To stay or to go: Corporate complicity in human rights abuses after the coup d’état in Myanmar

By Verena Girschik & Htwe Htwe Thein

◦ 2 min read 

Foreign investors in Myanmar have come under increasingly intense pressure to cut ties with the Myanmar military since the military coup on 1st February 2021. Immediately after the coup, Japan’s Kirin Beer announced its decision to cut ties with its joint venture partner MEHL, i.e. the commercial arm of the military. However, fellow investors did not immediately follow Kirin’s withdrawal. Instead, they appeared to be treading water to rid out the storm. 

Myanmar had been undergoing democratic transition since 2011, promising developments and luring investors’ interests as the last frontier of the Southeast Asian market. Indeed, the democratic transition had pathed the way for economic and developmental achievements, attracted investments in several sectors such as garment manufacturing. Yet then the military took back power, among others to secure its economic interests.

Governments and civil society in their home countries have been calling on companies to act responsible and not to do business with the military. 

The pressure on companies who had been sourcing from Myanmar, including popular fashion brands like H&M and Bestseller, has been mounting. H&M and Bestseller did respond to the call and did suspend their orders from Myanmar before deciding to resume orders in May. Several foreign investors have withdrawn as the military’s attack on the civilians intensified and the international community stepped up their sanctions regime. The latest step was the refusal of the ASEAN not to invite the military leader Senior General Min Aung Hlaing to the summit in October 2021. 

But is leaving the country really “the right thing to do”?

Companies who stay support the military in one way or another, for example by paying taxes directly to the military or paying rent or other fees to one of the military conglomerates (MEHL). Such payments from corporate investors provide a financial lifeline to the continuation of the military rule, hence, funding is a very important aspect of this dilemma for foreign investors and policy makers alike. The governments of the U.S., UK, Canada, the European Union have imposed sanctions targeting military interests. However, those sanctions so far have fallen short of targeting it where it would really hurt the military, in particular in the oil and gas sector that provides a lot of revenue. To weaken the military’s financial lifeline, the shadow government and activists have been calling for companies to stop all kinds of payments to the military. Inside the country, boycotts of military intestates have intensified. For instance, householders have been participating in an electricity bill boycott, thus using the withdrawal of this kind of support as a form of resistance. Not surprisingly, many companies have by now decided to pull out. 

Yet while leaving the country ceases support to the military, it also entails that companies no longer provide goods and services (including essential services) and support to the workers and civil society (e.g. Telenor;  Germany’s food retailer Metro. Companies have been supporting workers by sustaining safe workplaces, thereby securing workers’ incomes and stability.  What is more, their support has enabled and sustained social movements. For example, women union leaders in the garment industry have been a driving force in anti-military protests. 

Given the severity of human rights violations by the military, companies ought not to continue business as usual. Only by leaving can they cut all ties with the military and avert their complicity in atrocious human rights abuses. But by leaving, they also cease support to their most vulnerable stakeholders. The impact on the social contributions (via CSR) and Myanmar civil society, especially their workers, might be devastating. 


About the Authors

Verena Girschik is Assistant Professor of CSR, Communication, and Organization at Copenhagen Business School (Denmark). She adopts a communicative institutionalist perspective to understand how companies negotiate their roles and responsibilities, how they perform them, and with what consequences. Empirically, she is interested in activism in and around multinational companies and in business–humanitarian collaboration. Her research has been published in the Journal of Management Studies, Human Relations, Business & Society, and Critical Perspectives on International Business. She’s on Twitter: @verenacph

Htwe Htwe Thein is an Associate Professor in International Business at Curtin University, Australia. She is internationally known for her work on business and foreign investment in Myanmar and has published in leading journals including Journal of World Business, Journal of Industrial Relations, Journal of Contemporary Asia, International Journal of Cross-Cultural Management and Feminist Economics (and international publishers such as Cambridge University Press, Routledge and Sage). She is also well-known as a commentator in media and press on the Myanmar economy and developments since the military takeover on 1 February 2021.

Sustainable brands on Black Friday: What do consumers perceive as authentic?

