+different+kinds+of+reports,+i.e.+the+financial+and+the+CSR+ reports+as+stated+by+Mark+Vogt,+the+international+programs+director+of+Porticus+

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(a+charity+foundation+of+C&A),+who+has+been+working+for+over+25+years+in+the+ field+of+CSR.+Financial+reports+are+about+the+financial+status+of+a+company.+CSR+ conduct+reports+are+a+separate+document+with+different+financial+information,+on+ how+money+is+spent+in+order+to+realize+CSR+practices+and+what+these+practices+ comprise+of.+However+there+is+empirical+evidence+that+CSR+in+combination+with+ charity+events+make+money+for+a+company+or+organization+as+well+for+the+charity,+ which+can+benefit+the+environment+and/or+communities.+It+shows+a+link+between+ organizations+and+charities+to+make+money+and+do+well+(personal+ communication,+5th_{+March,+2015).+CSR+reports+is+a+reference+made+to+the+means+} that+firms+use+to+communicate+to+its+stakeholders+the+impacts+that+the+firm+has+ on+society,+these+cover+social,+environmental+and+financial+impacts+(Gray,+2008).+ The+reports+are+in+existence+due+to+the+belief+that+firms+have+this+responsibility+ to+society.+This+responsibility+should+go+beyond+legal+obligations+and+economic+ interests+(Carroll,+1991).+These+responsibilities+also+comprise+of+employees,+ customers,+suppliers,+government+and+nonSgovernment+organizations+(Fraser,+ 2005).+Benefits+that+are+a+consequence+of+CSR+reports+include+hiring+and+ retaining+quality+employees,+customer+loyalty,+brand+image,+risk+management+ throughout+the+supply+chain,+and+longSterm+profitability+(Vanhamme+&+Grobben,+ 2009).+Time,+effort+and+money+are+being+spent+by+firms+on+the+disclosure+of+ information+of+the+social+end+environmental+performance+that+they+have.+This+is+ a+result+of+a+demand+from+various+stakeholders.+(Verbeeten,+et+al.,+2014).+ Verbeeten+et+al.+(2014)+their+research+reveals+that+in+fact+companies+with+a+CSR+ report+are+positively+related+to+stock+prices.+Social+(i.e.+employeeSrelated)+ disclosures+is+the+main+cause+of+this+positive+stock+price.+Environmental+

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disclosures+on+the+other+hand+have+no+(maybe+even+negative)+impact+on+stock+ prices.+The+research+done+by+Moore+et+al.+92012)+reveals+that+companies+which+ adopt+CSR+practices+and+invest+in+these+practices+are+more+likely+to+receive+ increased+returns.+ + An+example+of+how+employees+are+brought+into+the+CSR+of+a+company+is+ that+of+TSMobile.+WarChild,+an+organization+that+helps+children+in+warzones,+is+ always+raising+money+and+in+order+to+do+so,+they+sometimes+hold+events+to+ increase+donations.+TSMobile+saw+an+opportunity+here+that+could+benefit+ WarChild+as+also+themselves,+especially+on+the+basis+of+employee+engagement+ and+brand+reputation.+Brand+reputation+also+helps+realizing+profits+as+customers+ prefer+brands+with+a+good+reputation.+The+opportunity+that+TSMobile+saw+is+in+ line+with+CSR+practices,+by+helping+WarChild+to+raise+money+they+are+helping+ communities,+especially,+children+in+warzones.+What+happened+was+that+TS Mobile+offered+their+telecommunication+network+for+free+so+that+people+could+be+ called+to+give+donations+for+WarChild.+They+also+asked+their+own+employees+ whether+they+would+answer+these+phones+on+voluntarily+basis+on+a+Saturday.+ The+result+was+amazing,+in+less+than+two+days+more+employees+signed+up+than+ were+needed+to+do+so.+This+shows+employee+engagement+and+the+need/urge+of+ people+to+improve+the+lives+of+others.+A+fine+example+on+how+CSR+can+improve+ employee+engagement+and+selfSidentification+with+the+company.+It+also+shows+ how+with+this+event+TSMobile+can+make+profits+themselves+since+customers+will+ prefer+TSMobile,+since+they+are+doing+such+great+events.+CSR+should+not+only+be+ viewed+as+a+cost/burden+but+should+be+seen+as+beneficial+to+the+company+ (Neleman,+2010).++ +

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1.1 Background( ( CSR+has+a+long+history+and+can+be+traced+back+centuries+ago.+The+evolution+ started+in+the+1950s+according+to+Carroll+(1999).+However,+it+has+become+of+ interest+for+research+and+the+real+further+development+of+CSR+itself+has+been+on+ the+rise+for+some+50+years.+Since+then+it+has+been+shaping+for+theory,+research+ and+most+importantly+practice.+In+1946+Fortune+business+executives+were+polled+ about+the+social+responsibilities+they+had,+showing+the+interest+existed+already+ back+then.+As+stated+above,+the+more+recent+developments+(starting+from+the+ 1950s)+are+more+interesting+for+this+research.+In+fact,+now,+executives+embrace+ CSR+or+serious+consequences+will+be+risked+(Cochran,+2007).+Reverte+(2009)+ argues+that+CSR+has+become+topic+of+interest,+both+for+society+and+academics,+ since+three+decades.+Emphasizing+the+increased+attention+towards+issues+such+as+ pollution,+waste,+and+the+rights+and+status+of+workers.++ + The+clothing+industry+is+particularly+interesting+where+it+comes+to+CSR+ related+issues+and+practices+due+to+the+fact+that+they+often+operate+in+different+ countries,+varying+from+buying+the+clothes+from+manufactures,+using+various+ suppliers,+and+also+selling+in+different+countries.+Many+clothing+factories+are+in+ countries+where+the+wages+are+low+and+different+rules+and+regulations+(if+at+all)+ apply.+In+fact+over+70%+of+clothing+imports+in+the+EU+are+form+developing+ countries+(World+Bank,+2007).+However+modern+age+CSR+looks+at+the+entirety+of+ the+supply+chain.+That+obviously+entails+a+lot+of+issues+and+problems+that+are+not+ always+easily+resolved+but+must+be+dealt+with+to+really+effectuate+the+lowest+ possible+environmental+impact+and+acceptable+labor+conditions+for+all+(Laudal,+ 2010).+++

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1.2Research(problem(and(gap( + This+research+shows+that+CSR+is+relatively+(less+than+a+century)+new,+especially+ when+looking+at+the+realization+and+further+development.+Much+research+is+ therefore+still+to+be+done+in+the+field+of+CSR.+This+research+will+direct+its+attention+ towards+the+relation+of+CSR+to+the+clothing+industry+for+reasons+aforementioned,+ being+the+internationally+structured+industry.+This+research+should+reveal+what+ is+going+on+at+the+moment+in+this+area,+specifically+on+the+topic+of+employees+of+ the+firm+at+hand+as+well+as+the+employees+of+other+firms+(such+as+suppliers).+ What+is+also+interesting+to+see+is+what+do+the+firms+do+to+realize+these+policies.+ Hopefully+it+will+give+a+basis+for+what+is+the+benchmark+or+what+businesses+ should+be+striving+for.+The+clothing+industry+is+a+difficult+sector,+to+get+ information+from.+Apparently+many+businesses+do+not+want+to+address+these+CSR+ related+issues+publicly+(this+has+been+attempted+for+this+research).+Even+though+ they+are+proud+of+what+they+have+achieved+and+publish+reports+on+their+CSR+ practices.+CSR+is+a+sensitive+topic+as+it+crosses+nations,+therefore+different+rules,+ regulations,+and+laws+apply+at+different+stages+in+the+supply+chain.+Specifically+ this+research+will+focus+on+employees,+and+as+stated+the+focus+will+lie+on+the+ difference+between+own+employees+and+other+companies’+employees.+ + There+are+some+studies+in+existence+that+discusses+how+firms+use+the+ internet+to+communicate+their+CSR+reports,+which+includes+the+kind+of+ information+given,+for+whom+it+is+intended,+and+the+amount+of+disclosure+(Basil,+ &+Erlandson+2008).+No+studies+however+have+focused+on+how+firms+in+the+ clothing+industry+report+via+their+own+website+(GaskillSfox+et+al.,+2014).++++ +

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1.3 Research(objectives(and(questions( + The+research+objective+is+to+explore,+in+a+narrative+discourse+research,+how+ clothing+firms+discuss+employees+in+their+CSR+reports+or+other+communication.+ The+research+will+look+at+global+players+as+these+have+more+information+available+ and+are+the+ones+with+the+means+to+engage+in+CSR.+Also+a+reason+is+that+the+global+ players+(can)+have+more+influence+on+suppliers.+Since+these+suppliers+want+to+be+ involved+in+business+with+these+companies+so+that+they+remain+in+business+and+ remain+profitable.+The+following+research+question+has+been+formulated+for+this+ research:+ “How&do&firms&discuss&employees&in&their&CSR&communication?’’& Employees,+as+depicted+in+this+research+are+not+only+employees+of+the+ reporting+firm+but+also+of+the+employees+of+other+companies+further+in+the+ supply+chain.+ Since+CSR+in+the+clothing+industry+covers+different+countries+and+different+ rules,+regulations+and+laws+it+is+interesting+to+see+how+such+clothing+companies+ discuss+the+employees.+In+what+manner+these+employees+are+discussed+is+ another+interesting+point,+which+could+range+from+employee+engagement,+wages,+ working+hours+but+also+benefits+etc..+This+will+become+clear+after+analyzing+the+ first+report.+Off+course+it+could+be+varying+for+different+companies+thus+a+ compare+and+contrast+will+consequently+follow.+Patterns+or+differences+could+be+ found+and+show+what+is+happening+at+this+moment+in+relation+to+employees+and+ CSR.+++ 1.4(Key(definitions( + The+following+2+key+definitions+are+used+in+this+research+and+are+amplified+so+

