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Business ethics

Student's Name

Instructor

Institution

Course

Date
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Business ethics

1. "What are the ethical and social issues in this case?"

Everlane was created on ethical production principles while being fashionable and cost-

conscious for customers. Everlane was founded on the principle of extreme transparency. They

profess to have the global highest factories and attempt to demonstrate this via openness. This is

accomplished through spot checks of the factory's operational processes and facility visits.

Instead of breaking relations with a plant that failed the audit, they aim to assist it in boosting its

ratings to match their criteria. This is partly owing to their small size, which makes it difficult for

them to locate reliable, low-cost producers. By personally touring their Chinese sources, the

CEOs aim to create positive connections with their employees (Carrol et al., 2018).

Manufacturers must agree to have their facilities filmed and photographed and provide

information regarding their work to conduct business with Everlane. Everlane aims to influence

the textile sector employees through its openness positively.

2. "How difficult is it for a company like Everlane to follow through on

its mission? What are the challenges to its commitment to radical transparency in

global supply chains?"

For a company maintaining this degree of transparency, the issue for a small business like

Everlane is that it is tough to find excellent quality, low-cost, and effective suppliers that are

prepared to be honest and respect their fundamental beliefs. Since they are a small company,

they can meet and bargain with their suppliers in person, weeding out those who do not share
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their beliefs (Carrol et al., 2018). Given Everlane's scale, keeping prices low to be competitive is

difficult, as it usually necessitates relying on Chinese partners. An absence of distribution

network openness can lead operational problems that can stop organizations tracks and put its

reputation in jeopardy. Shipments with absent origin paperwork, might be rejected or delayed d

at ports for instance. The penalties of this expensive interruption could have repercussions across

the complete supply chain.

3. "What different ways a fashion company can be ethical?"

Fair Trade USA, because it has more than 334 compliance standards for textile facilities

in 2012, is among the methods a fashion firm may be ethical. Using organic or repurposed

materials is another option. They can also work with factories that follow ethical manufacturing

methods (Carroll et al., 2018). Fashion firms may also be ethical by conducting due diligence

upon the manufacturers in their distribution chain and ensuring that they only collaborate with

companies that support ethical or safe working conditions for their workers by ensuring that they

work in reasonable ways. Furthermore, fashion firms have an ethical obligation to give quality to

their customers. The fashion company should not restrict the sovereignty of their employees by

prohibiting them from establishing unions. Fashion companies also should not use forced or

child labor. In addition, the fashion firm should adhere to the United Nations' fashion goals,

which serve as a benchmark for social norms that brands should reach. In addition, the firm

should have a "closed-loop system," which means that instead of the linear "produce, use,

dispose of" model, they must follow a "circular" manufacturing line. Companies design, make

and market their clothing using the least amount of waste and resources possible. Whatever

garbage they do generate is recycled or put back into the system. This also applies to their water,
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deadstock fabric, and any material used to cure their garments and their energy. Ethical fashion

is apparel that is developed, manufactured, and marketed to cause the least amount of impact on

humanity and the ecosystem. It enriches those working lower down the chain and encourages a

better living for everybody, not only the wealthy—in the purest sense.

4. "What interest groups might support an ethical fashion group like Everlane? How

could they do this?"

Environmental and conservation organizations appear to be the most vocal promoters of

ethical and sustainable fashion. Several organizations educate people about ethical fashion and

charitable organizations that assist and donate to ethical fashion. They feel that the fashion

sector, which currently employs more than three hundred million people globally, should take

action to minimize waste and the use of natural materials. In addition, to aid in the alleviation of

harsh working situations in several of the poorest nations that provide them (Assoune).

Consumer organizations interested in supporting ethical workspaces or supply chains might

publicly promote fashion companies like Everlane. Nonprofit organizations such as Fair Trade

USA could continue encouraging them; the yearly Fashion Revolution Day is an additional

approach to guarantee that ethical fashion companies get the advertising and publicity they need

to thrive. Furthermore, retail establishments may elect to carry exclusively ethically transparent

brands.

