An Attempt to Determine the CSR Potential of the International Clothing Business |
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Authors: | Thomas Laudal |
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Institution: | (1) Calvin College, 1740 Knollcrest Circle SE, Grand Rapids, MI 49546, USA |
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Abstract: | Most empirical studies of corporate social responsibility (CSR) focus on variables at the company level. In this article,
I focus on the sector level: I consider features of the international clothing business and of the global economy in general,
that may influence the CSR potential. There is high ‘CSR potential’ when sector-specific features indicate that the risk of
violating CSR standards is high. Thus, ‘high CSR potential’ indicates that there is a potential for positive influence through
CSR-related actions. Based on several empirical studies of the clothing business, I identify six features that indicate a
high CSR potential. These features are shown to be consistent with more general features of the global economy. This holds
whether we emphasize asymmetric relations and unequal distribution, the product cycle, or transnationalization. Thus, the
CSR potential of the international clothing business seems not only to be a product of sector-specific properties, but also
of more systemic and general features of the global economy. This suggests that the CSR performance of individual companies
may enhance their social and environmental impact, but will probably have little effect on the features that determine the
CSR potential. In order to affect these features I argue, we rely on other institutions to act – mainly governments. Finally,
I conclude that this study shows that it is useful to identify the CSR potential of a business sector. We get a picture of
which part of the international CSR standards companies run the greatest risk of violating and of which structural issues
intergovernmental actions should address to reduce the potential for violating CSR standards. |
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