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Corporate social responsibility

in the apparel industry
An exploration of Indian consumers
perceptions and expectations
Megha Gupta and Nancy Hodges
Department of Consumer, Apparel and Retail Studies,
University of North Carolina at Greensboro, Greensboro,
North Carolina, USA
Abstract
Purpose The purpose of this paper is to explore perceptions of Indian consumers regarding
corporate social responsibility (CSR) in the apparel industry, and to investigate its importance in the
apparel decision-making process.
Design/methodology/approach A qualitative research design was used as the methodological
basis for the study. In-depth interviews were conducted in India with a total of 26 participants
(19 males and 7 females). Interviews lasted between one and two hours and were conducted until
saturation in responses was achieved.
Findings Interviews were transcribed verbatim and analyzed via a thematic approach; six themes
emerged that are used to organize participants responses regarding CSR in the apparel industry.
A conceptual framework grounded in the data was developed that highlights relationships between
factors that surfaced as important to CSR in the decision-making process.
Research limitations/implications Because data were collected specifically with Indian
consumers, study findings may not be applicable to consumers in other developing countries.
Participants were asked about their perceptions of CSR as consumers, thus it would also be important
to know how manufacturers in India view CSR and what it means for their businesses.
Practical implications Results of this study provide in-depth insight into Indian consumers
perceptions of CSR in the apparel industry. Understanding CSR from the Indian consumers
perspective helps to articulate the economic and social value of addressing ethical concerns within the
global apparel supply chain.
Originality/value The papers findings are consistent with those of previous studies on CSR and
the paper is one of the first to examine the issues relative to the Indian consumer population. India is
an important sourcing destination for international apparel retailers, and at the same time, boasts a
large population of consumers with a growing level of purchasing power. The paper provides insight
into what this group thinks about CSR in an industry that contributes significantly to their countrys
economy.
Keywords India, Consumer behaviour, Corporate social responsibility, Garment industry,
Apparel industry
Paper type Research paper

Journal of Fashion Marketing and

Management
Vol. 16 No. 2, 2012
pp. 216-233
r Emerald Group Publishing Limited
1361-2026
DOI 10.1108/13612021211222833

In last few decades, corporate social responsibility (CSR) has marked its importance in
scholarly research, as evidenced by an increasing number of papers and journals
dedicated to the topic (Castaldo et al., 2008; Ramasamy and Yeung, 2008). This is
perhaps because as globalization has created jobs in developing countries, it has also
given rise to the exploitation of more human and natural resources (Powell and
Skarbek, 2006). This is particularly the case in the global apparel industry, where
today, tens of millions of people work under sweatshop conditions (Dirnbach, 2008).
The era of globalization means that most retailers do not own production factories,

having divested their manufacturing in favor of outsourced production (Hale

and Wills, 2005). Availability of inexpensive labor and low production costs make
developing countries such as India, China, Bangladesh and Sri Lanka very
attractive. The apparel industry is a labor intensive industry and one that sees
rapid style change. Consequently, competition to produce clothing on tight deadlines
means that factories often increase demands on workers at the expense of their
well-being (Dirnbach, 2008).
Developing countries involved in apparel production are facing reductions in
production and labor costs because of international pressure, not due to rigidities or
regulations within the local labor market (Manicandan et al., 2006). India is one such
developing country. Many retailers are attracted by the potential opportunities in the
Indian apparel market, while the country is also trying to meet the export demands of
the international market. The Indian textile and clothing industry contributes
significantly to Indian export earnings, equating to approximately 14 percent of the
countrys total industrial production (Ministry of Textiles, 2009). This sector directly
employs about 35 million people, making it the second largest provider of jobs in India
after agriculture (Ministry of Textiles, 2009).
In the post-quota period, India has emerged as a major sourcing destination for
international retailers and brand companies, as its textile and clothing industry has
showed steady growth in recent years. In 2005-2006, Indian textile and clothing exports
grew steadily, continuing into 2006-2007 (Ministry of Textiles, 2009). In 2007-2008,
Indian exports saw a 2.76 percent growth, while in 2008-2009, the economic downturn
affected exports, but the sector managed to report a small growth rate of 0.12 percent
(Ministry of Textiles, 2009). Ready to wear garments account for approximately 41
percent of the total share of exports (Ministry of Textiles, 2009). According to the
Apparel Export Promotion Council (2009), India was ranked fifth among the top
exporters of garments in the world, after China, Italy, Bangladesh and Turkey
(see Figure 1).
India is one of the fastest growing emerging economies in the world and was ranked
the fourth largest in 2008 in terms of purchasing power parity (US Department
of Commerce, 2009). On average, Indian consumers spend approximately 6.51 percent

India
6%

CSR in the
apparel industry

217

Vietnam
5%

Turkey
7%

Bangladesh
8%

Italy
8%

Source: Ministry of Textiles (2009)

