Amber Sliva

The Ethics Behind Fast Fashion:

Labor Exploitation, Consumerism, and Corporate Responsibility Management
“On April 24, 2013, an eight-story complex of clothing factories called Rana Plaza, near

Dhaka, Bangladesh, collapsed,” killing “1,127 people…mainly young women” (Taplin 72). The

death toll for people having died in factories didn’t start nor end there. Hundreds of people have

been killed in factories across Bangladesh within the past decade. In less than a month after the

2013 catastrophe in Bangladesh, three people were killed, and six people were injured when a

floor collapsed in a Cambodian factory (Taplin 72). Hazardous working environments is a

fraction of the dilemma found in this illustration. Despite the apparent dangers, laborers don’t

leave. This proposes the question of labor exploitation. With hundreds to thousands of laborers

getting killed in similar incidents, and laborers working with minimal pay and little to no

employee benefits, this dilemma is furtherly expanded. Economic globalization presents us the

growing problem of Western companies capitalizing off Asian, African, and Southern American

garment factories. The establishment of industrial powers in the North during the nineteenth

century created an unbalanced system of development for colonized territories (Brooks 62). With

the death toll of labor workers not decreasing, the impact of the North on underdeveloped

countries is very much prominent in our present day global and social economy.

Fast fashion causes significant consequences that arguably outweighs the positives of

consumerism. The overconsumption and impulsivity of buying goods leads social marketers to

face a complex issue in the global and social market. With consumers demanding more goods,

corporations have resorted to unethical behavior to meet this increase of demand. The rise of fast

fashion is altering the fashion industry, sparking the issue surrounding social marketers and their

difficulty on finding a solution to this complex problem. In this research paper, I will explore the
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catalysts reinforcing labor exploitation in southern supply factories and examine the systemic

corruption found in fast fashion entities: consumers, businesses, and governments. By identifying

the social mechanisms fueling these entities, the problem of labor exploitation in the South can

be thoroughly examined.

In Kennedy et al.’s case study, they break down fast fashion entities into categories:

incumbents, challengers, and the governance units. For my paper, I will be closely examining

these entities and analyze their relations to labor exploitation. I will discuss how consumer

behavior and culture are a huge contributing factor that is grandly known to be the most

prominent issue for the growth of fast fashion. I will break it up into three sections. The first

section will regard the three categorized entities named by Kennedy et al. in their conceptual

paper, “Wicked problem’s system structure.” In my second section, I will discuss the discourse

involving these entities. And in my final section, I will discuss corporate responsibility

management (CSR) and its effect on the fashion industry.

Contribution

In this research paper, I hope to explain the importance of sustainability in our fashion

communities. Corporations should seek to adopt a fair and ethical approach for their

management strategy. In places such as Bangladesh and Cambodia where thousands of workers

are killed when their working environment is brushed off as acceptable, labor exploitation needs

to be addressed and corporations in charge of these infrastructures should be held accountable.

But to do so, research on these entities must be made. Assessments of corporate performance and

responsibility need to be defined before tackling the issue of labor exploitation. In addition,

consumer behavior in relation to social marketing should also be identified and analyzed, for it is

the origin to the creation of a fast fashion lifestyle.

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The Big Three of Fast Fashion

Incumbents, challengers, and governance units are the main forces behind fast fashion.

They are the creators and maintainers. Through analyzing their shared narratives and actions,

their relations to one another is vital to the identification of southern labor exploitation. The first

tier of this hierarchy leading to the exploit of workers are the incumbents. Kennedy et al. refers

to the incumbents as “most retailers, suppliers, and most Western, developed-economy

consumers” (62). They are a dominating force and aim to “achieve stability in the system, to

maintain its current structure and to increase economic investment” (Kennedy et al. 62). In other

words, the incumbents might be perceived as the main “villains” of this structure. They benefit

the most from fast fashion. The consumers demanding nature nurture the system. Due to this, fast

fashion retailers such as Zara, Forever 21, and H&M will issue multiple fashion seasons a year to

meet these demands. This is when the challengers come into play.

