Figure 10. Stakeholder classification in the Swedish textile industry in the framework by Mitchell et al. (1997).
The synergy effect of stakeholder influences
When considering the stakeholder influences identified and discussed in the analysis part, the analysis section showed that each stakeholder group could influence some aspects of the garment company’s sustainability agenda individually. Nevertheless, it could also be argued that there is a correlated network of collective stakeholder influences. This network of collective influences could be demonstrated through the situation with microplastics in the ocean. Microplastics are damaging the marine eco-systems and this topic is highly relevant in the textile industry, as garments can release fibers containing these microplastics when they are used or thrown in nature as thrash, but also when they are washed (Houdini, 2017d).
Bode (2017) explained during the interview how such a particular issue-driven and interrelated network effect could originate. Firstly, a scientific research study that points out the serious damage of microplastics might be published. This research study is then picked up by the media while NGOs such as Greenpeace are starting to campaign about it. In turn, the awareness of this topic is raised amongst other stakeholders such as customers, who might start to ask question and
avoid non-environmental friendly products. Furthermore, in response to the increased awareness to this topic, governments and other regulatory authorities must address this topic as well and might enforce new laws and regulations in order to manage the issue with microplastics. Lastly, the stakeholder groups owners and employees have to come up with new sustainable solutions to the existing operations. According to Bode (2017), this example indicates that there is a synergy effect between the different stakeholder influences. Consequently, due to the synergy effect it might be hard to point out one single stakeholder’s influence affecting the garment companies’
sustainability work with microplastics.
The general industry overview of the current standpoint in the sustainable development in the textile industry
The analysis further provides a general industry overview of the current standpoint in the sustainable development in the textile industry based on the studied garment companies. The studied garment companies all have different organizational characteristics such as size, age, turnover, owner structure and segment in the textile industry. Consequently, they represent a wide range of companies and, therefore, the possibility to draw general conclusion for the entire Swedish textile industry is feasible. Arguably, it is possible to make tentative generalizations for the entire Swedish garment industry based on tendencies discovered in the analysis part.
Applying the change of development stages developed by Nidumolu et al. (2009) to the whole textile industry, the general standpoint of garment companies seems to be in phase four, which means creating new sustainable business models. The majority of the analyzed garment companies have already developed new sustainable products, for example, Nudie Jeans launched its first collection produced with 100% organic denim in 2012 (Nudie Jeans Co., 2016).
As the analysis implies, the core focus of garment companies in the Swedish textile industry is currently to explore alternatives to existing business practices such as creating circular product life cycles. All companies studied in this research are working with this progress actively, for instance Houdini is offering services such as repair, rental and recycle (Houdini Sportswear AB, 2013). This indicates that garment companies operating in the Swedish textile industry are working entrepreneurially with the development of sustainability. Nidumolu et al. (2009) argue that companies, located in this fourth stage, will instinctively develop to the final stage of
sustainable innovation and in turn create new practices that will challenge current paradigms.
However, while some garment companies are in the frontline of sustainable developments, some companies, on the other hand, lag behind in terms of the progress in sustainability matters. In conclusion, this implies that there are outliers in both directions while the general industry may be placed in phase four.
In addition to the model of Nidumolu et al. (2009), the general industry overview regarding the sustainable development could also be analyzed by Carroll’s pyramid (1991). As stated in the analysis, garment companies are taking their economical and legal responsibilities in respect to their stakeholders. But the data analysis also demonstrates that garment companies are operating in accordance to the emerging societal values such as animal welfare, water consumption and chemicals usage. For example, Rodebjer only uses materials like fur and leather when certificates are available to ensure that animals have not been harmed in the process (Marfelt, 2017).
Furthermore, amongst others, Nudie Jeans is a member in the NGO Kemikaliegruppen SWEREA in order to gain chemical knowledge in the textile production chain (Nudie Jeans Co., 2016). In addition to the ethical responsibilities, it could be discussed that garment companies in this study partly perform voluntary business practices in order to improve quality of life or contributing to the community as well. An example of such a philanthropic responsibility could be the repair services offered by for example Nudie Jeans (Brinkberg, 2017), Haglöfs (Mullins, 2017) and Houdini (Grankvist, 2017). This indicates that garment companies in the Swedish textile industry fulfill all four responsibilities to some extent. Consequently, based on Carroll’s (1991) pyramid, it could be argued that the Swedish textile industry is engaging in several initiatives in order to become an environmentally and socially responsible industry.
Potential paradigm shifts in the textile industry
Moreover, the analysis indicated that garment companies tend to collaborate with peer companies in the textile industry in order to manage critical issues such as the microplastics or perfluorocarbons (PFC). This evolving and collaborating relationship between industry peers implies that the textile industry is facing a shift in paradigm. Garment companies have realized that sustainability matters are not the responsibility of each garment company individually.
Today, garment companies have to cooperate and share knowledge in order to manage critical
issues in the textile industry. Arguably, the collaboration between peer garment companies and the integration of the sustainability concept in the core business practices support the assumption of a paradigm shift in the textile industry, as these two aspects challenge the conventional business models.
Besides this paradigm shift in the textile industry, another tendency discovered in the analysis is the garment companies’ focus on circular product life cycles and closing the loop systems. As a result to the increased improvements in the supply chain operations, the focus tends to shift from development in the supply chain to the end-consumers participating in this process. As stated in the analysis, garment companies cannot control the end-phase of the textiles; instead, they have to rely on the responsibility of the end-consumers. However, the data indicated that the majority of the companies are engaging in several initiatives to encourage end-consumers to participate in closing the loop and in that way supporting the textile industry in becoming more sustainable.
The sustainability concept in the future
The historical development of the sustainability concept over the last decades has resulted in a global phenomena and a natural and axiomatic integration of sustainability in business practices today. It could be discussed that the increased sustainability awareness in businesses worldwide will continue to be highly relevant in the future as well. The adoption of the 17 Sustainable Development Goals (SDGs) launched by the UN in 2015, which will set the global framework for sustainable development until 2030, is only one indicator of this progress (United Nations Development Programme, 2017).
Furthermore, the EU-law of non-financial reporting, that will set into force in 2018 (European Commission, 2016), will coerce public limited companies to report on their sustainability performances. These different initiatives could be argued to be the natural future progress of the development in sustainability matters. In addition to these initiatives, the paradigm shifts in terms of industry peers collaboration amongst garment companies and the participation of end-consumers in closing the loop system will significantly mark the 2020s and 2030s. For the future, by adapting these development progresses, garment companies can operate more
sustainability-conscious and contribute to a more sustainable textile industry when trying to minimize their negative environmental, social and economical impacts.
An additional perspective to this evolvement of different laws and regulations is the matter of whether sustainability practices should be governed by legislation, or whether is should be performed voluntarily by garment companies. The newly introduced SDGs and non-financial reporting law could be an indicator of a shift towards a more regulated market place. Due to the urgency of economical, social and environmental challenges the world is currently facing, it could be argued that it is necessary for the legislation to intervene and enforce new laws and regulations in order to address the aspects of sustainability.