China
66%

Figure 1.
Exports of garments
globally, 2009

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of their total income on clothing items (Apparel Export Promotion Council, 2009) with
expenditures on clothing increasing over the last three years (see Figure 2).
With the second largest population of consumers in the world (1.13 billion), India is
emerging as a major player in the global apparel marketplace (Halepete and Iyer, 2008),
yet very little research exists that examines what Indian consumers think about their
countrys role in the global apparel supply chain. Moreover, Rudell (2006) indicated that
consumers are critical to CSR, in that they have the power to require that companies be
socially responsible. Similarly, as Karpatkin (1999) proposed, Consumers pressure
can force companies to adhere to regulations, and can stimulate better codes,
inspections and labeling. When consumers exercise their right to choose, they become
the ultimate arbiters of human decency in the marketplace (p. 7). Because consumer
awareness regarding CSR has increased significantly over the past five to ten years
(Becker-Olsen et al., 2005), it is very important to understand what this awareness
means with regard to the apparel industry. Yet, few studies examine consumers beliefs
and perceptions of CSR in general, and specifically regarding the apparel industry
(Dirnbach, 2008). Moreover, little research exists that examines perceptions of CSR by
Indian consumers. Therefore, this study aims to address these critical gaps in the
literature.
Background
CSR
CSR emerged in the USA as a concept during the late ninetieth century (Manley and
Shrode, 1990). Before that time, CSR was viewed largely in terms of a firms
productivity and marketing of goods and services (Katz et al., 2001). There has been
some confusion and debate about what CSR means (Carroll, 1979, p. 497), and
researchers have differing views about the exact definition of CSR. Bowen (1953) was
the first researcher to explore the concept of corporate responsibilities (Carroll, 1979;
Maignan, 2001). According to Bowen (1953), businesses are obliged to follow policies,
make decisions or take action that is appropriate relative to a societys values and
goals. Davis (1973) refined this definition of social responsibility by stating that Social
responsibility refers to businessmens decisions and actions taken for reasons at least
partially beyond the firms direct economic or technical interests (p. 70). Similarly,
McGuire (1963) posited that firms have certain obligations which are beyond economic
and legal obligations, and extended the definition of social responsibility, however, the
meaning of such obligations were not articulated. Petkus and Woodruff (1992) later
added that CSR was about doing good and avoiding harm to society.
1,400
1,200

1,207

1,311

1,075

1,000
800
600

Figure 2.
Annual expenditure on
clothing in India,
2007-2009 (current
value in rupees billion)

400
200
0

2007

2008

Source: Euromonitor International (2009)

2009

In 1979, Carroll categorized social responsibility into four types: economic, legal,
ethical and philanthropic. Carroll (1979) suggested that the priority of economic
responsibility is the highest, followed by legal, ethical and then philanthropic
responsibilities. Economic responsibilities have to do with producing what the market
demands. Legal responsibilities refer to meeting economic responsibility in a way that
acknowledges the legal systems that pertain to the company, such as human resource
practices and following tax laws. Ethical responsibilities are those that pertain to doing
what is considered just or fair. Philanthropic responsibilities point to ways the
company can make a social difference and enhance the lives of individuals.
In 2008, Ramasamy and Yeung differentiated between socially responsible
consumption and consumer perceptions of CSR. Socially responsible consumption
refers to expressing social concern by using purchasing power in order to have a
positive impact or avoid harm to the environment. Consumer perception of CSR refers
to the ability of the consumer to differentiate between corporate economic
responsibilities on the one hand and corporate legal, ethical, and philanthropic
responsibilities on the other hand (Ramasamy and Yeung, 2008, p. 121). Most research
has focussed primarily on either the managers perceptions of CSR or a companys
marketing actions with a social message (Maignan, 2001). With a few exceptions
(e.g. Dickson, 1997; Mohr et al., 2001; Ramasamy and Yeung, 2008; Rudell, 2006), little
has been done to consider consumer perceptions of CSR.
Consumers and CSR
Organizations will often adopt social causes with the assumption that consumers
will reward them for doing so (Levy, 1999). However, consumers often think that the
organizations main motive behind being socially responsible is to create or maintain a
positive image (Mohr et al., 2001). Some research indicates that consumers support
social initiatives by firms and are willing to reward these firms (Becker-Olsen et al.,
2005). For example, more than 80 percent of respondents in one study supported firms
that engage in social initiatives, and 76 percent felt that it would be beneficial for the
firms to do so (Becker-Olsen et al., 2005). Moreover 52 percent of the respondents were
willing to boycott organizations for irresponsible behavior if evidence was available,
and would avoid purchasing from these irresponsible firms (Becker-Olsen et al., 2005).
According to Fullerton et al. (1996), consumers do not tolerate ethical abuses by
retailers, such as dishonesty or lack of respect for customers.
It is evident from the literature that consumers are becoming more aware of CSR
and its related issues. For example, Elliott and Freeman (2001) found that consumers
are willing to pay more for ethically manufactured products but suggested that price
determines whether they will purchase that product: Consumers are willing to pay
28% more for $10 items, but only 15% more for $100 items (Elliott and Freeman, 2001,
p. 284). Likewise, Folkes and Kamins (1999) found that consumers attitudes toward
organizations are more affected by unethical behavior than by ethical behavior, and
that responsible behavior does not compensate for products of inferior quality. This
means that consumers attitudes could be negative if the organization acts socially
irresponsible, even if it produces products of good quality. In contrast, Quirk (1995)
suggests that consumers do not weigh social issues heavily and hesitate to pay higher
prices for products even when they are made by socially responsible companies.
According to Mohr et al. (2001) consumers in general believe that their purchase
decisions do not affect corporate behavior, but those who think that CSR is important
believe that their purchase decisions do impact corporate behavior. Hustvedt and