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that+these+make+sense+for+this+research.++ 1.(Corporate(Social(Responsibility((CSR)( The+way+firms+take+responsibility+towards+socially+accepted+actions+and+policies+ that+involve+employees,+either+being+their+own+or+other+employees.++++ 2.(Total(supply(chain(management((TSCM)( The+way+a+company+takes+responsibility+for+a+product,+from+the+stage+of+its+ production+up+to+the+sale+of+the+product+to+the+customer,+even+where+it+doesn’t+ have+control+but+has+a+stake+in+it+as+it+is+involved+with+the+final+products.+ Upstream+being+the+dominant+topic,+where+from+the+retailer+point+of+view+is+ looked+towards+the+suppliers.++ 1.5(Structure(of(the(study( This+research+started+with+the+introduction+and+the+background+of+CSR+in+ relation+to+the+clothing+industry.+Following,+the+existing+relevant+literature+will+ be+taken+into+consideration.+The+next+step+is+to+collect+the+data,+analyze+the+data+ of+the+selected+ten+companies,+which+will+allow+making+further+answers+and+ discussion+possible.+With+use+of+Nvivo+will+the+data+be+coded+and+analyzed+ accordingly.+Consequently,+the+discussion+and+conclusion+follow.++ + + + + + + + + +

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2.(Literature(review( (

2.1(Corporate(social(responsibility( + CSR+started+as+SR+(social+responsibility),+probably+due+to+the+fact+that+modern+ age+corporation+or+corporate+dominance+was+not+a+reality+at+that+point+in+time.+It+ was+some+50+years+ago+that+the+notion+started+that+large+businesses+have+impact+ on+lives+of+people+in+many+different+manners+(Carroll,+1999).+The+first+definition+ of+CSR+in+this+period:+‘’It+refers+to+the+obligations+of+businessmen+to+pursue+those+ policies,+to+make+those+decisions,+or+to+follow+those+lines+of+action+which+are+ desirable+in+terms+of+the+objectives+and+values+of+our+society’’+(Bowen,+1953,+pp.+ 6).!In+this+definition+the+CSR+concept+was+not+developed+more+than+just+the+ notion+of+acknowledgement+of+the+responsibility+that+businessmen+have+on+their+ actions+in+relation+to+the+profitSandSloss+statements.+Frederick+(1960)+divides+ CSR+in+the+1950s+into+three+main+aspects;+the+idea+of+corporate+managers+as+ public+trustees;+the+idea+of+balancing+competing+claims+to+corporate+resources;+ the+acceptance+of+philanthropy+as+a+manifestation+of+business’s+support+of+good+ causes.+Carrol+(2008)+in+turn+stated+that+there+were+only+few+actions+besides+ philanthropy+in+this+decade+on+behalf+of+CSR.++ + In+the+1960s+there+is+further+defining+in+literature+and+formalizing+what+ CSR+actually+means.+A+definition+in+this+era:+‘’Businessmen’s+decisions+and+ actions+taken+for+reasons+at+least+partially+beyond+the+firm’s+direct+economic+or+ technical+interest’’+(Davis,+1960,+pp.70).+Davis+also+came+up+with+the+soScalled+ ‘’Iron+Law+of+Responsibility’’:+‘’In+the+long+run,+those+who+do+not+use+power+in+a+ manner+which+society+considers+responsible+will+tend+to+lose+it’’.+Meaning+that+ the+power+businessmen+have+should+equally+be+used+for+social+responsibility.+It+

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is+in+this+era+that+a+degree+of+voluntarism+was+introduced+opposing+coercion,+ with+costs+that+did+not+directly+relate+to+economic+returns.+Davis+(1960)+ highlights+that+businesses+does+not+exist+alone+in+the+world,+or+society,+and+for+ the+business+to+be+healthy+it+cant+live+in+a+society+that+is+sick.+There+is+a+mutual+ dependence+between+business+and+society.++ + In+the+1970s+the+notion+of+policies+and+programs+related+to+CSR+practices+ came+to+realization.+The+definition+in+this+era+looks+the+same+as+the+one+used+in+ the+previous+decade+but+defines+more+accurately+who+are+involved;+employees,+ suppliers,+dealers,+local+communities,+and+the+nation.+Interesting+to+note+is+that+ at+this+time+people+started+to+realize+that+social+responsible+businesses+that+ engage+in+social+programs+will+generate+higher+profits+to+the+firm.+Also+at+this+ time+it+becomes+less+obvious+when+CSR+implementation+is+really+voluntarily+or+a+ result+of+a+response+to+social+norms+(Carroll,+1999).+Interestingly+enough+this+ could+be+something+that+could+be+used+for+defining+CSR+further+in+this+research.+ Is+it+still+truly+CSR+if+this+is+the+result+of+simply+complying+with+social+norms+or+ should+one+(companies)+do+more+and+truly+voluntarily+engage+in+CSR+practices.+ + It+is+also+in+this+era+that+the+C+of+corporate+is+added+to+SR,+which+could+be+ explained+by+responses+to+market+forces+and/or+legal+constraints.+However+it+ makes+more+sense,+as+social+responsibility+for+a+company+goes+beyond+social+ obligation,+that+the+C+is+added.+It+brings+or+at+least+tries+to+bring+corporate+ behavior+up+to+a+point+that+it+is+congruent+with+social+norms,+values+and+ expectations.++ + In+the+1980s+less+defining+but+more+research+came+into+practice+resulting+ in+frameworks,+theory+and+models.+CSR+became+a+process+instead+of+a+concept,+or+

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at+least+a+developing+concept+that+is+under+constant+redefinition.+Ethics+came+ more+and+more+into+the+picture+for+companies+and+principles+on+CSR+followed+ consequently.+So+social+responsibility,+responsiveness+and+business+ethics+are+all+ related+now+(Carroll,+1999).+Preston+&+Post+(1981)+on+the+other+hand+started+to+ talk+not+about+‘’social’’+but+about+‘’public’’.+The+reasoning+behind+this+is+that+they+ highlight+the+importance+of+this+public+aspect.+They+show+that+it+is+not+so+much+ about+the+opinions+of+persons+or+interest+of+groups+that+define+the+scope+of+their+ responsibilities.+ + Companies,+thus,+must+consider+the+consequences+of+their+policy+and+ socially+decisions.+However+this+does+not+mean+that+companies+are+obligated+to+ solve+(all+of)+societies+problems.+Alternatively+companies+should+focus+on+areas+ that+relate+to+their+activities+and+interests+(MouraSLeite+&+Padgett,+2011).+ Preston+&+Post+(1981)+appear+to+go+into+more+depth+on+what+they+find+important+ on+CSR+and+the+definition+and+what+should+be+done+in+this+decade.+Even+more+ they+divide+the+scope+of+CSR+into+two+segments;+primary+and+secondary+ involvement.+Accordingly;+understanding+the+behavior+and+transactions+that+are+ a+direct+reaction+from+the+property+and+the+overall+operations+of+a+business;+the+ relation+between+the+companies’+impact+and+effect+that+are+a+consequence+of+the+ primary+involvements.++ + In+the+1990s+there+were+few+contributions+to+the+evolving+definition+of+ CSR.+Further+exploration+of+four+domains+however+did+occur;+economic,+legal,+ ethical+and+discretionary.+Also+what+became+more+important+than+just+the+ definition+and+the+processes+were+the+outcomes,+a+meaningful+addition+since+this+ is+why+it+exists+(Carroll,+1999).++

(16)

+ After+the+year+2000+CSR+has+kept+growing,+in+fact+literature+suggests+the+ link+between+CSR+and+corporate+financial+success.+Evidence+of+this+is+shown+by+a+ survey+done+by+Price+Waterhouse+Coopers,+where+70%+of+global+chief+executives+ believed+that+CSR+was+of+such+an+importance+to+their+profitability+that+they+could+ not+have+done+it+without+it+(Vogel,+2005).+New+rules+of+behavior+have+come+with+ the+emerging+institutional+infrastructure+of+CSR+according+to+Waddock+(2008).+ These+include:+produce+sustainability;+live+up+to+different+principles+and+ standards+depending+on+their+industry;+be+more+transparent+about+their+ activities;+engage+with+stakeholder+in+dialogue,+partnerships,+and+action.+ According+to+Garriga+&+Mele+(2004)+the+proper+starting+point+for+ classifying+CSR+is+to+assume+that+the+most+relevant+theories+and+other+related+ approaches+focus+on+one+of+four+aspects+of+social+reality.+These+four+aspects+are:+ economics,+politics,+social+integration+and+ethics.+Also+mentioned+by+Carroll+ (1999)+in+the+background+section.+These+aspects+are+to+be+found+in+any+kind+of+ social+system+and,+in+turn,+are+classifiable+in+four+groups,+which+allocate+theories+ of+CSR.+In+the+first+group+it+is+assumed+that+the+organization+exists+to+create+ wealth,+that+this+wealth+creation+is+its+sole+purpose+and+thus+its+sole+social+ responsibility.+The+theories+that+are+allocated+to+this+group+could+also+be+ classified+as+instrumental+theories+due+to+the+fact+that+they+explain+CSR+as+a+mere+ means+to+the+end,+which+is+profits+or+wealth+creation.+In+this+group+the+ economics+of+the+relation+of+the+business+and+society+is+studied.+In+other+words+if+ wealth+is+created,+the+social+activity+would+therefor+automatically+be+accepted.+ The+second+group,+classifying+the+soScalled+political+theories,+emphasizes+the+ social+power+that+organizations+have.+This+social+power+stands+in+relation+with+

