Contents

Introduction:................................................................................................................................................3
1 Section 1: Ethical Philosophies and Boohoo’s Unethical Business Conduct..............................................3
1.1 Theory Of Utilitarianism....................................................................................................................3
1.2 Deontology........................................................................................................................................5
1.3 Virtue Ethics.......................................................................................................................................6
2 Section 2: Ethical Decision-Making Deals And ‘Social Accounting’ Theories.............................................8
3 Section 3: Responses from Leaders and Employees.................................................................................9
4 Section 4: Recommendations for Ethical Improvement..........................................................................11
Section 5: Conclusion................................................................................................................................12
References.................................................................................................................................................13

Figure 1 Theory of Utilitarianism.................................................................................................................4

Figure 2 Theory of deontological ethics.......................................................................................................5
Figure 3 Virtual Ethics..................................................................................................................................7
Figure 4 Ethical Leadership from Leader toward employee.........................................................................9
Introduction:
Business ethics can be defined as the unwritten endorsement of the rules governing
organizational conduct in that they conform to the approved norms of conduct in a society (Crane
& Matten, 2021). Using the general concept of CSR it is possible to cover a vast amount of
problems that relate the business to labor practices, environmental issues, etc., it is crucial for the
building up of the trust between the business and its stakeholders. Ethical business practices
improve its long-run achievement by building up a good image, increasing customers’ trust, and
maintaining an organization’s conformity with the existing laws and regulations (Boatright,
2020). But when it comes to the unethical practices the organization suffers a lot of reputations
and legal consequences as well.

The perfect example of ethical practices violation in the fashion industry is Boohoo which is
involved in labor Related: unethical labor practices of fast fashion companies Exploitation and
environmental pollution. In the years of 2010 and 2020 Boohoo got accused of practicing ethical
wrongs in its labor practice mainly in its supply chain workers endure poor working conditions
and low paid. Moreover, Boohoo’s production systems negatively impacted on the environment
through; Water pollution and utilization and Carbon emission among other generic ills inherent
in a fast fashion manufacturing system (BBC News, 2021). These issues are some of the nad
smaller ethical question that many companies ions the fast fashion industry (Bramley, 2021).

1 Section 1: Ethical Philosophies and Boohoo’s Unethical Business

Conduct
1.1 Theory Of Utilitarianism
According to (Mill, 2021) theory of Utilitarianism – a consequentialism ethical theory – the
permissibility or otherwise of an act is defined solely by its capacity for generating the greatest
level of utility for the largest number of entities. Some of the problems associated with the fast
fashion model that Boohoo uses, might not necessarily be so where utilitarianism is concerned,
given that Boohoo makes affordable clothes to millions of customers hence providing them joy.
The consumer gets the opportunity to wear fashionable clothes at relatively low cost, while the
company’s shareholders receive monetary profit. Nevertheless, this approach proves to be rather
naive with regard to many social and environmental consequences of fast fashion in the distant
perspective.
 Figure 1 Theory of Utilitarianism
Source: (LAW Notes)
While some pointed out this may bring advantage to the consumers in case of acquiring clothes
from Boohoo at cheaper prices than other sellers, still overall, it has negative repercussions as
Boohoo continues to exploit the labors and contribute to ecological pollution. For instance, the
supply chain of Boohoo has been associated with undesirable working conditions and relatively
very low wages for workers not only firms in the UK suppliers but also those overseas and most
of the workers have been denied their human rights. Further, it indicates that the company’s
production line has impacted water pollution and carbon emission polluting the climate and the
future generation (BBC News, 2021). Therefore, treating Boohoo’s practices under utilitarianism
shows more negative impact than positive since they negatively affect the environment and
workers.