The laborers and workers of garment factories, anti-fast fashion retailers, and consumers

practicing ethical fashion are what Kennedy et al. describes as the challengers. These entities go

against the system. Ethical retailers and consumers strive to end the overconsumption of clothing

and fast fashion’s corruption. By this, ethical fashion has risen in popularity. Ethical fashion is an

upcoming industry that operates under ethical working conditions during the production of

goods. Two examples of popular ethical fashion companies are Freepeople and People Tree.

Essentially, the challengers are at a disadvantage in this structure and “might not have the ability

to raise a noticeable or effective challenge or might not recognise how or when they can seek to

alter the system’s structure to gain more advantages” (63). Laborers and workers desire just

employment; ethical consumers are aware of the environment and the impact of fast fashion on

laborers; and anti-fast fashion retailers sell ethical apparel because of these risen issues.
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The final tier of this system is the governance units, the entities that respond to both the

incumbents and challengers. The governance units include trade organizations and the

governments. In Kennedy et al.’s research paper, they use shared narratives to describe the

entities that make up the trade organizations and the governance units. For trade organizations,

their shared narratives and actions are “Eliminating ‘red tape’ protectionism via trade barriers

lower costs associated with trade policies and regulations”, “supporting and including labour

standards”, and “diversify[ing] the apparel manufacturing base” (64). As for governments, their

shared narratives include helping businesses “secure the lowest costs for their consumer-citizens

to continue economic growth” and to create jobs for “GDP growth and a chance to compete on

the international stage” (64). Trade organizations and governments do not emphasize on caring

for safe working conditions and fair labor standards for workers. The costs on implementing

these regulations are something governments prefer to not chance if it impacts the “country’s

ability to attract apparel brand businesses” (64). In other words, governance units work as a team

to attract commerce to countries. Rising costs for production is avoided at every chance, even if

it means creating unjust labor laws that slyly maneuver past the World Trade Organization’s

policies.

The governance units provide the foundation to this unbalanced power structure. The

challengers are pitted against both incumbents and governance units. After giving insight on each

entity, Kennedy et al. explains the effects of the power structure, emphasizing that governance

units care more so on economic growth and development. According to Kennedy et al., “While

governance units respond to incumbents and challengers, the power of the stakeholders and the

underlying narratives of the governance units effects their response” (65). Since the underlying

narratives for governance units are economic growth, it becomes difficult for challengers to gain
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power. If governance units were to favor challengers, the power structure will become balanced

and incumbents’ powers would be weakened.

Ethical Fashion and Consumerism

Of course, weakening the powers of incumbents is difficult when this power structure has

been used since the establishment of industrial powers in the North. One way to combat fast

fashion is through ethical fashion: fashion that “concerns labor conditions and the environment”

(Shen et al. 235). Because governance units rely on incumbents and challengers, consumers

supporting ethical fashion and sustainability in the fashion industry can help balance the

stakeholder power structure, even if it’s a little. In Shen et al.’s case study, “The impact of

ethical fashion on consumer purchase behavior,” they examine the relationship between

consumer culture and ethical fashion. According to Shen et al., “…sweatshop labor is

consumers’ most important ethical concern when making apparel purchase decisions” (236). In a

study by McFadden, its known that “75 percent of US consumers avoid retailers who sell

clothing by offshore sweatshops” (qtd. in Shen et al. 236). Consumers who are knowledgeable

about the fashion industry are more likely to be conscious of their purchase behavior. Social

marketers need to focus on increasing their target audience’s awareness with ethical initiatives

when trying to unravel this problem within the fashion industry.

But how much effect does ethical fashion have on the industry? Shouldn’t it be promoted

more? When US consumers are aware of the sweatshop labor, it’s clear that the majority of

people want to stray away from clothing made by offshore sweatshops. Consumers genuinely

seek out ethical clothing because of its positives effects on the environment and because of the

absence of sweatshop labor. However, having knowledge about these concerns aren’t the major

obstacle between choosing ethical fashion and fast fashion. Just because a consumer is aware of
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the pitfalls to fast fashion doesn’t mean they are likely to choose the moral option. In “Consumer

attitudes and communication in circular fashion”, Vehmas et al. explains that price is one of the

main contributing factors to consumer behavior. According to Vehmas et al., “…clothing

sustainability is too complex, consumers are too diverse in their ethical concerns, and clothing is

not an altruistic purchase” (288). Basically, ethical fashion’s target audience is geared more

toward environmental conscious consumers. The main reason people choose fast fashion is

because of its cheapness.