By Nina Böntgen, Sara Derse and Meike Janssen

◦ 4 min read 

The fashion industry has repeatedly come under fire for its negative effects on the environment. With heightened attention towards the climate crisis and scandals highlighting the industry’s social shortcomings (Rana Plaza, 2013), more and more ‘native’ sustainable fashion brands have emerged. However, parallel, we witness a trend towards ever-increasing consumerism. Frequently, Black Friday is seen as the epitome of consumerism which raises the question: How do sustainable fashion brands approach the biggest shopping day of the year – Black Friday – and how do consumers perceive these campaigns?

We reviewed Black Friday Instagram posts by self-claimed sustainable fashion labels and found they can be conceptualized along two axes: (1) the level to which consumption is encouraged / discouraged, and (2) the degree of action taken by a brand to express its commitment to sustainability. This conceptualization accounts for existing societal marketing strategies, particularly Demarketing, Green Marketing, and Cause-related Marketing. On the one hand, the brand Raeburn closes its shops and urges consumers to use Black Friday to repair their clothing rather than buying new items (Demarketing). On the other hand, the brand People Tree promotes 30% off everything claiming that consumers should “add some green to [their] wardrobe” (Green Marketing). 

Business-as-usual, a revolution, or planet-saving purchases – what is actually authentic?

By interviewing 20 consumers, we found that they judge authenticity by inspecting various cues that are leveraged to identify authenticity drivers. For example, donating to WWF (Cause-related Marketing) yielded legitimacy for TwoThirds’ Black Friday campaign. Authenticity is a complex concept – it is multidimensional, subjective, dynamic and socially constructed. Multidimensionality implies that one cannot answer “what is authentic?” precisely; it is an interplay of different attributes. In our case, respondents described an advertisement as authentic when it was credible, relatable, congruent, original and/or impactful. Next, subjectivity means that what is authentic for one person is not necessarily authentic for another. Influential consumer characteristics are a person’s general scepticism towards advertising, level of environmental concern, and understanding of sustainability, resp. do we simply need less- or better/greener consumption to mitigate climate change?

“and it’s kind of a contradiction: ‘Please shop to help the planet’ and I think you can’t shop and help the planet at the same time. So less or no consumption is at all times the best option” (Consumer 1)

“you’re using capitalism to make the world a little bit better. And I think in my eyes, that’s a good strategy to go for” (Consumer 2)

Third, authenticity perceptions can change over time, for example upon new information. Last, authenticity does not exist as a stand-alone concept but is always sensitive to societal changes.

What does this imply for marketers of sustainable brands?

Black Friday is a dynamic context in which brands have to actively reflect on their communication strategy and respective consumer authenticity perceptions. Consequently, no communication strategy shows clear advantages or can be labeled ‘most authentic’. We advise brands to reflect on: 

  1. Their standpoint regarding Black Friday
  2. The needs of their target group
  3. The statement they want to make on Black Friday
  4. The tone they want to adopt in their campaign

Sustainable brands increasingly embrace creative ways to distance themselves from the traditional Black Friday, e.g. by closing shops, ‘selling rubbish’ or even raising prices. It remains unclear, however, whether these forms of brand activism reflect a brand’s honest opinion or are employed as a tool to stand out.

We also observe brands who are holding their customers responsible: on Black Friday 2020, Armed Angels let buyers choose between a higher discount or rainforest protection. After Black Friday, the brand revealed that the majority of their customers had chosen the higher discount, which raises the question: 

Can consumers be held responsible for making more mindful purchase decisions or is increased action by companies and governments needed? 

Upon stating its disappointment about the outcome, followers accused the brand of shaming their customers for choosing higher discounts. This translates to another relevant consideration for sustainable fashion labels – choosing the right tone. While radical messaging conveys urgency and appeals to environmentally concerned consumers, others feel opposed to it and, instead, want to be involved in dialogues. Again, this shows that when it comes to Black Friday, there is no ‘one size fits all’ solution – rather, brands should take time to think about their values and how they can make a meaningful difference on Black Friday 2021.

Throughout the interviews in our study, multiple consumers shared with us how they were inspired by campaigns of sustainable brands and respectively questioned their purchase decisions. This demonstrates that sustainable brands’ communications can actually exceed Black Friday and have lasting effects – not only on their brands’ perceived authenticity but also on our planet’s future.