On the other hand, some of the supporters would argue that fast fashion creates employment for
the people in countries that have few other opportunities economically. Thus, reemploying
people, including offering a job even if the working conditions are as poor as in sweatshops,
companies such as Boohoo contribute to the economic growth of disadvantaged districts (Butler,
2022). While there is some merit in this argument, it fails to consider that most of these jobs pay
incredibly low wages, are deemed as low skill, offer poor working conditions and no chances of
improving on the living standards of the employees they produce (Leach, 2020). This is due to
the fact that, while fast fashion can indeed have certain utilitarian potential, in the light of its
unethical behavior, anything but dubious advantages are possible.
1.2 Deontology
As put forward by Immanuel Kant, deontological ethics show that the rightness of an action is
always based upon the fact of volition, or the commitment to act in pursuance of rules or duties
rather than consequences (Kant, 1785). Deontological theory has it that people and companies
have a responsibility of treating people wholesomely and equitably for they are valuable.
Obviously, the relationship that Boohoo has with its workers falls foul of deontological theory
because the company exploits its workers by utilizing sweat shops.

Figure 2 Theory of deontological ethics

Source: Deontological Ethical Theories, 2021
The deontological perspective the company has ethical duty to respect its workers no matter how
advantageous. For Boohoo it might be to take advantage of cheap labor. Employees in Boohoo’s
supply chain work under conditions that are comparatively less than desirable, during long hours
and for less wages, profit from their forced labor robs them of the opportunities to live decent
lives or to have control over their lives (Meagher, 2020). These conditions contradict the Kantian
ethos where one should not use another equally or at all as a tool to his or her objectives. It also
clearly shows that Boohoo lacks respect for this moral duty in giving profit prioritization over
concerns for workers (Lurie, 2004).

Deontologists would give an argument that Boohoo has met its ethical responsibilities as an
organisation since it hires its workers and pays them wages (Crane & Matten, 2021).
Nevertheless, this argument does not suffice especially when considering exploitation of the
work. This is true despite the fact that Boohoo offers its workforce employment, its workers are
subjected to inhuman rights at the workplace. Immanuel Kant of the deontological theory asserts
that human beings must be treated like ends not means regardless of the agreements they form.
However, the current conditions perpetrated on Boohoo’s workers include exposure to dangerous
conditions or low wages do not meet this ethical responsibility (Brennan, 2018).

It will also be relevant to briefly look at which of deontological concerns are violated by
Boohoo’s environmental policies. The second reason is more about the company’s
responsibilities to protect the future generation from the impacts of the climate change the
organisation has the responsibility to reduce its impact on the natural environment. However,
Boohoo inadequate compliance of this duty illustrate the following: Boohoo uses
environmentally dangerous production techniques like water wastage and polluting the
environment. From the Ethics of Kant, Boohoo would be forced to practice sustainable methods
of production although this will decrease the profits earned. Therefore, it is even evident that
Boohoo’s actions are actually unethical from the deontological perspective. A failure to protect
young workers from physical, mental, and sexual harassment is a clear betrayal of the company’s
responsibility to respect individuals’ rights because workers are people with individual human
rights. It is therefore deontological that business concerns, including Boohoo, should uphold the
rights and worth of their various stakeholders, instead of concentrating on the bottom-line.

1.3 Virtue Ethics

Virtue ethics involves the moral character of the person, and it was published by Aristotle in 350
BCE People should act virtuously in order to be virtuous in their actions. Perhaps a virtuous
organisation would care for the welfare of its employees, the buyers and the earth in the sense
that it would not just seek to milk as much profit out of them as possible. In the case of Boohoo
though, the situation can be seen as a lack of virtuous leadership and corporate governance. This
causes Boohoo to fail to have virtues such as being fairly and responsibly engaged in carrying
business practices such a labor and emissions (Bramley, 2021).
 Figure 3 Virtual Ethics
Source: (Megha, 2016)
Unlike with the other two theories, a company that adheres to the individual character virtue
ethics, work character ethics and professional character ethics as shown in above figure which
would try to make profits (Megha, 2016).

Boohoo, on the other hand, focuses on generating profits at the cost of investing in company
longevity, the immediate impact on the environment as well as within its supply chain (Leach,
2020). This lack of establishment of virtuous behavior in the organization has resulted in public
condemnation by the human rights organizations and environmental groups (Butler, 2022).

The friends of virtue ethics might suggest that Boohoo still has a chance to amend and to become
more ethical because the firm can transform its leaders and thus its values (Crane & Matten,
2021). Yet, the lack of attention to the ethical issues as well as the company’s failure to cease
misconduct even in the light of the latter’s negative consequences for the public proves that the
company’s profound transformation in terms of virtuous action is needed. Lack of such reform
will only mean that Boohoo will be continuing to operate in the wrong side of corporate
governance.

