The Korean Fashion and Textile Research Journal (한국의류산업학회지)

The Society of Fashion and Textile Industry (한국의류산업학회)
권호 표지
DOI QR코드

DOI QR Code

The Hidden Figures: Discovering Global Apparel Manufacturers' CSR Activities According to the Global Standards

  • Minju Kim (Dept. of Clothing & Textiles, Yonsei University) ;
  • Siwon Park (Dept. of Clothing & Textiles, Yonsei University) ;
  • Hongjoo Woo (Dept. of Clothing & Textiles, Yonsei University)
  • Received : 2024.02.21
  • Accepted : 2024.07.03
  • Published : 2024.08.31
Download PDF
⟨ Previous Next ⟩

Abstract

Despite the growing importance of corporate social responsibility (CSR) in the apparel industry, most existing research focuses on the CSR activities of well-known apparel brands and retailers, not manufacturers. The purpose of this study was to examine the CSR activities of global apparel manufacturers using the two most widely accepted global CSR frameworks: the United Nations' Sustainable Development Goals (SDGs) and Global Reporting Initiative (GRI) standards. A comparison was employed based on the legitimacy theory. For this purpose, a content analysis was conducted on five apparel manufacturers' CSR activities disclosed in their annual sustainability reports published on the firms' official websites. The analysis was both quantitative (frequency) and qualitative (intensity). The results revealed that all firms conducted CSR activities related to environmental and social activities more actively than they conducted economic activities, with higher frequency and intensity scores for both the GRI and SDGs. However, based on each firm's economic development level, size, and years of experience, their applications of resources/technology to CSR and approaches to certain issues (e.g., gender and diversity issues) differed, supporting the legitimacy theory. The results provide academic implications by providing empirical information on apparel manufacturers' CSR activities as well as practical implications for other manufacturers seeking to develop CSR programs that meet the global standards.

