The Future of Fashion TM

8/19/2019 The Future of Fashion TM

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TEACHING MODULE

THE

FUTURE

OFFASHIONDECEMBER 2010

This teaching module was independently written by the Aspen Institute Businessand Society Program with the generous support of

http://www.levistrauss.com/


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THE FUTUREOF FASHION: SUSTAINABILITYTHROUGH THE LENSOF THE FASHIONINDUSTRY*

Companies across all industriesare facing the challenges of

business sustainability, debatinghow best to address these riskyissues while also embracing theiropportunities for competitiveadvantage. This Teaching Moduleuses the context of the fashionindustry to discuss topics thatare shaping the future of allindustries. These topics include

sustainable resource manage-ment, the challenges andopportunities of global growth,workforce management, andthe role of ethical consumptionin business.

The fashion industry offers a compellingcase study for exploring business sus-

tainability issues. In the fashion industry,as in many industries, success requireshighly developed sourcing, design,manufacturing, and marketing chains.Increasingly, success also meansincorporating sustainability in resourceand labor management, as firms realizethat long-term corporate survival willdepend on new ways of doing business.Climate change, resource challenges,new technologies and dramatic shifts inthe global economy are already impacting

the industry. The nexus of these concernsallows students to explore sustainabilitychallenges while providing a frameworkfor discussing new business models andmanagement techniques for the future.Given its enormous reach and connectionto important business topics ranging fromclimate change to social networking,the fashion industry’s practices providebroadly-relevant lessons for future busi-ness leaders in all fields as they focus onways to minimize negative impacts and

maximize positive sustainable outcomesfor businesses, stakeholders, and society.

INSIDE:03 INTRODUCTION

05 RESOURCE MANAGEMENT:SUSTAINABLE FUTURES

07 A GLOBAL FUTURE:CHALLENGES AND

OPPORTUNITIES

09 THE FUTURE OFLABOR MANAGEMENT

11 A FUTURE OFETHICAL CONSUMPTION?

13 TEACHING QUESTIONS

By: Jennifer Johnson

& Gina Wu

* This teaching module was independently written by the Aspen Institute Business and Society Program with

the generous support of Levi Strauss & Co. For more information, please contact [email protected].

mailto:info%40aspenbsp.org?subject=mailto:info%40aspenbsp.org?subject=


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Fashion is a big deal.The global apparel,accessories and luxurygoods market gener-ated total revenuesof $1,334.1 billion in2008. And the opportu-nity for the industry tohave a positive impact

on global society andthe environment is justas significant as itseconomic clout.

— Fashion Futures 2025[1]

The world of fashion is often de-picted as a glamorous exceptionto everyday life, but the catwalksand high-profile designers are

just the tip of a very complex,evolving iceberg rooted in theissues that many corporationsface daily. The market forfashion is a multi-billion dollarglobal industry with the powerto influence our lives and ourenvironment, for better or forworse. It brings goods into our

homes, shapes our consumerpreferences, and extends acrossthe globe through its labor,supply and marketing chains.As companies across indus-tries are facing the challengesof business sustainability; thecurrent debate is how best toaddress these risky issues whilealso developing the opportuni-ties for competitive advantagethat they represent. Given itsenormous reach and connec-

tion to everything from climatechange to social networking,the fashion industry’s practicesprovide broadly-relevant lessonsfor future business leaders in allfields as they focus on ways tominimize negative impacts andmaximize positive sustainableoutcomes for their businesses,stakeholders, and society.

In the fashion industry, suc-cess requires highly developed

sourcing, design, manufactur-ing, and marketing operations.Increasingly, success alsomeans incorporating sustain-ability into resource and labormanagement, as firms realizethat long-term corporate sur-vival will depend on new ways ofdoing business. Climate change,resource challenges, new tech-

nologies and dramatic shifts inthe global economy are alreadyimpacting the industry. Thenexus of these concerns makesthe fashion industry a valuablecase study for these challengesand provides a framework fordiscussing new business modelsand management techniques forthe future. Product life cycles infashion are among the shortestin any industry, and the rapidcycle of change and adaptationmakes it a useful proving groundfor innovation at many levels.

This Teaching Module uses the

fashion industry as a case studyto focus on topics crucial to thesuccess of businesses in a rangeof industries. Designed to helpprepare students to lead in anuncertain future, this Modulediscusses topics that will shapeoutcomes across industries,including sustainable resourcemanagement, the challengesand opportunities of globalgrowth, workforce management,and the role of ethical consump-

tion in business. In preparingfor a future in which a grow-ing world population, decliningresources, and unsustainablepractices are likely to playsignificant roles in industryoperations, will business asusual be sufficient or willmethods need to change in thecoming decades? How shouldthe fashion industry, and others,prepare for the long term?

As part of the Aspen Institute’sBusiness and Society Programmission to develop leaders for asustainable future, CasePlaceTeaching Modules providefaculty with a selection of cases,articles, background reading andother material related to a giventheme. The goal of this Module

INTRODUCTION

03THE FUTUREOF FASHION

Learning Objectives:To discuss solutions to the risk-laden challenges of business sustainability while alsoembracing their opportunities for competitive advantage. The Module highlights a vari-ety of sustainable pathways for business development and enables discussion of thebest approaches to resource management, globalization, labor, and ethical consump-tion for future success. It also provides a platform to consider how sustainability isrelated to economic growth, and how a range of industries, including fashion, will needto change in the coming decades.