Therefore, it can be said that fast fashion giant Boohoo Companies have acted unethically which
goes against the main Utilitarianism, Deontological and Virtue Ethic Principles. Though the
brand is giving the consumer affordable fashion, the environmental and social implications are
economically costly. One is forced to conclude that the company’s attitude toward workers and
the lack of regard for the environment represents a lack of honoring moral obligations and —
more importantly — virtue. Boohoo would need to decentralize and rebuild social trust, and
improve its corporate governance and environmental responsibilities drastically in order to meet
its goal of becoming more ethical.

2 Section 2: Ethical Decision-Making Deals And ‘Social Accounting’

Theories
Ethical decision making therefore pertains to the process through which an individual or an
organization defines or selects proper operation mode on the basis of achievable and
unachievable standards of ethical norms and moral-vales (Jones, 1991). This framework is useful
in organizational decision-making processes because it assists the business in full understanding
of the scenario where profit-making goals may clash with ethical principles. Applying ethical
decision-making theory, the unethical behaviour evidenced at Boohoo include labour
exploitation and negative impact on the environment can be subsequently critically analysed.

Ethical decision-making was not well applied by Boohoo at all because the company focused
more on financial profits rather than being sustainable and responsible (Leach, 2020). The
decision to outsource production to sweatshops, especially in the UK is an act that inconsiderate
of workers’ welfare in the company. These Include: Boohoo fixed on the lowest cost price of
labor without having any regard to the negative consequences of offering low wages to the
employees besides exposing them to hazardous working conditions. Based on the ethical
decision-making tool, a better ethical decision would have been reached if the company had to
strike a balance between the desire to make profits with the need to ensure that employee is paid
fairly and that their workplaces are safe.

In addition to this, its environmental steps also show that the company does not do what is right
by its environment. High levels of pollution and depletion of natural resources resulted from
toxic production processes made at the company to reduce production costs and increase the
company’s profitability (Bramley, 2021). On ethical ground, the management should have
thought about the effects of its actions on the environment and try to use instruments that would
be less harmful to the environment even if this led to increased costs in the short run. Its lack of
consideration for environmental sustainability while it makes its decisions stains the company for
unethical conduct.
Critics of social responsibility at Boohoo might reason that it is high time that the company’s
advocates for fast fashion again argued that competitive forces in the industry call for the
measures that lead to accelerated cost reduction as a maneuverable path to firm profitability and
consumer affordable products (Butler, 2022). However, as the ethical decision-making theory
describes (Jones 1991), the implications for the utilitarian approach are wider in the
considerations – all of the stakeholders in a given business rather than only the shareholders and
the consumers. First, from the point of view of negative externalities, the devastation of the
environment that is proved to be the result of the activities of Boohoo also shows that the
decision-making of the company would have had more negative impacts than positive ones for
the society by exploiting vulnerable workers.

Therefore, ethical issue on Boohoo’s business can be analysis critically with the help of ethical
decision-making framework. The social cost to the company’s workforce and to society at large
as well as the environmental impacts of the company’s production remained unseen and
disregarded. Boohoo acted unethically for the sake of profits disregarding major tenets of ethical
decision-making processes which are suicidal for any organization’s reputation and longevity.

3 Section 3: Responses from Leaders and Employees

The manner that a company handles allegations of unethical behavior is an important factor in
ascertaining whether or not a company shall recover from the negative impact of its reputation.
Regarding Boohoo analysis, both the leaders’ and workers’ reactions to the public outrage about
various unethical actions undertaken by the company were inadequate, which confirms low
levels of ethical change commitment.

Figure 4 Ethical Leadership from Leader toward employee

 Source: (Asif, 2020)
First of all, Boohoo’s managers tried to play down the charges relating to bondage labor and the
damage done to the environment. The firm released assurances that it was operating within the
laws of the countries in which the factories were located, but these laws were frequently weak or
simply inadequate to safeguard employees’ rights (Leach, 2020). This response seemed to pass
the buck on the company and caused added ire from human rights organizations and some
environmental groups (Butler, 2022). Unsurprisingly, Boohoo’s management had little choice but
to defend its business model, instead of addressing the source of the unethical practices.

