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Response of Western Fashion Brands to the Controversy Surrounding the Treatment of Garment Workers in Asia

Executive summary

Concerns about the Treatment of Asian garment producers have been explored, as have the potential risks to the reputation of Western fashion corporations due to these concerns. Labor violations in supply chains have sparked a scandal, jeopardizing the companies’ legitimacy, market status, future ambitions, and consumer loyalty. Consequently, concerns have been raised about the efficacy of CSR (corporate social responsibility) activities. Suppose Western fashion corporations want to restore customer confidence. In that case, constructive actions must be taken to alter labor violations in supply chains, key players must be involved, and a commitment to ethical and socially responsible conduct must be expressed. Businesses may reduce the risk of a boycott by implementing transparent supply chain processes, collaborating with stakeholders, and investing in training and capacity building to help suppliers meet labor standards. Overall, how Asian clothing producers are handled is a moral and ethical issue, not just a public relations one. Western fashion firms must prioritize the well-being and safety of their manufacturing personnel and establish fair labor regulations across the entire supply chain. As firms acquire consumers’ trust and demonstrate their commitment to ethical and socially responsible practices, this will lead to an improved future for both the company and the fashion sector.

Introduction

For many years, the Treatment of Asian garment workers has been a subject of contention. Western fashion corporations have been accused of exploiting their workers by paying them low wages and presenting them with hazardous working conditions. As a consequence of the event, consumers expect more transparency and ethical behavior from personnel in the fashion industry. This study aims to give an in-depth examination of the most appropriate course of action for Western fashion companies to adopt in light of the ongoing discussion about how Asian garment workers are treated. The primary goal of this article is to provide an in-depth assessment of the dispute regarding how Asian garment manufacturers treat their workers, as well as how that discussion has influenced the fashion industry. The study will examine how Western fashion corporations have reacted to the issue from social and ethical angles. Asian garment worker treatment will be presented in the presentation. The garment industry’s salary, benefits, and conditions will be examined. Next, the research will examine how the dispute affected customer trust and Western fashion brands. The study will also examine social and moral issues. It will examine Western fashion companies’ supply chain worker treatment requirements and problems. Western fashion firms may fix the issue and reclaim customers’ confidence in the following section of the study.

How western fashion brands respond to the Treatment of garment workers in Asia

This discussion will discuss the threats, CSR, public relations, and evaluation of what Western fashion brands can do to restore consumer confidence.

Threats

The unrest in Asia caused by the garment manufacturing industry’s poor working conditions creates significant challenges for Western fashion corporations. The event has brought to light the need for honest and ethical business procedures in the fashion sector, and any company that falls short of meeting the standards set by their customers will be held accountable for their actions (Inditext, 2023). This may significantly affect how people see a brand, how they interact with it, and even whether or not they buy into it.

Brand positioning

The debate about the production processes used in Asia for garments can damage the image of the brands owned by Western fashion companies. It may be difficult for a corporation to market itself as a socially responsible or ethical option if its brand is associated with immoral actions (Lewis, 2021). This may put the firm’s efforts at marketing at risk. As a result of this, popularity and sales would decrease.

Brand reputation

The situation around the working conditions of Asian garment workers poses a danger to the image of Western design businesses. If a company is suspected of engaging in unethical activities, consumers may lose faith in that company (H And M, 2022). This is especially true if concerns about the products’ effects on society and the environment increase. This could lead to a drop in revenue, making it more challenging to recruit new clients.

Brand vision

A company’s foundational principles and guiding principles are closely linked to the company’s overarching mission. It may be challenging for Western fashion corporations to connect with their professed values and ambitions if it is discovered that the companies have been abusing textile workers in Asian countries (Nuttavuthisit et al., 2019). Customers may see the company as less trustworthy because of this, and they may not consider it a respectable supplier of goods and services.

Brand experience

The concerns surrounding the maltreatment of garment workers in Asia may impact brand reputation. In today’s competitive environment, customers have high expectations for the products and services they buy (Aktive, 2012). This favorable image might be damaged by allegations of unethical behavior, which diminishes customer loyalty and promotes fewer recommendations.

Corporate social responsibility

The Asian textile worker abuse epidemic has significantly influenced Western fashion firms’ CSR efforts. Customers are increasing pressure on businesses to emphasize CSR among other socially aware business practices. The incident has highlighted how some Western fashion corporations have inadequate corporate social responsibility guidelines and how challenging it may be to implement ethical and socially responsible practices across overseas supply chains (Handfiel and Rothenberg, 2020). The controversy has seriously damaged Western fashion corporations’ CSR plans by revealing poor labor conditions in their supplier networks. Due to the disclosures, worker exploitation, poor wages, and hazardous job environments have all been revealed. As a result, customers have lost trust in Western fashion firms’ CSR programs because they have been proven to assist corporations that engage in immoral behavior. Consequently, people are less inclined to purchase items from firms that do not prioritize doing the right thing (Pakistan Safety Report, 2019). The event has highlighted the difficulty in implementing CSR requirements across worldwide supplier networks.

