Corporate Social Responsibility: Competitiveness in the Context of Textile and Fashion Value Chain

Abstract

In this paper we address Corporate Social Responsibility (CSR) as a competitive factor in textile and fashion value chain. CSR assumes a large range of activities focused on one or multiple targets, from work conditions to social programs, or environmental impact. The influence of CSR strategies on market performance depend on how truthful consumers will understand and believe to be the values offered by companies. The qualitative research has considered seven case studies from Portuguese textiles and fashion companies. We have found that a major obstacle to SMEs was the cost of CSR programs and their internal and external communication. As a rule, SMEs have small financial investment capabilities and their human resources tend to be scarce and not available to engage more responsibilities. Moreover, managers argue they compete in the market with companies that have low production as well as low social and environmental costs. If CSR strategies establish a set of clear and transparent practices, consumers will be able to compare across world suppliers, will result in additional costs and clients are not willing to pay for. The development of an accreditation system, able to clearly establish the reality of CSR practices within companies, is an important contribution to the implementation of CSR strategies into the textile and clothing sectors. The researchers have developed a system that can be managed step-by-step, and implemented progressively as companies receive and evaluate market feedback. The system introduces a clear communication about the company's actions and commitment to CSR, resulting in an unique label, capable of stating to whom it may concern, the company' present situation and its development year after year.

A Qualitative Study on Muslim Entrepreneur Perspective on CSR

“…Another study by J. Hsu and M. Chengalso found that cost and time to be the barrier in implementing CSR [24] . Additionally, the study by Guedes et al show that the major barrier to implement CSR for SMEs are cost and lack of human resources [23] .…”

“…The effectiveness of CSR program are affected by unique factors for each unique individual CSR program according to study done by Irwanto and Prabowo [20] . While a comprehensive study on the barriers to CSR implementation is lacking [21] , there are however, some relevant studies in regard of the hindrance of implementing CSR such as the study by Thongthippa [22] , Guedes et al [23] , and J.Hsu and M.Cheng [24] .…”

Sustainability trends and gaps in the textile, apparel and fashion industries

“…Furthermore, different studies used the multiple case study design to examine CSR strategies' drivers and barriers (Govindasamy & Suresh, 2018;Guedes et al, 2017;Koeksal & Straehle, 2021;Van & Nguyen, 2019), showing that the main drivers are the competitive context, the social influences, the managers' knowledge of CSR, the company's internal culture, as well as market promotion and building a reputation with stakeholders and the government. Additionally, the most significant obstacles were a lack of resources in expertise, information, finance, and training, as well as the cost of CSR initiatives and internal and external communication.…”

Life Cycle Based Comparison of Textile Ecolabels

“…The latter allow companies to reduce the environmental burden associated with their production activities, and at the same time to foster the development of new products, technologies, or business structures, which increases their overall market viability [38]. As demonstrated in recent studies, the implementation of Corporate Social Responsibility (CSR) strategies gained importance for the competitiveness in the textile sector [39][40][41][42]. One of the strategic CSR areas is the so-called "marketplace CSR", which includes company's communication with its suppliers, consumers, and other stakeholders along the value chain.…”