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Dickson (2009) suggest that consumers do not have enough information about
production conditions. Therefore, even though they may be aware of ethical issues, it
has little effect on their purchase behavior. Similarly, Shaw et al. (2006) suggest
that consumers lack awareness about working conditions and do not know enough
about the production process to understand the importance of CSR relative to their
consumption decisions.
CSR in emerging markets
A study by Ramasamy and Yeung (2008) found that Chinese consumers are supportive
of CSR and are able to distinguish between economic, legal, ethical and philanthropic
responsibilities of firms as outlined by Carroll (1979). Among these four
responsibilities, Chinese consumers place a higher degree of importance on the
economic responsibilities of the firm. A study by Arli and Lasmono (2010) examined
the perceptions of Indonesian consumers regarding CSR. They found that this
consumer group is unable to distinguish between the four responsibilities as
conceptualized by Carroll (1979), but, like Chinese consumers, they place higher
importance on economic responsibilities. The authors concluded that Indonesian
consumers are not interested in supporting CSR because they are still struggling with
basic necessities. However, if they have the option of deciding between similar
products of the same price and quality, then they would prefer to buy the product
made by the socially responsible firm. In one of the few studies on CSR and India,
Planken et al. (2010) surveyed 95 educated Indian consumers with considerable
buying power and an interest in CSR. They found that cause-related marketing
has an impact on Indian consumers, and unlike Indonesian and Chinese
consumers, these consumers placed more emphasis on legal and ethical
responsibilities.
A study by Welford and Frost (2006) examined CSR practices in Asia, including
the benefits and challenges of implementing CSR in this region. This study was
conducted from the perspective of the factory rather than the consumer. The author
conducted 24 semi-structured interviews with CSR managers, factory managers
and/or business owners in various industries. Findings of the study suggest that,
unlike western countries, Asian companies do not experience a lot of pressure from
consumers to be socially responsible. These companies try to adhere to a code of
conduct because buyers (retailers) demand it, but inspections of the implementation of
these codes are often flawed. Study participants mentioned that the benefits of CSR
surface primarily in terms of recruitment, staff retention and motivation of employees.
The major challenges for Asian companies are lack of awareness of CSR, lack of
resources and lack of qualified personnel. This study concluded that large corporations
are more easily able to overcome the challenges of practicing CSR than small
companies.
A study by Khan and Atkinson (1987) sought to conceptualize CSR from the Indian
perspective. In spite of being one of the most attractive emerging markets, only 2
percent of Indian companies produce dedicated CSR reports. After interviewing
40 top management personnel at pharmaceutical companies, Khan and Atkinson
(1987) found that health care and education are the most prominent CSR-related topics
among Indian corporations. Interview responses also revealed that western CSR
concepts are not translating in India. Instead, CSR in India is inspired by Gandhis
concept of social trusteeship, thus the predominant CSR foci are health care, education,
and employees and their families, rather than environmental issues and stakeholder

pressure. Although this study investigates the concept of CSR in the context of India,
it is not known whether its findings would be similar if applied to the production of
apparel in this country.
As more emphasis is placed on CSR in the apparel industry (Dirnbach, 2008), it has
become more important to understand the perceptions of CSR from the consumers
point of view. This is particularly the case in India, as it is one of the major sourcing
destinations for apparel, one of the fastest growing emerging economies and boasts a
high degree of consumer purchasing power. Yet, what little research that has been done
focusses primarily on US consumers and may not apply to Indian consumers. Thus, the
purpose of this study is to examine what consumers in India think about CSR, and
particularly its practice in the apparel industry.
Methodology
Because an in-depth understanding of Indian consumers perceptions of CSR in the
global apparel industry is needed, a qualitative approach was deemed appropriate
(Padgett, 2010). The primary method of data collection was the in-depth interview,
which reveals the meaning of participants experience and their world from their point
of view (Kvale, 1996). After the authors received approval by the Institutional Review
Board to conduct research with human participants, interviews were conducted in
India with 26 participants (19 males and seven females). A convenience sampling
method was used and participants were recruited via e-mail. Interviews lasted between
one and two hours and were conducted until saturation in responses was achieved
(Kvale, 1996). Interview questions were developed based on the review of the CSR
literature as well as study objectives, and include: Is CSR important to you? Why or
why not? Do you take CSR into consideration when making apparel purchasing
decisions? Why or why not? Does CSR impact the image of an apparel brand or
company? Do you think apparel companies should be required to be socially
responsible? Why or why not?
The average age of the participants was 29 years, with 12 participants having
apparel industry knowledge and background. Among these 12 participants, six were
working or had worked in Indian apparel factories, two were researchers in the area of
labor issues in Indian apparel factories, two were government officials involved with
labor issues in the Indian apparel industry, one worked at an NGO focussed on CSR
and one participant was a faculty member in an apparel program. Because it was likely
that participants with apparel industry experience would have more knowledge and
awareness of CSR, in order to diversify the participant pool, the remainder of the
participants did not have a background in the apparel industry and instead worked
primarily in the information technology industry. Table I includes demographic
information about the participants.
Once the data were collected and interviews transcribed, responses were analyzed
via a thematic approach. Bailey (2007) suggests that thematic analysis works most
effectively when you seek themes that address your research questions, frame themes
conceptually, and explore links among them (p. 155). The authors followed the process
of interpretive analysis suggested by Spiggle (1994), by analyzing each interview
separately and then merging the parts together into a consistent whole. The
interpretation of issues that emerged across the interviews points to key areas of focus
and suggests a framework for understanding the role of CSR in shaping Indian
consumers attitudes and apparel decision making.