Many renowned Western fashion brands have supply chains that span seas and countries. Consequently, monitoring and supervising labor violations throughout the supply chain is challenging. Furthermore, several medium-sized or small-sized vendors may need more resources to implement ethical business practices (Jung and Lee., 2022). As a result, it may be challenging for Western fashion companies to implement CSR policies across their entire supply chain. Following the uproar, Western fashion businesses have improved their CSR practices. Many businesses have implemented auditing systems and created codes of conduct to ensure their activities meet moral standards. They have also supported supplier training programs to encourage moral business conduct among their suppliers. These initiatives, although admirable, might fall short of tackling the core causes of labor exploitation in the fashion industry due to their restricted focus on certain suppliers (Brydges and Hanlon, 2020). Finally, the situation regarding the mistreatment of garment makers in Asia has significantly impacted the CSR efforts of Western fashion corporations. This has highlighted the gaps in their policies and the difficulty in incorporating ethical and socially responsible practices into multinational supply chains. The fashion industry is known for labor exploitation, but although some firms have taken steps to improve their CSR procedures, much has to be done to address the underlying structural issues. This includes more transparency, cross-industry collaboration, and a desire to influence systemic change.

Public relations

The situation in Asia with garment worker abuse can potentially cause severe public relations issues, particularly among customers of Western fashion brands. A consumer boycott is possible if individuals cease purchasing from corporations that promote exploitative working conditions (H and M.,2022). This may need improvement for Western fashion firms’ bottom lines and reputation. Inquiries about an organization’s ethical standards are a significant reason for some customers to abandon a brand. Consumers are increasingly aware of the consequences of their purchases, and they want businesses to operate ethically and responsibly. Customers will take money somewhere if they perceive a firm needs to meet their expectations. Consumers in Asia may be putting pressure on Asian brands because they think the corporations are not doing enough to ensure fair labor standards (Clean Clothes Campaign, 2019). Another potential PR issue is reputational injury. Brands may face backlash from customers, media outlets, and other stakeholders if they are seen to be supporting or endorsing unethical labor practices. This might result in negative headlines, a damaged image, and a drop in customer trust. If consumers feel the company’s CSR operations could be more genuine, they may gain trust in its aims and beliefs.

The impact of the Asian crisis on fashion brands may be enhanced further via social media. Customers may provide comments and express their experiences via social media. When online criticism of a company’s rules and practices acquires pace, it may be hard to halt the dialogue. This might harm your reputation and cause a reduction in customer loyalty (Aktive, 2012). Given the present situation in Asia, Western apparel makers should take precautionary steps. They must be forthcoming about the conditions at work in their supplier networks and the efforts they are making to improve them. Businesses must demonstrate their commitment to ethical and socially responsible conduct and how they strive to address these issues. The Asian garment worker abuse epidemic may cause severe public relations concerns for Western fashion firms. Significant risks include a consumer boycott, reputation damage, and negative social media attention. To mitigate the effect of these risks, businesses must take preventive actions and demonstrate their commitment to performing the right thing. If you fail to do this, your company’s reputation may suffer, and you may lose loyal consumers.

Evaluation

Through the implementation of several initiatives, it is possible to solve the problems related to how garment producers in the Asian continent are treated, therefore contributing to the restoration of customer faith in Western fashion companies. One technique that Western fashion manufacturers might use to win back the trust of their customers is to work toward changing potential boycotts into buycotts instead. If businesses can provide evidence that they are committed to conducting themselves in an ethical as well as socially responsible manner, this approach has the potential to be successful (Nuttavuthisit et al., 2019). Suppose businesses are open and honest about their supply networks and try to improve their suppliers’ working conditions. In that case, the likelihood of a boycott being organized against them will likely decrease. This might include collaborating with vendors to establish a minimum salary and safe working conditions for their employees. If businesses want their suppliers to be able to achieve these needs, then the businesses themselves need to be willing to make investments in their growth and training. Consumers, civil society groups, and labor-related parties are just a few kinds of stakeholders that companies should establish connections with. Companies may better understand the challenges and issues surrounding labor breaches in their supply chains if they connect with the organizations mentioned above and work together to explore potential solutions (Brydges and Hanlon, 2020).