About the Authors

Nina Böntgen is a recent graduate from MSc Brand and Communications Management program at Copenhagen Business School. Next to her studies, she was actively engaged as team lead and board member of oikos Copenhagen, a student initiative driving change towards greater sustainability. She’s happy to share further insights or engage in discussions on the post or the broader thesis (how sustainable brands navigate authenticity and greenwashing) via email (n.boentgen@web.de) or Linkedin.

Sara Derse is a recent graduate of the Msc Brand and Communications Management program at Copenhagen Business School. Fascinated by the topics of consumer psychology and purpose branding, she was involved in the sustainability-focused student initiative oikos as a Project Manager. She is happy to discuss her thesis (consumer perceptions of fashion brands with a purpose centred around sustainability) in further detail via email (saraderse@live.de) or Linkedin. 

Meike Janssen is Associate Professor for Sustainable Consumption and Behavioural Studies, CBS Sustainability, Copenhagen Business School. Her research focuses on consumer behaviour in the field of sustainable consumption, in particular on consumers’ decision-making processes related to sustainable products and the drivers of and barriers to sustainable product choices.


Photo by Ashkan Forouzani on Unsplash

A Southern-centered perspective on climate change in global value chains?

By Peter Lund-Thomsen

◦ 2 min read ◦

The garment and textile industries account for around 10% of global CO2 emissions, and their fast fashion approach consumes huge amounts of water in production and processing stages. While the fast fashion model incentivizes the overproduction/consumption of clothes, more sustainable solutions lie in the configuration of value chains towards slow fashion (durable products produced on demand) and the introduction of circular business models. Such a transformation will have consequences for the environment, workers’ conditions, and economic development.

This is particularly the case in the light of COVID-19, which led to a temporary disruption in the global garment and textiles value chains as stores closed in Europe and the United States in the spring of 2020. The cancellation and non-payment of garment orders particularly affected suppliers and workers in Bangladesh, leaving hundreds of thousands of workers without jobs and possibly facing destitution. 

This is the focus of a new research and capacity-building project on ‘Climate Change and Global Value Chains’ coordinated by the CBS that has recently been funded by the Danish Development Research Council. In this research project, we will be working with colleagues from the University of Aalborg and Roskilde University in Denmark as well as BRAC University and the University of Dhaka in Bangladesh. Private sector partners include the Danish Ethical Trading Initiative and Danish Fashion and Textile. 

I think that a key challenge in this new project is how we approach ‘climate change’ in the context of global value chains.

In the Danish debate on climate change, it is almost universally accepted that climate change should be at the top of the political and corporate sustainability agendas. However, both employers and workers in the Bangladeshi garment and textile industries may not perceive climate change mitigation as an immediate priority.

First, the purchasing practices of major brands sourcing garments from Bangladesh tend to result in downward price pressures, seasonal fluctuations in demand, and shorter lead times while, at the same time, these brands are also imposing ever greater environmental and labor standard requirements on their suppliers (not only in Bangladesh but elsewhere in the global South). Economic value is very unevenly distributed along the textile/garment value chain, with major brands reaping up to ten times higher economic value than suppliers – and even less reaching workers.

Hence, Bangladeshi suppliers often perceive the environmental and labor requirements of brands as adding to their costs without bringing additional business benefits.

In this context, suppliers may have very few, if any, incentives to address climate concerns in their value chains, while workers in the industry are trying to survive in a context of economic uncertainty.

In my view, a critical aspect of this new project is therefore that we will not only look at climate change from a Northern-centered perspective; that is, we are not only concerned with how brands and factories engage in the process of decarbonization. We will also zoom in on the importance of climate change adaptation, which I would label a more Southern-centered perspective on climate change in global value chains.

In fact, Bangladesh is one of the countries most affected by global climate change whose coastal areas and ports are prone to flooding, resulting in disruptions of the garment/textile value chain and economic losses for local manufacturers and workers.

Moreover, garment factories in greater Dhaka have extremely high lead and CO2 emissions, while many factory workers live in parts of the city that have unhygienic water supplies and must cope with living conditions that affect their health. Hence, integrating climate change and global value chain analysis from a Southern-centered perspective, I would argue, involves looking at the ‘business case’ for climate change adaptation – in other words, we must understand how can climate change adaptation can help in securing the future viability, competitiveness, and jobs in the garment industry and textile industries of Bangladesh. 