This links back to Kennedy et al.’s clarification on consumer culture. Fast fashion is

exactly what it is: seemingly indispensable and inexpensive. Fashion media effects consumer

purchase behavior. The increasing habit of consumers demanding new products is a result of

suppliers “limiting functional life of offerings” and “designing items that prove difficult or costly

repair” (58). This then creates the mentality for people to upgrade their wardrobe, thus causing

them to demand new products. The fast fashion industry has become a lifestyle choice for many

consumers. It will be difficult for consumers accustomed to this lifestyle to give up these

inexpensive goods. But of course, consumers seeking low prices for garments aren’t the only

ones sustaining fast fashion practices. The retailers and suppliers, the other half of the incumbent

entities, serve the fashion industry as a holistic problem.

The retailers and suppliers’ contribution to fast fashion is pivotal to the growth of the

garment industries. Whenever suppliers lower prices for goods, manufacturers are pressured to

keep up. According to Kennedy et al., most US fashion retailers “source their manufacturing

from 6 to 20 difference countries, with another quarter relying on more than 20 different

countries to produce their apparel and fashion goods” (59). The exceeding amount of reliance on

manufacturing is the product of labor exploitation. Due to lack of polices reinforcing ethical
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labor conditions, suppliers are enabled to do nearly whatever they like with their workers without

intervention. Laborers have little to no say in this system despite fast-fashion dependence on

these laborers.

Corporate Social Responsibility

The flipside of consumer behavior’s involvement with fast fashion is supply chain

management. As much as consumers bear some responsibility for fast fashion’s adverse

consequences, corporate management has much to do with labor exploitation and ethical

responsibility. In Elisa Arrigo’s research paper, “Corporate Responsibility Management in Fast

Fashion Companies,” she examines corporate social responsibility (CSR) in fast fashion

companies and how it relates to corporate responsibility management. Corporate responsibility

management is essential for fast fashion companies to obtain a sustainable development.

Integrating CSR into a business model is a step toward a successful company with benefits such

as “employee attraction, motivation and retention, customer perception, solid stakeholder

relations, and economic performance” (179). However, many fast fashion companies lack this

and do not prioritize CSR which establishes boundaries such as: economic responsibility, legal

responsibility, ethical responsibility, and philanthropic responsibility (176-177).

In Kennedy et al.’s paper, she addresses fast fashion as a multi-faceted problem that

involves an analysis of multiple systems. With Arrigo’s research on corporate management, I

believe one of the solutions to labor exploitation in the South can be resolved with companies

using an effective CSR strategy. According to Arrigo, “…global competition forces firms to look

for the minimum costs of production and distribution” while also encouraging companies to

focus “on achieving the best profitability” (184). Exploiting problematic conditions not only

negatively affects the social and ecological environment, but it also can affect a company’s
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business when stakeholders are unhappy with lack of responsibility. With unhappy stakeholders,

businesses are incapable of initiating relationships imperative for the brand’s success. As a

result, the number one goal for economic opportunity and growth is stumped.

With an established CSR, corporate social performance (CSP) must be aligned with

business values. CSR is an element of corporate social performance; a concept referring to the

principles, practices, outcome of business relationships with people, societies, organizations, and

the earth, in relation to the actions of businesses toward stakeholders. Assessment of this system

is hardly ever inclusive to observers, and the elements making up this system “are not equally

accessible to observers” (Arrigo 177). In Arrigo’s paper, she argues that social performance

assessment must be accessible to all stakeholders—which, of course, includes challengers as well

as consumers. The similarities between Arrigo and Shen et al.’s argument is key to my analysis

of consumer culture and involvement when purchasing clothing. Social marketers should

prioritize consumer’s awareness when purchasing goods, whether it’s categorized as fast fashion

or ethical fashion.

