Incentive Systems Related to Sustainability - Are They Efficiently Structured within Nordic Fast Fashion? : Investigating the current design and efficiency of incentive systems at nordic fast fashion businesses and their potential contribution to enhanced

Abstract: Title: Incentive Systems Related to Sustainability - Are They Efficiently Structured within Nordic Fast Fashion? Problematization: Incentive systems play an important role in guiding and motivating employees towards the goals regarding sustainability for business. The problem that this thesis investigates is that the incentive systems of nordic fast fashion businesses might not be efficiently structured to contribute to the sustainability work. Purpose: The purpose of this study is to investigate the current incentive systems within fast fashion businesses and the relation to sustainability within these systems, in order to determine if the structure of the incentive systems are efficient. Research Questions: (1) How could the sustainability work of nordic fast fashion businesses be enhanced by incentive systems? (2a) What kind of incentive systems are integrated within the fast fashion businesses today, and to what extent are they related to sustainability? (2b) In what way can an efficient sustainability-integrated incentive system provide a potential solution for fast fashion businesses to become more sustainable? Method: In order to study this phenomenon of efficient sustainability-integrated incentive systems, a qualitative approach has been implemented. The qualitative approach was conducted through a multiple case study consisting of an interviewing process as well as a document analysis of the case businesses for the study. Results: The result retrieved from this study manifest that the current incentive systems are heavily focused on financial targets, while being inefficient sustainability-wise in integration and motivation on individual plans. Although the case businesses proved to be valuing and targeting sustainability work to a large extent, the work seems to be excluded from the incentive systems for employees, as the systems are lacking implementation of sustainability as well as clear motivation of the employees. Refusing employees the possibility to influence the targets on their own, and thereby obstructing the ability to actually influence sustainability work according to the incentive theory of motivation and Expectancy theory.  Practical Implications: This thesis provides a good ground to argue for an actual lack of action among fast fashion businesses to make a difference, sustainability wise. The presented factors argue for there actually being more to do to enhance sustainability, while proving that there is reason for trying the sustainability integrated incentive systems approach. Keywords: Incentive System, Fast Fashion, Sustainability, Motivation, Management Control