About the Author

Peter Lund-Thomsen is Professor at the Department of Management, Society and Communication at Copenhagen Business School. His research focuses on sustainable value chains, industrial clusters, and corporate social responsibility with a regional focus on South Asia.

Supplier perspectives on social responsibility in global value chains

By Peter Lund-Thomsen

Worldwide there is now a search for new ideas, business models, and innovations that can help us in rebounding from the global impact of COVID-19 and bring our planet and world onto a more sustainable future trajectory. One of the areas where this is evident is sustainability in global value chains where we have seen a global disruption of world trade in ways that have affected not only global brands but also suppliers and workers around the world. Some observers argue that this will result in a global backlash against attempts at making global value chains, for instance, the global garments and textile value chains, more sustainable. I.e. that COVID-19 will make brands and suppliers sacrifice long-term sustainability considerations at the expense of short-term business survival.

In my understanding,however, what these recent events demonstrate is not so much the need for new innovations and “thinking out of the box” but rather considering how the current organization of global value chains and thinking around sustainability have overlooked the importance of “supplier perspectives” on what social responsibility actually means in these chains. Amongst many practitioners, especially in the Nordic countries, there has been a tendency to assume that global brands’ adopting corporate codes of conduct and sustainability standards, asking value chain partners (i.e. suppliers) to implement these, and then auditing for compliance as well as helping suppliers to build capacity to enforce these guidelines would be sufficient.

The case of Bangladesh illustrates why this approach is insufficient. First, many brands have cancelled their orders with Bangladeshi garment suppliers, leaving local factories at the verge of bankruptcy, and hundreds of thousands, if not millions of workers at risk, potentially without any income to support themselves and their families. Second, even with orders that have been completed, some brands have refused to honor their contracts and either not paid for the goods received, substantially delayed payments, or asked for discounts on present or future orders from suppliers.

Globally, there has been condemnation of these “unfair” trading practices by both suppliers themselves (particularly in Bangladesh but also highlighted via social media) and also international labor advocacy organizations.

And third, the level of outrage is so strong that the Bangladesh Garment Manufacturers and Exporters Association has allegedly been considering placing a ban on particular brands so that they may not source garments from Bangladesh in the future as they have largely failed to live up to their “buyer” responsibilities towards suppliers and workers in Bangladesh.

To me, a key lesson learned from these events is that global brands, business associations, labor advocacy organizations, NGOs, researchers and students can no longer simply “overlook” supplier perspectives on social responsibility in global value chains.

The only realistic way forward is to take account of the concerns of these suppliers if global value chains are to be more resilient in the long run.

Many of these supplier concerns are already well-documented but tend to be either ignored or discarded by “global North stakeholders” in their policies, practices or discourses more broadly – for instance, in how they conceive and talk of sustainability in sustainability conferences around the world.

Just to recap some of the main points that we have learned from studies of supplier perspectives on social responsibility:

a) The factory manager dilemma – e.g., factory managers and owners – for instance, in the global garment industry – have had been asked for continuous price declines by many of their buyers while the same brands have asked for increased levels of social compliance at the same time.

b) The same dilemma arises when factory managers are asked to provide living wages around the year by their buyers when demand is seasonal and price competition is fierce in the global garment industry. For most suppliers having workers sitting around idle for part of the year is not a viable business option.

c) In addition, there is a general unwillingness amongst most (but not all brands) to co-finance – for instance, 50% – of the necessary social upgrading of factories in countries such as Bangladesh. Hence, brands tend to push “social responsibility” onto their suppliers rather than co-investing in and jointly bearing the costs of these improvements themselves.

d) Profits earned from selling goods sold to end consumers in the global North remain highly unequally shared amongst the (ironically called) value chain partners – often with suppliers winding up with 10-20 percent of the value of final retail price.

e) In addition to this, global North (read: Scandinavian) stakeholders including brands, government representatives, NGOs, students, and others often perceive “sustainability” in value chains as mainly relating to environmental and (to a lesser degree) social responsibility in the value chain. Hence, the general talk often seems to be about how suppliers should make environmental and social investments without considering the need for addressing existing inequalities – i.e. unequal distribution of value in these chains – and the business aspects of running supplier operations. In fact, for many suppliers in countries such as India, Pakistan and Bangladesh, sustainability is first and foremost related to “economic” or “financial” sustainability. Only when suppliers are profit-making can they afford to invest in social and environmental improvements. This is not exactly rocket-science but a point that often seems to be completely overlooked by Scandinavian “sustainability” advocates.

f) Finally, what is sometimes considered “social responsibility in global value chains” in the global North might be narrowly defined as the payment of minimum wages, overtime payment, social insurance, and the implementation of occupational health and safety measures in supplier factories. Of course, I am all for supplier factories implementing these measures. However, I also sympathize with many suppliers, NGOs and other stakeholders in the global South that point to other aspects of social responsibility that may be more contextualized.