An example of using CSR to positively effect branch management and to wean out

possibilities of labor exploitation in factories can be seen through Gap Inc. Arrigo claims Gap to

be a successful company that’s not only responsible with their management, but also with the

environment as well. A company’s relationship with stakeholders is vital. Many fast fashion

companies have an unstable relationship with their stakeholders, which in turn results with

irresponsible corporate behavior. However, Gap challenges this. By having an effective CSR

strategy, Gap “was able to change hostile relationships with stakeholders into collaborative

partnerships” (185). They have strong relationships with non-governmental organizations

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(NGOs) in developing countries and is in support of maintaining an ethical working

environment.

In 2008, Gap issued a worldwide survey asking 100,000 employees to share their

thoughts about their work place. For this survey, “with a 68 per cent response rate, 77 per cent of

respondents considered Gap Inc to be a great place to work, compared to the retail norm of 61

per cent” (184). Gap prioritizes their involvement with their team and stakeholders. Their ability

to communicate its socially responsible practices to external audiences grants them global

success as a social and environmentally sustainable company. Gap is proof that an adequate

corporate responsibility management process in alignment with an effective CSR strategy can

both grow a brand and promote social responsibility with stakeholders.

Conclusion

Labor exploitation caused from the fast fashion industry is a direct result from

corporations’ carelessness with responsibility management. As explained with Gap Inc.’s case,

companies can enforce values upon stakeholders for a better work environment. If they don’t

adhere to these values, then an agreement should be established. If no, then the company can cut

ties. Eventually, consumers will become knowledgeable about the exploitation of problematic

conditions, and the company can lose a significant amount of profit. Out of the Kennedy et al.’s

three categorized entities, the incumbents are the main contributors to labor exploitation in

developing countries. Institutionalized norms have been shaped through social marketing,

causing people to create a lifestyle with fast fashion. This consequently leads to an

overconsumption of goods. Even though it’s arguably the consumer’s fault for “demanding” the

products of fast fashion, marketing embedded these ideals into consumers. To help solve the

exploitation of laborers, companies need an effective CSR strategy that holds stakeholders
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accountable for incriminating actions. I believe starting with CSR strategies and working the way

up to fixing social marketing gimmicks can substantially contribute to a more ethical work

environment for laborers.

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Works Cited

Arrigo, Elisa. “Corporate Responsibility Management in Fast Fashion Companies: The Gap Inc.

Case.” Journal of Fashion Marketing and Management: An International Journal, vol.

17, no. 2, Emerald Group Publishing Limited, May 2013, pp. 175–89,

doi:10.1108/JFMM-10-2011-0074.

Brooks, Andrew. Clothing poverty: The hidden world of fast fashion and second-hand clothes.

Zed Books, 2015.

Kennedy, A., Kapitan, S., Bajaj, N., Bakonyi, A., & Sands, S. “Uncovering wicked

problem's system structure: Seeing the forest for the trees”. Journal of Social

Marketing,  7(1), 51-73. Retrieved from https://login.libweb.lib.utsa.edu/login?

url=https://search-proquest-com.libweb.lib.utsa.edu/docview/1861822850?

accountid=7122. . 2017.

Shen, Bin, et al. “The Impact of Ethical Fashion on Consumer Purchase Behavior.” Journal of

Fashion Marketing and Management: An International Journal, vol. 16, no. 2, Emerald

Group Publishing Limited, May 2012, pp. 234–45, doi:10.1108/13612021211222842.

Taplin, Ian M. “Who Is to Blame?” Critical Perspectives on International Business, vol. 10, no.

1/2, Emerald Group Publishing Limited, pp. 72–83, doi:10.1108/cpoib-09-2013-0035.

Vehmas, Kaisa, et al. “Consumer Attitudes and Communication in Circular Fashion.” Journal of

Fashion Marketing and Management: An International Journal, vol. 22, no. 3, Emerald

Publishing Limited, July 2018, pp. 286–300, doi:10.1108/JFMM-08-2017-0079. 2018.