(17)

society+and+the+responsibility+that+arises+with+the+power+within+its+political+ arena.+Organizations+accept+certain+social+duties+and+rights.+The+third+group,+ which+classifies+integrative+theories,+considers+the+fact+that+businesses+are+ expected+to+integrate+certain+social+demands.+A+defining+argument+within+this+ group+is+that+the+survival+and+expansion+of+organizations,+even+the+existence+ thereof+itself,+depends+on+society.+The+fourth+and+final+group,+containing+the+ ethical+theories,+goes+even+further+and+suggests+that+the+relationship+between+ business+and+society+is+embedded+with+ethical+values.+In+other+words+ethical+ obligations+gives+a+CSR+vision+and+form+the+ethical+perspective+that+stands+above+ any+other+consideration+(Garriga+&+Melé,+2004).+ + The+concept+of+the+business+and+society+relationship+involve+one+or+more+ of+the+discussed+aspects.+Wealth+creation+is+priority+but+externalities+must+be+ considered.+Secondary+affects+of+actions+could+make+the+market+inefficient.+When+ externalities+appear+the+political+system+should+take+action.+The+third+and+fourth+ aspects+are+to+be+lived+up+by+the+standards+of+specific+organizations+(Garriga+&+ Melé,+2004).+This+thesis+will+focus+more+on+the+third+and+fourth+group+as+these+ groups+are+in+fact+trying+to+realize+concepts+of+CSR+in+practice+and+attempt+to+ take+it+further+than+just+complying+with+rules+and+laws.+ + Corporate+responsibility+has+a+social+and+an+environmental+component,+ and+the+impact+of+these+two+is+fundamentally+intertwined+and+transcends+ national+boundaries+(Egri+&+Ralston,+2008).+The+article+claims+that+research+has+ been+done+more+on+ethics+and+governance+issues+than+on+environmental+ responsibility.+It+also+states+that+the+research+available+is+more+focused+on+ Western+nations+in+contrast+to+poorer+nations+such+as+Africa,+Asia+and+Latin+

(18)

America+(Egri+&+Ralston,+2008).+This+shows+some+gaps+within+the+research+area+ of+environmental+responsibility+and+the+focus+on+poorer+countries.+ 2.2(Clothing(Industry(and(the(CSR(potential.( + Most+empirical+studies+of+CSR+focus+at+the+company+level+(Laudal+2010),+leaving+ room+for+research+on+the+industryS+and/or+sectorSlevel.+The+CSR+potential+can+be+ labeled+as+‘’high’’+when+the+industrySspecific+features+indicate+that+the+risk+of+ violating+the+CSR+standards+is+high.+This+can+be+translated+to+that+when+a+high+ CSR+potential+exists+within+an+industry,+that+CSR+can+be+of+a+positive+influence.++ This+can+be+the+case+mainly+when+companies+operate+in+environments+where+ many+requirements+of+international+CSR+standards+are+not+met+(Laudal,+2010).+ In+the+clothing+industry+many+companies+are+in+business+with+third+world+ economies+and+therefore+dealing+with+the+rules+and+regulations+of+the+according+ governments+(World+Bank,+2007).+The+standards+there+are+not+the+same+as+in+the+ WesternSWorld+and+thus+it+seems+apparent+that+indeed+there+can+be+a+high+ potential+of+positive+influence+of+CSR+actions.+Can+these+earlier+mentioned+CSR+ industrySfeatures+be+identified+and+in+turn+be+used+for+specific+companies+ (Laudal,+2010),+if+so+this+would+be+leaving+the+studies+of+specific+companies,+ which+are+also+already+in+existence+unnecessary+as+the+industrySspecific+research+ will+give+the+guiding+for+the+companies+specific+research.+The+study+conducted+by+ Laudal+(2010)+states+indeed+that+the+clothing+industry+is+well+suited+for+CSR+ studies+as+it+is+a+industry+that+is+global+and+as+stated+before+the+production+and+ distribution+is+global+and+are+located+in+a+variety+of+different+governmental+ regulations,+employment+and+environment+protection,+and+wage+levels.+This+ leaves+the+clothing+industry+in+a+challenge+of+a+multitude+of+legal+and+moral+

(19)

standards+that+they+must+obey+and/or+achieve.+ 2.3(Inhibitors(and(Drivers(of(CSR(and(TSCM( + There+are+some+CSR+inhibitors+within+the+clothing+industry+and+some+CSR+ drivers.+Downward+price+pressure,+fashion+product+nature,+labor+intensity+of+ manufacture,+retailer+buying+practices,+supply+chain+complexity,+and+supply+ chain+power+distribution+are+examples+of+CSR+inhibitors.+CSR+drivers+are+the+ consumer+desire+for+guiltSfree+fashion,+trust+in+buyerSsupplier+trading+ relationship,+TSCM+philosophy:+longSterm+orientation+and+shared+goals,+supply+ chain+rationalization,+and+supply+chain+integration+(P.+Perry+&+N.+Towers+2013).+ + In+the+case+study+of+Perry+&+Towers+(2013)+seven+different+sized+clothing+ companies,+all+located+within+Sri+Lanka,+appeared+to+show+evidence+of+CSR+ implementation.+This+evidence+ranged+from+philanthropic+activities+to+strategic+ initiatives+that+created+shared+value+for+business+and+society.+The+study+as+stated+ before+implies+that+clusters+indeed+can+beneficially+implement+CSR+to+stay+ competitive.+It+seems+apparent+that+the+conditions+in+Sri+Lanka,+with+these+seven+ companies,+are+well+(reformed).+However+the+clothing+industry+is+global+and+ resides+not+only+in+Sri+Lanka,+it+seems+that+these+findings+can+be+improved+and+ can+be+researched+better+more+globally.+ + Supply+chain+management+has+been+identified+as+one+of+the+two,+the+other+ being+total+quality+management,+most+important+strategies+for+manufacturing+ and+services.+It+has+become+a+prerequisite+for+succeeding+in+the+global+market.+It+ can+help+achieve+competitive+advantage+as+well+as+strengthening+organizational+ competitiveness+(Sila+et+al.,+2006).+Supply+chain+management+can+enhance+ competitive+performance+by+combining+internal+functions+of+the+company+with+

(20)

external+operations+of+suppliers,+customers+and+all+other+that+are+part+of+the+ supply+chain.+It+focuses+on+coordination+and+configuration,+specifically+on+the+ process+that+ensures+that+the+products+are:+on+time;+reproducible;+and+in+a+ satisfactory+condition.+Supply+chain+management+really+takes+a+vertical+view+on+ the+relation+between+buyer+and+supplier,+and+takes+on+interest+in+both+the+ performance+of+organizations+upstream+and+downstream.+These+organizations+ must+be+managed+either+directly+or+indirectly+so+that+the+customers+can+be+ satisfied+(Talib+et+al.,+2011).++ 2.4(CSR(in(practice( + There+have+been+CSR+implementations+throughout+the+clothing+industry,+both+for+ the+end+consumer+(who+wants+guiltSfree,+as+explained+in+the+introduction,+ clothing/products)+and+the+supplier+to+ensure+quality,+life+(as+in+keeping+ business+with+the+buyers)+and+help+the+environment,+so+longSterm+relations+can+ be+made+and+uphold.+However+these+CSR+standards+need+to+be+checked+as+well.+ And+here+is+where+another+challenge+lies.+In+Karachi,+Pakistan,+a+fire,+which+killed+ 300+people,+is+an+example+that+there+still+is+indeed+a+lot+to+do+(Ellis+&+Friedman,+ 2012).+LaborSright+groups+do+acknowledge+that+there+is+progress+being+made+ when+it+comes+to+CSR+in+undeveloped+countries;+child+labor+has+been+reduced+ (still+in+existence),+an+increase+in+awareness+and+dedication+to+act+upon+having+ minimum+wages+and+receiving+pay+for+overtime+has+happened,+as+well+do+ manufacturing+methods+have+become+more+sustainable.+However+the+fire+in+ Karachi+has+exposed+weaknesses+in+the+system.+An+independent+auditor,+a+month+ before+the+fire,+had+given+the+factory+the+proper+certifications.+This+has+raised+the+ challenge+of+what+the+audits+actually+do+and+mean+as+far+as+these+certifications+