5. "What are the other stakeholder groups that are involved with

Everlane? How would each stakeholder view Everlane's quest for transparency and

ethical production?"
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Manufacturers, workers, Investors, shareholders, and customers are among the

stakeholders connected in Everlane. Manufacturers might find Everlane's heightened monitoring

intrusive and damaging to their company. Everlane employees might enjoy the company's

mission-driven strategy to fashion. Before investing, investors and shareholders must appreciate

the objective such that they are not discouraged when growth is hampered by corporate practices,

more scrutiny, and perhaps more significant expenses. Consumers may appreciate the openness

because they no longer have to pick between fashion and personal ethics. Consumers like

transparency because it gives them insights into how a company runs and thinks about the job

they accomplish.

Business ethics improve the ruling by defining suitable activities not ruled by the

administration. Corporations establish business ethics to inspire employee honesty and obtain

confidence from vital stakeholders, including consumers and investors. Transparency Has the

Potential to Open Up New Business Opportunities. Gaining insight into the supply chain may

help it monitor and enhance business suppliers' environmental or social standards, however the

benefits do not end there. Improved exposure can also provide doors to new markets.

6. "How does Everlane's approach to its supply chain differ from a large

global buyer like Nike?"

Everlane's strategy is more ethical than Nike's, predicated on profit. Nike is all about

minimizing production costs to increase earnings. While Everlanes is nearly the same, more care

and thought are placed into how people are compensated and handled. Not only at work but also

in after-work and living situations. They are much more concerned with living circumstances
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than with making the most money. Furthermore, Everlane lacks the purchasing power of a huge

corporation such as Nike, making it harder for the firm to persuade producers. The increases in

the cost of necessary items impact purchasing power. As a result, the persistent rise in the pricing

of necessary items erodes buying power and harms small businesses. Purchasing power also is

influenced by the demand for commodities. Whenever demand for commodities grows, so do

prices, and buying power suffers as a result. Accessibility might also be a problem for small

providers. Accessing suppliers in China, for instance, can be tough for small suppliers. SME

access to strategic resources, such as money, managerial skills and capacity, and information

networks, may be hampered by specific hurdles and market failures, putting them at a

competitive disadvantage in the globalized and digitalized economy.

7. "Is the Everlane business model sustainable? Or is it just temporarily popular

because it is unique? Are competitors likely to follow?"

The Everlane company model, in my opinion, is long-term viable. There is a lot of

concern about "Sweat Shops" in other countries, as well as the environment and child labor.

There is a sizable market for those who desire to feel good about themselves by buying from a

firm assisting in solving these issues. Given their pricing, not everybody will be able or willing

to contribute financially to their mission. As a result, there will constantly be a demand for

quickly made goods. Since Everlane's inception, a slew of new businesses has followed in their

footprints. Many more include Patagoni, Reformation, Stella McCartney,  British designers, and

UN Sustainability Ambassador (Garcia,  2019). Also, Everlane's business model appears to be

sustainable in the long term with mission-driven companies that care about social concerns and

ethical commercial practices. It will be a popular concept if Everlane can make it profitable
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while still appealing to customers. Competitors will start following if consumers show interest in

firms like Everlane by spending money with them.

References

Assoune, A., Top 10 Sustainable Fashion Organizations and Initiatives

Retrieved from: https://www.panaprium.com/blogs/i/sustainable-fashion-organizations

Carroll, A. B., Brown, J. A., & Buchholtz, A. K. (2018). Business & Society (3rd ed.). Cengage

Learning.

Garcia, D., 2019, From Patagonia to Everlane: how to fit the fashion system into sustainable

DNA Retrieved from:

https://www.themds.com/back-stage/from-patagonia-to-everlane-how-tofit-the-fashion-

system-into-a-sustainable-dna.html