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Table I.
Demographics of the
participants

Sl. no.

Pseudonym

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26

Ram
Shyam
Riya
Reema
Kunal
Varun
Vivek
Ankur
Ankit
Sagar
Nidhi
Amit
Sarita
Sweta
Shalini
Rikki
Vishal
Sandeep
Atul
Deepak
Rishabh
Gaurav
Seema
Kumar
Karan
Rohan

Age
26
25
29
33
24
26
40
38
40
48
29
43
28
30
29
28
26
23
22
23
24
24
26
24
23
23

Gender

Job description

M
M
F
F
M
M
M
M
M
M
F
M
F
F
F
M
M
M
M
M
M
M
F
M
M
M

Worked in Indian apparel factory

Worked in Indian apparel factory
Worked in Indian apparel factory
Working in Indian apparel factory
Working in Indian apparel factory
Working in Indian apparel factory
Researcher (labor issues in apparel factories)
Researcher (labor issues in apparel factories)
Indian government official
Indian government official
Working in CSR dept in NGO
Faculty
IT (non-apparel)
IT (non-apparel)
Researcher in chemical firm (non-apparel)
Researcher in chemical firm (non-apparel)
IT (non-apparel)
IT (non-apparel)
IT (non-apparel)
IT (non-apparel)
IT (non-apparel)
IT (non-apparel)
IT (non-apparel)
IT (non-apparel)
IT (non-apparel)
IT (non-apparel)

Interpretation
Six themes emerged through thematic analysis and are used to organize participants
responses regarding CSR: why CSR?; consumer decision making and CSR; awareness
and purchase behavior; company image and purchase behavior; reward vs
punishment; and Educating consumers. Pseudonyms are used in place of actual
names to protect participants confidentiality.
Why CSR?
Most of the participants thought that CSR was important to them as consumers, and
provided several reasons why it was important for an organization. For example, as
Rohan points out, every organization belongs to a society, thus it is important for the
organization to give back to that society:
Of course in any organization it [CSR] is very important, they have to think about the society
in which they are established. They have to take certain responsibility, like protecting the
nation. They should not harm mankind, in the short or long term process. The labor should be
paid ethically; they must be able to satisfy their hunger (Rohan).

Similarly, Riya and Kunal see CSR as a commitment to something beyond profit:
[CSR] is important to me because it is a commitment by the business to behave ethically and
contribute to economic development. Improving the quality of life of the workforce and their
families. Neighboring areas, local communities and society are largely impacted by CSR. So it
is important [y] it is important in building the substantial livelihood (Riya).

CSR is meant for the complete society and if the society is getting benefits from CSR, every
individual will be benefitted, as it helps in the development of a nation (Kunal).

Varun points out that CSR is also good for the planet:
As far as the responsibility towards the planet is concerned, we cannot deny that. Working in
the interest of the planet does have broader and long term benefits. CSR is important as it
contributes to the development of the society by involvement in service towards the society,
and thereby it also enhances the image of the organization in the eyes and minds of the public
(Varun).

Participants suggested that CSR is important for better business. Since one of the key
dimensions of CSR is fair treatment of employees, participants believed that treating
employees well results in better business because satisfied workers are efficient and
productive. As Varun and Shalini explain:
CSR projects an image of the organization in terms of its responsibility towards the people
and the planet. People are the driving force behind the success of any organization. Taking
care of their [employees] interests motivates the employees to take their performance to the
next level (Varun).
CSR is important because I believe that if we work with people who are happy with us and
there is belongingness with them, then we do better business (Shalini).

Consumer decision making and CSR

It is widely established that a consumer goes through a five stage decision-making
process when making a purchase (Solomon, 2009). Supporting CSR is no exception.
When participants were asked about the criteria they look for when purchasing
apparel, including whether a product was made under socially responsible conditions,
they described a variety of factors that affect their decisions. The most important
factors were price and quality of the product:
First I look at the price tag and then I will be deciding whether to go with that product or not.
If I decide that I have to go with that, then I will I will go to the next check box, which is
quality, then I look at the place of manufacturing (Sandeep).
If I find a product [is] reasonably good, which is low cost and good quality [y] I would go for
that (Vishal).