For instance, in South Asia, many studies have pointed to factory managers helping to finance the education/school fees of the children of some of their workers. Financing the weddings of young workers or the weddings of the sons/daughters of their workers is another sign of social responsibility amongst many factory owners in South Asia.

From a Scandinavian perspective, this may not be related to “social responsibility”.

However, in the sub-continent, where your wedding day is often considered the most important day in your life, and very important for your family’s wider social standing in society, employers’ financial support may be seen a very valid act of practicing “social responsibility”.

Providing tea to your workers may also be considered an act of “social responsibility”. Again – from a Scandinavian perspective – this may not be considered a big act of social responsibility. However, then again, is it really that difficult to understand? How many of us in Scandinavia do not value it when our own employers provide us with free tea or coffee? It gives us the opportunity to socialize with our colleagues or take a much needed break between different work tasks. Why should it be any different in countries such as India and Pakistan where tea drinking could almost be considered a national sport?

Moreover, some factory managers in South Asia allow especially young mothers or women with even slightly older children the option of either working part-time (when the kids are in school or someone else is at home to take care of them) or engaging in home-working so that they may look after their kids while engaging in for instance (embroidery) whenever there is a free moment. Of course, I do recognize that home-working is also often associated with receiving very low wages and not having any social insurance.

However, during COVID 19, even in the Scandinavian context, homeworking has become an absolutely essential part of keeping private companies and public institutions afloat crisis under such compelling circumstances. It has also involved many challenges for families with young children who had to engage in home-based work (typically computer-based) and taking care of their children simultaneously.

Yet if homeworking is indeed not only allowed but also encouraged by most employers in Scandinavia, why it is that brands in the global North sometimes impose an outright ban on their suppliers outsourcing particular work tasks to “home-based locations”?

No wonder that many factory owners and managers in the global South believe that global brands practice double standards when it comes to their social responsibility requirements (i.e. ‘do as I say but not as I do’).

In conclusion, there seems to a great need in Scandinavia for raising our own levels of awareness about the commercial challenges faced by suppliers and acknowledge the myriad ways in which “social responsibility” may be thought of and practiced – of course, without throwing out the baby with the bathwater. Compliance with core labor standards remains a key concern, but it is not the only way of conceiving of supplier responsibility in global value chains.


About the author

Peter Lund-Thomsen is Professor at the Department of Management, Society and Communication at Copenhagen Business School. His research focuses on sustainable value chains, industrial clusters, and corporate social responsibility with a regional focus on South Asia.


More about Covid-19 pandemic on Business of Society blog:

Building A Better Planet: Toward a Sustainable Post-COVID-19 Society

Small, yet important – and still responsible. Reflections on SMEs and social responsibility in times of Covid-19

How the pandemic can reset cities and transform aspects of urban mobility

The Coronavirus Pandemic – and the Consequentiality of Metaphors

Sustainable Development, Interrupted?

The Political Economy of the Olympics – Misconceptions about Sustainability

Supply Chain Responsibilities in a Global Pandemic

A Green and Fair COVID-19 Recovery Plan

In Movement from Tanzania to Northern Italy to Denmark

How to make food systems more resilient: Try Behavioural Food Policies

Lobbying and the virus – three trends to take note of


Image by International Labour Organization ILO

Supply Chain Responsibilities in a Global Pandemic

By Jette Steen Knudsen, Erin Leitheiser, Shaidur Rahman & Jeremy Moon

What is the responsibility of Western retailers to the workers who make their garments as the coronavirus forces factories to shut down?