Nevertheless, pressured by the public, including media highlights of the problematic situation,
Boohoo realized some of its drawbacks and gave some promises about the changes in labor
relations in supply chains as well as the company’s initiatives aimed at decreasing the negative
impact on the environment (Bramley, 2021). The company committed itself to the
implementation of new audited supplier’s processes and gaining more advanced sustainable
production methods. Although these changes marked progress, some regarded them as
inadequate and insufficient to deal with the intrinsic problems in the service provision by the
organisation (Meagher, 2020).

The outcome of these responses was rather a mixed one. Consequently, there were human rights
violations as consumers boycott products from Boohoo in what seemed to be as a result of the
bad publicity the company received financially its sales reduced temporarily (Skorin-Kapov,
2018). However, the company’s attempts at changing the situation, and starting to engage in CR
practices, prevented the deterioration of its position further and resulted in a slow but steady
improvement of its position on the market. Nevertheless, the social negative impact such as labor
abuse and environmental pollution that was evident from the activity of the company remained
subjects of concern.

In an environmental aspect, on the social responsibility of Boohoo to lead a less carbon foot
printing business and to integrate more sustainable material it serves efficiency but according to
the critics, the process of doing it was sluggish and merely responsive instead of being proactive
(Bramley, 2021). Employees within the company also said the same thing about leadership in the
company, arguing that they were not transparent, and that the company was slow to address the
problems, which gave an indication that, there was a gap between what the company was saying
to the public and what they were doing on the inside.

Thus, it is worth stating that, although being subject to criticism, Boohoo’s leaders also tried to
cope with the ethical misconduct, but their first reactions were delayed and ineffective. This
impact has had radical social and even environmental implications the recovery of which has
been slowed down by the slow process of change.

4 Section 4: Recommendations for Ethical Improvement

This means that the company owes it to its stakeholders to effect major changes in its operations
to adhere to higher standards of ethics with reference to the aforementioned vices affecting the
company’s labor environment and its impact on the environment.

1. Better accessibility of supply chain information

First, there is the matter of sweatshop exploitation of workers, which has become one of
the major precariously underlined at Boohoo. To counter this, the company should carry
out strict and credible reviews of supply chain management. Suppliers must be audited
often by third parties to implement fair labor standards including paying living wages and
offering safe working places (Butler, 2022). It would be beneficial that these audits are
released to the public so as consumers and stakeholders can report any inconsistencies
from the brand.
1. Buy Sustainable Production Practices
Environmental impacts include pollution and damage to the environment due to the use
of environmentally damaging production processes common at Boohoo (Bramley, 2021).
To this end, the company needs to embrace the proper sustainable raw material, water and
carbon footprint savings where necessary. Possible measures include steering to circular
products, for instance, recycling fabric or using renewable power of Boohoo (BBC News,
2021).
2. Pen Out a Corporate Social Responsibility (CSR) Plan
In the same respect, Boohoo needs to set a broad-spectrum CSR plan which complies
with global CSR essentialities for a long-term foreseeable ethical behavior. This strategy
should be to work on the ethical issues management such as labour relations,
environmental conservation and corporate social responsibility while engaging with the
 public (Crane & Matten, 2021). The measures outlined here that should be taken by the
company incude goal setting and reporting Periodly at best annually, But in a way to
ensure that there is commitment of the entire Organisational and related structures to
ethical practices. Stakeholder CSR activities engagement will also improve Boohoo’s
image and lead to increased credibility.

Implementing these recommendations will lead Boohoo to strive to transform into an ethical and
socially responsible company committed to people and the environment.

Section 5: Conclusion
Altogether, it is essential to pay attention to the following unethical practices at Boohoo: labor
relations and environmental pollution. Having evaluated the brand by using ethical theory of
utilitarianism, deontological and virtue ethical theories, it is evident that intersect of making
profits it has shown minimal ethical considerations. However, if the firm conducts supply chain
audits, produces sustainable products, and establish a detailed CSR framework, its ethical
position will improve. Ethics are important in fashion especially because it sustains the practices,
safeguards the human capital as well (‘There must be set ethical standards to make sure that
something sustainable, human & consumers’ trust are defended.’)
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