Relationship between sustainability and risk management in fashion supply chains

Abstract

Purpose: Fashion supply chain research has identified two important issues of sustainability management and risk management. However, investigation of these issues is relatively sparse and has primarily been independent with little combinatory research, despite their important interrelationships. This paper addresses that gap by critically reviewing extant literature to synthesise important sustainability risk issues in fashion supply chains and proposing an empirical research agenda. Practical Implications: This paper highlights important issues in sustainability risk management for fashion supply chains and presents an agenda for future empirical research.Originality/value: This paper contributes by providing a combinatory synthesis of sustainability and risk management in fashion supply chain literature and an agenda for future empirical research.

A Sustainability Overview of the Supply Chain Management in Textile Industry

“…Fashion has some particularities in their practices, considering the behavior of producers and also consumers in this industry, aspects like seasonality and product obsolescence are connected with the perception of fashion; but there are movements inside this economic sector that sharpen those elements, for instance, fast fashion take advantage of one of the most common consumer behaviors: their decisions are largely based upon want rather than need [3], consumers used to follow the practice of "see-now, buynow", which is influenced widely by media.…”

“…Fashion used not to be connected with labels related with sustainability credentials [3], this panorama let to understand that the value chain in textile industry, must move toward a more sustainable model; in one corner, designers should considerate conscientiously the material choice; managers have to consider wisely the use and expenditures of energy, water, avoiding toxic materials, implement smart waste management in their companies [2].…”

“…Communication has an important role in this intention of turning to a more eco-friend industry. Consumers do not usually prioritize style and price in fashion, whereas ecogarments concepts uses to be perceived as expensive; this situation is generated, in part, because of the lacking of information about environmental effects inside textile sector [3]. Communication between fashion companies and consumers is significantly important [2], when stakeholders in value chain are provided with information about environmental effects, they are willing to change their not eco-friendly behaviors [16].…”

“…of this objective is the lack of standardization and transparency in sustainability reports [20], and connected with the study of these authors, even using the GRI-GR4 reporting guide, present a phenomenon: sustainability reports vary over the years for the same company and differ considerably between companies. In this way, lack of global sustainability standards, indicators and regulations makes sustainability integration especially challenging in global supply chain networks [3].…”

“…At the first beginning, it is relevant to indicate that fashion is a global industry that face social, cultural and political aspects, studied from ethical working conditions, human rights, environmental issues, economic dynamics [1] and so on. The challenge of textile industry related with sustainability, consist of setting a common goal, that considers always the proper management of the triple bottom line that includes the environmental, social and economic approach [2]; and the overview from SCM, requires a proper supply chain integration (considerations into product design along with the traditional bottom line, while also improving product functionality) [3].…”