Shopping malls are closed, gatherings are banned, thousands of employees have been furloughed, and movement outside of one’s home is discouraged if not outright illegal.  This has meant bad news for apparel brands and retailers as nervous customers cease buying. In the U.S., for example, retail sales in March were down almost 9% compared to in February.  Those brands and retailers which have built their businesses on a fast fashion model – predicated on the continuous churn of high volumes of cheap clothes – face unprecedented challenges and questions about responsibilities in the face of the COVID-19 pandemic. 

Retailers have responded in different ways.  As they have had to shut down their stores many have stated that they will not pay rent. For example, German sportswear producer Adidas stated (March 26 200, Reuters) that

“Almost all over the world there is no normal business anymore. The shops are closed. Even a healthy company like Adidas cannot stand this for long”.

Adidas was one of a string of retailers in Germany that said they wouldn’t be paying their landlords while their stores are closed as part of efforts to stem the coronavirus spread. Adidas said it would need credit even after staff cut their working hours, executives waived part of their pay and the company stopped share buybacks. Adidas’ decision was met with an uproar in Germany eventually forcing the company to formally apologize and to report that it planned to suspend a planned 1 billion euro ($1.09 billion) share buyback in an effort conserve cash after closing its retail outlets in Europe and North America. Adidas also said it would pay rent.

In Denmark, Anders Holck Poulsen, the owner of the clothing company Bestseller and Denmark’s wealthiest man, also announced that the company would not pay rent for its stores. Bestseller (parent company for brands like Vera Moda, Jack & Jones, Pieces, and Name It, among others) later reversed the decision following a public outcry and the CEO went on national television to apologize. Bestseller subsequently laid off 750 employees and sought financial support from the government.  This decision was met sharp with sharp criticism because over the last five years Mr. Holck Poulsen has paid DKK 7.6 billion (more than $ 1 billion) in dividends to his private holding company Heartland.

Not all companies have responded this way. Patagonia, for example, has promised that all of its employees will continue to receive their regular pay during store closures.

However, with many large brands scaling back their social responsibility in the Western part of the world, what kind of responsibility can we reasonably expect from Western retailers in places such as Bangladesh?

Bangladesh is heavily dependent on apparel production. Apparel comprises more than 80% of the country’s total export revenue and the sector employs more than 4 million workers, most of them women.  However, in recent weeks many Western brands have cancelled their orders from Bangladesh, and it is estimated that more than 2 million workers have lost their jobs.  H&M is the largest buyer of garments from Bangladesh and has reluctantly agreed to take and pay for the shipments of goods already manufactured as well as those that are still being produced. Inditex, PVH and Marks and Spencer have also agreed to pay suppliers for orders that are already produced but not all companies have done so. Primark, for example, has cancelled orders, and virtually all buyers have pulled orders that have not yet gone into production.  At the end of March 2020 orders for more than $1,5 billion had been cancelled, and Bangladesh reported -19% year-on-year export volume for the month.

What is the responsibility of large brands like Bestseller or H&M for their supplier factories in Bangladesh? Western brands have a long tradition for stating their commitment to CSR in global supply chains, including elaborate Codes of Conduct for social and environmental performance in supplier factories. Bangladesh has staked its claim as the low-cost producer of garments, and its costs and production capacities cannot be easily matched elsewhere in the world. The model of fast fashion needs Bangladesh, and Bangladesh, in turn, needs fast fashion. 

Now that crisis reigns upon all of us in the form of a global health pandemic, it is the most vulnerable of workers who have been left in the lurch, be it the retails associates who stock shelves or the stitchers who sew together T-shirts.  As buyers cancel orders, few recognize the perilous position that these workers are left in. For those working on the factory floor in Bangladesh, more than 2 million have been furloughed, many without pay, despite a governmental scheme intended to address these issues.  The meagre wages of garment factory workers have not allowed for savings that could support them in such times, and the prospect of long-term closures – or at least, no orders to fill and therefore no paid work – means almost certain disaster for them and their families. 

Garment workers in Bangladesh have risen up in protest, stating that

“…we don’t have any choice.  We are starving.  If we stay at home, we may save ourselves from the virus.  But who will save us from starvation?”

(13 April 2020, The Guardian).

While some brands, like Primark, have set up charitable funding pools to help support workers, the money has yet to make it to their pockets, and the “charitable” framing of this funding on behalf of brands speaks volumes about what they see as their responsibilities.  Yet, when the crisis passes and shopping malls re-open, brands will again be reliant upon these workers to satisfy their demand for an endless supply of cheap garments. 