(21)

go.+‘’Internal+audits+or+external+audits,+what+to+do?’’+says+Colleen+Von+Haden,+ senior+manager+of+supplier+sustainability+at+Timberland+LLC.+Timberland+has+ started+in+2005+with+training+their+own+staff+to+ensure+these+audits+are+being+ done+correctly+as+they+found+many+problems+with+external+audits,+such+as+ falsified+records+or+bribes+(Ellis+&+Friedman,+2012).+ + The+clothing+industry+is+an+industry+that+is+in+need+of+CSR+as+it+is+a+global+ industry+with+a+high+potential+of+having+a+positive+influence.+Clusters+and+SMEs+ can+beneficially+incorporate+CSR+to+innovate+and+differentiate+in+order+to+stay+ competitive.+Different+businesses+can+benefit+immensely+from+collaborating+ when+operating+in+the+same+geographical+locations+and+when+facing+similar+ challenges.+These+businesses+in+the+same+location+are+called+clusters.+It+provides+ an+opportunity+to+collectively+improve+their+core+competencies+so+they+can+ achieve+a+common+goal.+CSR+is+related+in+this+collaboration+(clusters)+in+the+ sense+that+it+must+be+built+on+common+values+and+should+be+focused+on+longS term+interests+of+the+members.+Within+these+clusters+CSR+is+improved+as+it+ enables+firms+to+overcome+limitations+faced+when+implementing+CSR+on+their+ own.+Peers+encourage+and+pressure+others+to+include+CSR+in+their+strategy,+and+ will+according+to+Porter+act+as+an+innovation+driver.+Also+besides+sustaining+ cluster+growth+it+also+legitimizes+proSactive+CSR+engagement+instead+of+treating+ it+like+a+cost/burden+(Høivik+&+Shankar,+2011).+Research+of+Ellis+&+Friedman+ (2012)+has+shown+that+CSR+is+already+in+place+in+parts+of+the+clothing+industry+ but+this+research+has+only+looked+at+some+businesses+within+Sri+Lanka,+whereas+ this+thesis+will+be+about+international+CSR+in+relation+to+employees+both+in+the+ retailing+firm+and+the+supplying+firm.++

(22)

+ It+has+been+found+that+CSR+actions+and+policies+are+created+via+regulation+ and+standards,+and+certification.+The+problem+that+arises+happens+at+the+ management+level,+as+they+can+decide+to+do+the+bare+minimum+and+just+comply+ with+these+set+requirements.+The+result+or+danger+can+then+be+that+CSR+actions+ and+policies+become+more+symbolic+of+nature+so+that+it+may+appear+that+firms+are+ involved+in+CSR+practices+but+in+realty+are+only+appeasing+stakeholder+demands.+ (Aguinis+&+Glavas,+2012)+ + Off+course+there+have+also+been+revealed+positive+outcomes;+improvement+ of+certain+firm’s+reputation,+consumers+respond+to+CSR+via+favorable+evaluation+ of+the+company+and+its+products.+This+all+improves+trust+and+more+importantly+ loyalty+to+the+firm.+This+will+or+can+improve+the+financial+performance.+(Aguinis+&+ Glavas,+2012).+This+is+an+important+point+when+considering+combining+the+ financial+report+with+the+CSR+practices.+There+are+still+substantial+cases+where+ problems+and+violations+have+arisen,+problems+such+as+bad+employee+practices+ (child+labor+and+awful+workplace+conditions).+These+horrendous+practices+have+ empirically+proven+to+be+bad+for+business+performance+and+reputation,+such+as+ for+example+what+happened+with+Apple+and+Foxconn.+It+is+therefore+of+utmost+ importance+considering+corporate+reputation+and+financial+performance+that+ CSR+practices+are+implemented.+Both+for+the+buyer+and+supplier+side+of+this+ supply+chain+relationship+(Lee+et+al.,+2013).+++ + Studies+at+the+institutional+and+organizational+levels,+which+is+within+the+ interest+frame+of+this+research,+is+prone+on+more+instrumental+motives+and+ theories+in+relation+with+the+institutional+theory,+stakeholder+theory,+and+the+ resourceSbased+view+of+the+firm.+These+retain+financial+outcomes,+reputation,+

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risk,+reaction+to+stakeholder+pressure,+complying+with+regulations+and+standards+ (Aguinis+&+Glavas,+2012).+

3.(Methodology(

+ 3.1(Research(design( The+qualitative+research+design+of+this+thesis+uses+a+narrative+(discourse)+ analysis,+to+study+discourse+texts+in+social+practices.+Narrative+analysis+is+often+ used+for+organizational+studies.+It+seems+apparent+that+it+is+a+grand+discourse+ approach,+referring+to+constituted+organizational+reality+and+the+dominating+ language+used,+in+this+thesis+the+employees+in+CSR+reports.+This+research+looks+ for+overSarching+themes+in+the+specific+settings.+The+specific+settings+are+the+CSR+ reports+of+the+companies+explained+in+the+next+paragraph+and+set+focus+on+the+ social+context+of+the+language+used+in+organizations+(Alvesson+&+Karreman,+ 2000).+These+reports+were+used+as+the+basis+to+find+patterns,+regularities+and+ insights+to+(further)+answer+the+research+question+(Alvesson+&+Deetz,+2000).+++ 3.2(Sampling( The+reports+and+texts+used+in+this+research+are+reports+of+clothing+companies,+ either+found:+ 1:+on+the+website+of+the+Global+Reporting+Initiative+(www.globalreporting.org)+or+ 2:+on+the+website+of+the+respective+company.++ These+reports+state+what+organizations+are+doing+as+for+CSR.+With+these+ reports+it+was+possible+to+give+more+insights+on+the+topic.+The+chosen+companies+ are+based+in+NorthernSAmerica+or+in+Europe.+This+geographical+criterion+has+

(24)

been+chosen,+as+these+are+the+companies+that+use+manufacturers+in+different+ countries+that+provide+lowSlabor+production+costs.+Another+important+ prerequisite+for+selecting+these+companies+is+that+they+provide+a+CSR+report.+ These+companies+are+global+players+and+have+interests+in+many+different+ countries+and+have+a+supply+chain+that+exceeds+their+own+borders+which+is+ exactly+what+this+thesis+wants+to+research.+Another+criteria+is+that+the+chosen+ companies+have+at+least+1+billion+dollars+in+revenue,+have+at+least+10,000+ employees+and+have+suppliers+from+countries+outside+their+own.+++ The+clothing+companies+that+have+been+used+in+order+to+give+a+meaningful+ insight+on+the+topic+using+reports+from+their+own+website+are:+ Puma+(Germany),+C&A+(The+Netherlands),+Adidas+(Germany),+Abercrombie+&+ Fitch+(USA),+H&M+(Sweden),+PVH+Corp.+(Tommy+Hilfiger,+Calvin+Klein,+and+ Heritage+Brands)+(USA).+ Companies+chosen+that+have+CSR+reports+from+the+GRI+website+are:+ Hugo+Boss+(Germany),+Nike+(USA),+Mango+Group+(Spain)+and+Prada+Group+ (Italy).++ These+ten+companies+sell+to+consumers+but+also+buy+from+suppliers,+ giving+them+a+characteristic+of+both+B2C+and+B2B,+meaning+that+they+encounter+ consumers+but+also+buy+from+businesses+and+thus+have+relationships+and+ characteristics+that+are+both+B2C+and+B2B.+This+does+not+mean+that+the+ companies+sell+to+other+companies+but+that+they+buy+from+other+companies.+ Small+companies+and+startSups+have+not+been+analyzed+as+these+most+often+do+ not+use+manufacturers,+or+at+least+not+yet,+in+(many)+different+countries.+These+ also+lack+the+influence+to+conduct+CSR+in+the+way+that+the+chosen+companies+do.+

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It+is+therefore+that+the+aforementioned+companies+will+represent+the+outcomes+of+ the+findings+that+can+be+used+to+answer+the+research+question.+

Table&1.&Companies’&characteristics.&

Company! Employees& Supplier&

countries& Own&stores& Revenues&(±Millions)&

Nike,+Inc+ (USA)+ 48,000++ 40++ 750++ 25,300$++ Hugo+Boss+ (Germany)+ 12,400++ 10++ 1000++ 2,600$++ Mango+Group+ (Spain)+ 12,200++ 14++ 902+ 1,800$++ Puma+ (Germany)+ 10,900++ 20++ 600++ 3,200$++ C&A+ (Netherlands)+ 35,000++ 40++ 1,500++ 8,000$++ Adidas+ (Germany)+ 53,700++ 60++ 2000++ 15,000$++ Abercrombie+ &+Fitch+(USA)+ 85,000++ 20++ 1100++ 3,500$++ H&M+ (Sweden)+ 110,000++ 25++ 3200++ 2,200$++ Prada+Group+ (Italy)+ 11,500++ 10++ 540++ 4,000$++ PVH+Corp.+ (USA)+ 20,000++ 65++ 20,000++ 8,200$++ 3.3(Data(gathering( The+data+gathering+will+be+on+the+parts+were+employees+are+discussed+in+the+CSR+ reports+of+the+respective+companies.+These+CSR+reports+are+of+the+chosen+ companies,+shown+in+table+1.+The+reports+are+gathered+from,+as+stated+above,+the+ GRI+website+or+from+the+respective+companies.+The+data+are+thus+reports+and+in+ the+following+paragraph+will+be+explained+what+is+done+with+these+reports.++ 3.4(Data(analysis( + The+reports,+the+sections+that+are+to+be+used+(referring+to+employees),+will+be+ codified+in+Nvivo,+a+specific+program+that+structures+and+organizes+qualitative+