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is to help future business lead-ers prepare for the challengesof shaping a sustainable futurethrough the lens of the fashionindustry. Fashion Futures 2025:Global Scenarios for a Sustain-

able Fashion Industry, producedby Forum for the Future andLevi Strauss, served as theinitial inspiration for this Moduleand is included here with otherreadings designed to provideteachers with substantive mate-rial for classroom use. Eachof the following topic sectionsincludes introductory text laying

out the relevance of the issue, aswell as a selection of case andother reading material intendedto form the basis of classroomdiscussion, with a list of supple-mental material for morein-depth reading. Two finalsections include TeachingQuestions to guide discussionand a selection of additionalbackground material for thosewho wish to go deeper.

Teaching Topics:

1. Resource Management:Sustainable Futures

2. A Global Future:Challenges and Opportunities

3. The Future of LaborManagement

4. A Future of EthicalConsumption?

Core Readings:

Fashion Futures 2025: Global

Scenarios for a SustainableFashion Industry [Report]

If we understand what the futuremay hold we can prepare for it,spot promising new ventures andeven help shape the direction ittakes. Visionary brands have ahuge opportunity to lead the waywith their values and positionthemselves for success inthe marketplace.

Fashioning Sustainability:A Review of the SustainabilityImpacts of the Clothing Industry [Report]

This report is an introduction foranyone wanting to know about thesocial and environmental impactsof the clothing industry.

FutureFashion White Papers [Book]

Discusses sustainable fashion andoffers safe environmental prac-tices for industries and consum-ers; the goal of this resource is toprove that style and sustainabilitycan coexist.

Sustainable Clothing Action Plan

[Report]Provides a broad overview ofissues concerned with sustain-ability in the fashion world.

Sustainable Fashion and Textiles:Design Journeys [Report]

Presents a new vision of sustain-ability in the fashion and textilesector that brings togetherlifecycle environmental impacts,practical alternatives, designconcepts and social innovation,and frames them in a sustainabil-ity context.

Well Dressed? The Presentand Future Sustainability ofClothing and Textiles in theUnited Kingdom [Report]

What would happen if we useddifferent fibers, different farmingpractices, washed and disposed ofour clothes a different way, or keptour carpets for longer?

Supplemental Reading:

Sustainability and its Impact on

the Corporate Agenda [Report] Sustainability—the goal of sus-taining economic growth whilemaintaining natural ecosystemswhile assuring the equitable dis-tribution of goods and services—is an increasingly urgent agendaitem for business.


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Issues of resourcesustainability areincreasingly importantto businesses as

factors like climatechange and pollutionaffect resourceviability, and increasingdemand for materialdrains existing stocks.

Companies concerned with theviability of their business modelsare being forced to considerwhere previously “inexhaustible”

supplies will come from, andsocieties are increasingly con-cerned that socially and environ-mentally sustainable practicesbe followed, and are establishinglaws to enforce them. Thesearticles discuss potential solu-tions to these problems andweigh the roles and responsibili-ties of business, consumers,

and government in decidingfuture strategies for resourcemanagement.

The fashion industry already fac-es a number of resource-relatedissues, and like other industrieswill have to develop ways inwhich to address problems ofwaste management, energyefficiency, pesticide and otherpollution, emissions, and thelifecycle of the finished product.The integrity of the water and soilused in production has significantimpacts not only on the lives ofthose directly involved in the sup-ply chain, but also on the futureavailability of those essentialresources and the operations of

firms which use them.Fashion products can havesignificant environmental effectsthroughout their lifecycle, andthe readings in this sectionexamine some of the largestareas of impact, including textileproduction, care, and disposal,and how firms are beginning to

address issues of environmen-tal performance throughoutthe supply chain. In addition tostrategies like improved energyefficiency, alternative inputs andstreamlined supply chains, futuresolutions to these issues mayalso include using technology toremap the production processin new and innovative ways. Asthe final section discusses inmore detail, consumers are alsopart of the resource challenge,opening the discussion here onmore sustainable ways to carefor clothes post-sale.

If resource pressures continue,firms positioned for long-termsuccess will be those findinginnovative ways to reduce theirenvironmental impact throughmore efficient use of resources,the creation of more environ-mentally-friendly alternatives,improved technologies, recycling,and effective knowledge man-agement to allow the incorpo-ration of innovation into theiroperations. Such efficiencies

will ensure continued resourceavailability on a broad scale, butalso better position the individualcompany for success by bolster-ing their competitive advantage.Adapting to the realities ofresource constraints can onlybenefit firms as they look tothe future.

Resources are finite and lifecycleand other initiatives are critical tofinding innovative approaches to

a sustainable future. Companiesare often several steps removedfrom their raw material suppli-ers, and while individual firmscan lead the way, broad changein the future will likely requirecollaborative public and privateefforts on an industry-wide scale.

RESOURCEMANAGEMENT:SUSTAINABLE FUTURESLearning Objectives:To highlight the effects of unsustainable resource use, giving students a window todiscuss the widespread implications of resource management throughout a product’slifecycle. This section illustrates the history of resource degradation, particularly indeveloping countries, and how many companies and societies are moving, if incre-mentally, toward more sustainable practices. It also shows how stakeholders atall levels of production may be motivated toward sustainability, even if for differentreasons, and illustrates the tension between the pressures of short-term productionand long-term sustainability.


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Teaching Cases:

Deja Shoe (A, B) [Case]

Deja Shoe’s founder and newmanagement team want to de-velop a business strategy basedon pro-environment principles toenable the firm to out-competeestablished industry players Nikeand Timberland.

