Risks in a fashion supply chain - A case study of CSR in India

Abstract: Through a case study conducted in India, of a Swedish fashion company, this thesis aims to investigate how Corporate Social Responsibility (CSR) can mitigate risks in a global fashion supply chain. By investigating CSR activities carried out by a Swedish fashion brand with its suppliers in India, the thesis shows both benefits and obstacles regarding CSR implementation. Data has been collected mostly through semi-structured interviews in both Sweden and in India with CSR managers, Indian production office, suppliers and through factory observations. The data has been analyzed with theories regarding risks in the supply chain and CSR related theories such as the triangle of Carroll. By investigating benefits and obstacles regarding implementation with suppliers, risks connected to social issues in the supply chain are highlighted. The observations showed the problematic issue of a gap between CSR communication in Sweden and how the implementations are interpreted locally. The research shows that CSR, if implemented correctly, mitigates certain risks mainly connected to brand reputation and health and safety among workers. It is further concluded that there are major issues in implementing CSR further down the supply chain than the first tier of suppliers. Lack of transparency through the supply chain challenges the company’s sustainability work and exposes vulnerabilities in the supply chain. Therefore, the Swedish fashion company is still at risk from its supply chain.