IDEAS home Printed from https://ideas.repec.org/a/eee/recore/v104y2015ipbp348-353.html
   My bibliography  Save this article

Risk and benefits brought by formal sustainability programs on fashion enterprises under market disruption

Author

Listed:
  • Li, Wing-Yan
  • Choi, Tsan-Ming
  • Chow, Pui-Sze

Abstract

The recent global 2008 financial crisis created a big market disruption to the fashion industry. Since then, it has seriously hurt the performance of many companies in the fashion industry. It is known that implementation of formal sustainability programs of most fashion companies relate a lot to their resource management as well as supply chain structure. A natural question on “how the formal sustainability program affects the fashion enterprises under the market disruption” hence arises. To answer this question, we collect publicly available real data of 45 listed fashion enterprises and conduct an empirical statistical study. To be specific, we compare the business performances of the fashion groups with and without formal sustainability programs before and after the market disruption. We find some statistically significant results which reveal that fashion enterprises which have not established formal sustainability programs perform relatively well under the market disruption. After that, we drill deeper and show that the “fashionable” fashion groups (SFFGs) which have developed sustainability programs suffer a drop in ROE and there is no enhancement in any other dimensions. For the “basic” fashion groups (SBFGs), their sales drop after market disruption but actually they can reduce cost and maintain profitability. We further discuss our findings and generate important managerial insights.