Marks & Spencer [Case]

As the economic downturnimpacts on retail business,Richard Gillies, head of M&S’snew sustainability plan Plan A,is asked to create a businesscase for the different initiatives

to move forward.‘Green Cleaning’ through Soapof Environmental Consciousnessand Water of Social Conscious-ness [Mini-Case]

Green Clean Inc. is an example ofhow high quality customer ser-vice, productive work environmentand a healthier planet are goalsthat buttress each other.

Planet, People and Profit:Breaking through the Finish-Lineof the Race [Mini-Case]

Brooks Sports, Inc. is a footwearcompany committed to environ-mental sustainability in all ofits business channels includingproduct design, packaging, anddistribution.

Sustainability Managementat Nau Inc [Case]

Nau was created by senior man-agement from an outdoor apparelcompany and founded aroundsustainability concerns.

Articles, Reports, andWorking Papers:

15 Minutes with Hannah Jones[Article]

What goes in and out of fashionchanges continually, and theapparel industry likes it that waybecause it creates a constantdemand for new products. But it

also poses a challenge for Nike asthe company attempts to reduceits environmental footprint andbecome greener.

Cambodian FactoriesSeek Eco-Friendly PowerAlternatives [Article]

Cambodian garment factoriesevaluate the environmental andfinancial costs of their energy useand test alternatives for reducingenergy use.

Cleaner Production in theTextile Industry, Lessonsfrom the Danish Experience [Working Paper]

Introduces the concept of cleaner

production, a preventativeenvironmental strategy, and howit can be applied in the textilemanufacturing process.

Innovation and KnowledgeAdoption for Local Firmsin the Value Chain:The Story of ‘White Gold’from Uzbekistan [Working Paper]

Examines Uzbekistan’s relation-ship with cotton and discussespossibilities to develop theircommodity export market intoa more value-added industry.

The CEO Water Mandate [Essay]The leaders of six of the world’slargest companies have issued acall to action urging fellow busi-ness leaders to take immediateaction to address the emergingglobal water crisis.

The REI-ght Stuff [Article]

The outdoors equipment andclothes retailer takes a long-termlook at sustainability, includingthe challenges of paper usage,waste reduction, packaging andproduct stewardship.

Waste Couture: EnvironmentalImpact of the Clothing Industry[Article]

This report provides an overviewof the environmental impact thatclothing can have during its lifecycle, from material creationto manufacturing to care anddisposal.

Weaving Businesses Together[Article]

Organic Exchange, a non-profitorganization, uses market forces

to create a transparent networkthrough which buyers and sellerscan purchase organic cotton.


Freshwater Resources:Managing the Risks Facingthe Private Sector [Report]

Discusses the future outlook forthe management and conserva-tion of water with regard to chal-lenges that all industries will face

in the future.

Impact of Textiles and ClothingIndustry on the Environment:

Approach Towards Eco-FriendlyTextiles [Article]

Provides a summary and intro-duction of sustainable textiles thatare currently in development oron the market.

Mapping of Evidence onSustainable DevelopmentImpacts That Occur in the LifeCycles of Clothing [Report]

A comprehensive overview of theenvironmental impacts createdduring the entire life cycleof clothing.

One CEO’s Trip From Dismissiveto Convinced [Article]

Describes the journey of a lead-ing carpet production company,Interface, in its quest to create alargely renewable textile and en-gage in more sustainable produc-tion and distribution practices.

Sustainability Report fromthe International Associationfor Soaps, Detergent, andMaintenance Products [Report]

A cleaning industry viewpoint onhow to be proactive in addressingconsumer concern over sustain-ability and environmental issues.


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Globalization ischaracterized by thefree movement ofgoods, services, people

and ideas, and oftenby social andeconomic inequality.

For decades the trend towardincreasing globalization has beenan ongoing issue in business,and the fashion industry is no ex-ception. Cross-border growth notonly allows companies access tomore extensive supply chains andmarkets, but also presents sig-

nificant challenges to operations,efficiency, and ethics. Companiesare often removed from theirsuppliers precisely becausesupply chains have gone global.Even with the best of intentionsit can be a challenge to knowwhere material comes from, whosourced it, and under what

conditions. Intellectual propertyprotection, human rights issues,trade barriers, and emergingmarkets all present unique chal-lenges, as well as opportunities.

The following material allows fordiscussion on the role of global

conduct for reputation manage-ment and competitive advantage.How can companies tap intothe benefits of flexible supplychains without falling prey to thepitfalls of expansion? This sec-tion focuses on the global natureof fashion through issues likelyto confront firms in the future,including international supplychains, supplier relationships,legal and trade standards, andthe impact of globalization oncompetition.

International production, mar-kets with disparate standardsand preferences, and otherchallenges of navigating a world-wide supply chain will confrontbusinesses far into the future.The fashion industry operates

with widely distributed supplychains and demands rapid turn-around on constantly changingproduct lines. Given its cross-border nature, many of its inputsare subject to international lawsand regulations, including tradesubsidies and restrictions forproducts like textiles. What role isgovernment and self-regulationlikely to play for companies?

At the same time, there is risingtension between globalizationand localization, as multinationalfirms adjust to local needs in anattempt to engage consumers.

For long-term success compa-nies should also consider howtheir operations directly affectthe communities in which theyoperate. Some of the companiesdiscussed here succeed by ef-fectively managing their supplychain and product offerings inways that address workforce andenvironmental concerns. Thisapproach is likely to provide aviable pathway for companies asthey face both the pressures and

opportunities of globalization inthe coming decades. Companiescould quickly adapt their offer-ings to meet local market needswhile still accessing the benefitsof global production and deliverysystems.

