The Corporate Social Responsibility Strategies in Fashion Industry : Case Company H&M

Abstract

This thesis investigates the Corporate Social Responsibility (CSR) strategy of H&M within the context of the fast fashion industry, employing Carroll’s Pyramid of CSR as the primary analytical framework. As public concern over environmental degradation and labour exploitation continues to grow, CSR has become a critical component of strategic planning in the fashion sector. The study adopts a qualitative case study approach, analysing H&M’s sustainability reports from 2022 to 2024, supported by academic literature, and industry benchmarking. The analysis reveals that H&M demonstrates a comprehensive CSR approach across Carroll’s four dimensions: economic, legal, ethical, and philanthropic responsibilities. Economically, the company integrates sustainability with profitability through investment in circular business models. Legally, H&M aligns with international frameworks such as the UN Guiding Principles on Business and Human Rights and actively participates in the International Accord. Ethically, the brand emphasizes transparency, sustainable materials, and fair labour practices. Philanthropically, it funds global initiatives via the H&M Foundation, targeting education, gender equality, and climate resilience. While H&M leads in areas like supply chain disclosure and material sustainability, criticisms regarding greenwashing and overproduction highlight ongoing tensions in reconciling fast fashion with genuine sustainability. Therefore, based on the study, these motivators are still pertinent to H&M; however, the study shows that H&M demonstrates a transitioning operational transformation from profit, and reputation to stakeholder driven value creation. The study contributes to the CSR literature by applying Carroll’s model in a contemporary fashion context and provides insights as to how CSR can fulfil ethical imperatives and competitive advantage in a high impact industry.