Other participants, like Gaurav, indicated that while CSR is important, the first thing
they look at while purchasing apparel is not whether the garment is made under
socially responsible conditions:
If we consumers buy a certain T-shirt, we dont know about the conditions in which that
product is made. We just look at the T-shirt quality and price [y] thats it. We do not look
beyond that. People do not have time (Gaurav).

When asked if they are willing to pay more for products made under socially
responsible conditions, most said they would be willing to pay more. However, how
much more they are willing to pay differed by participant. Most thought that the price
of the product should still be affordable. As Seema points out:
[y] If a company is willing to avoid child labor, you know, and they make garments which
they are supposed to make, then why not [pay more]. I would not pay a fortune, but I will look
at something which is affordable, but I would probably pay more (Seema).

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Rikki explains how price and CSR are deciding factors:

It depends on how expensive the product is [y] If one is $70 [and nothing is mentioned about
manufacturing conditions] and the other is $80 [and the product is made under socially
responsible conditions], then I may go for the $80 one. But if one is $70 and the other is $120,
then I will go for the one that is $70 (Rikki).

Shalini had a similar response:

Paying more depends on how highly priced that product is. If it is double or triple the price
then probably not, but if it is, say 1.5 times or 1.2 times, then yes. See if its 1.2 times
I would not even think about it. 1.5 times [y] then yeah maybe. If its double then maybe not
(Shalini).

Participants pointed out that if they are assured that their money is being used for the
right cause and goes to the right people, then they might be more willing to pay a
higher price. That is, for participants, trust is an important factor in deciding whether
they are willing to pay more money for products made under socially responsible
conditions:
I dont mind paying more money. But I should be satisfied with the way they are spending my
money. It is my hard-earned money (Sandeep).
The question which comes to my mind all the time, because of the corruption going in third
world countries, even if they say they produce fair trade products, how do I know that. I dont
want to pay double when I am not even sure it is really fair trade. So I think that faith, you
know, that the money I am actually spending is going for a good cause is extremely important
and I think brands have to work on that first (Shalini).

Nidhi explains that she would not mind paying more, provided the right people benefit:
See if it is a thing of utility I wont mind paying extra. If I am paying Rs 200 for something
and if I need to pay Rs 250 for something and if I know its gonna go for the right cause [y].
But the thing is, it should be utilized properly and we should know its going to the right
person (Nidhi).

In contrast, some participants did not think it was right for consumers to pay for CSR.
According to them, that extra money serves as profit for the retailers, rather than
actually going toward social causes or benefitting the workforce. Instead, they think
that the company should absorb the cost of CSR:
No, I dont want to pay more for products made under socially responsible conditions. Its not
fair on the part of retailers to ask more money from the consumers [y] retailers and
manufacturers should find a way to produce clothing in fair conditions at the same price
(Shyam).
I would not pay more for products made under socially responsible conditions. I think it is not
fair to ask for more money. They [retailers] should reduce their profits. I will not pay more
(Sweta).

For participants like Ram, this tactic actually results in penalizing the consumer for
trying to be responsible:
First of all its not fair to ask a higher price [y] it really does not fit into that consumer
content at all [y] its a thing we have to manage between manufacturers and retailers,
because imposing your profit level and things on consumers is not a good thing [y] It sounds
like you are imposing higher prices on consumers because you want to be more ethical
(Ram).

Awareness of CSR vs purchase behavior

Participants think that, on the whole, Indians are not very aware of CSR. Lack of
awareness has been found to be one of the major reasons why CSR may not affect
purchase behavior (Hustvedt and Dickson, 2009; Shaw et al., 2006). However, they
think that if consumers are made aware of how and where their clothes are being
manufactured, then this may impact purchase behavior more frequently. As Sandeep
and Seema explain:
Consumers are not aware of what they are buying and where it is made [y] consumers just
go and grab products but really do not care where it is coming from. It is very much
important to make them aware (Sandeep).
As far as I know, consumers are not aware of it, but if they come to know about where and
how their clothes are being made then [y] if its in good condition, then people will be willing
to buy [it] (Seema).

Yet as Shalini points out, typically, the information consumers need in order to be
aware of CSR is not readily available:
The challenge for the consumers is that there is not a lot of information out there about it. So I
really go and buy clothes from multiple brands, but I have no clue about most of them as to
how they are treating their employees and the people who work for them indirectly through
other manufacturers. I believe if that information would more be readily available then we
would know. Personally I would be more inclined towards things which I feel are not being
produced by the people who are mistreated (Shalini).

For participants like Rishabh and Varun, information is the key to considering CSR in
the decision-making process:
Consumers are not reacting because they are not aware. If they come to know about the
information, such as the conditions in which their products are made, then they will act
accordingly (Rishabh).
I would certainly refrain from purchasing apparel if I came to know that a child who is firstly
underpaid and then exploited was involved in the stitching of the garment I was about to
purchase. Certain sensitive issues like the one mentioned can affect consumers decision
whether to purchase or not to purchase it (Varun).