A GLOBALFUTURE:CHALLENGES ANDOPPORTUNITIESLearning Objectives:To highlight issues of globalization and the more recent efforts to use it in ways thatbenefit both businesses and society. Students have the opportunity to question theuse of globalization to reduce costs and extend markets, often at the price of labor

and environmental abuses. This section outlines the push for a more sustainableapproach to global business, including moves toward localization, increased accessfor both buyers and sellers, non-Western perspectives, and the expansion of the typicalconsumer base to include the base of the pyramid.


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08THE FUTUREOF FASHIONTeaching Cases:

Can Knockoffs Knock Out Your

Business? [Case] Counterfeits of his company’sadventure gear and clothing areon the rise, and Bronson is hell-bent on stopping them; his questhas cost a lot of money, however,and the problem seems to begetting worse.

Esquel Group [Case]

Esquel Group is one of the world’sleading producers of premiumcotton shirts, and among themost dynamic and progressiveglobal-scale textile and apparel

manufacturers.Expanding the Playing Field:Nike’s World Shoe Project (A, B)[Case]

Discusses Nike’s efforts toproduce a range of affordable,durable, and easy-to-producesports shoes to effectively reachthe huge untapped market inemerging economies.

Fabindia Overseas Pvt. Ltd.[Case]

Fabindia is a for-profit Indian

retail company providing employ-ment to weavers and traditionalhandicraft artisans in rural India.This case focuses on thechallenges of managing thislocal supply chain.

Levi Strauss & Co.: Global Sourc-ing (A, B) [Case]

In 1993, senior managers atLevi Strauss & Co., the world’slargest brand-name apparelmanufacturer, were decidingwhether the company should havea business presence in China,given the human rights and other

problems there.

Market and the MountainKingdom: Change in Lesotho’sTextile Industry [Case]

To explore the influence of tradeprotection and liberalization onforeign investment and economicpolicy decisions in Africa.

MAS Holdings: Strategic Corpo-rate Social Responsibility in theApparel Industry [Case]

MAS Holdings is a Sri Lankan

manufacturer of women’s apparelfaced with the realities of compe-tition from other sources, particu-larly China. The case illustratesthe firm’s use of corporate socialresponsibility as a strategic tool inglobal competition.

Subsidies and the Global CottonTrade [Case]

This case describes the competi-tive advantages that U.S. farmersenjoy in the global cotton industryand how market barriers distortglobal competition.

The Promise and Perils ofGlobalization: The Case of Nike[Case]

The case illustrates the com-pany’s evolving definition andcommitment to good corporatecitizenship and the controversysurrounding the company’s prac-tices in this arena.

Articles, Reports, and

Working Papers:

Globalization in the Apparel andTextile Industries: What is Newand What is Not? [Report]

Examines globalization’s impacton the supply chain and distribu-tion network for clothing with afocus on the rapid turnaroundrequired.

The Impact of the Second HandClothing Trade on DevelopingCountries [Report]

Examines the impact and reach ofthe second hand clothing industrywith a particular focus on thesocio-economic consequencesof this market in West Africancountries, and how reducing thistrade may encourage localindustry development.


Fugitive Denim: A Moving Story of

People and Pants in the Border-less World of Global Trade [Book]

A thoughtful, ultimately hopefullook at how our choices aboutsomething as mundane as jeanscan alter the lives of people10,000 miles away.

Outsourcing at Any Cost? [Case]

Do corporations ever have a moralobligation not to outsource?

Taking the High Road [Article]

The author argues that, althoughmany companies seek to become

competitive primarily by reducingcosts such as labor, there isanother option.

The Travels of a T-Shirt in theGlobal Economy: An EconomistExamines the Markets, Power,and Politics of World Trade [Book]

Uses a t-shirt to illustrate cruciallessons in the globalizationdebate and to demonstrate theimpact of markets and politicson both rich and poor countries.

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The move towardincreasingly globalsupply chains hashelped spotlight the

role of workers alongthose supply chains.

There is an ongoing debatebetween those who argue thatlow-wage jobs are better than no

jobs at all, and those who want toavoid this “race to the bottom” byensuring that all companies areheld to higher standards. Whilelabor issues are certainly linkedto globalization, it is only one

piece of a larger puzzle. This sec-tion looks at the issue of work-force management from multipleangles, allowing discussion onoutsourcing but also on suppliermonitoring, labor standards,employee development, humanrights, and engaging the base ofthe pyramid. It also discusses

ways to make the most of work-ers’ skills as part of a sustainablelabor system. All of these factorswill play a role in how labormanagement takes shape in thecoming years.

The move to find ever-cheaperlabor sources causes problemsfor workers and employers alike,and the future of this model is inquestion given human rights leg-islation, consumer demands formore ethical treatment of work-ers, and workers’ own increasingdemands (as in China’s manu-facturing sector) for fair treat-ment. Many firms have adaptedtheir operations to reflect thesenew standards and ensure thattheir suppliers live up to those

standards as well. Future move-ment in this direction is likely tocontinue, although it will facecontinued pressure from thelow-cost model, particularly indifficult economic times.

The fashion industry, with itstight margins, outsourcing, shortproduct cycles, quick turn-

around times, and where cheapinputs are often the key to profitmargins, has often been charac-terized by poor labor conditions.Supplier industries such ascotton production, often out ofthe direct control of individualfirms, are plagued by problemswith child labor or other humanrights violations. Companiesemploying workers at below-minimum wages, undersweatshop conditions, or usingmaterials deemed unsafe for usein Western countries have beencalled out and put on trial in

the court of public opinion.Labor issues are not limited tothe negative, however, and com-panies are finding that they canenhance their competitive advan-tage by investing in their employ-ees, for example, or by tappinginto resources at the base of thepyramid in ways that producepositive outcomes for both laborand management. The continuedpush for innovation, both in termsof worker-advanced knowledge

and the need for higher-skilledlabor for high-tech methods, isalso in conflict with the low-coststrategy. From any angle, thereare labor-related challenges forcompanies to face if they are tosucceed in the future. Given thelabor-intensive demands of thefashion industry’s operations atall stages of production, it shouldbe at the forefront of changesas adaptations are made inthe future.

