Fast fashion has become a popular trend, as the industry generates over 1.2 trillion dollars each year .
The industry is generating tons of money, and it is also the second-highest polluter of clean water1.
Though the companies in the industry have the financial ability to change the way they produce their clothing, textile production has still doubled since the year 2000 .
Some brands have invested in transparency. However, De Castro argues that transparency is only the first step since it necessarily does not lead to best practice2.
Another challenge the fast-fashion chain is facing is a loss in profit. As mentioned above, the industry generates 1.2 trillion dollars each year. The US earns 250 billion dollars out of the 1.2 trillion dollars.
The US has been able to increase its profit by opening factories in developing countries to have cheap labour1.
A worker in the top five global fashion brands earns in their lifetime the same as what a CEO of the same brand achieve in only four days2.
This shows how cheap their labour is. A CEO in the US makes in a day the same as a US worker makes in one year2.
Therefore, it would be more expensive to have laboured in the US, even though it could help the companies adapt socially and environmentally2.
Therefore, most fashion companies avoid adopting socially and environmentally responsible policies because the companies would generate less profit when investing in better conditions for workers and sustainable production2.
However, not adopting socially will also cause the companies a loss in profit . A good CSR strategy will benefit companies financially since if they don’t embrace these ideals
they will quickly find that their consumers have moved on to other brands that do, taking their money elsewhereError! Bookmark not defined..
“Costumers respond well to these positive social impact messages, rewarding the brand with greater sales”Error! Bookmark not defined..
78% of Americans and 90% of African Americans believe that companies need to stand up for social justice issues, and 76% of Americans would refuse to support a business that supports issues contrary to their beliefs .
Companies can, therefore, lose profit long-term if they do not adopt socially and environmentally responsible policies.
They will also lose profit short-term adopting these socially and environmentally responsible policies, as they will have more expensive labour.