Department of Political Science Chair of International Organization and Human Rights HOW FASHIONABLE IS THE CORPORATE SOCIAL RESPONSIBILITY? Human rights, workers’ safety and environmental sustainability in the fashion industry. SUPERVISOR: Prof. Francesco Cherubini CANDIDATE: Ginevra Bartoli Matr. 630952 CO-SUPERVISOR: Prof. Marcello Di Paola ACADEMIC YEAR 2017/2018 Table of Contents: Introduction ............................................................................................................................................... 1 Chapter 1: Corporate Social Responsibility .............................................................................................. 5 1.1 Origin .............................................................................................................................................. 5 1.2 Development of CSR’ concept ....................................................................................................... 9 1.3 Sethi and Carroll thought .............................................................................................................. 12 1.4 Ratio between CSR and SDGs ...................................................................................................... 15 1.5 Stakeholder theory ........................................................................................................................ 19 1.6 CSR explained by "Socrates: the corporate social ratings monitor" ............................................. 23 1.6.1 Community support................................................................................................................ 24 1.6.2 Diversity ................................................................................................................................. 25 1.6.3 The employee support ............................................................................................................ 26 1.6.4 Environment ........................................................................................................................... 28 1.6.5 Human rights .......................................................................................................................... 29 1.6.6 Product ................................................................................................................................... 31 1.7 International legal support ............................................................................................................ 32 Chapter 2: CSR: business strategy and application tools ........................................................................ 36 2.1 CSR necessary for business development ..................................................................................... 36 2.2 Fundamental certification for the CSR ......................................................................................... 43 2.3 Instruments and codes of conduct of the CSR .............................................................................. 48 2.4 CSR and Communication theory .................................................................................................. 55 2.4.1 The greenwashing trap ........................................................................................................... 59 2.4.2 Main communication’s instruments ....................................................................................... 62 2.5 CSR managers: yesterday, today and tomorrow ........................................................................... 65 Chapter 3: CSR in the fashion industry .................................................................................................. 69 3.1 Premises for a responsible fashion system .................................................................................... 69 3.2 The Triple Bottom Line theory ..................................................................................................... 72 3.3 Environmental sustainability......................................................................................................... 76 3.4 Welfare and worker safety ............................................................................................................ 81 3.5 Fashion industry’s innovative way to communicate through social media .................................. 87 Chapter 4: Case study: GUCCI ............................................................................................................... 89 4.1 Origin ............................................................................................................................................ 89 4.2 Interview to Gucci CSR department ............................................................................................. 92 4.2.1 Gucci Corporate Sustainability and Responsibility Policy .................................................... 93 4.2.2 Gucci’s Sustainable Principles ............................................................................................... 95 4.2.3 Animal welfare and “Gucci Fur Free” ................................................................................... 97 4.2.4 Gucci Equilibrium .................................................................................................................. 98 4.2.5 Gucci technical innovation................................................................................................... 102 4.2.5 Summing up Gucci’s CSR ................................................................................................... 103 Conclusion ............................................................................................................................................ 105 Acknowledgements ............................................................................................................................... 109 Bibliography.......................................................................................................................................... 110 Summary ............................................................................................................................................... 118 Introduction The evolution of the concept of Corporate Social Responsibility (CSR) dates back to the early '30s and then it was revived and deepened in the 50s, decade that corresponded to the beginning of a new industrial era of the modern society. This period could be defined the incubator of the responsible and sustainable process that today represent and supports the largest companies. The period, however, was marked by a purely preparatory phase remaining on the theoretical without ever entering into facts. The '70s instead concretize what was previously theorized and put it into practice. In this decade a variety of interpretations on the definition and application of CSR were developed, further compared to the '60s, but still without the full recognition by the business community. Between the 1980s and 1990s the new concept of CSR, supported by a new business model, the rule of law and the ethical approach, received real and legitimate attention among world business executives. The attention of consumers is growing for the safety, quality and origin of the products. Consumer choices are increasingly a critical factor of success, beyond many others, such as financial scandals, the increased sensitivity of the community and the pressure of non-governmental organizations, which push companies to better manage environmental and social risks. The development of a sustanable awareness and an evolution of social reporting are the answers to the crisis of legitimacy in which companies have fallen due to economic, social and cultural changes in each individual countries. However, the "crisis" has not manifested itself everywhere with the same intensity: this is why a differentiated development of social accountability (and social responsibility) has been produced. Consumer choices are increasingly linked to intangible factors and reputation is increasingly a critical issue for business success. We must therefore add to the increased sensitization of the community, the pressure of non- governmental organizations, which push companies to better manage environmental and social risks. Within the thesis the topic is dealt as divided for what it was and for what it has become, thus making a historical itinerary from the origin that saw it born, coming 1 to the present, time in which the CSR becomes a true business strategy supported in almost all the best companies of the world. We define Corporate Social Responsibility "voluntary integration of social and ecological concerns of in companies’ operations and in their dealings with stakeholders. Being socially responsible means not only fully meeting legal obligations, but also going beyond it, investing in human capital, environment and relations with stakeholders (European Commission, 2001). The reasons why companies started to worry about obtaining social legitimacy from stakeholders have to be found in the change in the economic landscape, operating in a globalized and hypercompetitive context. The dimensions to which the CSR impacts are as internal as external, it would be to say that businesses can take a series of actions, adopt measures, collaborate with a range of actors and carry out programs that can have two fundamental directions, which can then be developed along different trajectories. Strategic change is sometimes viewed as a threat