THE FUTUREOF LABORMANAGEMENTLearning Objectives:To discuss workforce management issues in global supply chains, highlighting thetension between distributed labor and centralized responsibility. The material allowsstudents to discuss both sides of the labor debate: it shows that even low-wageemployment can be used as a path to economic development, and also that the global

search for low-wage labor has lead to human rights abuses and other ethical problems.It also highlights the potential advantages of human capital investment for innovationand operations, if properly developed.


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Attacking the Roots: Shiraishi

Garments Company and anEvolving Thicket of BusinessEthics in China [Case]

This case examines the manage-ment underpinnings of conduct-ing socially purposeful businessin contexts where the labor condi-tions and ethics are questionable.

Charles Veillon, S.A. (A) [Case]

The top management team atCharles Veillon, a Swiss mail-order company, is consideringwhether to work with a humanrights organization to monitor the

labor practices of its suppliers.Improving Work Conditions in aGlobal Supply Chain [Case]

The authors conclude that globalbrands could help improve work-ing conditions in supply chainfactories by working with sup-pliers to introduce new manage-ment systems.

Levi Strauss & Co. (A, B, C) [Case]

This case explores the decision byLevi Strauss to close a manu-facturing facility in San Antonio,Texas and outsource production toCosta Rica.

Men’s Wearhouse: Success in aDeclining Industry [Case]

Most retailing firms have tradi-tionally been staffed with poorlypaid, poorly trained, part-timehelp, and often experiencetremendous turnover. The Men’sWearhouse has managed its or-ganizational culture in a way thatsupports employees and has ledto success.

Monitoring Factories Around

the Globe: The Fair LaborAssociation and The WorkersRights Consortium [Case]

In 1999, the nonprofit Fair LaborAssociation was launched to mon-itor factories around the world forsweatshop-related infractions.Another key nonprofit player, theWorker Rights Consortium, waslaunched in 2000. The two organi-zations had similar goals, but very

different histories, strategies, andways of operating.

Taking Jobs to Bangladesh’s

Poor [Case]They are among the poorestpeople in the country, but 40women among them now workfor a thriving company calledHathay Bunano that sells hand-knitted baby clothes and toys tocustomers in Europe, Australiaand the US.

Worker Rights and Global Trade:The U.S.-Cambodia Bilateral Tex-tile Trade Agreement [Case]

Examines the political andeconomic dimensions of the

campaign to improve workers’rights around the world throughthe inclusion of labor standardsin international trade agreements.

Articles, Reports, and

Working Papers:

Improving the Conditions ofWorkers? [Article]

Many claim that internationallabor standards are a remedy forpoor working conditions and lowwages in developing countries,while others argue that efforts toimpose a “living wage” or improveworking conditions can lead tohigher labor costs and hurt thevery workers these movementsseek to protect.

In China, a Labor MovementAided by Modern Technology[Article]

Striking workers at Honda autoparts factory in China are surpris-ingly tech-savvy; new technologi-cal tools are giving an edge to the

emerging labor movement inChina.

The Children Behind Our Cotton[Report]

Six of the world’s top seven cottonproducers have been reported touse children in the field.

The Path to CorporateResponsibility [Article]

Nike’s tagline, “Just do it,” is aninspirational call to action for the

millions who wear the company’sathletic gear. But in terms of cor-porate responsibility, Nike didn’talways follow its own advice.

Your Valentine, Made in Prison[Article]

If you’re a conscientious shopper,chances are you want to knowabout the origins of the clothesyou buy; one label you won’t findattached to your lingerie, how-ever, is “Made in the USA: ByPrisoners.”


Follow the Renminbi [Article]

China is leaving behind low-wagecapitalism and edging into thesecond stage of its globalization.

Nike’s Dispute with theUniversity of Oregon [Case]

In April 2000, Philip Knight,Founder and Deputy ExecutiveOfficer of Nike, announced thathe would no longer give money

to his alma mater, the Universityof Oregon, because the universityhad joined the Worker RightsConsortium.

Rising above Sweatshops [Book]

Workers have basic rights thatshould not be violated, notwith-standing the geographical localeof their work, but those rightsoften appear to conflict with theeconomic and commercial needsof both developing nations andmultinational enterprises.

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Corporate responsi-bility, reputation, andgreen initiatives nowplay a role in firmstrategies, as do

consumer responsesto businesses involvedin such efforts.

How firms incorporate these fac-tors as social and environmentalchange continues to intersectwith the world of business willhelp define the future of busi-ness, in the fashion industryand elsewhere.

The direction of the fashionindustry is intimately linked to itscustomer and community rela-tionships. Consumer standardson style, quality and price drivemuch of the market for fashion,but as evidenced by the experi-ences of businesses like Nike,increasingly their requirements

also include corporate respon-sibility. Consumer demand ispushing members of the fashionindustry to consider the impactthat their operations have on theenvironment, on its workers, andon society. The fashion industryis also trying to meet these

challenges in the face of intensecompetitive pressures, and aneconomic environment that oftenprovides short-term rewards forshort-sighted behavior. How itnavigates these difficult waterswill be crucial to determiningthe shape of the industry inthe future.

