H&M To Repair Supply Chain Links Is The Title Of The Most Business Ethics Company.

As a fast fashion brand that is only responsible for designing and selling, it is difficult to control the links that really affect the social and environmental impacts in the supply chain.

Recently, Ethisphere Institute, a famous think tank in the US, has rated the world's most business ethics company in 2015 from 57 industries all over the world.

H&M, together with Gap Inc and Levi Strauss&Co, won the title of the world's most business ethics company in 2015.

H&M has been accredited by the evaluation body in the implementation of social responsibility, and the negative image of H&M in social responsibility before turning.

In fact, H&M has released social responsibility report for 13 consecutive years and has spared no effort in promoting social responsibility.

Negative news came out before.

What causes the social responsibility commitment to make a big difference with the actual effect?

H&M was founded in 1947. As of the end of 2014, it has 3511 stores in 55 markets all over the world.

H&M does not have its own factory. It is only responsible for product design, development and marketing.

In recent years, some foreign media have published some negative reports about H&M, which embodies H&M's omission in human rights, labor, environment, security and other issues.

For example, H&M has been exposed to 30% of its declared organic cotton clothing samples, including genetically modified materials, and a fire in 2010, at least 21 workers died in the fire at the Bangladesh garment factory. The factory made clothes for H&M and several other companies. A former H&M employee accused H&M of forcing H&M to force employees to work overtime without providing any subsidy, and H&M continued to use raw materials such as cotton (13180, -80.00, -0.60%) supplied by child labor factories.

The continuing exposure of these problems has seriously damaged the image of H&M.

According to the social responsibility report issued by H&M headquarters for many years, its importance to sustainable development can be seen.

What links has led to H&M's frequent negative reviews?

The production process of a T-shirt:

A T-shirt was first designed and manufactured by H&M Sweden headquarters.

The main raw materials are imported from China, India, Uzbekistan, or Turkey, and then processed into cotton fabric in China, and then made into T-shirts in China, India, Indonesia, Thailand, Kampuchea, or Bangladesh, and then shipped to H&M centers around the world through ships or fire cars for distribution or direct sales.

From the whole process, we can see that H&M is only responsible for product design and sales.

But a brand of H&M clothing, its supply chain links are all related to H&M.

The issue of social responsibility is affecting the reputation of H&M.

The problem of globalization today is not to choose cooperation with suppliers in emerging markets, but the key is how to cooperate.

H&M is also aware of the root cause of the problem and has made a series of measures.

H&M sets a high standard for supplier selection, monitors supplier performance and rewards partners for sustainable development.

H&M is more willing to choose partners who give workers fair and open wages. They will regularly and systematically place orders to such factories, and support continuous improvement of such factories.

In order to reverse the negative impact of supply chain links, H&M has also reached a framework agreement with the International Labour Organization, aiming at achieving fair consultation in global garment production and improving the working conditions of the global garment production industry.

In addition, H&M will also include suppliers' information that is pparent to the supply chain and provide environmental friendly materials such as fabrics and yarns for suppliers.

The negative news from the supply chain often damages the brand seriously, but it can not start from the supply chain.

H&M has taken some other measures. The most popular among consumers is the activity of changing old clothes to H&M discount cards since 2013.

In addition to monitoring the supply chain and creating a closed cycle fashion cycle, H&M has taken concrete actions in its sustainable development: they design fashion for environmentally conscious customers; pay close attention to climate, including greenhouse gas emissions from their operations, focus on greenhouse gas emissions from industrial chains, and make rational use of natural resources, including strengthening water resources management and waste water treatment, strengthening chemicals and dangerous goods management, and strengthening community development, including creating the shared value of the entire industrial chain, and setting up foundations to help communities outside the industrial chain.

It can be seen from a set of data that H&M's actions on sustainable development are effective:

In 2014, H&M recovered 7684 tons of old clothing, which is equivalent to the amount of cloth needed to produce 38 million T-shirts.

H&M is the world's first organic cotton supplier.

Greenhouse gas emissions in H&M2014 decreased by 4% compared with 2013, while net turnover increased by 18% over the previous year.

H&M has taken further steps to enhance the pparency of the supply chain and has made public the information of those two level suppliers who provide 35% products for H&M.

76% of suppliers believe that H&M is a fair partner.

H&M audited the factories of the 84% level suppliers.

33% of the world's staff have carried out new training courses on sustainable development.

71% of the suppliers fully comply with the requirements of H&M for wastewater quality management.

Although H&M has made a lot of efforts in fulfilling its corporate social responsibility, some obvious achievements have been made, but in general, the challenges faced by H&M in social responsibility will still take place in the supply chain management.