Ethical Issues in the Fashion Industry

In “The Fashion Industry: Free to be an Individual” by Hannah Berry, Hannah emphasizes how social media especially advertisements pressure females to use certain product to in order to be considered beautiful. She also acknowledges the current effort of advertisement today to more realistically depicts of women. In addition, these advertisements use the modern women look to advertise products to increase women self-esteem and to encourage women to be comfortable with one’s image.

Vertical integration is a concept in which a company develops or acquires production units for outputs which are

Primark, an Irish clothing retailer company was set up and headquartered in Dublin in 1969. Nowadays, there are over 250 stores across the United Kingdom, Ireland, Europe and the United States. Moreover, Primark operates with about 700 suppliers in China, India, Bangladesh, Turkey and Eastern Europe. Primark takes corporate social responsibility for the shareholders, owners, customers, suppliers as well as employees. Corporate social responsibility is that a company not only creates profits for the shareholders, but also undertakes the social responsibility for customers, employees and environment, including complying with business ethics, rights of workers and the rules of environmental protection. In order to develop continuously, corporate social responsibility plays an significant role in a company, which drives stakeholders have reliance on the company. This essay focuses on the ways in which Primark taking its duty to society and the ways in which the company should have done better.

Vertical integration is when one firm joins with another at a different stage of the same production process. Forward Vertical is when the other firm is at a later stage and Backward Vertical is when the other firm is at an earlier stage. Vertical integration as a whole allows for a firm to control key stages of the production process; guarantees access to a market; and gains control of supplies. Companies such as Zara and American Apparel are vertically integrated, especially at key stages of

Vertical integration- a company controlled all parts of production from raw mats to the finished goods

Andrew Carnegie, for one, built a giant steel empire using vertical integration, a business tactic that increased profits by eliminating middlemen from the production line. Conversely, John D. Rockefeller’s Standard Oil Company used horizontal

It is impossible to beat a cheap price. In today’s world, finding a sought after item at a dirt cheap price is one the main motivation American’s get in the car and battle the craziness in the mall. And as the basic American human beings that we are, it is never possible for us to be complacent with the amount of stuff we currently have. Eventually, we will come across a friend that has the next must have item that will cause us to run to our local mall and purchase a similar item at the lowest price possible. With all that said, it is no wonder why the industry of fast fashion has taken off over the past decade. Felipe Caro and Victor Martínez-de-Albéniz, researchers for UCLA’s school of supply chain coordination, define fast fashion as “a business model that combines four elements: (i) fashionable clothes mostly for consumers under 40; (ii) affordable prices in the mid-to-low range; (iii) quick response; and (iv) frequent assortment changes”. Retailers like H&M, Forever 21, Target, and Wal-Mart have been able to take this business model and make a fortune. But while all these quick trends and cheap prices are great for the consumer, its cost on the foreign worker and the environment does not go uncovered. In the book Overdressed by Elizabeth Cline, she presents many arguments supporting the claim that fast fashion is unethical based on

Vertical integration – when you choose to produce raw materials and/or distribute finished goods themselves rather than rely on independent suppliers, factors and agents for these tasks

However, it is not always the case that all firms should develop vertical integration strategy to enjoy economic of scale. Firm like boutique or niche items that produces on a small scale are not suitable to implement as it will benefit less from vertically integrated mainly because the input demand for grow is small and due to exclusive nature their prices are inelastic as compare to industry like Oil and Gas Industry, Telecom, Media, automobile developed vertical integration strategy .

IntroductionBusinesses in today's world raise many ethical issues and it is important to understand which actions are right and which ones are wrong. In this report the focus will be placed on an article about models working in the fashion industry. It explains how models are being mistreated and exploited in many ways which include sexual harassment, lack of rights, overworking and having to face dangerous situations such as taking drugs which include cocaine in order to stay thin. The article also mentions that models enter the industry as young as 13 years of age and definitely need protection from this exploitation.

Fashion is everything to society and the media. The fashion industry has transformed into a necessity in the life of people. Everyone wants to look good, feel fabulous and feel as if we belong with everyone else. The envy and desire to wear certain things and look a certain way all come, from wearing the latest fashion handbags, accessories, dresses, shoes, and the list goes on. But, when is considering fashion into an individual’s life going too far to the extreme? Many do not consider the whereabouts of fashion materials and how the environment is affected by the mere existence of certain garments. Some may believe these objects grow on trees. But that is clearly not the case. Even though it would be nice. The fashion industry as a

Backward integration is a type of vertical integration in which a company takes control over its suppliers. It is a form of acquisition of the intermediary players involved in supplying the raw materials used in the production process of the firm. Raw materials, intermediate manufacturing and assembly are controlled by the firm whereas distribution to the end customer is done by a third party company. In this way, company increases production efficiency and gains a competitive advantage by lowering its production cost.

CSR lacks universal methods. The United Nations Industrial Development Organization (UNIDO) mentions that it is important to draw a distinction between CSR as part of strategic business management concept and charity, sponsorships or philanthropy. The latter applications make valuable social impacts that enhance the reputations of the companies, however, CSR is a continual effort instead of an instance. A few features that CSR should focus on are: eco-efficiency, employee and community relations, environmental management, gender balance, responsible souring, anti-corruption, stakeholder engagement and human rights. Utilizing some of these key features a company can bring competitive advantages into the market place. Increased sales and profits from operational cost savings as well as improved reputation and brand image and customer loyalty can result from a well-defined CSR strategy.

One of the leading companies that adopted CSR as a pioneer of ethic is The Body Shop. The company has used CSR as a competitive strategy in order to succeed in business. The shop owner knows what she does best. So, products are developed based on a specific group of customers in order to create a strong brand preferences and unique way with a perception of enormous customer groups, called sustainability ideals. The source of The Body Shop success is to utilize the benefits of CSR by selling products based on natural ingredients, paying a fair price and no testing on animal. According to porter (1985), he claimed that sustainability of differentiation depends on two things: "it is continued perceived value to buyers and the lack of competitor ability to imitate it" (Porter 1985 cited in Mallin 2009, p.71). It requires a transparency of work process with stakeholders. From this example, it explains why CSR is important to modern businesses like The Body Shop (Mallin 2009, pp.59-78),(Kwapong 2005, p.89).

There are a large amount of social and environmental problems within the global apparel industry.