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European Journal of Economic and Financial Research ISSN: 2501-9430 ISSN-L: 2501-9430 Available on-line at: http://www.oapub.org/soc doi: 10.5281/zenodo.1009189 Volume 2 │ Issue 4 │ 2017 ELICITING MILLENNIAL PERSPECTIVES ON ETHICAL PRACTICES AND MORAL CONDUCT WITHIN THE APPAREL INDUSTRY Jet Mbogai The University of Bolton, Bolton Business School: Fulfillment of PhD, Deane Road, Bolton, BL3 5AB, UK Abstract: The 21st century consumers are mindful of problems that impact social and environmental sustainability, fast fashion’s main emphasis is faster turnaround from factories to stay competitive thus some retail companies aren’t paying keen attention on the ethics in apparel production factories (Bhasin, 2014, June 04; Tan, 2016). According to the International Labour Organisation (ILO) forced labor is a worldwide concern affecting 21 million people; simply put there are 3 out of every 1,000 victims who are part of forced labor within Asia-Pacific with 11.7 million and other regions as shown in Appendix A (Mcclelland, 2017). 260 million children partake in employment with an estimate of 170 million children engaged in apparel making; ILO estimated that 6 million children are in forced labor with 14 to 16 working hour days in poor working conditions with reported cases in Bangladesh apparel factories; yarn spinning in India; cotton seeds production in Benin; and harvesting cotton in Uzbekistan (Moulds, 2017; Peiris, 2005). Ashridge Centre for Business and Sustainability, and Ethical Trading Initiative (ETI) confirmed that 71% of companies admitted to cases of modern slavery in their supply chain; with 168 million child labor cases in 2017 and a proven improvement from 246 million cases in 2000 (Mcclelland, 2017). Can apparel suppliers and retailers tackle the unethical practices that are impacting humanity and integrate practices that would ensure social sustainability? The focus of this research was for an opportunity to acquire and understand millennials perspectives on the unethical conduct and fashion industry with relevance to apparel sourcing, manufacturing, industry sustainability. Copyright © The Author(s). All Rights Reserved. © 2015 – 2017 Open Access Publishing Group 173 Jet Mboga ELICITING MILLENNIAL PERSPECTIVES ON ETHICAL PRACTICES AND MORAL CONDUCT WITHIN THE APPAREL INDUSTRY JEL: L60, L67, M14, D29, K20 Keywords: ethics, child labor, exploitation, fast fashion, manufacturing, millennials, outsourcing, social responsibility, sustainability 1. Introduction Global apparel industry is estimated at $1.2 trillion with an average household spending $1786 yearly on apparel and apparel related services; research conducted by the University of Delaware Career Service Center confirmed that the United States (U.S.) apparel industry generates $250 billion yearly; the pressure to remain competitive has contributed to unethical practices such as worker safety, unfair pay rates, and impact on social sustainability (Cross, 2017; Tan, 2016). Ashridge Centre for Business and Sustainability, and Ethical Trading Initiative (ETI) confirmed that 71% of companies admitted to cases of modern slavery in their supply chain; with 168 million child labor cases in 2017 and a proven improvement from 246 million cases in 2000 (Mcclelland, 2017). Consumers mindfulness of environmental and social problems in the apparel industries was evidence in the trickle down of profits; Goldman Sachs August 2005 report confirmed industry leaders in social, governance, and environmental outperformed competitors by 72% and stock market by 25% with ethical spending increasing by 26% between 2004 and 2005 (Duraisamy, 2017; Hamnett, 2008). Apparel industry fashions like Forever 21, Zara, Adidas, Gap among others no longer just make apparel for 4 times (seasons) a year but 11 or 15 times and are now considered as fast fashion with industries mass producing more styles thus making them more affordable and attractive for consumers to make purchases (Hamnett, 2008; Tan, 2016). The revolving door of new fashion trends contributes to consumers urge to look for bargains thus forcing the apparel industry to seek and produce goods at the cheapest rates Greenhouse, . Fast