Corporate Social Responsibilities :

Corporate Social Responsibility (CSR) is certainly becoming an important topic . From practical
business practices to decreasing CO2 outflow underway to green items, the idea of doing good is
taking up a much measure of time in the business world. Anyway CSR is an extremely
troublesome thing to work with. Not just it is an idea that it difficult to characterize but,
conveying the organization CSR exercises can be exceptionally dubious. Being seen as somebody
gloating about the great deeds done is never something to be thankful for. However then again,
the great deeds ought not go unnoticed in light of the advantages an organization can get for
being a decent corporate native. H&M have a strong CSR profile, they were just made one of the
most ethical companies in the world and they want to make their customers more aware of all
the work we do to be more sustainable. CRS are based on economic, legal, ethical, and
discretionary responsibilities , Let's take a brief look at responsibilities separately :

Economic Responsibilities:

The company exists to make benefit for its shareholder; however, this ought to be finished
regarding natural and moral aspect. H&M's customers are of extraordinary significance and it is
basic that H&M meet their expectations and convey good items and acting fairly. By doing so
H&M will have the capacity to Creating shareholder wealth will basically be achieved by
providing customers with the products they want, by treating employees in a moral and
responsible way. Consider the financial report from 2012 to 2015 we realized that in 2012 net
earnings per share of the company is 9.56 SEK (4.13875 SR) while in 2015 net earnings per share
13.47 SEK (5.83106 SR) As in the table ( by Saudi riyal ) (H&M report, 2015) :

Earning per share

2012

2013

2014

2015

4.14

4.48

5.2

5.83

So, it is noticeable that the net earning is maximized and that of course will benefit all. As far as
strong competitive position and operating the company at high effective level is concerned H&M
keeps up a strong position in more than 40 markets, and after opening the first store in 1947,
H&M has sought after its mission to steady change. By exhibiting adaptability and listening to
the customer, H&M has the capacity to adjust rapidly to quickly changing situations and patterns.
A competitive combination of quality and style of the best cost allows H&M to offer customers
the best value for cash in every market finally to maintain a strong financial position should the
company creates potential for continued expansion with an attention on quality, keep high
profitability and sustainability .

Legal Responsibilities:

Since H&M does not own any factories, but rather purchase their items from independent
suppliers and their subcontractors, they oblige for all H&M stores in all nations that "wages and
working conditions must meet or exceed existing laws in the nation being referred to and that
children may not work in industrial facilities that supply H&M. CSR is for H&M is closely
connected to the companys supply chain, whereas they are on a regular basis, working toward
making sure that their suppliers pursue the rules and principles, for example, the legal
requirements that are stated in their code of conduct. H&M will not work with any suppliers not
signing their code of conduct as well as H&Ms chemical restriction compliance commitment and
restriction for cosmetic and hygiene product compliance commitment. No collaboration or
exchange of goods and money will take place before those contracts have been signed. In
addition, they will not place an order if the companys inspectors havent controlled their
suppliers, and approved by the CSR department. The H&Ms ambition is to work with suppliers
who meet our stringent requirements for price, capacity, quality and working conditions ( Setareh

Korkchi, 2005) Furthermore, to highlight Saudi Arabia laws and regulation, one law that
applied in the last seven years in most companies in Saudi Arabia is system of saudization to
decreasing unemployment there, H&M initiated the implementation of the system in store in
Saudi Arabia by given job opportunities with some features to Saudis that encourage them to
Recruitment in H&M as health insurance, etc.
EthicalResponsibilities:
H&M need to show that it is working towards human rights and is working and adding to
sustainable development in areas that they find themselves able to influence. They are however
aware of the risk of human rights violations and non-compliance with local labor law and
internationally agreed labor standards. Bearing in mind the previous points, if H&M aware of
the human right then they aware of stakeholder all, Having considered customer we see that the
H&M is customer-focused company, their understanding and addressing their needs is at the core
of everything we do, they engage customers by having a customer service organization, contact
with us by social media for example 18 million Facebook fans, doing market research, having
consumer media and consumer organization. To meet customer needs H&M work with product
design, quality, durability, affordability, new store location, green transport and waste
management. Equally important stakeholder is suppliers, the supplies are valued and business
partner long term relation and stable are key to mutual growth, they engage suppliers by
anonymous supplier surveys, by introduction meeting with new suppliers to know the order and
capacity planning, capacity building and skills transfer. Briefly we can say that H&M is closely
connected with communities around the globe in which our stores are found and those that host
our supplier plants. Out of concern toward the health of H&M's customers and workers, it has
directed limitation for material, leather, plastic and metal items. The limitation doesn't just
incorporate chemicals that are confined by law, additionally chemicals that H&M have decided to
rundown on its limitation list for prudent reasons. H&M is dedicated to act in a responsible and
ethical way by not exclusively complying with the laws, but rather additionally by accomplishing
more the law requires. The company aims to cooperate with their suppliers on improving social
and environmental standards. The H&M policy against animal testing was created in the mid
1990s. It doesn't permit animal testing on its non-essential or cleanliness items, either amid the
production of these items or after completion.
Philanthropic responsibility :

Even though H&M does not have any employee volunteer projects, it does partake and work
together with different numbers of organizations. One is called Mentor Sweden, which is an
organization that works towards preventing drug misuse amongst youth by strengthening the
connections between youngsters and adults. Four the previous years H&M has supported the
work of the Org. Water Aid with the plan to enhance access to water for individuals living in Asia
and Africa. H&M is supporting the organization By giving ten per cent of the returns of choosing
swimwear. As a corporate citizen, H&M also believes it important to provide aid to these areas
affected by natural disasters as the case with the tsunami in Asia to which it donated 562,500 SR),
Hurricane Katrina in the USA to which 75,000 SR was donated, and the earthquake in Pakistan to
which it gave 1,875,000. Finally as important as donation and charity activities are for H&M in
all the world.

It has been found that H&M used to buy its product through operators which implied two things.
Firstly, this implied that H&M did not have control over the way its items were made and,
furthermore that it didn't need to be display at the production lines. This has changed. Today,
H&M is working a decreased number of middlemen, and team up straightforwardly with their
makers. By doing as such H&M now has better control over suppliers, which is an approach to
oversee dangers.
To conclude, CSR is about improving working conditions and environmental practices in H&M's
supply, by going about as a fair and responsible citizen, and adding to sustainable development.
As such, CSR intends to take a dynamic part of the society and create social improvement.

Reference :
http://about.hm.com/en/About/Investor-Relations/Key-Figures/Five-Year-Summary.html
http://www.diva-portal.org/smash/get/diva2:16710/FULLTEXT01.pdf