The thesis analyses the trend of value-added distribution over a span of 10 years, from 2011 to 2021, in the international supply chain of fast fashion products between manufacturers in Bangladesh and multinational fast fashion retailers in Sweden. Bangladesh has grown economically thanks to its ready-made garment sector and favorable policies for businesses and foreign investments. Meanwhile, fast fashion global brands profit by providing affordable clothing to consumers in Europe while allocating garment production to low-wage countries and imposing tight production timeframes. The purpose of the thesis is to analyze the value-added distribution in the international supply chain of fast fashion products between manufacturers in Bangladesh, multinational fast fashion retailers in Sweden and their workers as key stakeholders. Through this thesis, it is possible to notice the inequality between the wealth generated and the remuneration of the parties involved in the supply chain. The methodology involves multiple case studies and value-added analysis. The thesis has three case studies. In each one of them is included a Swedish retail company and a Bangladeshi garment manufacturer. The value-added analysis is carried out on the selected case study companies’ financial reports from 2011 to 2021. Analyzing the distribution of value-added is key from a social sustainability perspective as it directly impacts poverty levels, countries’ growth, health aspects and living conditions of a large part of the population. The results of the thesis are based on the value-added statement elaborations which entail data processing of the profit and loss statement of the annual reports of the companies selected over a span of ten years. The data collected includes an analysis of a total of 60 annual reports. The findings point to the stark inequality between the average monthly salary costs per worker between Swedish and Bangladeshi workers. The value-added distributed to workers in Bangladesh is slowly increasing however it might take a decade to significantly reduce the difference in remuneration between Swedish and Bangladeshi workers. The core point of the findings has proved that multinational companies’ margins are not significantly impacted if they were to factor in higher salary costs of supply chain workers in Bangladesh to ensure a higher living standard than the current one which is not sufficient for a decent standard of living. To conclude the thesis argues about the current lack of disclosure that fast fashion retailers provide to members of society in their sustainability reports and companies’ sustainability strategies. This is because there is an underlying lack of relevant, faithful, verifiable, understandable, and comparable information provided by companies.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-487754 |
| Date | January 2022 |
| Creators | Tegas, Giulia |
| Publisher | Uppsala universitet, Institutionen för geovetenskaper |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
| Relation | Examensarbete vid Institutionen för geovetenskaper, 1650-6553 ; 2022/56 |
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