CSR communication during critical events : Qualitative research of H&M’s CSR communication during the Covid-19 pandemic

Abstract

During the Covid-19 pandemic, multiple companies decided not to pay for the ordered or made clothes. This led to garment workers not receiving their salaries. From a CSR perspective, this is going against human rights since various workers starved because of the actions from companies. While most companies later promised to pay up for the orders, their reputations had shifted negatively. Companies can regain trust through CSR communication. Currently several media channels open opportunities for companies to communicate their actions. This study aims to understand how these critical events affect companies’ reputations and how their CSR communication through annual sustainability reports and social media affects the stakeholder’s perception of the company. The research was conducted by following H&M’s actions and CSR communication through annual sustainability reports and Instagram before, during, and after the Covid-19 pandemic for five years. The derived material was analyzed with a thematic analysis method. By dividing the results into separate themes, the material was implemented to answer the research questions. The theoretical framework was built up by reading through earlier studies of CSR communication, reputation, and associated with critical events. CSR in fast fashion was furthermore investigated to understand the occurring situation in the fast fashion industry. The results show that companies should have transparent communication. Although dialogical communication is recommended, practical actions are the most crucial for regaining reputation after critical events. Social media and annual reports are effective ways to reach stakeholders. Through transparent communication, the company gains trust. Taking fast positive actions in the criticized events and communicating these positive actions through reports or social media has an positive impact on stakeholders. To be able to take fast action, companies must be aware of the criticized topics, and by taking action, stakeholders feel that the company listened to them. The research confirmed that previous neutral and positive attitudes impact future attitudes even after critical events. People forget quickly negative events if the company takes action toward improvements.