(26)

data.+Then+it+should+be+possible+to+find+patterns,+regularities+and/or+differences+ among+the+ten+companies.+The+data+will+be+set+in+tables+and+in+turn+will+be+used+ to+give+an+answer+to+the+research+question.+First+one+report+will+be+used+to+pick+ all+the+employees+codes+that+can+be+used.+Every+report+that+follows+will+either+ have+the+same+codes,+showing+patterns,+or+will+have+new+codes,+showing+ differences.+Both+patterns+and+differences+are+of+interest+and+needed+in+order+to+ give+the+research+an+answer.+The+following+three+codes+have+been+used+to+depict+ the+significant+parts+of+the+reports+ Table&2.&Codes&Nvivo.+ + In+order+to+be+able+to+analyze+the+data,+of+the+CSR+reports,+that+has+ significance+for+this+thesis+the+following+must+be+done.+The+data+as+described+ above+is+divided+in+three+codes+using+Nvivo.+This+give+the+data+per+report+clearly+ in+a+sequential+manner.+The+data+from+Nvivo+is+used+to+make+the+tables+in+the+ empirical+findings+chapter.+These+tables+give+a+clear+overview+of+what+is+ written/discussed+in+the+CSR+reports+of+the+companies+in+the+respective+themes.+ The+companies+of+the+analyzed+reports+have+similarities+but+also+differences+in+ what+they+discuss.+Considering+how+these+companies+discuss+employees,+either+ being+of+their+company+or+of+their+suppliers+(or+any+employee+in+the+supply+chain+ for+that+matter)+the+following+themes+seem+to+be+covered+in+the+CSR+reports.++ Employees+ Stating+how+the+employees+of+the+respective+company+are+ discussed+in+the+CSR+report.+ NonSemployees+ Description+how+the+employees+that+are+not+employed+by+the+ respective+company+but+are+used+in+the+supply+chain+are+ discussed.++ Realization+ Overview+of+how+the+statements+made+in+the+CSR+reports+are+ realized.+

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The+first+theme+is+development+and+how+the+different+companies+discuss+ training+and+development+of+the+employees.+The+second+theme+is+the+benefits+ and+salaries+that+employees+receive,+from+now+onwards+called+benefits.+The+third+ theme+is+employee+engagement+and+how+the+companies+accomplish+this.+Fourth+ theme+is+how+do+the+companies+discuss+the+nonSemployees.+The+following+table+ shows+on+what+themes+the+companies+have+written+in+their+report.+ Table&3.&Discussed&themes.&

Company+ Development+ Benefits+ Engagement+ NonS employees+ Nike+ ✓+ ✓+ ✓+ ✓+ Hugo+Boss+ ✓+ ✓+ ✓+ ✓+ Mango+Group+ ✓+ ✓+ + ✓+ Puma+ ✓+ ✓+ ✓+ ✓+ C&A+ ✓+ + ✓+ ✓+ Adidas+ ✓+ + ✓+ ✓+ Abercrombie+ and+Fitch+ ✓+ ₊ ✓+ ✓+ H&M+ ✓+ + ✓+ ✓+ Prada+Group+ ✓+ ✓+ ✓+ ₊ PVH+Corp.+ ✓+ ✓+ ✓+ ✓+ + 3.5(Evaluation(of(research(quality( + This+research+is+a+qualitative+one,+a+narrative+discourse+analysis.+This+research+ makes+use+of+CSR+reports,+which+are+written+by+the+company+that+owns+the+ report.+The+reports+provide,+some+more+then+others,+a+detailed+and+accessible+ representation+of+their+CSR+policies.+The+data+that+has+been+used+is+available+to+ everyone+and+this+constitutes+transparency+of+this+research,+meaning+that+ everyone+has+access+to+the+same+data+to+inspect+for+himS+or+herSself.+This+gives+ the+reader+of+this+research+the+option+to+judge+the+validity+based+on+the+same+ data.+The+reports+used+are+not+subjectively+written+and+contain+facts+that+are+

(28)

converted+into+an+answer+to+the+research+question.++ + Reliability+is+about+the+question+whether+this+research+can+be+replicated.+ If+this+research+would+be+repeated+the+same+data+would+be+gathered+on+these+ companies.+The+reports+were+coded+and+analyzed+in+a+consistent+manner+making+ it+more+reliable.+As+this+research+does+not+contain+a+survey+or+other+procedures+ that+leave+the+texts+to+subjective+interpretation+the+reliability+is+also+increased.+ The+reports+are+developed+to+spread+the+facts+on+how+CSR+is+conducted+in+that+ company,+leaving+less+room+for+bias.++ + The+validity+of+this+research+is+characterized+by+the+degree+that+the+ reports+are+written,+in+relation+to+employees,+exactly+for+the+information+needed.+ There+is+a+causal+link+between+the+data+and+the+actions+of+the+respective+ companies.++ + Clothing+companies+provide+the+data+gathered.+These+clothing+companies+ use+manufacturers+from+different+countries,+often+countries+with+lower+labor+ wages.+Other+industries+also+make+use+of+this+low+cost+labor,+e.g.+the+ technological+industry.+It+would+make+sense+that+the+results+gathered,+on+the+ subject+of+nonSemployees,+would+be+transferable+to+this+industry+as+well.+In+fact+it+ makes+sense+that+any+industry+that+makes+use+of+low+cost+labor+in+other+ countries+can+benefit+from+the+findings+of+this+research+and+can+use+it+to+apply+it+ to+their+own+industry,+if+not+partly+already+implemented.++ + It+seems+apparent+that+due+to+the+nature+of+the+reports,+being+written+ precisely+for+the+purpose+that+they+have+been+used+for,+that+the+reliability+and+ validity+of+this+research+show+positive+implications+related+to+the+research+ quality.+The+data+seems+also+to+be+transferable+to+other+industries+that+have+

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similar+characteristics;+especially+those+industries+that+make+use+of+ manufacturers+in+lowScost+labor+countries.+++

4.(Empirical(findings(

+ In+the+previous+chapter+it+has+already+been+described+how+the+data+has+been+ gathered+and+will+be+analyzed.+In+this+chapter+consequently+will+be+stated+what+ has+been+actually+found.+The+four+themes,+development,+benefits,+engagement,+ and+nonSemployees,+are+represented+in+tables+per+company+and+states+what+is+ being+done+on+the+specific+theme+by+their+respective+company.++ + The+statistics+of+table+1+are+first+given,+stating+the+name+of+the+company,+ the+number+of+employees,+how+many+different+countries+suppliers+are+located+in,+ how+many+stores+the+company+owns,+and+the+revenues+of+the+company.+The+ second+table+shows,+at+each+of+the+respective+companies,+the+gathered+ information+in+accordance+to+the+four+themes.+These+findings+describe+all,+at+least+ all+significant,+parts+of+the+used+CSR+reports+or+code+of+conducts.+ + Company! Employees& Supplier&

countries& Own&stores& Revenues& (±Millions)& Nike,+Inc+ (USA)+ 48,000++ 40++ 750++ 25,313$+ Development+ Development+as+depicted+by+Nike+can+be+found+with+the+ following+characteristics.+They+offer+a+single+destination+ for+employee+learning,+training+and+development.+ Employees+are+encouraged+to+find+new+and+creative+ways+ to+use+diversity+that+lies+within+teams+in+order+to+approach+ their+work.+ Benefits+ Nike+has+a+competitive+total+compensation+of+benefits+to+

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+

+ +

Company! Employees& Supplier& countries& Own&stores& Revenues& (±Millions)& Hugo+Boss+ (Germany)+ 12,500++ 10++ 1000++ 2,627$+ + Development+ Hugo+Boss+endeavors+to+increase+knowledge+and+ capabilities+continuously.+Hugo+Boss+offers+internal+onSsite+ trainings+but+also+provides+financial+support+for+external+ differences+per+geographical+location+but+all+employees+ have+the+following.+ S Health+insurance+ S Life+and+accident+insurance+ S Disability+insurance+ S Retirement+savings+plan+with+a+company+contribution+ S Employee+stock+purchase+plan+ S Paid+vacations+and+holidays+ S Paid+sabbaticals+ S Product+discounts+ S Onsite+fitness+center+ S Transportation+allowance+ Tuition+assistance+ Engagement+ Employee+engagement+within+Nike+is+stimulated+by+ bringing+employees+together+by+volunteering,+services,+ giving+and+community+activities+that+matter+most+to+the+ employees.+Diversity+is+used+to+find+new+and+creative+ways+ to+work+and+this+stimulation+of+diversity+helps+improving+ the+engagement/environment.+In+order+for+Nike+to+ optimize+inStheSmoment+employee+engagement+they+have+ an+‘’alwaysSopen’’+pulse+approach+where+feedback+is+ gathered+continuously.+A+healthy+and+safe+work+ environment+is+important+for+Nike+and+thus+they+have+onS site+gyms+and+classes+at+their+corporate+facilities.+ NonSemployees+ Nike+has+for+many+years+put+effort+in+improving+the+ working+conditions+of+employees+in+the+supply+chain.+ Increasing+productivity+and+reducing+the+environmental+ footprint+are+also+part+of+these+efforts.+Nike+also+provides+ training+to+increase+factory+management+awareness+and+ the+understanding+of+HRM.+Not+only+does+Nike+focuses+on+ individual+employees+they+also+focus+on+factory+ capabilities,+which+include+managing+working+conditions+ and+reducing+overall+risks.+

