- 02/12/2016
- Category: Commentaries
The growth of the digital commerce industry has inflicted several impacts that caused mainly by its production process and its distribution of goods and services. It has not only inflicted an impact on the so called digital world, but it has also left mark on the social and environmental problems. Many of e-commerce companies tend to have low awareness on the ethical aspects of their production, such as whether their production or distribution process has been damaging the environment, or whether their production process has been exploiting the workers or ignoring the rights of the workers, or whether their service or product are compatible with people with disabilities. In conventional business, when production activities have damaged the social or environmental aspects, a company must commit to arrange corporate social responsibility (CSR) programs as a responsibility for what have they done to both environment and society. Industries running in the field of digital commerce is not an exception, as it happens. In this case, one of digital e-commerce company that arguably has a comprehensive and decent CSR program in most of their business sectors is ASOS, a fashion retailer company.
After 16 years running their business, ASOS develops technology investment to strengthen their brand as an online-only fashion retailer. ASOS did not only develop their website and mobile application. With their technology and development team, they also created couple of interesting technology boast. Those technology innovations make them become the largest UK user of Microsoft cloud service, and also become the largest contributor of open source code to lead deployment automation technologies. This company now boasts 10.9 million active customers, with an average increase of 17% annually. Besides the aforementioned story on the success of ASOS as a digital company, the company has a comprehensive, integrated and decent CSR program in all sectors.
Since 2014, ASOS, a fashion retailer company based in USA has conducted a corporate social responsibility program named “Fashion with Integrity”. According to them, “Fashion with Integrity” showcases the importance of being accountable and transparent in all of their business aspects. They intend to give evidence for all of their customers that the product they buy is from a company with commitment to be responsible to not damage the environment, exploit workers, or abuse animal in their production process.
As a CSR program, “Fashion with Integrity” has 4 essential aspects. The first aspect is about the source of the product, or in other words, the supply chain of the products. This aspect focuses in 3 elements which are ethical trading, sustainable sourcing, and animal welfare. The second aspect is in the business aspect. ASOS want to develop their business in sustainable framework in order to ensure their commercial business sustainability in the long term. They want their business activity to be contributive in improving social values and minimizing damages on environment. In order to achieve those missions, ASOS CSR program focuses on their workers’ welfare and sustainable environment. However, as a fashion retailer that has more than 9.9 million active customers in more than 190 countries, ASOS also prioritizes their customers need in this “Fashion with Integrity” program. The third aspect is the customer service aspect. ASOS commits to ensure that their products are inclusive, responsible, and caring about cultural diversity. In this case, ASOS also promotes positive body image in order to influence their customers to be confident with their own body. In addition to that, ASOS in collaboration with their design and garment technology team also use their expertise to design formalwear for different body type and size in order to accommodate their customers with disabilities. Nevertheless, ASOS also aspires to protect their customers from online crimes. They have developed a system that would prevent any kind of online fraud and protect their customer personal data. The last aspect is community aspect. The majority of ASOS customers are youths, so this could be an opportunity for ASOS to develop a community program based on their youth customers as their last focused aspects. This program aims to improve the opportunity of youths to develop their potentials. This program has been held in UK, Kenya, and India.
Hence, ASOS’ CSR program, “Fashion with Integrity” has fulfilled all CSR main principles on Profit, People, and Planet. ASOS has put all of their stakeholders, from their owner, workers, suppliers, customers, and communities that intersect directly or indirectly with their production process, as important components in their business activities as well as vehicles to achieve their goals and maximizing profit. Most Importantly, ASOS CSR programs are not merely charitable or fundraising type of program. Besides, those CSR program has sustainable values on both social and environmental aspects, which exceeds their business interest. This is somewhat interesting, because when the other companies conduct CSR as formality programs, such as by making a short term charitable or fundraising activities, ASOS in the other hand has created a transparent, accessible, and integrated CSR program which involves all of their business aspects. This is a reminder for us, that despite running a solely digital business activities, the responsibility to uphold sustainable development is still never to be put aside. ASOS has given us a very good example on how a company, regardless of their business models and activities, is still attached to the environment, with sustainable development a paramount core in their whole business activities.
References:
ASOS website (online) http://www.asosplc.com/corporate-responsibility.aspx, accessed 29 November 2016
Lauchlan, Stuart, “ASOS: building e-commerce success on tech investment”, Diginomica (online), 15th April 2016, http://diginomica.com/2016/04/15/asos-building-an-e-commerce-success-story-on-tech-investment/, accessed 01 Desember 2016
Freeman, R. Edward & Jeffrey S. Harrison, “Stakeholder theory, The state of The Art”, 2010, Cambridge, Cambridge University Press
Pava, Moses L, “Why Corporation Should Not Abandon Corporate Social Responsibility”, Journal of Business Ethics (2008) 83:805-812 DOI 10.1007/s10551-008-9666-7
Stohl, Cynthia & Michael Stohl, “A new generation of Corporate Codes of Ethics”, Journal of Business Ethics (2009) 90:607-622 DOI 10.1007/s10551-009-0064-6
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