fashion’s main emphasis is faster turnaround from factories to stay competitive thus; some retail companies aren’t paying keen attention on the ethics in apparel production factories (Bhasin, 2014, June 04; Tan, 2016). The American apparel industry have sought out the ever-cheaper labor for production in global markets such as Latin America; Asia; Bangladesh; Honduras; Hong Kong; and India among others (Greenhouse, 2000). The companies that have sought out the cheap labor include Gap; Wal-Mart; H&M; Tommy Hilfiger; Esprit; Lee; J.C. Penny; Wrangler; Nike among others; the attractive apparel factories in global platforms include Bangladesh with 5000 factories that employ 3.2 million workers and 80% of the $24 European Journal of Economic and Financial Research - Volume 2 │ Issue 4 │ 2017 174 Jet Mboga ELICITING MILLENNIAL PERSPECTIVES ON ETHICAL PRACTICES AND MORAL CONDUCT WITHIN THE APPAREL INDUSTRY billion in exports is from garments (Cline, 2013; Montopoli, 2013; Paul& Mukherjee, 2016; Watkins & Ahmed, 2013). Overseas apparel industries have been associated with unethical practices that include child labor; low wages; health and safety risks; environmental degradation; animal cruelty; and 80% apparel workers not receiving mandated health benefits as confirmed by Labor Link survey (Greenhouse, 2000; Holland, 2013). The paid low wages aren’t sufficient to feed families; apparel manufacturing adding toxic compounds and heavy metals into water to help dyes cling into inorganic fabric creating pollution into ocean, lakes, rivers; direct exposure and working with harsh chemicals; poor ventilation thus factory space is filled with chemicals; cases of management in factories refusing employees in need of medical attention to vacate the premises; and even reported cases of hitting of workers (Cross, 2017; Greenhouse, 2000) (Holland, 2013). Other unethical practices in the apparel industry include animal cruelty affecting over million animals; established organization that fights for animal’s rights People for the Ethical Treatment of Animals (PETA) is an activism for animal rights (Gardetti, 2016). The unethical practices in the global markets have also included factories in Honduras hiring children under 14 years of age; Indonesia management squashing any efforts for labor unionization, China using child labor and prison labor (Greenhouse, 2000). Per the International Labour Organisation (ILO) forced labor is a worldwide concern affecting 21 million people; simply put there are 3 out of every 1,000 victims who are part of forced labor within Asia-Pacific with 11.7 million and other regions as shown in Appendix A (Mcclelland, 2017). Additionally, the Business and Human Rights Resources (BHRRC) research reported an estimate 250, 000 to 400, 000 illegal Syrian refugees’ exploitation in to garment factories in Turkey; brands such as New Look and NEXT are taking measures in addressing the exploitation of refuges in the apparel supply chain (Mcclelland, 2017). Forced labor in form of Child labor is prohibited in most countries but still exists today in some of the poverty-stricken countries in the world; ILO reported that around 260 million children partake in employment with an estimate of 170 million children engaged in apparel making to meet demands of Western companies in the U. S. and Europe among others (Cross, 2017; Greenhouse, 2000; Moulds, 2017). ILO estimated that 6 million children are in forced labor with 14 to 16 working hour days in poor working conditions with reported cases in Bangladesh apparel factories; yarn spinning in India; cotton seeds production in Benin; and harvesting cotton in Uzbekistan (Moulds, 2017; Peiris, 2005). Specifically, children are deemed suitable for tasks such as sowing cotton seeds, pollen transfer in cotton farming, and harvest delicate crops like European Journal of Economic and Financial Research - Volume 2 │ Issue 4 │ 2017 175 Jet Mboga ELICITING MILLENNIAL PERSPECTIVES ON ETHICAL PRACTICES AND MORAL CONDUCT WITHIN THE APPAREL INDUSTRY cotton among others (Moulds, 2017). Additionally, 60% children work in the spinning mills and yarn factories in India; children under 18 years of age have also been reported to work in the cut-make-trim