Gaurav provides an example of how consumers can use information as power:

If consumers are aware, only then will they support CSR and buy from socially responsible
retailers. Once upon a time in India we came to know that one of the soft drinks had
pesticides. So we stopped drinking it. So its the same thing. If we know that they are not
responsible, then we will not support such companies (Gaurav).

One of the biggest challenges, as Deepak points out, is knowing what apparel
companies are doing:
Say for example if Gap is doing any kind of social responsibility and whether their clothes are made
under good conditions [y] I dont know. I dont know what apparel companies are doing (Deepak).

Nidhi became aware of the need for CSR when she started working in the apparel
industry. She witnessed the conditions of apparel factories, and as a result, has become
more sensitive to the importance of CSR:
See now the sensitivity has come in because my work is related to CSR in the apparel
industry. I have been to places where contractors work [y] so definitely I know in what
conditions they work [y] so that sensitivity is there (Nidhi).

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Because of the nature of her work, Nidhi feels strongly that once consumers are made
aware of the conditions in factories, they will become more sensitive to issues of CSR,
as she has:
See after being introduced to this concept of CSR [y] before that I had no understanding of
CSR [y] so now I feel what is my responsibility [y] so definitely now it is a very integral
part of my life. Whenever I buy clothes or whatever it is [y] I would always like to see in
what conditions they are made [y] you know your thoughts will always go in that direction
[y] are they [clothes] worth it. I have seen workers working in pathetic conditions. Who is
going to look after them [workers]. I mean who is going to think about them [y] so I think I
am very concerned now (Nidhi).

Company image and purchase behavior

As revealed in the CSR literature, the public image of a company can also impact
consumer purchase behavior (Becker-Olsen et al., 2005). That is, if a companys image
is projected negatively by the media due to irresponsible practices, then consumers
may hesitate to buy from that company:
If I get to know about any particular company, say XYZ, that their manufacturing goods is
done including inhuman methods, I would definitely not buy apparel goods or any kind of
stuff from there. I guess there is a basic sense of humanity within everybody. There was a
small article about how exactly crackers [fireworks] and things are made in India. They used
child labor and harmful products which could harm small children. But they used kids
because they are cheap. I actually stopped bursting crackers after that, not even on Diwali
[major holiday in India] (Atul).

This image is especially important for companies selling branded products, because,
as Rikki explains, a brand depends on its image to sell:
Well if I get to know that the clothes I am buying are made properly, that workers are treated
well, then I may go for that brand. It gives me some kind of positive vibe, but overall to me
price and the quality of the stuff also matters. So if the company is socially responsible but the
stuff is not good, then I would not go for that brand either (Rikki).

As Riya points out, CSR helps a brands image by making the consumers feel good
about shopping there:
If I came to know that a brand is not socially responsible [y] I mean [y] I would not stop
shopping there. But if a store claimed to be socially responsible, then I would like to shop
there [y] its not like I would be buying more, but I will be happy shopping there (Riya).

Reward vs punishment
When asked whether those companies that are not socially responsible should be
punished and those companies that are being socially responsible should be rewarded,
some participants indicated that it is a good idea, as it would motivate an organization
to be socially responsible and to avoid being socially irresponsible:
Reward and punishment would be one factor which would help a company to fall in line,
especially where people are being mistreated. It would be extremely helpful to have a system
like that. We have laws, I am sure we have laws against child labor and we have laws against
exploitation, but to actually implement and if they dont, then punishing them would bring
the matter to the forefront to the media and people (Shalini).
It [reward and punishment] has to be adopted in every part of the world [y] because you are
being part of society and influencing people around you. You cant be irresponsible to the

society you are in. You really have to be very careful and take care of the people around you
(Sandeep).

Shyam suggested that a trademark or logo might be provided for companies who are
socially responsible. This mark would allow consumers to easily identify products
made by companies practicing CSR, and in turn, increase consumer awareness of CSR:
Whether they do it the right way or whether they do it the wrong way, they should be
punished and rewarded accordingly. If the government can reward them with the use of some
kind of logo for socially responsible companies then obviously consumers will look to buy
from them. If this kind of reward is given, than obviously retailers and manufacturers will
think about being socially responsible (Shyam).

Similarly, Atul explains:

Definitely this [reward and punishment] will improve social awareness in society and also can
keep a check and control on wrong doers who misuse labor or other kinds of resources, which
is not acceptable (Atul).