Given that cheap labor is a fundamental need for fast fashion companies to survive, shouldn’t brands likewise ensure the survival of those on which it depends? 


This is the first in a series of blogs which will further explore the responsibility of the Bangladesh government, factories, Western governments and civil society organizations for dealing with COVID-19 in places like Bangladesh.  


About the authors

Jette Steen Knudsen is Professor of Policy and International Business at the Fletcher School of Law and Diplomacy at Tufts University and holds the Shelby Collum Davis Chair in Sustainability.  She is also a Velux Fellow at Copenhagen Business School where she is part of the Regulation of International Supply Chains (RISC) project

Erin Leitheiser is an Assistant Professor at Copenhagen Business School and Project Manager of the Regulation of International Supply Chains (RISC) project

Shaidur Rahman is Professor of Sociology at BRAC University where he is part of the Regulation of International Supply Chains (RISC) project

Jeremy Moon is Professor of Sustainability Governance and Director of the Sustainability Centre at Copenhagen Business School.  He is the Project Coordinator of the Regulation of International Supply Chains (RISC) project.

Photo by ILO Asia-Pacific

Who cares about sustainable fashion?

By Erin Leitheiser.

Can ever-higher rates of consumption ever truly be sustainable?  Consideration of up-and-coming consumers will be key to making progress in the sustainability of the fashion industry.

Each year in May, Copenhagen hosts the Copenhagen Fashion Summit, which brings together fashion industry leaders to consider the environmental and social sustainability issues rife within the industry.  While this year’s event promises discussions on important supply-side issues like materials and design, circularity, supply chains, wages, and the like, there seems to be precious little time dedicated to demand-side issues, principally the role of consumers.  As such, this post offers a review of some key facts and trends that foreshadow the landscape of the future of (sustainable) fashion, and in particular, the role of consumers.

First, some key facts about the scale of the fashion industry and its impacts:

  • Greenhouse gas emissions from the textile industry account for 8% of all carbon emissions globally, more than those emitted by all international flights and maritime shipping combined (Quantis, 2018). 
  • The top 20 companies in the clothing industry, mostly in the luxury segment, account for 97% of its economic profit (McKinsey, 2019).
  • Clothing sales have more than doubled in just the last 20 years (Ellen McCarther Foundation, 2017), and apparel consumption is projected to rise an additional 63% by 2020 (Global Fashion Agenda, 2017). 
  • Despite growing efforts to collect and recycle old textiles, less than 1% of materials used in clothing is recycled (Ellen MacCarthur Foundation, 2017). 
  • Companies – particularly luxury companies – often prioritize brand image over sustainability.  For example, Burberry found itself embroiled in scandal after it chose to burn US$37 million in excess stock last year, rather than discount or donate it.

While many of these issues skew toward supply-side, consumers’ habits play a key role in the vast excesses of the fashion industry.  Consumption rates seem to grow ever-higher.

  • Nearly half of young female consumers buy clothing at least monthly (Farsang et al, 2015).
  • An article of clothing in a woman’s closet is worn a mere 7 times on average before being discarded (Barnardo’s, 2015)
  • In the past year, a quarter of Australians (24%) have thrown away an item of clothing after wearing it only once, and 1 in 6 have binned 3 items or more after a single wear (YouGov, 2017). 
  • A third of UK women consider a garment “old” after wearing it 3 times or less (Barnardo’s, 2015).
  • 38% of Millennials have bought at least half of the clothes they own within the past year (YouGov, 2017). 
  • In China, clothing utilization (that is, the number of time a garment is worn before being discarded) has fallen by over 70% in the last 15 years (Ellen MacCarthur Foundation, 2017).  At the same time, Greater China is projected to overtake the U.S. in 2019 as the largest fashion market in the world (McKinsey 2019).

The consumer landscape is changing rapidly when it comes to “sustainable” fashion, so much so that fashion firm executives identified consumer behaviors that force industry to “self-disrupt” as the #1 trend for 2019 (McKinsey, 2019).  Key consumer trends underscore the significance, scale and potential of consumers in the quest for (more) sustainable fashion.  Younger consumers – Millennials (born 1980-2000) and Gen Zers (born 2000-now) – are largely responsible for pushing companies to become more sustainable.