Keywords

References

  1. Ali, W., Frynas, J.G., & Mahmood, Z. (2017). Determinants of corporate social responsibility (CSR) disclosure in developed and developing countries: A literature review.Corporate Social Responsibility and Environmental Management, 24(4), 273-294. doi.org/10.1002/csr.1410
  2. Amos, G.J., & Baffour Awuah, G. (2017). In search of competitiveness through innovation-driven CSR initiatives in multinational enterprise subsidiaries in developing countries. Journal of Developing Country Studies, 7(2), 161-173.
  3. Armstrong, C. M., Niinimaki, K., Lang, C., & Kujala, S. (2016). A use-oriented clothing economy? Preliminary affirmation for sustainable clothing consumption alternatives. Sustainable Development, 24(1), 18-31. doi.org/10.1002/sd.1602
  4. Arvind. (2022). Sustainability Report 2022, Arvind, Retrieved October 19, 2023, from https://www.arvind.com/pdf/Arvind_SR_22.pdf
  5. Blowfield, M., & Murray, A. (2008). Corporate responsibility: A critical introduction. Oxford University Press, USA
  6. Burhan, A. H. N., & Rahmanti, W. (2012). The impact of sustainability reporting on company performance. Journal of Economics, Business, & Accountancy Ventura, 15(2), 257-272. doi. 10.14414/jebav.v15i2.79
  7. Burlea, A. S., & Popa, I. (2013). Legitimacy theory. Encyclopedia of corporate social responsibility, 21, 1579-1584.
  8. Calabrese, A., Costa, R., Gastaldi, M., Ghiron, N.L., & Montalvan, R.A.V. (2021). Implications for Sustainable Development Goals: A framework to assess company disclosure in sustainability reporting. Journal of Cleaner Production. 319, 128624. doi.org/10.1016/j.jclepro.2021.128624
  9. Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management Review, 4(4), 497-505. doi.org/10.5465/amr.1979.4498296
  10. Chan, H.L., Wei, X., Guo, S., & Leung, W.H. (2020). Corporate social responsibility (CSR) in fashion supply chains: A multi-methodological study. Transportation Research Part E: Logistics and Transportation Review, 142, 102063. doi.org/10.1016/j.tre.2020.102063
  11. Choi, D., & Han, T. I. (2019). Green practices among fashion manufacturers: Relationship with cultural innovativeness and perceived benefits. Social Sciences, 8(5), 138. doi.org/10.3390/socsci8050138
  12. Chowdhury, M.M.H., Umme, N.J., & Nuruzzaman, M. (2018). Strategies for mitigating supply-side barriers in the apparel supply chain: A study on the apparel industry of Bangladesh. Global Journal of Flexible Systems Management, 19, 41-52. doi.org/10.1007/s40171-017-0180-6doi.org/10.5465/amr.1995.9503271994
  13. Costa, R., Menichini, T., & Salierno, G. (2022). Do SDGs really matter for business? Using GRI sustainability reporting to answer the question. European Journal of Sustainable Development, 11(1), 113-113. doi.org/10.14207/ejsd.2022.v11n1p113
  14. Crystal. (2022). Crystal International Sustainability Report 2022, Crystal, Retrieved October 19, 2023, from https://www.crystalgroup.com//static/media/1683270800803_8xxL1KqYag.pdf
  15. Dissanayake, D.G.K., Perera, S., & Wanniarachchi, T. (2017). Sustainable and ethical manufacturing: a case study from handloom industry. Textiles and Clothing Sustainability, 3, 1-10. doi.org/10.1186/s40689-016-0024-3
  16. Dissanayake, D.M.T.D., & Wijesingha, K.G.K.S. (2017). The relationship between people-related elements of total quality management (TQM) practices and employees' job satisfaction in apparel industry in Gampaha District. Wayamba Journal of Management, 8(2).
  17. Dobers, P., & Halme, M. (2009). Corporate social responsibility and developing countries. Corporate Social Responsibility and Environmental Management, 16(5), 237-249. doi.org/10.1002/csr.212
  18. Du, S., Bhattacharya, C.B., & Sen, S. (2010). Maximizing business returns to corporate social responsibility (CSR): The role of CSR communication. International Journal of Management Reviews, 12(1), 8-19. doi.org/10.1111/j.1468-2370.2009.00276.x
  19. Eccles, R. G., & Krzus, M. P. (2010). Integrated reporting for a sustainable strategy: One report has the potential to significantly change how companies operate and investors think, shifting the focus from that of meeting short-term financial goals to developing a long-term business strategy that not only makes a commitment to corporate social responsibility, but also to a sustainable society. Financial Executive, 26(2), 28-33.
  20. ElAlfy, A., Palaschuk, N., El-Bassiouny, D., Wilson, J., & Weber, O. (2020). Scoping the evolution of Corporate Social Responsibility (CSR) research in the Sustainable Development Goals (SDGs) era. Sustainability, 12(14), 5544. doi.org/10.3390/su12145544
  21. ElAlfy, A., Weber, O., & Geobey, S. (2021). The Sustainable Development Goals (SDGs): a rising tide lifts all boats? Global reporting implications in a post SDGs world. Journal of Applied Accounting Research, 22(3), 557-575. doi.org/10.1108/JAAR-06-2020-0116
  22. European Parliament. (2020). Textile workers in developing countries and the European fashion industry, European Parliament, Retrieved October 19, 2023, from https://www.europarl.europa.eu/RegData/etudes/BRIE/2020/652025/EPRS_BRI(2020)652025_EN.pdf