Transparency in sourcing andother business practices are keyto avoiding charges of green-

washing[2] and to attractingsupportive consumers. Tech-nology and innovation open upnew possibilities for solutions toproblems like alternative materi-als or more efficient packaging,but may also introduce questionsabout privacy and intellectualproperty protection. While addingto the dynamism that is inherent

in fashion trends, brand andreputation management be-comes much more fluid in suchan environment, and good publicrelations are increasingly criticalto success.

Technology is important for otherreasons as well, including theability of consumers to interactdirectly with companies aroundtheir expectations, as well asreacting to corporate behaviorthrough social networking andother venues. Consumer demandfor responsive fashion could alsopave the way for technological

and supply chain innovationsfocused on point-of-sale efficiencyand customization. Related trendsinclude local recycling andupcycling,[3] and reuse efforts,now predominantly small-scalebut with the potential for industryintegration and adoption.

The function of responsiblebusiness in society is an ongoingdebate, particularly in the faceof economic downturns. Ques-

tions around the relationship ofcorporate social responsibility tocompetitive advantage, the depthof consumer commitment toethical production, and the roleof businesses in communitieswill continue to be at issue in theyears ahead.

A FUTURE

OF ETHICALCONSUMPTION?Learning Objectives:To understand the role of ethics and sustainability in the business-consumer relation-ship. The importance of ethical and sustainable production to consumers has undoubt-edly grown in recent years, but how much do these concerns influence actual economicbehavior? Is it enough for companies to appear to be acting ethically, or do consumersinsist that firms walk the walk as well as talk the talk? Encourages debate over the

relationship between corporate social responsibility and competitive advantage, thedepth of consumer commitment to ethical production, and the role of reputation andpublic opinion.


12/15


Considering Profits and

Principles in TechnologyAdoption Decisions (A, B)[Case]

Focuses on supplier relationshipsand environmental concernsthrough the decisions the seniormanagement faced regarding theadoption of anti-odor technologythat had environmental concerns.

Nike Inc.: Developing an EffectivePublic Relations Strategy [Case]

An overview of the adversepublicity that Nike received afterallegations that sub-contracted

factories in China and Indonesiawere mistreating their workers.

OQOQO: Socially ConsciousFashions [Case]

This case discusses efforts todevelop a sustainable fashion linewith clothing materials and stylesboth environmentally and sociallyconscious.

(PRODUCT) RED (A, B) [Case]

These cases describe the launchand initial results of the (PRODUCT)RED campaign, a social marketinginitiative conceived of by U2’s Bonoand Bobby Shiver to combat AIDS insub-Saharan Africa.

Teaming up to Brand and Bond:Timberland Partners with CityYear, SOS, and Skills USA [Case]

Timberland strengthens its brandidentity through partnershipsthat promote social justice and aservice ethic worldwide.

Threadless: The Business ofCommunity [Multimedia Case]

The company turned the fashionbusiness on its head by enabling

anyone to submit designs fort-shirts and asking its communityof more than 500,000 members toactively participate in the designprocess.

TOMS Shoes: From Soul to Sole[Mini-Case]

TOMS shoes are the harbinger ofwhat has been christened as the‘one to one movement’—for every

shoe a customer buys, TOMSdonates a pair to a child in need.

Articles, Reports, andWorking Papers:

A Clothing Clearance WhereMore Than Just the Prices HaveBeen Slashed [Article]

At the back entrance on 35thStreet, awaiting trash haulers,were bags of garments thatappear to have never been worn.And to make sure that they neverwould be worn or sold, someonehad slashed most of them with

box cutters or razors.Capturing the Green Advantagefor Consumer Companies[Report]

Consumers everywhere areconcerned about the environment,but will they continue to purchasegreen products now that theeconomy has taken a nose dive?

Customer Advocacy: A New Erain Marketing? [Article]

Predicts a new era of consumeradvocacy where companies provide

complete and unbiased informa-tion, advice on which product isbest (including fair comparisonswith competitors), joint design ofproducts, and a partnership thatbreeds long-term loyalty. Advocatefor your customers and they willadvocate for you!

Don’t Toss That Old Shirt.They’ll Pick It Up. [Article]

Features New York City clothesrecycling efforts and providescontext around the amount ofwearable clothing that is discard-ed every year.

None of Our Business? [Article]

Tracking technologies make peo-ple’s lives a lot more convenient,but the public is understandablyconcerned about the privacyissues such technologies raise.KK Inc., a manufacturer andretailer of teen clothing, wants toembed RFID tags into the bills ofits caps and visors.

Sweatshop Labor is WrongUnless the Jeans are Cute:Motivated Moral Disengagement[Working Paper]

While many consumers say theycare about issues such as sweat-shop labor, the existence of a verysmall market for ethically-pro-duced products does not reflectthis sentiment.


Aspen Skiing Company(A, B, C, D) [Case]

Having begun improving theenvironmental performance of

its own operations, Aspen SkiingCompany is considering “green-ing” its supply chain and lobbyingfor greenhouse gas regulations.But these initiatives risk a publicrelations backlash and charges of“greenwashing.”

Doing Better at Doing Good:When, Why and How ConsumersRespond to Corporate SocialInitiatives [Article]

This article takes an in-depth lookat when, why, and how CSR worksfrom a consumer’s perspective.

Ethical Consumers andEthical Trade: A Review ofCurrent Literature [Report]

Ethical consumerism is a grow-ing phenomenon: fair-trade,conservation-driven trade and thetrade in organic produce beganas market niches but are makingtheir presence felt in the com-mercial mainstream.