Nearly all of the participants were in the favor of rewarding companies that are socially
responsible since it could be a motivating factor for other companies. Yet at the same
time, many were not in favor of punishment. Rather, according to these participants,
such companies need encouragement to be socially responsible:
If they (retailers) have done something illegal and unethical that should be punished for sure.
If somebody has done some kind of social work in some other country you can appreciate
them, but if somebody has not done some social work you cannot punish them for that. It is a
dicey line to punish those who have not done CSR. It has to be more detailed [y] you have to
look into details. I think there should be a ground of encouragement and competition in this
area rather than a carrot and stick policy (Rikki).
I dont exactly say punish them but then what I would think is make them aware of the fact
that they are not really doing a good job by taking advantage of this kind of labor which they
get for really low cost. You know just give them [y] not really a warning but just make them
aware that its really not cool to do that, and maybe that should not be repeated again. I dont
know how far punishing [would go] to get them to do that. Yeah you can encourage them not
to do such kind of stuff. Maybe that would be helpful instead of punishing (Seema).

Many like Sweta believe it is the companys responsibility to practice social

responsibility:
Rewarding is good but I dont know about punishing. It depends upon company to company.
I dont think we should punish someone, we shouldnt force someone. Its their responsibility.
You cant force them (Sweta).

Others, like Riya, suggest varying degree of punishment, as appropriate:

They should not be taken completely from the records, but some kind of resources should be
stopped. Say if they are getting electricity, if they havent followed a social responsibility
norm then they should be charged higher for electricity, thats one example I can give. They
should not be totally removed from the competition because that makes no sense. They still
have to be in the competition and change themselves (Riya).

Similarly, Kunal thinks that punishment would do less to promote awareness of CSR
than reward:
It will be better to create awareness about this [CSR] instead of punishment. Reward will be
good as it will help in creating awareness of the need [for CSR] (Kunal).

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Educating consumers
Participants believe that consumers in India lack awareness about the kinds of social
responsibility retailers practice. Because there is little information available about
CSR, few consumers are able to either support or react to it. Therefore, according to
participants, education is critical in order to build awareness. Each participant had a
different idea about how it could be done, from using the internet to spread the word, to
point of purchase marketing. All participants talked about the important role of the
media in CSR education:
Through news channels, news articles, Youtube and maybe Facebook. Otherwise create a
community saying that this is what CSR is and this is what going on. You know, make a club,
make people aware through Internet sources (Seema).
It has to be through the product and also through the media. So its both. Only one is not going
to work. It just occurred to me that most of the food products have to have information about
nutrition and ingredients and it goes for any kind of food on the aisle in any store and thats
the FDA regulation. So if there will be regulations like that, which asks the retailers to put
information on the clothes such as where the products are made, how it is made and what
it is made with. Then I think that would probably bring about a little bit more awareness
(Shalini):

Indeed, cause-related marketing approaches have been found to be effective among the
Indian population, at least according to one study (Planken et al., 2010). Other
participants suggested that retailers should provide in-store information about CSR to
consumers:
Maybe retail stores, see now I see in a few stores that some of the shares are going to people in
Africa, that is a good way because we dont go online and search everything. Information
displayed in the retail stores is the best way I guess. They can event print it on the receipt or
something (Sweta).
That would be a good thing if consumers have information in the store because with the
media you might overlook it, but when you are shopping and you are in the environment it
makes a difference. You can put information on the wall and of course today with visual
merchandising there is so much that can be done [y] it could be a good thing, creating
awareness in the store (Riya):

On the other hand, Ram and Rikki pointed to the role of the workplace and schools in
educating consumers about CSR:
I would say that it should start from the workplace wherever they are working [y] and also
schools have big role to play. It should be taught in workplaces and schools where you spend
most of your time (Ram).
I think the best way is education [y] I think it should start from very young rather than
educating them later in the malls. It should start from school, where the child is learning and
knowing stuff [y] see we have recycling taught in school and now everyone is aware and
active towards recycling [y] the same goes for CSR. All of these [issues] should be taught
from a very young age, starting in school (Rikki).

Discussion
The purpose of this study was to explore perceptions of Indian consumers regarding
CSR in the apparel industry, and to investigate its importance in the apparel decisionmaking process. In-depth interviews revealed issues impacting participants

perceptions of CSR that were organized into six major themes. Key findings of the
study revealed that participants are supportive of CSR and think that corporations
have an obligation to give back to society. All of the participants think that CSR
is important, and believe that one of the key dimensions of CSR is the equitable
treatment of workers. However, they think that Indian consumers need to become more
aware of what CSR is and what it means for the manufacturing of products.
Participants believe that education is important, in that once consumers are
educated about the need for socially responsible practices, they will respond
accordingly in terms of purchasing decisions. However, while participants indicate
that CSR is important in terms of buying apparel, they did not necessarily want to pay
unreasonably high prices or compromise quality for the sake of social responsibility.
Ultimately, many believe that it is the retailers job to adhere to socially responsible
practices and that the retailer, not the consumer, should absorb the costs of CSR. Based
on the issues that emerged in the data, a framework was developed to explain the role
of CSR in the participants decision-making process (see Figure 3).
As depicted in Figure 3, despite the fact that participants believe that CSR is
important, price and quality are the key factors that influence their decision to support
socially responsible firms. If a brand/retailer claims to be socially responsible but does
not provide the level of quality expected or a reasonable price, then they would be less
inclined to buy the product, even if it is made under socially responsible conditions.
For these participants, price and quality come first. This finding suggests that these
consumers are not necessarily willing to compromise price and quality in order to
support CSR. Such findings are consistent with the studies by Connolly and Shaw
(2006) and Joergens (2006) which found that consumers are interested in buying
products made by ethical and responsible business if price and quality are comparable.
Another key finding of the interpretation is that participants indicated a willingness
to pay more if the price is affordable and they can trust that their money is used for the
right cause, such as going back to the workers (see Figure 3). An affordable price and
trust influence the participants decisions as to whether or not they will pay more for
products made by socially responsible firms.
Awareness is another crucial factor that surfaced in the interpretation, in that it
impacts participants decision to support socially responsible firms as well as their
decision to pay more for products made by socially responsible firms (see Figure 3).
This finding is similar to that of Arli and Lasmono (2010) in their study of Indonesian
consumers which suggested that if consumers had the means to and were aware of
CSR that it would impact their purchasing decisions. Thus it is important that
Price