  23. European Parliament. (2023). The impact of textile production and waste on the environment (infographics), European Parliament, Retrieved October 19, 2023, from https://www.europarl.europa.eu/news/en/headlines/society/20201208STO93327/the-impact-of-textile-production-and-waste-on-the-environment-infographics
  24. Feng, P., & Ngai, C.S.B. (2020). Doing more on the corporate sustainability front: A longitudinal analysis of CSR reporting of global fashion companies. Sustainability, 12(6), 2477. doi.org/10.3390/su12062477
  25. Fernando, S., & Lawrence, S. (2014). A theoretical framework for CSR practices: Integrating legitimacy theory, stakeholder theory and institutional theory. Journal of Theoretical Accounting Research, 10(1), 149-178.
  26. Fransen, L. (2013). The embeddedness of responsible business practice: Exploring the interaction between national-institutional environments and corporate social responsibility. Journal of Business Ethics, 115(2), 213-227.
  27. Gao, Y. (2011). CSR in an emerging country: a content analysis of CSR reports of listed companies. Baltic Journal of Management, 6(2), 263-291. doi.org/10.1108/17465261111131848
  28. Garcia-Sanchez & Isabel-Maria. (2021). Corporate social reporting and assurance: The state of the art: Informacion social corporativa y aseguramiento: El estado de la cuestion. Revista de Contabilidad-Spanish Accounting Review, 24(2), 241-269. doi.org/10.6018/rcsar.409441
  29. Gray, R. (2006). Social, environmental, and sustainability reporting and organizational value creation? Whose value? Whose creation? Accounting, Auditing and Accountability Journal, 19(3), 319-348. doi.org/10.1108/09513570610709872
  30. GRI. (2011). The global leader for impact reporting, GRI, Retrieved October 26, 2023, from https://www.globalreporting.org/Pages/default.aspx
  31. GRI. (2020). GRI Standards glossary, GRI, Retrieved October 31, 2023, from https://www.globalreporting.org/standards/media/2594/gristandard-glossary-2020.pdf
  32. GRI. (2021). Linking the SDGs and the GRI Standards, GRI, Retrieved May 15, 2023, from https://www.globalreporting.org/search/?query=Linking+the+SDGs+and+the+GRI+Standards
  33. GRI. (2022). Continuous improvement, GRI, Retrieved October 26, 2023, from https://www.globalreporting.org/standards/
  34. Hirdaramani. (2022). 2022 Sustainability Report, Hirdaramani, Retrieved October 19, 2023, from https://www.hirdaramani.com/sustainability-reports/2022.pdf
  35. Hofstede, G. (2011). Dimensionalizing cultures: The Hofstede Model in context. Online Readings in Psychology and Culture, 2(1). doi.org/10.9707/2307-0919.1014
  36. Holder-Webb, L., Cohen, J.R., Nath, L., & Wood, D. (2009). The supply of corporate social responsibility disclosures among US firms. Journal of Business Ethics, 84, 497-527. doi.org/10.1007/s10551-008-9721-4
  37. IBIS World. (2023). Global apparel manufacturing, IBIS World, Retrieved October 19, 2023, from https://www.ibisworld.com/global/market-size/global-apparel-manufacturing/
  38. Interloop. (2022). Sustainability Report 2022, Interloop, Retrieved October 19, 2023, from https://www.interloop-pk.com/wp-content/uploads/2022/12/Sustainability-Report-2022.pdf
  39. Islam, M.A. (2017). CSR reporting and legitimacy theory: some thoughts on future research agenda. In: The Dynamics of Corporate Social Responsibility. Springer International Publishing.
  40. Islam, M.A., & Deegan, C. (2010). Media pressures and corporate disclosure of social responsibility performance information: a study of two global clothing and sports retail companies. Accounting and Business Research, 40(2), 131-148. doi.org/10.1080/00014788.2010.9663388
  41. Kamal, Y., & Deegan, C. (2013). Corporate social and environment-related governance disclosure practices in the textile and garment industry: Evidence from a developing country. Australian Accounting Review, 23(2), 117-134. doi.org/10.1111/j.1835-2561.2012.00205.x
  42. Krippendorff, K. (2018). Content analysis: An introduction to its methodology. Sage publications.
  43. Laskar, N., & Maji, S.G. (2016). Corporate sustainability reporting practices in India: myth or reality? Social Responsibility Journal, 12(4), 625-641. doi.org/10.1108/SRJ-05-2015-0065
  44. Latif, K.F., & Sajjad, A. (2018). Measuring corporate social responsibility: A critical review of survey instruments. Corporate Social Responsibility and Environmental Management, 25(6), 1174-1197. doi.org/10.1002/csr.1630
  45. Legendre, S., & Coderre, F. (2013). Determinants of GRI G3 application levels: the case of the fortune global 500. Corporate Social Responsibility and Environmental Management, 20(3), 182-192. doi.org/10.1002/csr.1285
  46. Li, J., & Leonas, K.K. (2021). Evaluation of certified B Corps in the apparel, footwear and accessory industry. Research Journal of Textile and Apparel, 25(2), 118-138. doi.org/10.1108/RJTA-07-2020-0077
  47. Lock, I., & Seele, P. (2016). The credibility of CSR (corporate social responsibility) reports in Europe. Evidence from a quantitative content analysis in 11 countries. Journal of Cleaner Production, 122, 186-200. doi.org/10.1016/j.jclepro.2016.02.060
  48. Mann, M., Byun, S. E., Kim, H., & Hoggle, K. (2014). Assessment of leading apparel specialty retailers' CSR practices as communicated on corporate websites: Problems and opportunities. Journal of Business Ethics, 122, 599-622. doi.org/10.1007/s10551-013-1766-3
