Global fashion retailers’ responses to external and internal crises during the COVID-19 pandemic

Abstract

During the COVID-19 pandemic crisis, the media reported different kinds of issues that global fashion retailers face. They had to unexpectedly dismiss garment workers and employees internally, while they had to perform CSR practices for their suffering communities externally. The purpose of this study is to investigate how global fashion retailers responded to these external and internal crises during the pandemic through a case study. Based on corporate social responsibility (CSR) contribution types and the Situational Crisis Communication Theory (SCCT), various secondary sources which are related to three selected global fashion retailers’ (Zara, H&M, and Uniqlo) responses to external and internal crises during the pandemic are analyzed. The findings indicate that global fashion retailers showed some different approaches in their responses to external and internal crises during the pandemic. Externally, all of them practiced CSR by providing monetary and in-kind contributions to the society. However, toward the internal issues related to their factory workers and employees, some of them denied or diminished the problems that had been raised, while all of them attempted to make a deal with the parties who had been affected. The results of this study propose an agenda to discuss global fashion retailers’ responsibilities during the pandemic, as well as to inform fashion retailers of how leading retailers have responded to the crises.