Colorado State University Building Ethical Supply Chains H&M in China Case Study

Description

Read the case study:  Kelly’s Assignment in Japan at the end of Chapter 9 of your text. 
Answer the following questions. Be sure to number your responses so your professor knows which question you are answering:
Explain the clashes in culture, customs, and expectations that occurred in this situation.
What stage of culture shock is Kelly’s family experiencing?

Turn back the clock to when Kelly was offered the position in Tokyo. What, if anything, should have been done differently and by whom?
Assume that you are Kelly. What should you do now?

POST
Carefully read the following Sage Business Case:Rae, M., (2021). Building ethical supply chains: The case of H&M in China. In SAGE Business Cases. (Links to an external site.) SAGE Publications, Ltd.Write a 4 page paper discussing the details for the assignment noted below. Be creative and use effective communication skills. Post the references used as a separate Word document. Make sure you structure your video in the following manner:IntroductionProvide a brief case summarySituationDescribe the details of the situation, making sure to include information on who, what, why, when, and how. You need to bridge the gap between one’s knowledge and the ability to form a hypothesis.Problems -Identify and provide a thorough explanation of the perceived and underlying problems, as well as the potential long-term effects.   Alternatives -Discuss alternatives or strategies that the company could implement.Include more than one alternative, detailing the advantages/disadvantages of each and applying the strengths and weaknesses within the company (e.g., Alternative 1, Alternative 2… using bullet points is fine). Discuss common considerations.What are the decision options?Are some stronger than others?What is at stake with each of these considerations?Recommendations and Implementation -Going forward, what should the H&M’s policy be in dealing with similar situations?Explain how you would implement this strategy within the company.In your paper, be sure to consider and address the following:What does it mean for companies to have an ethical supply chain?Why is an ethical supply chain problematic for H&M in this instance?What should H&M (and other brands facing this same backlash) do next?Use language and concepts taken from the assigned textbook reading and relevant research. You must include a minimum of three credible or industry references. Review the grading rubric to see how you will be graded for this assignment. 

Carefully read the following Sage Business Case:
Rae, M., (2021). Building ethical supply chains: The case of H&M in China. In SAGE Business
Cases. (Links to an external site.) SAGE Publications, Ltd.
Write a 4 page paper discussing the details for the assignment noted below. Be creative and use
effective communication skills. Post the references used as a separate Word document.
Make sure you structure your video in the following manner:






Introduction
o Provide a brief case summary
Situation
o Describe the details of the situation, making sure to include information on who,
what, why, when, and how. You need to bridge the gap between one’s knowledge
and the ability to form a hypothesis.
Problems o Identify and provide a thorough explanation of the perceived and underlying
problems, as well as the potential long-term effects.
Alternatives o Discuss alternatives or strategies that the company could implement.
o Include more than one alternative, detailing the advantages/disadvantages of each
and applying the strengths and weaknesses within the company (e.g., Alternative 1,
Alternative 2… using bullet points is fine).
o Discuss common considerations.
▪ What are the decision options?
▪ Are some stronger than others?
▪ What is at stake with each of these considerations?
Recommendations and Implementation o Going forward, what should the H&M’s policy be in dealing with similar situations?
o Explain how you would implement this strategy within the company.
In your paper, be sure to consider and address the following:
o What does it mean for companies to have an ethical supply chain?
o Why is an ethical supply chain problematic for H&M in this instance?
o What should H&M (and other brands facing this same backlash) do next?
Use language and concepts taken from the assigned textbook reading and relevant research. You
must include a minimum of three credible or industry references. Review the grading rubric to see
how you will be graded for this assignment.
Case
Learning Outcomes
Students should apply their learning in ethics and global operations/supply chain management to
discuss the tension between H&M and China, and to strategize the retailer’s next step.
Source: Photo by Kevin Frayer/Getty Images
The Issue
Last summer, H&M was one of several retailers who announced they would no longer use cotton
from the Xinjiang region in China, citing concerns and increasing consumer pressure about
human rights abuses in global supply chains. Roughly one-fifth of the world’s cotton is produced
in Xinjiang, but news reports suggest that the material from the region is made in forced labor
camps where ethnic minorities are being unlawfully detained.
Since at least 2016, Uyghurs, a Muslim Turkic minority with just over 12 million people in
Xinjiang, have been “retrained” via imposed labor programs and forced into detention camps.
The Chinese government says the camps are for job training to support economic development,
but evidence suggests otherwise.
In January 2021, the Trump administration banned all imports of cotton from the Xinjiang
region, including products made from the material, accounting for an estimated 1.5 billion
garments imported annually by American brands and retailers. On March 22, Britain, Canada,
the European Union , and the United States all announced sanctions on Chinese officials over the
treatment of Uyghurs in Xinjiang, causing China to retaliate by calling for a boycott against the
brands that had spoken out against Xinjiang nearly a year earlier. It is not immediately clear why
H&M has received the brunt of the backlash, but just hours after the sanctions were announced,
H&M had been canceled in China, with calls to boycott Nike and Burberry soon following.
H&M products were pulled from Alibaba Group’s Tmall and JD.com, China’s most popular ecommerce platforms; buildings and malls housing physical stores removed H&M signage; app
stores removed the H&M app; and high-tech “airbrushing” techniques erased the storefronts
from ride-hailing app Didi Chuxing and map services operated by Alibaba and Baidu. By the end
of March, H&M had completely disappeared from the Internet in China.
Why Is It News?
Online Chinese retailers bumped H&M from their inventory, a major issue for the fast-fashion
company since more than a fifth of shopping in China is done online. China’s large scale makes
it arguably the most important sales hub in the fashion industry. The Communist Party of China
often pressures foreign brands to adopt its positions on sensitive issues or in retaliation over
actions by these brands’ home governments. Most businesses comply with China’s demands
because the country is one of the biggest, fastest-growing markets, particularly for global
fashion. Several singers, actors, and influencers in China broke ties with shoe and clothing
companies who refuse to buy Xinjiang cotton. Influencers in China wield even more power over
consumer behavior than they do in Western countries and are often needed to legitimize brands
and drive sales in China.
Several other Western brands, on both the luxury and fast-fashion ends of the spectrum, are
struggling to respond to the mounting pressure to condemn the human rights abuses in Xinjiang
without triggering retaliation from the Chinese government and losing access to one of the
world’s biggest and fastest-growing markets. Conversely, other brands like Anta Sports, FILA
China and Muji have either switched to Xinjiang cotton or are prominently advertising their use
of it.
According to a report from Bain & Company, China is expected to be the world’s largest luxury
market by 2025, and is the only part of the world to report year-on-year growth (reaching USD
52.2 billion last year), making it a market that is forcing many brands to reconcile their bottom
line with ethical supply chains.

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