  49. Nayak, R., Akbari, M., & Far, S.M. (2019). Recent sustainable trends in Vietnam's fashion supply chain. Journal of Cleaner Production, 225, 291-303. doi.org/10.1016/j.jclepro.2019.03.239
  50. O'donovan, G. (2002). Environmental disclosures in the annual report: Extending the applicability and predictive power of legitimacy theory. Accounting, Auditing & Accountability Journal, 15(3), 344-371. doi.org/10.1108/09513570210435870
  51. Parker, L. (2014). Constructing a research field: a reflection on the history of social and environmental accounting. Social and Environmental Accountability Journal, 34(2), 87-92. doi.org/10.1080/0969160X.2014.938472
  52. Parschau, C., & Hauge, J. (2020). Is automation stealing manufacturing jobs? Evidence from South Africa's apparel industry. Geoforum, 115, 120-131. doi.org/10.1016/j.geoforum.2020.07.002
  53. Radhakrishnan, S. (2014). The sustainable apparel coalition and the higg index. In Roadmap to sustainable textiles and clothing: Regulatory aspects and sustainability standards of textiles and the clothing supply chain. Singapore: Springer Singapore.
  54. Rosati, F., & Faria, L.G. (2019). Addressing the SDGs in sustainability reports: The relationship with institutional factors. Journal of Cleaner Production, 215, 1312-1326. doi.org/10.1016/j.jclepro.2018.12.107
  55. Rudell, F. (2006). Shopping with a social conscience: Consumer attitudes toward sweatshop labor. Clothing and Textiles Research Journal, 24(4), 282-296. doi.org/10.1177/0887302X06293063
  56. Russo, M.V., & Fouts, P.A. (1997). A resource-based perspective on corporate environmental performance and profitability. Academy of Management Journal, 40(3), 534-559. doi.org/10.5465/257052
  57. Sauermann, H., Vohland, K., Antoniou, V., Balazs, B., Gobel, C., Karatzas, K., ... & Winter, S. (2020). Citizen science and sustainability transitions. Research Policy, 49(5), 103978. doi.org/10.1016/j.respol.2020.103978
  58. Shabana, K.M., & Ravlin, E.C. (2016). Corporate social responsibility reporting as substantive and symbolic behavior: A multilevel theoretical analysis. Business and Society Review, 121(2), 297-327. doi.org/10.1111/basr.12089
  59. Simpson, S.N.Y., & Aprim, E.K. (2018). Do corporate social responsibility practices of firms attract prospective employees? Perception of university students from a developing country. International Journal of Corporate Social Responsibility, 3(1), 1-11. doi.org/10.1186/s40991-018-0031-6
  60. Suchman, M. (1995). Managing Legitimacy: Strategic and Institutional approaches, Academy of Management Review, 20(3), 57l-610. doi.org/10.5465/amr.1995.9508080331
  61. Todeschini, B. V., Cortimiglia, M. N., Callegaro-de-Menezes, D., & Ghezzi, A. (2017). Innovative and sustainable business models in the fashion industry: Entrepreneurial drivers, opportunities, and challenges. Business Horizons, 60(6), 759-770. doi.org/10.1016/j.bushor.2017.07.003
  62. Toray. (2022). CSR Report 2022, Toray, Retrieved October 19, 2023, from https://s3-ap-northeast-1.amazonaws.com/toray/global/sustainability/download/pdf/Toray_CSR_report2022_english_all.pdf
  63. Tsalis, T.A., Malamateniou, K.E., Koulouriotis, D., & Nikolaou, I.E. (2020). New challenges for corporate sustainability reporting: United Nations' 2030 Agenda for sustainable development and the sustainable development goals. Corporate Social Responsibility and Environmental Management, 27(4), 1617-1629. doi.org/10.1002/csr.1910
  64. Tsalis, T.A., Stylianou, M.S., & Nikolaou, I.E. (2018). Evaluating the quality of corporate social responsibility reports: The case of occupational health and safety disclosures. Safety Science, 109, 313-323. doi.org/10.1016/j.ssci.2018.06.015
  65. Unerman, J. (2000). Methodological issues-Reflections on quantification in corporate social reporting content analysis. Accounting, Auditing & Accountability Journal, 13(5), 667-681. doi.org/10.1108/09513570010353756
  66. United Nations. (2023). The Sustainable Development Goals Report 2023: Special edition, United Nations, Retrieved October 19, 2023, from https://unstats.un.org/sdgs/report/2023/The-Sustainable-Development-Goals-Report-2023.pdf
  67. Velte, P., & Stawinoga, M. (2020). Do chief sustainability officers and CSR committees influence CSR-related outcomes? A structured literature review based on empirical-quantitative research findings. Journal of Management Control, 31(4), 333-377. doi.org/10.1007/s00187-020-00308-x
  68. White, C.L., Nielsen, A.E., & Valentini, C. (2017). CSR research in the apparel industry: A quantitative and qualitative review of existing literature. Corporate Social Responsibility and Environmental Management, 24(5), 382-394. doi.org/10.1002/csr.1413
  69. Wondrium daily. (2017). Asian Tigers: Economics and the development of the Asian nations, Wondrium daily, Retrieved October 19, 2023, from https://www.wondriumdaily.com/asian-tigers-economics-asiannations/
  70. Woo, H., & Jin, B. (2016). Apparel firms' corporate social responsibility communications: Cases of six firms from an institutional theory perspective. Asia Pacific Journal of Marketing and Logistics, 28(1), 37-55. doi.org/10.1108/APJML-07-2015-0115
  71. Wood, D. (1991). Corporate social performance revisited. Academy of Management Review, 16(4), 691-717. doi.org/10.5465/amr.1991.4279616