Corporate and Social Responsibility Perspectives of Finnish Fashion Retailers and Consumers

Abstract

This chapter discusses an exploratory research study in the Finnish fashion retail sector to increase our understanding about the implementation of corporate social responsibility (CSR) in purchasing and procurement by Finnish fashion retailers, and awareness of social issues in the fashion sector by Finnish fashion consumers and how such awareness may affect their purchasing behaviour. Building on an academic literature review and secondary data analysis of CSR, sustainability and consultancy reports, empirical research was carried out using a data triangulation approach consisting of in-depth interviews with key Finnish fashion retailers and non-government organisations and focus groups with Finnish fashion consumers. Qualitative analysis included thematic and content analysis of interview, focus group and document texts, and was verified using trustworthiness quality criteria for qualitative research. Transparency along supply chains is the biggest challenge for Finnish fashion retailers however they are implementing CSR through carefully selecting suppliers and taking sustainability criteria into account including audit systems. Further, long-term buyer-supplier relationships have been established between Finnish buyers and their suppliers to reduce purchasing barriers such as last minute changes and lead-time pressure. Finnish consumers are aware of social issues occurring in the fashion sector and the negative impacts their consumption behaviour entails. However, price and availability were identified as main factors affecting purchase decisions. Increased interest in supporting ethical fashion was identified however there is a lack of ethical and sustainable clothes in the Finnish market, especially clothes appealing to younger consumers. Finally, consumers pointed out a lack of media attention for these issues and considered increased media coverage would increase consumer knowledge. This study extends existing theory on CSR implementation by retailers in the fashion sector, focusing on the Finnish market, and provides insight into Finnish fashion consumers’ perspectives of CSR challenges in this sector and their resultant consumer behaviour.