Ethics and stakeholders at H&M Essay
Responding to ethical pressures
The CSR of firms is a response to the increasing burdens given to managements to take account of ethical issues. Thus H&M managers have the pressure of ethical pressure as they have to make sure they are doing their trading ethically. The advantages for H&M when responding ethically is that they are trading in the right way and are abiding by the laws and regulations. The disadvantages for H&M responding ethically is that it will be challenging for the business to be on top of ethics.
Implementing ethical practices
Many familiar names have initiated to implement an ethical position on concerns that affect us all. For example walkers are working with consumer change in their mind as they have made changes to their goods. Consequently H&M must keep in mind their customer’s wellbeing when producing goods. The advantages for H&M is that they can produce goods in the knowledge that they are producing goods for customer’s requirements. The disadvantages for H&M is that they have to keep in mind what customers will think of their goods and will it benefit them.
Influence of stakeholders and pressure groups
CSR is a response to external stakeholder’s pressure. It is also a response to
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Firms In search of their primary targets cause harm to the planet. Environmental issues are on the attention in pressure groups which are a voluntary organisations that exists to create that will be listened to by decision makers universally. This consist of business leaders and politicians.
Hence H&M will have conduct pressure groups to keep on top of environmental issues and the influence of their stakeholders. The advantages of this are they can handle with environmental concerns successfully and amaze stakeholders. The disadvantages of this are it can get out of control and become a huge problem for the firm which they may have to close the firm down.
H&Ms stakeholders are:
Shareholders-H&Ms stakeholders are shareholders since they hold the value of H&M. if H&M are performing well their value will increase. Shareholders will benefit from this as the firm is thriving. The negatives of this are if H&M do not do thrive their value of their firm will decrease.
Customers- customers are stakeholder’s since they use the service H&M offers. So H&M is meeting customer’s requirements and expectations. The advantages of this are if H&M deliver a excellent service customers will come back to them regular basis. The downsides of this are if H&M does not meet customer’s expectation they will not acquire any customers and make vast losses.
Employees- employees at H&M are H&Ms stakeholders since they work for the firm as they aid the firm to function properly. The advantages of this are that they assist H&M and in return they get a salary. The downsides of this are that if they do not contribute towards the firm the firm will not be able to function successfully.
Suppliers- suppliers are H&Ms stakeholders since they supply merchandise to H&M. the advantages of this is that supplies assist H&M to function properly. The downsides of this are that without the supplier H&M will not be able to provide merchandise to their customers.
Impact on competiveness reputation and public image
This is enhancing competiveness in the market by using global ethical issues.
H&M will have to contemplate on their energy, product, workplace and service to contend ethically in the market. To show they are a superior firm than the others.
Complying with relevant legislation and codes of practice
Firms have to obey with the array of legislative regulations for instance those regarding to; health and safety, employment, planning and environment and pollution. H&M must comply every point with their firm.
European Union (EU) laws
The EU is a politics and economical union connected with 27 countries that includes more than 490 million men and women. Ethical concerns in which influence us are the subject of EU legislation. This legislation additionally addresses issues such as employment and environmental pollution. Employment legislation is a representation of EU influence in working conditions.
An EU directive tells a member state that it must implement law in a particular area. The 1993 directive lays down provision for maximum 48 hour working week including overtime, plus rest periods and breaks and a maximum of four weeks paid leave for employees. The UK government accepted the following conditions from the working time directive:
* The worker can agree to do more than 48 hours
* No worker should be disadvantaged by deciding not to opt out
* The employer must keep record of all employees who carry out this work
* Records must be kept available for authorities.
H&M are under the EU legislation so they must agree to the many conditions which are put forward to them. H&M must offer priorities to their staff like they can work up to 48 hour if they would want to do so although H&M can’t drive staff to do this. In the event that staff at H&M volunteer to work extra hours it is H&M job to record this since they will need to display these details to higher authorities.