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different+categories.+ Personal+skill+ S Conflict+management+ S Communication+ S Presentation+skills+ Methodological+skills+ S Project+management+ S InterScultural+training+ S IT+ S Business+Management+ S Languages+ And+the+development+of+Leadership+skills.+ Benefits+ For+German+employees+wages+are+remunerated+in+ accordance+with+the+collective+agreement+of+the+Southwest+ German+Textile+Industry.+The+employees+in+the+retail+ activities+are+remunerated+according+the+German+retail+ industry.+Retail+and+sales+employees+receive+a+fixed+salary+ and+a+variable+component+linked+to+quantitative+objectives.++ International+located+employees+wages+are+in+compliance+ with+the+according+national+framework+conditions,+which+ means+that+wages+must+meet+the+legal+minimum+wage.++ Benefits,+unrelated+to+contract+type,+that+are+offered+to+ employees+of+Hugo+Boss+are:+ S Life+insurance+ S Occupational+disability+insurance+and+parental+leave+ For+fullStime+employees:+ S Clothing+allowance+ S Auxiliary+support+ Entitlement+to+pension+scheme+ Engagement+ Hugo+Boss+stimulates+team+spirit+and+motivates+employees+ in+their+international+environment.+The+aim+is+to+create+a+ culture+of+openness+and+creativity.+This+is+to+ensure+that+ employees+reach+their+full+potential.+ NonSemployees+ Hugo+Boss+discusses+employees+of+suppliers+by+stating+that+ all+partners+must+comply+with+the+local+and+national+laws+of+ their+respective+location.+Hugo+Boss+also+expects+suppliers+ to+develop+awareness+that+leads+to+reduction+of+ environmental+impacts.+ + + + + + +

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countries& (±Millions)& Mango+Group+ (Spain)+ 12,200++ 14++ 902+ 1,852$+ + Development+ According+to+the+Mango+Group+they+have+a+policy+that+ensure+ continuously+training+and+development.+This+is+so+that+the+ strategic+objectives+of+the+company+can+be+realized.+An+entire+ department+is+allocated+for+this+task+and+ensures+that+the+ employees+have+the+proper+technical+knowledge+and+the+ professional+skills.+The+trainings+are+mostly+given+at+central+ headquarters.++The+young+talents+program+exists+in+order+to+ develop+future+managers+in+the+Mango+Group.+The+eligible+ candidates+for+this+program+are+MBA+graduates,+preferably+ graduated+form+the+top+international+business+schools.+The+ program+takes+one+year+and+entails+front+line+experience+and+ management+training.+ Benefits+ Structure+personnel+are+paid+accordingly+to+their+professional+ performance+and+development+and+are+reviewed+twice+a+year.+ Mango+Group+uses+a+fixed+salary+plus+a+variable+depending+on+ the+turnover+of+the+point+of+sale+for+the+teams+that+work+in+ this+point+of+sale.+All+workers,+fullS+and+partStime+have+the+ same+rights+and+thus+the+same+social+benefits.+All+workers+fall+ under+a+collective+agreement+accordingly+to+the+national+labor+ law+of+the+country+of+employment.+Mango+Group+also+ provides+full+complementary+wages+when+employees+have+ maternity+or+paternity+leave,+and+Mango+Group+has+a+100%+ reincorporation+of+the+post+of+the+employee.+ Engagement+ Not+discussed+ NonSemployees+ Mango+Group+states+that+manufacturers+will+not+use+child+ labor.+Nor+will+they+use+any+kind+of+forced+or+obligatory+labor.+ Manufacturers+must+guarantee+the+following+for+their+ employees.+ S Safe+workplace+(fire+prevention+etc.)+ S Healthy+workplace+(hygienic+conditions+etc.)+ S The+right+to+associate,+organize+or+negotiate+ collectively+without+the+risk+of+sanctions+ S No+discrimination+(race,+nationality,+religion,+etc.)+ S No+corporal+punishment,+physical+or+psychological+ abuse+ S Working+hours+must+comply+with+legislation+ Wages+must+comply+with+legislation+ + + + +

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Puma+ (Germany)+ 10,900++ 20++ 600++ 3,278$+ + Development+ Training+and+development+at+Puma+are+given+so+that+ employees+have+the+necessary+competencies.+These+ competencies+on+the+individual+level+are+deemed+necessary+to+ realize+their+full+potential+and+in+turn+realize+the+companies’+ success.+Besides+trainings+puma+offers+a+different+beneficial+ measure+to+do+so.+ These+are+called+‘’on+the+job’’+methods+and+are+a+great+ opportunity+to+develop+competencies+and+staying+in+business+ at+the+same+time.+ S Job+swaps+ S Job+rotation+ S Internal+coaching+ Puma+also+offers+programs.+The+program+for+young+talents+ offers+apprenticeships+to+kick+start+careers+(only+in+Germany).+ The+international+leadership+program+comprises+of+seminars,+ individual+and+peer+coaching+sessions+and+exists+to+build+ leadership+skills,+focusing+on+fair,+honest,+positive+and+ creative+leadership.+++ Benefits+ Puma+has+flexible+working+models+which+include+child+care+ services+in+order+for+employees+to+combine+work+and+family.+ S Parent+child+offices+ S Collaborations+with+day+care+centers+ S Family+services+ Flexible+working+times+and+places+ Engagement+ Puma+demonstrated+that+they+desire+a+working+environment+ that+is+free+of+prejudice+and+to+ensure+equal+opportunities+for+ all.+ NonSemployees+ See+table+of+code+of+conduct+ + + + +

C&A+

(Netherlands)+ 35,000++ 40++ 1,500++ 8,000$++

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month+period,+which+supports+unit+leaders+and+district+ managers+that+have+already+demonstrated+qualities+that+can+ move+them+into+senior+management+roles.+The+program+ entails+homework+and+group+training,+has+a+focus+on+ personal+development,+leading+team+and+managing+change.+ Another+program,+a+2Sday+program,+is+the+Leadership+ Development+Centre.+This+program+is+for+a+wider+range+of+ staff,+such+as+store+managers+and+product+managers.+It+ teaches+employees+to+design+their+own+personal+ development+plan.+ Benefits+ Not+discussed+ Engagement+ C&A+stands+for+effective+and+regular+engagement,+done+by+ listening+and+acting.+This+is+to+stimulate+a+smarter+and+more+ effective+company.+ NonSemployees+ C&A+sets+a+minimum+standard+that+they+expect+of+all+ suppliers+that+they+do+business+with.+Every+new+supplier+is+ audited+and+are+expected+to+provide:+ S Free+employment+ S Lawful+contracts+ S The+right+to+collective+bargaining+ Suppliers+must+also+prevent+child+labor,+inadequate+wages+ and+benefits,+excessive+working+hours,+discrimination,+ irregular+employment,+inhuman+treatment+and+poor+ business+practice.+Also+in+the+last+table+will+be+shown+the+ code+of+conduct.+ + + + + +

Adidas+ (Germany)+ 53,700++ 60++ 2000++ 15,000$++ + Development+ Learning+and+development+of+Adidas+employees+is+called+ ‘’the+new+way+of+learning’’.+Adidas’s+philosophy+is+that+they+ believe+in+the+fact+that+most+learning+is+achieved+informally.+ Emphasizing+that+learning+is+best,+according+to+them,+done+ through+colleagues,+self+directed+study+and+a+range+of+online+ sources.+The+employees+can+choose+for+themselves+what+is+ the+most+appropriate+and+at+what+specific+time.+Five+ underlying+principles+are+given:+ S Working+is+learning+and+learning+is+working+ S Shift+to+an+open+and+collaborative,+connected+‘social’+ learning+environment+

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S Leadership+means+sharing,+teaching+and+learning+ S Innovation+is+part+of+everybody’s+daily+work+ Create+a+new+culture+of+selfSdriven+lifelong+learning+ Benefits+ Not+discussed+ Engagement+ As+already+stated+in+learning+and+development+there+is+what+ Adidas+calls+the+new+way+of+learning.+However+it+seems+that+ some+of+these+ways+are+also+meant+for+worker+ engagement/environment.+ S An+open+and+collaborative,+connected+‘social’+ learning+environment+ S Sharing+ Innovative+environment+ NonSemployees+ Adidas+has+established+an+SMS+worker+hotline.+This+has+ increased+their+reach+and+thus+can+provide+more+factory+ workers+to+ask,+suggest+or+express+concerns+anonymously.+ This+enables+employees+to+close+the+communication+gap+ between+them+and+management+that+often+exists.+With+this+ hotline+Adidas+can+react+immediately+to+these+concerns.+ Adidas+respects+rights+and+makes+sure+that+their+activities+ do+not+harm+others.+Even+more+do+they+seek+to+protect+ worker+rights+and+remediate+issues+that+they+find.+ Businesses+must+maintain+within+the+borders+of+legislation.+ Wages+must+also+meet+legislation+but+it+also+reflects+the+ price+that+employers+make+with+the+products.+Trainings+are+ also+given+at+factories+to+ensure+that+exploitative+actions+are+ discarded+and+realizing+the+goal+of+freedom+of+movement,+ equal+treatment+and+proper+employment+contract+for+ migrant+workers.+ + + +

