Labor Rights Abuses and Modern Slavery in H&M's Supply Chain
The assessment for this module is similar in style and format to that used in previous years and is based on 2 individual assignments. The first constitutes 40% of the final marks for the module, with the second contributing the remaining 60%. This document should be read in conjunction with other supporting materials that are discussed in the first lecture and tutorials throughout the module. Tutorials in the second week of the semester will focus on assignment 1 and clarify any issues that you may have with the assignment. As the module progresses, we will spend some time focusing on the specific requirements for the second assignment and re-emphasise the information in this document.
Assignment 1 Individual Assignment (development of a video) 40%
This assessment allows you to explore in detail the ethical responsibilities of an industry, an organisation, business issue or topic of your choice and to develop your analysis and response in video format. You can adopt a local, national or international perspective; for example, you might choose to focus on the recent concerns with human rights abuses and modern-day slavery in specific supply chains, or bribery and corruption issues in financial institutions or ethical challenges with the use of AI (artificial intelligence). You could, for example, focus on the lack of trust in the banking industry, or the problems with pricing of drugs in the pharmaceutical industry worldwide, or the concerns raised about poor management behaviour in the UN. You might want to evaluate a specific issue/topic, such as the effectiveness of whistleblowing policies, or the problems in Oxfam with the sex-for-aid scandal, or the scandal at Theranos, or the recent problems faced by Boeing and 737 Max crashes, or the ongoing issues with Johnson and Johnson talcum powder which has led to a recent decision to discontinue globally from 2023, or global food security, or the governance and ethical lapses at Wirecard or Satyam or Luckin Coffee, or the use of child labour in the supply chain etc. Alternatively, you could focus on a more positive side to business ethics and social responsibility, and there have been some excellent examples of business for good during the pandemic and beyond. You can be as broad or specific as you wish; you might choose to evaluate the ethical implications of advertising in general, or, more specifically, the ethical implications of advertising to children, or the ethics of advertising alcohol, or ethics and social media influencers etc. Or you could focus on a very contemporary issue, for example, understanding the role ethics in the development and use of autonomous vehicles, or data privacy and security, or issues relating to lapses in corporate governance or some of the accounting scandals etc. You could focus on one specific organisation; for example, Boeing, or NHS and the consequences of children not getting the MMR jab; or JB Sports and zero-hours contracts, or the working environment in Amazon; Coca Cola and Land Grabbing; Leadership and Ethics in the CoOp or FIFA; or FoxConn, Apple and i-phones in China, or Facebook and Cambridge Analytica and issues around data security, or the sacking of McDonalds CEO Easterbrook because of an alleged affair in November 2019, or whistleblowing, including, for example, the recent (September 2020) case of a whistleblower exposing problems in England with the test and trace system for coronavirus positive cases, or modern day slavery in the MGT3012 Business Ethics Assessment Overview supply chain (such as that exposed in Leicester, July 2020), or the very recent concern re financial irregularities in Garda Siochana, or data security breaches in PSNI, or the PWC ‘tax scandal’ in Australia and US (May 2023) These examples are just a snapshot of the breadth and depth of the topics, industries, and issues that you could explore. Please note that your topic MUST have a business (public, private and/or third (voluntary) sector) focus. You should refrain from choosing more broad-based ethical issues such as the legalisation of abortion in (N) Ireland or the ethics of euthanasia etc. These are obviously very important ethical issues but they do not necessarily have a ‘business-based’ dimension. You are, of course, welcome to focus on a health-related topic but it would then have to be rooted in, for example, the NHS, or have some sort of government or NGO angle etc
Business Ethics
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Table of Contents
Introduction. 3
Discussion of Organization. 3
H&M - Global Clothing Brand and Massive Supply Chain. 3
H&M's Role in Fast Fashion and Modern-Day Slavery. 4
Key Issues: Discussion, Analysis, and Evaluation. 4
H&M's Ethical Framework. 4
Business-related ethical theories. 4
Modern Business Ethics and CSR.. 5
The Fashion Supply Chain and Labor Rights. 5
Labore Rights in Fashion Supply Chain. 6
General Labor Rights Issues in Global Supply Chains. 6
Concerns Regarding Modern Slavery. 6
H&M's Sustainability and Supply Chain Slavery Efforts. 7
H&M's Transparency, NGO, and Third-Party Audits. 7
Initiatives and Criticism of H&M's Blind Spots. 8
H&M's Transparency Efforts, NGO Partnerships, and Third-Party Audits. 8
Conclusion. 9
References. 10
Introduction
The contemporary transformations in globalization and technological innovation evolved the dynamics of the global fashion industry. Considering the interdependence of international markets, supply chain ethics has emerged as a central topic of discussion in this ever-evolving setting. Recent allegations of labor rights abuses and modern slavery in apparel supply chains echo societal concerns about business practices. Within the realm of significant players in the industry, H&M, a brand widely recognized for its fast fashion, has become entangled in disputes regarding purported ethical limitations within its supply chain (James, 2022). This study aims to evaluate those claims, highlighting the complexities of H&M's supply chain considering modern-day slavery. This study explores and verifies these claims with empirical evidence and relevant concepts while contributing evocatively to the dialogue of ethical business practices in the business setting.
Discussion of Organization
H&M - Global Clothing Brand and Massive Supply Chain
Established in 1947, H&M has transformed from a humble Swedish women's clothing store into the second-largest fashion retailer globally, following Inditex, Zara's parent company (Le, 2023). Key turning points in its development included the purchase of the hunting apparel retailer Mauritz Widforss, which enabled it to expand into providing clothing for the entire family. The brand swiftly spread globally, making a name for itself in markets from Norway to the United States. H&M has consistently invested in physical store experiences while integrating digital and brick-and-mortar, evidenced by its significant online presence across over 50 markets.
H&M's supply chain is a massive global network supported by alliances with over 900 independent suppliers, primarily based in Europe and Asia, and strategically placed 30 oversight offices to streamline its operations (Morrow and Vezér, 2020). H&M relies on this vast network of suppliers to balance consistent stock and on-the-go designs reflecting market trends. The cutting-edge IT network is the foundation of this complex system, guaranteeing flawless integration and punctual deliveries.
H&M's Role in Fast Fashion and Modern-Day Slavery
Recently, H&M has been at the forefront of investigating the industry's less savory aspects. The brand, which once represented affordable fashion, now symbolizes the challenges of this business model's supply chains. For example, in 2018, the Global Slavery Index found that one in three major fashion brands lacked the mechanisms to prevent forced labor in their supply chains, implicating the industry in possible modern slavery (Benstead, Hendry, and Stevenson, 2021). In light of these significant challenges, H&M has taken a proactive approach. In 2020, H&M was reported to have implemented third-party audits and direct worker input mechanisms to eliminate forced labor in its supply chain (Parsa, Roper, and Hettiarachchi, 2022). H&M demonstrates a solid commitment to transparency by publishing its supplier list, showcasing its dedication to ethical considerations in the complex world of global fast fashion. This change shows H&M's evolving role and dedication to balancing its rapid expansion with ethical integrity in the industry.
Key Issues: Discussion, Analysis, and Evaluation
H&M's ethical framework
Business-related ethical theories
Three main theories—utilitarianism, deontology