The Hidden Costs of CauseMarketing [Article]

The short-term benefits of cause

marketing, also known as con-sumption philanthropy, belie itslong-term costs.

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13THE FUTUREOF FASHIONSupplemental Reading:

The Influence of Corporate

Social Responsibility on PeruvianConsumers’ Purchasing Behavior[Report]

The findings of this researchprovide empirical validation of thepositive relationship between cor-porate social responsibility andPeruvian consumers’ behavior inthe purchasing of athletic shoes.

The Seven Sins of Greenwash-ing: Environmental Claims inConsumer Markets [Report]

In the United States and Canada,a total of 2,219 products making

4,996 green claims were record-ed. Of the 2,219 North Americanproducts surveyed, over 98%committed at least one of the sinsof greenwashing.

Timberland Announces Industry-leading Packaging Initiative thatProvides New Levels of Trans-parency for Consumers [Article]

The Timberland Company an-nounces a footwear packaginginitiative that reduces Timber-land’s environmental impact andprovides consumers with newinformation to help guide them inthe purchase process.

Welcome to the Future: SmartServices Improve Quality, LowerCost, Foster Innovation, and Helpthe Environment Too [Article]

Creative use of technology-enabled or technology-deliveredservice can be good for business,good for consumers, good for theoverall economy and even goodfor the environment.

Will Big Business Save theEarth? [Article]

There is a widespread view, par-ticularly among environmentalistsand liberals, that big businessesare environmentally destructive,greedy, evil and driven by short-term profits, but while some busi-nesses are indeed as destructiveas many suspect, others areamong the world’s strongestpositive forces for environmentalsustainability.

Resource & Risk Management

1. You get a call reporting that for the third time in a year, shortagesof raw materials like cotton are slowing down production at yourSri Lankan garment manufacturing facility. It isn’t just your plant,either; other garment makers are facing similar challenges aslack of rainfall and labor unrest are becoming endemic to cotton-producing regions. Obviously, your company needs to find ways toadapt, but how?

2. List three current challenges to the fashion industry anddiscuss strategies for addressing these issues for future competi-tive advantage.

3. Are global supply chains inherently unsustainable? For example,what factors contribute to the true cost of making and importingfabric to a production factory and transporting the finished good toretail outlets?

4. Regardless of their personal attitudes toward sustainability, howcan fashion industry executives manage the risk of climate change?Should the fashion industry approach climate change differentlyfrom other industries? Discuss.

5. Imagine a future in which the price of water has doubled. As aclothing manufacturer, what would this mean for your operations?As a consumer, how could that impact the fashion choices availableto you, and how would your clothing choices and post-purchasingconsiderations change?

The Role of Consumers

6. Your favorite brand-name clothing company has started claimingthat their products are “organic,” “100% natural” and use “bio-de-gradable dyes.” As a consumer, how do you evaluate such claims,what are the potential pitfalls of these labels, and what questionsshould you ask about what those labels aren’t saying?How can you distinguish between valid environmental marketingand greenwashing?

TEACHINGQUESTIONS:

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7. How can information on sustainable productionhelp persuade consumers to invest in ethical prod-ucts? Choose one element of clothing and develop acampaign designed to promote and ethical versionof that product.

8. Is “consumption philanthropy” like (PRODUCT)RED a viable approach to solving social issues ordoes that simply present collective problems asindividual responsibilities and obscure the role ofconsumerism in creating many of these problems

to begin with?

9. Should consumers take responsibility for de-manding fast, cheap fashion at the expense of theenvironment and workers? What would this meanfor how you purchase clothing? Think of the lastitem of clothing you bought. Would you have beenwilling to pay more for “sustainable fashion”?

10. You are a manager at a multi-national clothingcompany concerned with its products’ impact onthe environment. Given the economic climate, how-ever, the company is concerned that such initiativespay off financially. Considering options that include

social networking, private-public partnerships, orother alternatives, discuss ways to effectively mar-ket this move toward sustainability.

Organizational Change

11. How can companies balance the need forethical treatment of their labor force and theenvironment with the need to produce affordableproducts? Discuss ways in which knowledge man-agement and other forms of innovation may be ableto close this gap.

12. Are there lessons for the development of sus-tainable processes that the fashion industry canadopt from the sustainable food industry?

13. Discuss Nike’s move to provide affordable ver-sions of its products to emerging economies; doesthis strategy expand their customer base, under-mine their other product lines, or both?

14. The readings discuss a non-profit network fororganic cotton; what other products would benefitfrom such a system, and would it work without apublic-private partnership?

15. As companies develop new strategies toincorporate sustainability into their organizations,does it make sense to focus on proprietary methodsto gain competitive advantage, or to collaborate atan industry level to establish industry standards foraccountability and cost?

Business & Society

16. Given record unemployment in the US andrising labor demands overseas, do you think thatin the future more fashion manufacturing maybe brought back to Western countries? Discussthe potential costs and benefits of bringingglobalization full circle.

17. As a manager at the local outlet of a majorfashion retailer, you are shocked when told todestroy “extra” inventory. What is your response?Do you refuse, try to change the directive throughestablished channels, covertly donate the clothes,build support amongst colleagues to urge changesin company practice or follow the order? Whichtakes precedence, company profit or sustainability,and how can the two be better aligned?

18. Given that low-cost clothing provides significantbenefits to low-income consumers, is it “fair” torequire companies to enact sustainability measuresthat have the potential to raise prices?