Abercrombie+ &+Fitch+(USA)+ 85,000++ 20++ 1100++ 3,500$++ + Development+ Training+and+development+is+a+key+driver+for+success.+A+ comprehensive+training+curriculum+is+in+place+for+associates+ and+management.+It+contains+eSlearning,+skill+building+and+ mockStrial+learning.+Two+programs+stand+out:+the+diversity+ champions+program,+where+it+is+all+about+individuals+that+ create+a+work+environment+respecting+all+differences,+and+is+ peer+nominated.+The+second+program+is+the+diversity+ challenge+and+is+for+employees+to+show+how+they+can+use+

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Benefits+ Not+discussed+ Engagement+ Diversity+is+emphasized+greatly+at+Abercrombie+&+Fitch.+ Learning+from+ones+differences+is+the+most+valuable+asset+in+ order+to+obtain+a+positive+work+environment.+The+essence+of+ the+working+environment+is+based+on+the+following+drivers:+ S Leadership+commitment+ S Employee+engagement+ S Measurement+&+accountability+ S Communication+ S Training+and+education+ S Policy+integration+ + NonSemployees+ Partners+are+only+used+if+international+human+rights+and+ labor+rights+are+respected+and+if+the+products+are+made+in+safe+ and+responsible+facilities.+A+department+is+set+up+for+the+sole+ purpose+of+ensuring+human+rights+in+the+supply+chain.+The+ HERproject+exists+to+improve+women+workers’+general+en+ reproductive+health.+This+is+done+with+trainings+to+increase+ awareness.+The+following+must+be+complied+with+in+order+to+ receive+business+from+Abercrombie+and+Fitch:+ S No+child+labor+ S No+forced+labor+ S No+harassment+or+abuse+ S Wages+must+be+conform+the+minimum+wage+ S No+discrimination+ S Right+of+association+ S Healthy+and+safe+work+environment+ S Law+compliance+working+hours+ Audits+are+performed+by+external+parties+that+have+a+ comprehensive+knowledge+of+the+local+laws+and+can+speak+the+ local+language.+Typically+every+supplier+is+audited+once+a+year+ and+occur+unannounced+if+needed+more+audits+are+performed.+ Remediation+strategies+are+provided+for+nonScompliant+ factories.+Relationships+are+maintained+as+long+as+suppliers+ want+to+actively+improve+continuously,+if+not+relationships+ can+be+terminated.+ + + +

Prada+Group+ (Italy)+

11,500++ 10++ 540++ 4,000$++

+

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needed+training+is+provided.+ Benefits+ The+benefits+are+characterized+in+the+Prada+Group+by+a+ combination+of+fixed+and+variable+components.+These+are+ based+on:+ S Salary+review+ S Incentives+are+related+to+annual+performance+ S Sales+staff+has+own+specific+schemes+ S Technicians+receive+a+bonus+for+seasonal+collection+ Also+included+are:+ S Medical+benefits+ S Life+insurance+ S Corporate+housing/housing+allowance+ S Discretionary+bonus+ S Home+leave+allowance+ S Education+allowance+for+children+ Transport+allowance+ Engagement+ The+world+wide+representation+of+the+Prada+Group+ emphasizes+the+different+cultures,+skills,+nationalities+and+ religions.+These+reflect+the+culture+and+the+working+ environment.+The+diversity+is+the+source+of+cultural+ richness,+wellSbeing,+creativity,+lateral+thinking,+progress+ and+affinity+with+customers+(also+extremely+diverse).+ Working+conditions+are+grounded+on+respect+of+individual+ dignity,+safety+and+health.+ NonSemployees+ Workers+rights+are+of+utmost+importance+and+the+respect+ of+human+rights,+child+labor+and+forced+labor+are+key.+The+ following+must+be+respected+in+relation+to+suppliers+ workers.+ S Rights+and+conditions+(working+hours,+wages+etc.)+ S Safety/health+and+welfare+ Suppliers+are+encouraged+to+exceed+the+minimum+ standards.+Audits+are+done+to+ensure+these+conditions+are+ met.+ + + Company! Employees& Supplier&

H&M+

(Sweden)+ 110,000++ 25++ 3200++ 2,200$++

+

Development+ For+recruitment+purposes+H&M+provides+postSgraduate+ programs,+giving+the+opportunity+for+new+graduates+to+gain+

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relationship.+Prada+Group+strives+for+a+development+of+ internal+knowShow+and+product+knowledge+in+order+to+ achieve+product+innovation+and+to+improve+the+production+ process.+Internal+recruitment+is+preferred+over+external+and+ job+rotation+is+a+tool+for+development.+Both+internal+and+ external+trainings+are+given.+Focus+lies+upon+language,+ technical+and+managerial+skills.+Another+special+focus+is+on+ leadership.+FrontSline+sales+staff+are+trained+specially+to+ provide+firstSclass+service.+ Benefits+ The+report+states+only+a+wide+range+of+benefits,+which+are+ based+on+needs+and+the+context.+ Engagement+ H&M+stimulates+a+working+environment+that+stands+for+ inspiration,+excitement+and+an+ongoing+changing+ environment+with+different+career+opportunities.+Besides+ stimulating+diversity+a+healthy+environment+and+a+good+ workSlife+balance+H&M+also+does+surveys+to+measure+job+ satisfaction+anonymously+and+to+locate+areas+of+ improvement.+ NonSemployees+ Choosing+the+right+partners+where+it+is+known+what+ conditions+exist.+The+focus+lies+on+strong+longSterm+ relationships+emphasizing+trust+and+transparency.+The+ preference+is+to+work+together+instead+of+terminating+ business+relationships.+This+is+realized+by+the+use+of+regular+ audits.+In+order+to+resolve+nonScompliance+or+area+that+can+ be+improved+H&M+provides+training+and+technical+ assistance,+remediation+plans+for+nonScompliance.+If+a+ supplier+is+unwilling+towards+cooperation+and+ improvements+are+not+made+termination+of+the+relationship+ is+unavoidable.+Supplier+incentive+is+giving+good+performers+ longSterm+business+and+growth+opportunities.+Suppliers+ must+adhere+to+the+following:+ S The+right+to+collective+bargaining+ S Peaceful+conflict+resolution+ S Structures+for+social+dialogue+between+employers+ and+employees+ S Overall+awareness+of+rights+and+responsibilities+ S Effective+legal+framework+ S Being+ethical+(doing+the+right+thing+and+respecting+ human+rights)+ S Labor+conditions+ S Women+rights+ S Right+to+water+ S No+discrimination+or+harassment+ Human+right+trainings+ + +

(39)

+ +

+

PVH+Corp.+ (USA)+ 17,500++ 65++ 20,000++ 8,200$++ + Development+ Continuous+development+through+talent+attraction,+ succession+planning,+leadership+development+and+ communication.+ Benefits+ For+the+U.S.+employees+the+benefits+include+tuition+assistance+ and+scholarship+programs,+and+health+and+wellness+programs.+ These+cover+medical,+dental,+vision,+life+insurance+and+flexible+ spending+accounts.+ Engagement+ The+diverse+workforce+is+an+asset+of+PVH+Corp+that+relates+to+ their+creativity+and+competitiveness.+The+creation+of+a+fair+ and+inclusive+workplace+is+emphasized.+Cultivating+diversity+ is+achieved+with+talent+acquisition,+succession+planning,+ leadership+development+and+communication.+The+objective+is+ to+be+a+positive+presence+in+the+lives+of+employees,+protecting+ human+rights,+fostering+safe+and+secure+working+conditions,+ celebrating+diversity+and+improving+associate+experiences.++++ NonSemployees+ Supplier+must+respect+workers+and+safeguard+their+legal+ rights.+ S No+discrimination+ S No+harassment+or+abuse+ S No+forced+labor+ S No+child+labor+ S Freedom+of+association+for+all+workers+ S Safe+and+healthy+working+place+ S Fair+compensation+and+benefits+ Hours+of+work+in+compliance+with+the+law+ + + The+next+table+shows+the+main+findings+of+the+code+of+conducts+of+C&A+ and+Puma+and+is+related+to+the+nonSemployees+of+the+respective+company.+In+the+ CSR+report+itself+there+is+almost+nothing+stated+on+this+topic.+These+two+ companies+explicitly+refer+to+their+code+of+conduct.+It+is+therefore+that+these+are+ separate+shown+in+the+following+table.+

(40)

