How companies in the apparel industry produce their products is receiving increasingly more attention, both in the society and marketplace, as well as by consumers. Despite the increasing amount of corporate scandals and corporate irresponsibility within the apparel industry, the previous research conducted within this field has mainly focused on how positive CSR affects consumers. This thesis aims to investigate how Swedish consumers’ attitude and behaviour are affected by negative CSR in the apparel industry. In order to fulfil the purpose of this thesis, a mix of quantitative and qualitative research was used to conduct an abductive study. The data was gathered through a survey posted on social media and by performing semi-structured interviews with participants consisting of Swedish consumers. The authors of this thesis have identified that Swedish consumer’s attitude is affected by negative CSR performed by apparel companies. However, the change in consumer attitude did not necessarily transfer into a change in behaviour, which generates an attitude-behaviour gap. The key barriers identified contributing to this gap are Swedish consumers’ lack of knowledge, and that they generally value personal needs and wants such as price, quality, and style greater than social responsibility.

This thesis argues that the twin concept of separate personality and limited liability from its historical beginnings, has entrenched corporate irresponsibility. It assesses the role that these concepts have played in tackling corporate irresponsibility from their historical origins to the present day, commenting on the lessons learnt. Whilst the institution of the company as a legal person is unquestionably the bedrock of modern company law,1 this thesis examines these concepts not necessarily from the position of disputing the philosophical, economic, or political imperatives, all of which are incredibly important – but from the viewpoint that historically, the principle of separate personality and limited liability entrenches corporate irresponsibility. As such, this thesis suggests a partial abandonment of the separate personality principle because it provides a mechanism for dishonest directors to escape liability for their fraudulent conduct. It also argues that the existing judicial evasion and concealment2 principles and the statutory fraudulent and wrongful trading provisions under the Insolvency Act 19863 are too restrictive, and ambiguous in combating corporate abuse. It is concluded that the existing common law and statutory rules geared towards combating abuse of limited liability provides no coherent format upon which the courts and legislature may effectively curb abuse of the corporate form. As such, these laws in light of their inability to make dishonest directors personally liable for their fraudulent conducts ought to be challenged. There is a need to challenge the existing rules in order to show the effect abuse of limited liability has on creditors, the public and the economy. This research indicates that there ought to be an adequate and effective alternative law which provides balance and support for genuine enterprise whilst providing a robust system whereby those who abuse the corporate form can be easily made liable for corporate debts.