19. Should individual companies be responsible forlabor and environmental oversight or should therebe more regulatory bodies to take over that roleand remove the burden from individual firms? Howcould such a regulatory body be organized, funded,and governed?

20. While handmade, artisanal fashions appeal tothe fair trade and environmental market, could thismodel ever replace more traditional production?

TEACHING QUESTIONS:

CONTINUED


15/15


Innovation

21. Think of the most recent item of clothing you purchased. Withouthaving to remake the item from the ground up, what are some waysin which the company could make that product more sustainable?Consider issues like excessive packaging, air shipping from an onlinevendor, high-impact materials, or an open door at the air-condi-tioned store.

22. List five things that businesses could do to promote sustainabilityin the fashion industry.

23.

What role could government involvement play in aligning theclothing industry with a more sustainable approach? For examples,discuss ways to encourage more efficient laundry, recycled clothingdepots, and pricing resources like water and carbon. Compare theeffectiveness of such an approach to one based solely onmarket mechanisms.

24. Faced with the option to install an innovative new technology thatprovides custom-fitted versions for several of your product lines, youare left to weigh its potential popularity with consumers against thepossible need to lay off workers as a result. What direction do you take?

25. From LEDs in bike jackets to jeans recycled into rugs or even in-sulation, there is an explosion of technology and craft-based fashion

innovation at the grass-roots level; discuss ways for the industry toincorporate these types of creativity to help shape future growth.

TEACHING QUESTIONS:

CONTINUED

This teaching module was independently written by the Aspen Institute Business and Society Program with

Additional References:

Design and Environment:A Global Guide to DesigningGreener Goods [Book]

There is a scarcity of good, practi-

cal resources for designers andstudents interested in minimizingthe environmental impacts ofproducts. Design + Environmenthas been specifically written toaddress this paucity.

High Price of Materialism [Book]

Offers a scientific explanation ofhow our contemporary cultureof consumerism and materialismaffects our everyday happiness

and psychological health.

Introduction to SustainableBusiness Practices [Syllabi]

This course takes a close look atbusiness practice today throughthe ‘lens’ of sustainability, assess-ing the ways in which principles of

sustainability may be embeddedwithin corporate strategy.

Sri Lanka Apparel-GarmentsWithout Guilt [Website]

Sri Lanka Apparel is one ofthe world’s leading proponentsof ‘Ethical Business andManufacturing Practices’ forthe Global Fashion and ApparelSourcing Business.

Sustainable Operations [Syllabus]

This course addresses sustain-able operations in three modules:improvements in current opera-

tions (eco-efficiency), sustain-able operations strategies, andclosed-loop systems or productstewardship.

The Economics of Sustainability[Syllabus]

A general overview of whatencompasses the term sustain-ability and looks at issues includ-ing natural resource depletion,energy, carbon emissions, theindustrialization of food produc-tion and supply chain issues.

Notes:

[1] Forum for the Future. 2010.

Fashion Futures 2025: GlobalScenarios for a SustainableFashion Industry, p. 5.

[2] Greenwash [Website]

Greenwashing is the practiceof companies disingenuouslyspinning their products andpolicies as environmentallyfriendly. Search “greenwashing”

at CasePlace.org foradditional readings.

[3] Upcycling [Website]

Upcycling is the process ofconverting waste materials oruseless products into new materi-als. Similar to recycling but moreconcerned with making productsof better quality or a higherenvironmental value. For morereadings on various methods ofmaterial reuse, search “recycling”at CasePlace.org.
http://caseplace.org/d.asp?d=1381http://caseplace.org/d.asp?d=1381http://caseplace.org/d.asp?d=1381http://caseplace.org/d.asp?d=2777http://caseplace.org/d.asp?d=4185http://caseplace.org/d.asp?d=4185http://www.garmentswithoutguilt.com/http://www.garmentswithoutguilt.com/http://caseplace.org/d.asp?d=5010http://caseplace.org/d.asp?d=4216http://www.forumforthefuture.org/files/FashionFutures_2025_FINAL_SML.pdfhttp://www.forumforthefuture.org/files/FashionFutures_2025_FINAL_SML.pdfhttp://www.forumforthefuture.org/files/FashionFutures_2025_FINAL_SML.pdfhttp://en.wikipedia.org/wiki/Greenwashhttp://caseplace.org/s.asp?&o=4&kw=%22Greenwashing%22http://en.wikipedia.org/wiki/Upcyclinghttp://caseplace.org/s.asp?o=5&kw=recycling&Image5.x=0&Image5.y=0http://caseplace.org/s.asp?o=5&kw=recycling&Image5.x=0&Image5.y=0http://en.wikipedia.org/wiki/Upcyclinghttp://caseplace.org/s.asp?&o=4&kw=%22Greenwashing%22http://en.wikipedia.org/wiki/Greenwashhttp://www.forumforthefuture.org/files/FashionFutures_2025_FINAL_SML.pdfhttp://www.forumforthefuture.org/files/FashionFutures_2025_FINAL_SML.pdfhttp://www.forumforthefuture.org/files/FashionFutures_2025_FINAL_SML.pdfhttp://caseplace.org/d.asp?d=4216http://caseplace.org/d.asp?d=5010http://www.garmentswithoutguilt.com/http://www.garmentswithoutguilt.com/http://caseplace.org/d.asp?d=4185http://caseplace.org/d.asp?d=4185http://caseplace.org/d.asp?d=2777http://caseplace.org/d.asp?d=1381http://caseplace.org/d.asp?d=1381http://caseplace.org/d.asp?d=1381mailto:info%40aspenbsp.org?subject=

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The Future of Fashion TM