stage in apparel making; embroidering; smocking (making pleats); and sequinning (Mcclelland, 2017; Moulds, 2017). To address child labor in Bangladesh; the signed agreement by Bangladesh Garment Manufacturers and Exports “ssociation ”GME“ , United Nations Children’s Fund UNICEF , and International Labor Organization in 1995 was to cease the use of child labor; Bangladesh has over . million children who work because of the parents’ inability to support and feed them (Dharmasena, 2000). Focusing on Bangladesh as an example, Bangladesh has history of fire catastrophes; the apparel industries in Bangladesh are susceptible to fires because of the low to no regulation on safety standards (CBC News, 2010, February 26). The pressure to meet scheduled deadlines given by Western companies is part of what contributed to Rana Plaza Bangladesh workers being beaten to continue working when the building was cracking and later collapsed killing over 1, 134 workers (Gearhart, 2015, October 06; Mcclelland, 2017; Yardley, 2013). Apparel retail industries were faced with backlash from consumers who made noise for the human labor abuse, animal abuse and natural resource in association with the Rana Plaza building collapse; the incident led to activists and the individuals to protest the unethical fashion (Gardetti, 2016). Additionally, media sources also called out retailers like Wal-Mart, Gap, H&M, The Childrens Place and Joe Fresh among others for taking advantage of poverty stricken areas to produce fast fashion clothes unethically without taking measures in safety and child labor in their sourcing to apparel factories and making minimal progress in addressing the factories that produce their apparel (Brucculieri, 2015; Greenhouse, 2000). The 21st century consumers are mindful of problems that impact social and environmental sustainability thus contributing to ample of consumers and activists vocalizing their concerns to industries on what needs to occur for their reputation and survival in the industry (Collins,2014; Hamnett, 2008). Locating clothing that are ethically produced while adhering to Fair Labor Standards can be problematic as the fast-fashion industries and common stores such as Wal-Mart and Costco selling $5.00 or less T-shirts (Holland, 2013). American Universities that included New York University; Georgetown; Duke; University of Pennsylvania; University of Washington State-Seattle; Cornell; Michigan; Penn-State; University of Wisconsin-Madison; and Columbia among others agreement with licensees that production of apparel bearing University logos had to be done by programs that the University saw fit to call on efforts to address European Journal of Economic and Financial Research - Volume 2 │ Issue 4 │ 2017 176 Jet Mboga ELICITING MILLENNIAL PERSPECTIVES ON ETHICAL PRACTICES AND MORAL CONDUCT WITHIN THE APPAREL INDUSTRY ethical practices in apparel industry thus signing the Bangladesh Safety Accord (Dawisha, 2014; Greenhouse & Harris, 2014). The addressing of unethical conduct in the apparel industry is openly discussed by manufacturers and retailers but the number of companies that put their words into actions are limited and the companies are reluctant to spend the money (Mcclelland, 2017). Can apparel suppliers and retailers tackle the unethical practices that are impacting humanity and integrate practices that would ensure social sustainability? The focus of this research was for an opportunity to acquire and understand millennials perspectives on the unethical conduct and fashion industry with relevance to apparel sourcing, manufacturing, industry sustainability. The millennials were important to understand in ethics and apparel industry because millennials are projected by Fortune to dominate the workforce by 2020 (Hyder, 2016); additionally, Accenture research confirmed that the 80 million millennials in U.S. spend $600 billion yearly and are projected to spend up to $1.4 trillion by 2020 with 30% in retail sales (Accenture, 2017; Schawbel, 2015). For viewing / downloading the full article, please access the following link: https://oapub.org/soc/index.php/EJEFR/article/view/225 European Journal of Economic and Financial Research - Volume 2 │ Issue 4 │ 2017 177