Assessment criteria of fashion ethical practices
As for any other business, fashion firms are not only judged on their financial performance but also on their ethical performance. For instance, some shareholders will not invest in a business that does not meet certain ethical criteria. We can list six main criteria for ethical assessment and examples in the following table (Lavorata, Pontier, 2005):
Table 1
Ethical Assessment Criteria | Examples |
Relations with civil society and involvement in local community life | Corporate patronage, sponsoring, aid to associations, funding local actions
|
Relations with customers and suppliers | Certification, labels, purchasing ethics, gifts, commissions, relations with suppliers, misuse of dominant position
|
The environment | Management system, strategy, management, environmental impact, environmental responsibility
|
Business facilities and subcontracting in emerging countries | Basic workers’ rights, child labor, pay scale, codes of conduct and control systems
|
Relations with shareholders | Transparency, information and communication, dialogue
|
Labor and management relations | Time management, family measures, employment, work content, working conditions, hygiene and safety
|
Ethical Assessment Criteria (Ronai, 1999)
For each one of these ethical assessment criteria, we invite you to find example of fashion business practices. You will find good, but also bad practices, and this table is aimed at supporting you in making the difference between one and the other.
Now that we have defined ethics in a business context, we will see some of the emergent paradigms that comes to complete the CSR principle with new ways of considering the business activity, focused on ethics and which provide a more holistic vision of the social responsibility. We will focus on two concepts: the Economy for the Common Good, and the ESG (Environment, Social and Governance).