Companies have a responsibility to make it clear to their clientele that they are committed to doing business in a socially and morally responsible way. They have a responsibility to be forthright about the obstacles they face in bettering their working environments, and they must promote such efforts in their marketing and promotional activities (Jung and Lee., 2022). This may show your consumers that you are committed to upholding ethical standards, earning them confidence. At this point, companies must take ownership of the problems inside their supply chains. They need to be willing to contribute to future progress while also accepting responsibility for their errors. In addition to assuming responsibility for implementing fair labor regulations within their supply chains, brands need to be prepared to engage with stakeholders to resolve any outstanding concerns that may still exist (Clean Clothes Campaign, 2019).

Last but not least, by implementing these preventative measures, Western fashion brands could lessen the likelihood of a boycott and win back the trust of the clients they are trying to attract. Consumers actively seeking ethical and environmentally responsible solutions are more likely to become loyal to brands that display care for the environment. This makes it more likely that such brands will attract new consumers. In conclusion, it is now the responsibility of Western fashion firms to acknowledge the problems within their supply networks and initiate dialogue with the relevant stakeholders to find viable solutions.

Conclusion

To summarize, the condition of Asian garment manufacturers is a big issue that jeopardizes Western fashion firms’ image and profitability. Their brand’s image, customers’ trust, and bottom line are all jeopardized due to the labor standards problem in their supply chains. Suppose Western fashion corporations want to restore customer confidence. In that case, constructive actions must be taken to address labor violations in supply chains, stakeholders must be involved, and a commitment to ethical and socially responsible practices must be expressed. Companies that address supply-chain issues and demonstrate a willingness to cooperate with stakeholders to develop solutions are more likely to gain the allegiance of socially aware customers. Finally, how Asian clothing producers are handled is an ethical and moral issue, not just a public relations one. Western fashion firms should prioritize the well-being and safety of their workers by implementing fair labor rules throughout their supply chains. Brands can help their businesses and the fashion sector by adhering to ethically and socially accountable behaviors and demonstrating their commitment to these principles via their activities.

References

Aktive Forbrugere, 2012. A wage you can live on – textile workers in Cambodia. [online]. YouTube. YouTube. Available from: https://www.youtube.com/watch?v=yTehggY29Xg [Accessed 23 April 2023].

Brydges, T. and Hanlon, M., 2020. Garment worker rights and the fashion industry’s response to COVID-19. Dialogues in Human geography10(2), pp.195-198.

Clean Clothes Campaign, 2019. Statement on the need for occupational health and safety in Cambodia after a tragic building collapse. [online]. Clean Clothes Campaign. Available from: https://cleanclothes.org/file-repository/en-sihanoukville-building-collapse-joint-estatement-final-1.pdf/view [Accessed 23 April 2023].

H And M, 2022. H&M publishes detailed information about its suppliers and supply chain policies but creates short-lived, fast-fashion products. [online]. H&M – Sustainability Rating – Good On You. Available from: https://directory.goodonyou.eco/brand/h-and-m?utm_source=rankabrand.org&utm_medium=referral&utm_content=Retailers-H%26M&utm_campaign=rankabrand-redirect [Accessed 23 April 2023].

Handfield, R., Sun, H. and Rothenberg, L., 2020. Using newsfeed analysis to assess supply chain risk for apparel production in low-cost countries. Supply Chain Management: An International Journal25(6), pp.803-821.

Inditext, 2023. 2022 Annual Report. [online]. Home. Available from: https://www.inditex.com/itxcomweb/en/home [Accessed 23 April 2023].

Jung, S. and Lee, S.H., 2022. The buffering effect of continuous corporate social responsibilities engagement on negative consumer responses toward brand crises. Corporate Social Responsibility and Environmental Management29(5), pp.1636-1646.

Lewis, M., 2021. Boowho? It’s time to #gotransparent. [online]. Labour Behind the Label. Available from: https://labourbehindthelabel.org/boohoo/ [Accessed 23 April 2023].

Lewis, M., 2021. Human rights day 2019: In Solidarity with Garment Workers. [online]. Labour Behind the Label. Available from: https://labourbehindthelabel.org/hrd2019/ [Accessed 23 April 2023].

Nuttavuthisit, K., Nuttavuthisit, K. and Achauer, 2019. Qualitative Consumer and Marketing Research. Springer Singapore.

Pakistan Safety Report, 2019. Clean clothes campaign. [online]. Clean Clothes Campaign. Available from: https://cleanclothes.org/file-repository/pakistan-safety-report.pdf/view [Accessed 23 April 2023].

Yi, B.L., 2019. ‘harsh’ tactics used to keep wages low for Vietnamese garment workers. [online]. Reuters. Thomson Reuters. Available from: https://www.reuters.com/article/us-vietnam-garment-labour/harsh-tactics-used-to-keep-wages-low-for-vietnamese-garment-workers-idUSKCN1RN0ZT [Accessed 23 April 2023]

 

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