Suggested Citation

  • Li, Wing-Yan & Choi, Tsan-Ming & Chow, Pui-Sze, 2015. "Risk and benefits brought by formal sustainability programs on fashion enterprises under market disruption," Resources, Conservation & Recycling, Elsevier, vol. 104(PB), pages 348-353.
    • Handle: RePEc:eee:recore:v:104:y:2015:i:pb:p:348-353
    DOI: 10.1016/j.resconrec.2014.08.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921344914001748
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resconrec.2014.08.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sundarakani, Balan & de Souza, Robert & Goh, Mark & Wagner, Stephan M. & Manikandan, Sushmera, 2010. "Modeling carbon footprints across the supply chain," International Journal of Production Economics, Elsevier, vol. 128(1), pages 43-50, November.
    2. Magali Delmas & Vered Doctori Blass, 2010. "Measuring corporate environmental performance: the trade‐offs of sustainability ratings," Business Strategy and the Environment, Wiley Blackwell, vol. 19(4), pages 245-260, May.
    3. Wong, Christina W.Y. & Lai, Kee-hung & Shang, Kuo-Chung & Lu, Chin-Shan & Leung, T.K.P., 2012. "Green operations and the moderating role of environmental management capability of suppliers on manufacturing firm performance," International Journal of Production Economics, Elsevier, vol. 140(1), pages 283-294.
    4. Choi, Tsan-Ming, 2013. "Local sourcing and fashion quick response system: The impacts of carbon footprint tax," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 55(C), pages 43-54.
    5. Lin, Chin-Huang & Yang, Ho-Li & Liou, Dian-Yan, 2009. "The impact of corporate social responsibility on financial performance: Evidence from business in Taiwan," Technology in Society, Elsevier, vol. 31(1), pages 56-63.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. André Luiz Romano & Luís Miguel D. F. Ferreira & Sandra Sofia F. S. Caeiro, 2021. "Modelling Sustainability Risk in the Brazilian Cosmetics Industry," Sustainability, MDPI, vol. 13(24), pages 1-26, December.
    2. Marta Negri & Enrico Cagno & Claudia Colicchia & Joseph Sarkis, 2021. "Integrating sustainability and resilience in the supply chain: A systematic literature review and a research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 2858-2886, November.
    3. Wang, Fang & Gao, Yue & Dong, Wenxu & Li, Zhiwei & Jia, Xiaoping & Tan, Raymond R., 2017. "Segmented pinch analysis for environmental risk management," Resources, Conservation & Recycling, Elsevier, vol. 122(C), pages 353-361.
    4. Kuo-Kuang Fan & Yi-Ting Chang, 2023. "Exploring the Key Elements of Sustainable Design from a Social Responsibility Perspective: A Case Study of Fast Fashion Consumers’ Evaluation of Green Projects," Sustainability, MDPI, vol. 15(2), pages 1-20, January.
    5. Savindi Caldera & Sherif Mohamed & Yingbin Feng, 2022. "Evaluating the COVID-19 Impacts on Sustainable Procurement: Experiences from the Australian Built Environment Sector," Sustainability, MDPI, vol. 14(7), pages 1-15, March.
    6. Guangying Xie & Shengyan Wu & Zhengjiang Song, 2022. "Focus on Innovation or Focus on Sales? The Influences of the Government of China’s Demand-Side Reform during COVID-19 and Their Sustainability Consequences in the Consumer Products Industry," Sustainability, MDPI, vol. 14(20), pages 1-21, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Meng, Xiaoge & Yao, Zhong & Nie, Jiajia & Zhao, Yingxue & Li, Zenglu, 2018. "Low-carbon product selection with carbon tax and competition: Effects of the power structure," International Journal of Production Economics, Elsevier, vol. 200(C), pages 224-230.
    2. Dubey, Rameshwar & Gunasekaran, Angappa & Samar Ali, Sadia, 2015. "Exploring the relationship between leadership, operational practices, institutional pressures and environmental performance: A framework for green supply chain," International Journal of Production Economics, Elsevier, vol. 160(C), pages 120-132.
    3. Zhitao Xu & Adel Elomri & Shaligram Pokharel & Fatih Mutlu, 2019. "The Design of Green Supply Chains under Carbon Policies: A Literature Review of Quantitative Models," Sustainability, MDPI, vol. 11(11), pages 1-20, May.
    4. Choi, Tsan-Ming, 2015. "Sustainable management of mining operations with accidents: A mean-variance optimization model," Resources Policy, Elsevier, vol. 46(P1), pages 116-122.
    5. Chia-Wei Hsu & Tsai-Chi Kuo & Guey-Shin Shyu & Pi-Shen Chen, 2014. "Low Carbon Supplier Selection in the Hotel Industry," Sustainability, MDPI, vol. 6(5), pages 1-27, May.
    6. Palak, Gökçe & Ekşioğlu, Sandra Duni & Geunes, Joseph, 2014. "Analyzing the impacts of carbon regulatory mechanisms on supplier and mode selection decisions: An application to a biofuel supply chain," International Journal of Production Economics, Elsevier, vol. 154(C), pages 198-216.
    7. Lin Ma & Wenyan Song & Yanru Zhou, 2018. "Modeling Enablers of Environmentally Conscious Manufacturing Strategy: An Integrated Method," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    8. Lai, Kee-hung & Feng, Yunting & Zhu, Qinghua, 2023. "Digital transformation for green supply chain innovation in manufacturing operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    9. Omaima A.G. Hassan & Peter Romilly, 2018. "Relations between corporate economic performance, environmental disclosure and greenhouse gas emissions: New insights," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 893-909, November.
    10. Franck Brulhart & Sandrine Gherra & Bertrand V. Quelin, 2019. "Do Stakeholder Orientation and Environmental Proactivity Impact Firm Profitability?," Journal of Business Ethics, Springer, vol. 158(1), pages 25-46, August.
    11. Scott, James & Ho, William & Dey, Prasanta K. & Talluri, Srinivas, 2015. "A decision support system for supplier selection and order allocation in stochastic, multi-stakeholder and multi-criteria environments," International Journal of Production Economics, Elsevier, vol. 166(C), pages 226-237.
    12. Alexandra ZBUCHEA & Florina PÎNZARU, 2017. "Tailoring CSR Strategy to Company Size?," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 5(3), pages 415-437, September.
    13. Olivier Boiral & Marie‐Christine Brotherton & Léo Rivaud & David Talbot, 2022. "Comparing the uncomparable? An investigation of car manufacturers' climate performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2213-2229, July.
    14. Ge, Houtian & Baker, Quinton J. & Gomez, Miguel I. & Jaromczyk, Jerzy & Yi, Jing, 2022. "Assessing the carbon footprint of fresh produce assembly and distribution in the U.S," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322537, Agricultural and Applied Economics Association.
    15. Dong, Ciwei & Liu, Qingyu & Shen, Bin, 2019. "To be or not to be green? Strategic investment for green product development in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 193-227.
    16. Om Prakash Mishra & Mahesh Chand & Krishan Kumar & Prashant Mishra, 2023. "Investigating applicability of green supply chain management in manufacturing sectors," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(4), pages 1183-1196, August.
    17. Rayenda Khresna Brahmana & Maria Kontesa, 2021. "Does clean technology weaken the environmental impact on the financial performance? Insight from global oil and gas companies," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3411-3423, November.
    18. Nasir, Mohammed Haneef Abdul & Genovese, Andrea & Acquaye, Adolf A. & Koh, S.C.L. & Yamoah, Fred, 2017. "Comparing linear and circular supply chains: A case study from the construction industry," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 443-457.
    19. Ji, Guojun & Gunasekaran, Angappa & Yang, Guangyong, 2014. "Constructing sustainable supply chain under double environmental medium regulations," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 211-219.
    20. Lai, Kee-hung & Wong, Christina W.Y. & Lam, Jasmine Siu Lee, 2015. "Sharing environmental management information with supply chain partners and the performance contingencies on environmental munificence," International Journal of Production Economics, Elsevier, vol. 164(C), pages 445-453.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:recore:v:104:y:2015:i:pb:p:348-353. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kai Meng (email available below). General contact details of provider: https://www.journals.elsevier.com/resources-conservation-and-recycling .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.