Business Case - Fashionforward!

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For our final paper for the term in CSRGOVE, we were tasked to analyze an article and formulate a solution to the problem given, while at the same time, integrating what we have learned throughout the past sessions, namely the business model canvas and the 3Ps and 3Es.

The article, entitled Easy on the Wallet or Easy on the Earth: A Business Case on Sustainability, focuses on Carly LeBlanc, a student intern who was hired by Fashionforward!, an online auction site, to look for individuals who may be interested to be a member of the said bargain site by paying the $30 registration fee. Now, LeBlanc was able to register 300 new members after promoting the company in her campus. She was able to attract more people by telling them that they would receive free shirts after registering. The dilemma here is that Carly now needs to choose on which company to buy the shirts she would be giving. The first one would be a low-cost company in China that would sell the shirts to Carly for $1,100 ($5.50 per shirt) with the delivery free of charge. However, the disadvantages of this sale would be that the workers of this company are suffering from low wages, harsh working conditions,and poor safety regulations. On the other hand, the fair-trade company located in San Francisco produces shirts that are organic, eco-friendly, and are of high quality. The workers here are well-paid and are working in conditions that are suitable for them. The shirts produced however, would cost $28.65 per piece and $8,595 in total. So, which company should our heroine pick?

Our group's stand in this is that Carly should choose the fair-trade company to supply the shirts since we believe that it is the most ethical thing to do. By choosing this supplier, the business model canvas would be aligned with the principles we have formulated, which means that it would yield an eco-friendly, socially responsible and sustainable output.

Another benefit from this decision would be that it satisfies the triple bottom line. Choosing the Fair Trade suppliers is beneficial to the first P, which is Planet, since the utilization of eco-friendly materials, along with eco-friendly based operations will lessen wastes and eventually help restore the environment. It also benefits the second P, People since the employees who are producing these Fair Trade shirts are treated well, they are provided with safe working environments, and are compensated sufficiently; this ensures that their physical as well as mental well-being is kept optimal. The employees are not the only ones benefitting from this, the customers are as well, since they will be provided with high quality, well-made shirts that are eco-friendly. Lastly, this decision also satisfies the third P, Profit since our brand’s eco-friendly or ‘green’ reputation will contribute to Fashionforward!’s brand equity. Once consumers are aware of that reputation, we believe that this will help in making our operations profitable in the short-term, as well as the long-term. 

Business Model Canvas