Increasing Transparency in Global Supply Chains: The Case of the Fast Fashion Industry

Abstract

The fast fashion industry is subject to growing calls for transparency, from civil society groups as well as consumers. Despite universal pressure on retailers to disclose information on supply chain practices, uptake of transparency policies and practices has been heterogenous amongst large fast fashion companies. In this paper, we explain variation in transparency practices through a comparison of the four largest fast fashion retailers: H&M, Inditex, Gap, and Fast Retailing. Drawing on cross-case comparison and within-case process tracing, we offer insights into why some retailers are more transparent than others. Our findings suggest that sustainability scandals are a necessary but insufficient condition for motivating firms to increase transparency in their supply chains. Scandals can be an important driver of increased transparency, but only when accompanied by support from senior management and alignment with domestic norms about appropriate corporate conduct. These findings contribute to the literature on transnational business governance, corporate transparency, and sustainable supply-chain management.