+ Table&4.&Codes&of&conduct.& C&A+ Transparency+ S Open+and+honesty+from+suppliers+ S Announced+or+unannounced,+cooperation+and+transparency+in+ workers+records+ S Worker+interviews+are+private+and+not+coached+ Employment+is+freely+chosen+(no+forced+labor).+Employees+have+the+right+ to+associate,+be+a+member+of+a+union+and+collective+bargain.+ Working+conditions+must+be+safe+and+hygienic.+ S General+health+and+safety+ S Building+safety+ Child+labor+is+not+allowed.+Wages+and+benefits+must+be+in+compliance+ with+laws+of+the+respective+country.+Working+hours+may+not+be+ excessive.+Discrimination+is+prohibited.+Regular+employment+must+be+ maintained.+Employees+must+be+treated+humanly.+The+environment+must+ be+considered.+Business+should+be+done+on+a+basis+of+integrity.+The+law+ must+be+obeyed.+ Puma+ There+shall+be+no+employment+of+minors.+The+workplace+must+be+one+ that+is+in+accordance+with+health+and+safety+for+workers,+it+applies+for+the+ environment+as+well.+Normal+workweeks+shall+be+maintained.+Basic+need+ and+all+benefits+provided+by+the+law+must+be+respected,+thus+minimum+ wages.+Respect+and+equality+no+matter+what+race,+creed,+age,+sex,+social+ origin,+political+views,+sexual+orientation+or+position.+Freedom+of+ association+and+the+right+to+be+a+member+of+unions+or+other+associations.+ + &

5.(Discussion(

+ Although+the+four+themes,+development,+benefits,+engagement,+and+nonS employees+are+not+typically+used+as+headers+in+the+reviewed+CSR+reports,+the+ topics+that+are+used+coincide+with+these+themes.+When+taking+a+closer+look+at+ these+four+themes+it+seems+that+differences+can+be+found+in+the+manner+and+the+ depth+that+these+are+discussed.++ Where+companies+discuss+employees+or+nonSemployees+in+their+reports+it+ is+possible+to+make+a+distinction+between+the+activities+that+are+employed+for+the+ employees+or+where+the+employees+are+actively+(asked+to+be)+part+of+the+actions+ to+establish+CSR.+Where+it+concerns+employees+most+companies+discussed+seem+

(41)

to+involve+their+employees+in+participating+in+CSR.+Organizing+trainings+are+a+ good+example.+Most+trainings+are+voluntarily+and+are+given+in+order+to+stimulate+ the+employees+to+take+action+themselves.+The+question+whether+the+trainings+are+ followed+by+the+employees+or+when+that+is+the+case+what+the+actual+follow+up+ actions+were+remain+mostly+unanswered.+When+looking+at+the+nonSemployees+ there+is+a+more+passive+role+that+nonSemployees+play.+The+nonSemployees+are+ often+the+goal+of+the+actions.+The+actions+that+are+required+from+the+nonS employees+are+often+the+goal+of+the+actions.+The+actions+that+are+required+from+ the+nonSemployees+are+to+notice+the+company+when+violations+are+taking+place.++ Benefits+are+discussed+in+the+most+descriptive+manner+when+comparing+to+ the+other+themes.+The+benefits+are+either+simply+listed+or+are+only+mentioned+as+ existing.+It’s+difficult+to+thus+find+the+link+with+CSR.++Paying+more+than+legally+ required+or+having+a+flexible+component+in+the+benefits+package+for+employees+in+ itself+does+not+say+very+much.+The+question+is+whether+the+total+remuneration+is+ such+that+that+is+considered+socially+sufficient.+Likely+that+aspect+is+not+an+issue+ for+the+companies+that+provided+these+CSR+reports+and+the+mere+mentioning+or+ even+not+mentioning+of+the+benefits+suffices+for+CSR+reporting+purposes.+ It+is+perhaps+indicative+that+C&A,+Adidas,+and+Abercrombie+&+Fitch+do+not+refer+ to+benefits+at+all.+++ The+theme+employee+engagement+is+clearly+discussed+more+inSdepth+in+ the+reports+compared+to+the+benefits+theme.+Within+the+theme+engagement+the+ culture+of+the+company+is+also+elaborated+on.+Examples+of+engagement+are+the+ stimulation+and+motivation+for+teamwork,+ensuring+equal+opportunities+and+ realizing+an+effective+company.+Diversity+of+the+employees,+which+according+to+

(42)

the+reports+results+in+creativity,+is+an+important+aspect+in+this+theme.+The+reports+ show+concrete+examples+and+programs.+Apparently+there+is+more+weight+ attributed+to+this+theme+where+it+involves+employees.++ The+third+theme+is+development+and+within+this+theme+the+discussed+topic+ goes+even+more+inSdepth+then+the+previous+two.+But+not+in+all+reports+though.+ Some+companies+(Nike,+H&M+and+PVH+Corp.)+solely+discuss+this+theme+in+a+ descriptive+manner,+e.g.+by+mentioning+only+that+employees+receive+ development.+The+other+companies+more+elaborately+describe+what+is+actually+ done.+They+list+what+programs+exist+and+what+programs+are+to+be+developed.+In+ this+theme+the+subStheme+leadership+reoccurs+frequently.+From+the+way+this+ theme+is+handled+in+the+reports+one+can+conclude+that+this+theme+is+considered+to+ be+important+when+it+comes+to+CSR+impact+and+employee+involvement.++ NonSemployees+is+the+last+theme+and+appears+to+be+one+of+the+(if+not+the)+ most+important+topic.+This+theme+is+thoroughly+discussed+in+all+reports+or+in+the+ code+of+conduct.+Most+manufacturers+that+are+used+by+the+companies+are+residing+ in+countries+that+are+known+to+have+severe+risks+for+violating+human+rights.+ Ensuring+that+these+rights+are+not+violated+is+of+great+concern+as+is+set+out+in+the+ CSR+reports+of+the+companies.+In+fact+giving+business+to+a+manufacturer+that+ violates+human+and+worker+rights+might+even+be+seen+as+supporting+or+even+ encouraging+these+violations.+C&A+and+Puma+discuss+a+bit+differently+the+nonS employees.+These+two+companies+refer+explicitly+to+their+code+of+conducts,+which+ is+a+separate+document.+But+at+the+end+there+is+no+real+significant+difference+ between+the+two+types+of+reporting+as+the+code+of+conduct+refers+to+exactly+the+ same+issues+that+the+other+companies+refer+to+in+the+CSR+report+itself.+The+

(43)

mentioned+human+rights,+in+either+the+CSR+report+or+the+code+of+conduct,+ comprise+of:+ S Safe+workplace+(fire+prevention,+etc.)+ S Healthy+workplace+(Hygienic+conditions)+ S The+right+to+associate,+organize+or+negotiate+collectively+ S No+discrimination+(race,+nationality,+religion,+etc.)+ S No+physical/psychological+abuse/punishment++ S Working+hours+(in+compliance+with+the+law)+ S Wages+(in+compliance+with+the+law)+ S No+child+labor++ S No+forced+labor+ S Women+rights+ S Access+to+water+ To+ensure+compliance+the+companies+maintain+a+framework+of+audits.+ These+audits+are+to+make+sure+that+the+rights+of+the+workers+are+indeed+not+ violated.+If+after+an+audit+a+manufacturer+has+some+nonScompliance+issues+these+ must+be+remediated.+If+a+manufacturer+does+not+show+any+willingness+for+ improvements+the+last+unavoidable+resource+that+companies+can+use+is+the+ termination+of+the+business+relationship.+However,+the+companies+rather+assist+ with+the+remediation+by+giving+trainings+and+other+technical+assistance+that+will+ benefit+the+improvements+of+manufacturers.+The+goal+is+not+to+terminate+ business+relationships+but+to+build+strongSlong+term+relationships+on+trust+and+ transparency.++ Especially+worth+mentioning+is+the+Adidas+SMS+worker+hotline.+Adidas+is+

(44)

the+only+company+that+offers+this+kind+of+service.+This+service+enables+employees+ of+manufacturers+to+text+questions,+issues+or+concerns+directly+and+anonymously+ to+Adidas.+This+provides+Adidas+to+immediately+respond+to+these+workers+and+ resolve+anything+that+comes+up.+This+seems+a+service+that+could+be+used+for+all+ manufacturers+for+all+companies+to+maintain+compliance+of+codes+of+conduct+and+ the+human+rights.+Although+some+companies+already+do+provide+an+email+ address+that+can+be+contacted+in+any+case+of+nonScompliance+this+text+hotline+ seems+like+the+newest+best+alternative.+A+quick+text+can+be+sent+during+work+if+ something+happens.+Also+for+the+owners+and+managers+of+the+factories+it+will+give+ an+extra+stimulant+to+comply+as+it+becomes+even+easier+for+workers+to+reach+out+ if+needed+be.++ Discussing+other+employees+brings+about+the+discussion+whether+the+ companies+are+companies+that+fall+within+the+scope+of+B2B+businesses.+In+the+ introduction+the+difference+between+B2B+and+B2C+was+discussed.+The+companies+ used+in+this+research+are+clearly+B2C+companies+as+clothing+retailers.+However,+ these+companies+do+use+manufacturers+that+supply+them+with+the+clothes+or+the+ fabrics+needed+to+sell+to+the+customers.+With+their+CSR+practices+the+companies+ try+to+influence+the+manufacturers+so+that+violations+are+avoided.+The+companies+ can+do+that+because+they+are+the+second+B+of+their+supply+companies+who+are+real+ B2B+companies.+The+companies+used+in+this+research+are+the+middle+B+in+B2B2C.+ One+can+say+that+although+production+goes+from+the+producers+to+the+retailers+ and+onwards+to+the+customers,+at+the+same+time+the+CSR+practices+and+impact+are+ going+the+other+way.+The+consumers+want+guilt+free+products+and+force+the+ retailers+to+ensure+that+the+producers+comply.+