Assessment methods for corporateresponsibility on the fashion scene : a case study of Hennes & Mauritz, Lindex, Kappahl and MQ

Abstract: Assessing the outcome of corporate responsibility is often argued to be complicated due to long-term effects and qualitative aspects. Epstein (2008, p.261) establishes that: “Though many think that sustainability is too difficult to measure, companies have found that unless the impacts are measured, they are commonly ignored in the resource allocation process”. Corporate responsibility is often referred to as a business case, i.e., that social and environmental concern add value to the business (Heikkurinen, 2010; Porter & van der Linde, 1995). Hence, for corporate responsibility to be a business case a strategy, corporate structure and systems, programmes and actions linked to performance measures need to be in place to assess the outcome; environmental, social as well as financial. The information assessed from corporate responsibility initiatives is not exclusively of interest for the internal organisation, but is also important for stakeholder dialogue.Hennes & Mauritz, Lindex, Kappahl and MQ are four of the ten largest apparel retailers on the Swedish market. They have all adopted a corporate responsibility strategy, and are actively communicating corporate responsibility in sustainability reports and on their websites. Poor social and environmental conditions in the supply chains of apparel retailers have been highlighted in media, among consumers and non-governmental organisations since the 1990’s. It is also in the apparel and footwear sector some of the world’s largest consumer brands can be found. This has been given as one explanation to why apparel retailers are in the forefront of acknowledging corporate responsibility, as protection of the brand and corporate image has been crucial. The fact that apparel retailers are described as pioneers in the area and that large social and environmental challenges are still facing the industry makes it an interesting sector to study.This comparative case study is conducted on commission of the IVL Swedish Environmental Research Institute and aims at describing how Hennes & Mauritz, Lindex, Kappahl and MQ assess their corporate responsibility initiatives. A case study approach in combination with document studies was used to study external communication in sustainability and CSR reports and on corporate websites.A total of eight areas of corporate responsibility could be identified for the case companies and a number of initiatives in all areas, ranging from policies, to supplier training, measurement of carbon dioxide emissions, employee surveys and life cycle assessments. The companies have very similar systems, programmes and actions to deal with social and environmental aspects, both in the supply chain and for own operations in stores, offices and for distribution. However, even though a large number of systems, programmes and actions are in place to address social and environmental challenges, it is not until it is linked with a performance measure that an initiative can be assessed. The results of this study reveal that even though many of the initiatives are similar there are differences in the transparency of performance measures and how far in the supply chain the initiatives reach. The similarities in assessment of corporate responsibility can be explained by the fact that the companies belong to the same sector and are facing the same social and environmental challenges. The differences might be explained by differences in corporate resources, company size and media exposure. The results of this study can also be discussed in a larger context, where it is relevant to shed light upon the role of sustainability and external communication to stakeholders. This study also leads back to the very core of corporate responsibility; namely, the debate on corporations’ responsibilities towards society.