Question

Choose a company you believe is ethical and explain why you think so and what do you think is the most important factor in a firm’s culture? Why?

Answer 1

I think H & M group , a leader in Apprael industry is a great example of ethical company. They have formulated policies that reflect their commitment to a sutaiable world and their aim to operate as a fair player.

There are various efforts and initiatives that are taken up by H&M group that make them an ethical company. Some of these are ;

1. Recycling ; We know that the wastage in clothings are huge and that is generating huge landfills and pollution. H&M group has set up a vision to use only recycled and sustainable fabrics by 2030. Each year they are increasing the volume of recycling and upcycling and reuse . In 2019 they have recycles 29005 tonnes of clothings have been recycled . Even for each kg of recycled fabric they donate 0.02Euro to a charity organization.

2. Sustainable materials : As per H&M policy of material sourcing , all natural raw materials are procured from sustainable sources, without harming loacl environment , without endangering any ancient and preserved forest and complying with health , safety and local rules and regulations.

3. Sustainable packaging : The aim of H&M is to reduce packaging by 25% by 2025 by using circular design and reusing and recycling packaging materials. It aims to use 100% recycling by 2030. They prefer the use of paper based packaging which has high potential of recycling and reduces overall carbon footprint.

4. Climate sustainability; H&M aims to become 100% climate positive in its entire value chain by 2040. It is continuously ramping up the use of sola and wind energy to reduce the effect of manufacturing on climate. They plan to source 100% of energy from renewable sources by 2030.

5. Reduce Water wastage : To improve water sustainability , the group has a target to reducing 15% waste water in processing by 2022.

6. Toxic free Fashion: H&M Group has commitment to reduce the chemical toxins used in in products processing. H&M has an aim to achieve toxic free fashion by 2030. They have collaborated with the suppliers for eliminationg hazardous chemicals in fabric and leather materials and to use MRSL compliant safe chemicals.

7. Equlaity & Fairness : As a leader in the Gender equality aspect h&M follows gender equality in job and wages , provides a healthy working atmosphere with the required health and safety measures in place.

If we consider all the above factors, it becomes clear that H&M has a culture of working with sustainability as the prime objective and they are committed to the well being of human beings and the environment as they make progress in business.