Long-term CSR incentives at fashion chains in Sweden

University essay from Uppsala universitet/Företagsekonomiska institutionen


In recent time the pressure on companies from groups like governments, regular citizens and media on taking its social responsibility has increased in rapid pace. This has led to increased interest from companies all over the world about social issues and the companies’ responsibility for these issues.

In the more competitive environment were companies act today the use of corporate social responsibility (CSR) to differentiate itself against other company’s increases in importance. Together with increasing interest from stakeholders about social issues has made it central for companies not only to be social responsible but also to be good at finding future social trends that will give them competitive advantage against other actors.

The purpose of this paper is to examine how the three largest fashion chains in Sweden, Hennes & Mauritz, Lindex and KappAhl, are managing its CSR work now and how good their organisation is prepared to manage the CSR work in the future. The examination will focus on the factors that make the management of CSR successful or not, and to get an overview of if the conditions for current and future successful CSR is present at the companies. By doing a qualitative document analysis of the selected companies the conclusion is made that there is much work to be done at the three largest Swedish fashion chains to more effectively use CSR and the positive effects that a well developed CSR plan can bring to the companies. The conclusion is based on the lack of long-term remuneration incentives for the management that rewards a short-term decisions and the extensive use of collective commitments instead of exclusive CSR work.

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