  • 94% of Gen Zers believe that companies should address social and environmental issues (Cone, 2017). 
  • Gen Z alone will account for 40 percent of global consumers by 2020. (McKinsey, 2019)
  • 90% of Millennials would boycott or otherwise refuse to buy from a company that is doing harm (Cone, 2017)
  • Consumers want to support brands that are doing good in the world, with 66 percent willing to pay more for sustainable goods (McKinsey, 2019).

As younger generations increase their buying power – and couple it with ethical evaluations – companies will need to become even more responsive to and diligent about addressing sustainability issues.  Yet, high consumption rates threaten to curtail gains made from sustainability advances, like textile recycling.  In addition to more sustainable production practices – and subsequent ethical purchasing – consumption must decrease if the perils of the industry are to be addressed.

“Younger consumers are seriously concerned with social and environmental causes, which many regard as being the defining issues of our time. They increasingly back their beliefs with their shopping habits, favouring brands that are aligned with their values and avoiding those that don’t.”

McKinsey, 2019: p. 45

I am often asked what one can do as an individual to be more sustainable when it comes to fashion.  My answer is in two main parts.  First, buy fewer, better quality items and wear them for longer.  Classic, good quality pieces will wear better and last longer.  Even if they cost a bit more at purchase their extended life makes them a more affordable option in the long run.  Second, re-think how you care for your clothes.  Washing them less, at lower temperatures, and hanging them to dry will all result in gains for both your energy bill, as well as the environment, estimated at a 3% carbon reduction (WRAP, 2017).  Some proponents even argue that you never need to wash your jeans!  (though this might be a bit extreme for some)

There is no silver bullet to solving the unsustainability of the fashion industry.  But one thing does seem clear: advances and changes must come from all sides if progress is to be made.  As the Copenhagen Fashion Summit kicks off this week , please keep in mind the importance and role of everyone involved in the production, sale, and disuse of fashion, as well as the very premise that the industry is based on: consumption.


About the author

Erin Leitheiser is a postdoctoral researcher in Corporate Social Responsibility and Sustainability at Copenhagen Business School. Her research interests revolve around the changing role and expectations of business in society. Prior to pursuing her PhD, she worked as a CSR manager in a U.S. Fortune-50 company, as well as a public policy consultant with a focus on convening and facilitating of multi-stakeholder initiatives. She is supported by the Velux Foundation and is on Twitter as @erinleit.

References

Barnardo’s. (2015). One worn, thrice shy – British women’s wardrobe habits exposed!.  Retrieved from https://www.barnardos.org.uk/news/Once-worn-thrice-shy-8211-British-women8217s-wardrobe-habits-exposed/press_releases.htm

Cone. (2017) “Gen Z CSR study: How to Speak Z”. http://www.conecomm. com/2017-cone-gen-z-csr-study-pdf

Ellen MaCarthur Foundation. (2017). A new textiles economy: redesigning fashion’s future. 1–150. Retrieved from https://www.ellenmacarthurfoundation.org/publications/a-new-textiles-economy-redesigning-fashions-future

Environmental Audit Committee, House of Commons. (2017). Fixing Fashion: clothing consumption and sustainability.

Farsang, A., Gwozdz, W., Mueller, T., Reisch, L. A., & Netter, S. (2015). Survey Results on Fashion Consumption and Sustainability Among Young Consumers in Germany, the Netherlands, Sweden, the UK and the US in 2014. Borås: Mistra Future Fashion.

Global Fashion Agenda. (2017). Pulse of the fashion Industry. Retrieved from https://www.copenhagenfashionsummit.com/wp-content/uploads/2017/05/Pulse-of-the-Fashion-Industry_2017.pdf

McKinsey & Company. (2019). The State of Fashion 2019.

Quantis. (2018). Measuring Fashion.

WRAP. (2017). Valuing Our Clothes: the cost of UK fashion. Retrieved from http://www.wrap.org.uk/sites/files/wrap/valuing-our-clothes-the-cost-of-uk-fashion_WRAP.pdf

By the same author

The Government of Business Responsibility

Role Reversal: When Business Safeguards the Public Good


Photo: Courtesy of Copenhagen Fashion Summit 2018.