CSR in the
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229

Support socially
responsible firms

Quality
Awareness
Affordable

Trust

Willingness to pay more

for products made by
socially responsible firms

Figure 3.
Role of CSR in the apparel
decision-making process

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companies try to educate Indian consumers and make them aware of their socially
responsible practices, as lack of awareness is one of the primary reasons why
consumers might not support companies who practice CSR. Ultimately, awareness
is required on the part of the consumer in order for them to be willing to pay more for
products produced by socially responsible firms.
Clearly, consumer awareness of CSR is related to education. Participants suggested
several ways to educate consumers, as they pointed out that awareness is the key for
consumers to know enough about CSR to ultimately influence the decision whether
or not they will support responsible firms. They think that the best way to educate
consumers about CSR is through advertisements, print media, TV, the internet and
point of purchase means. This finding is in line with Planken et al.s (2010) study
indicating that Indian consumers respond positively to cause-related marketing,
however, this study goes further by specifying the types of marketing that would best
be used among this consumer population. Many participants added that government
agencies or social organizations might play a role in monitoring company behavior.
If a company is found to be implementing socially irresponsible practices, then the
records could be made public. Past research on CSR and consumer perception indicates
that when a company gets bad press about its practices, there is often a consumer
backlash against that company and its brand/product image (Becker-Olsen et al., 2005).
Use of child labor by Nike is one such example. Negative consumer reaction could,
as a result, help to force the issue of CSR. It is evident from participants responses that
Indian consumers are no different in this regard, and would be willing to support
socially responsible companies provided they can trust the motives as well as
outcomes.
Implications
Overall, the findings of this study are consistent with those of previous studies
(e.g. Becker-Olsen et al., 2005; Elliott and Freeman, 2001; Folkes and Kamins, 1999), but
this study is one of the first to examine the issues relative to the Indian consumer
population. India is an important sourcing destination for international apparel
retailers, and at the same time, boasts a large population of consumers with a growing
level of purchasing power. The results presented here shed light on what some
members of this consumer group think about CSR, and specifically within an industry
that makes significant contributions to their countrys economy.
This study provides information that retailers and marketers can use when seeking
to connect with consumers in India via CSR. Specifically, findings of this study indicate
that they must first gain the trust of consumers and keep price and quality comparable
to other products available in the marketplace. Findings also revealed that Indian
consumers may be open to purchasing products made by socially responsible
companies, but the key is making them aware of the importance of CSR practices
within the apparel industry. Once they are aware of its importance, these consumers
will be more likely to include consideration of social responsibility when making a
purchase decision.
While this study addresses gaps in the literature on consumer perceptions of CSR in
the apparel industry, there are some limitations. Because the data were collected
specifically with Indian consumers, the findings may not be applicable to consumers in
other developing countries. Participants were asked about their perceptions of CSR as
consumers, thus it would also be important to know how manufacturers in India view
CSR and what it means for their businesses. Understanding CSR from the retailers

point of view is also needed, as retailers typically drive the supply chain. Future
research focussing on understanding CSR from a variety of different perspectives
will help to better articulate its importance for addressing ethical concerns within the
global apparel supply chain.
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Further reading
Astous, A. and Legendre, A. (2009), Understanding consumers ethical justifications: a scale for
appraising consumers reasons for not behaving ethically, Journal of Business Ethics,
Vol. 87 No. 2, pp. 255-68.
About the authors
Megha Gupta is a PhD student in the Department of Consumer, Apparel and Retail studies at the
University of North Carolina, Greensboro. Her research interests include corporate social
responsibility and consumer behavior. Her undergraduate degree in Apparel Manufacturing and
Masters degree in Apparel Retailing and Merchandising provide her with an in-depth
understanding of the garment industry and the apparel retail market. Megha Gupta is the
corresponding author and can be contacted at: m_gupta@uncg.edu
Nancy Hodges, PhD, is an Associate Professor in the Department of Consumer, Apparel and
Retail Studies at the University of North Carolina at Greensboro, USA. Her research interests
include issues of culture and apparel consumption, as well as qualitative approaches to
understanding consumers experiences.

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