Branding Globalization: The Contradictions of Apple and H&M's Ethical Image and Labor Practices

Transnational corporations are major forces behind economic globalization in today's interconnected economy. Businesses such as Apple and H&M create intricate networks of global supply chains, marketing, and manufacturing that go beyond national boundaries. Even if they support economic expansion, a closer examination suggests that there may be a discrepancy between the perception they foster. The technological giant Apple is now regarded as the pinnacle of innovation, known for their elegant design, and first-rate user experience. Their understated commercials present the brand as a leader in technological advancement. Similarly, the fast-fashion behemoth H&M markets itself as a trendsetter that sells stylish apparel at reasonable costs. However, both companies embody the opportunities and contradictions of the economics of globalization, while still effectively misleading consumers with branding strategies to create a disconnect from labor violations.

There is no denying the appeal of transactional globalization to businesses such as Apple and H&M. Both companies make large financial gains by exporting production to nations with relaxed labor laws and cheaper wages. Lower production costs result in larger profit margins and competitive pricing, which are important factors in the fast fashion and technology market. Moreover, transactional globalization makes production cycles faster and more effective. To satisfy the constantly shifting demands of fast fashion, H&M uses fragmented production by sourcing fabric materials from Vietnam and manufacturing the clothes in Cambodia. Furthermore, it is possible to take advantage of weak laws in some regions of the world. The possibility of increased working hours, neglected safety regulations, and even child labor allows for reduced manufacturing costs.

Behind the veil of Apple, there are rumors that the tech giant's supply chain may include factories with subpar labor conditions. For example, The Guardian article “Apple Under Fire” raises concerns about safety violations and worker abuse in companies that produce components for Apple products. For instance, Foxconn, one of Apple's biggest suppliers, has been charged with labor violations for allegedly forcing workers to put in extra hours without getting paid “Staff at Taiwanese-owned facilities averaged 55 hours a week”. These accounts demonstrate a substantial disconnect between rhetoric and reality and stand in sharp contrast to Apple's brand image of moral production and care for worker welfare. Apple is a prime example of the advantages of globalization. Their facilities, mostly in China, assemble their iPhones, which are designed in California. This gives Apple access to a trained workforce and lower production costs. This worldwide division of labor is made possible by globalization. Thanks to Apple's effective production process, consumers around the world gain access to cutting-edge technology at affordable costs. Similarly, the fast-fashion retailer H&M prospers in an international setting. The company primarily sources its clothing materials from countries like Bangladesh and Vietnam, where production costs are lower, making the markets across Europe and North America more profitable. Materials are sourced from various countries based on availability and affordability. After that, their clothing is produced often in underdeveloped countries and distributed to retail locations around the world. With this business model, H&M can serve a wide range of customers by providing apparel at reasonable costs.

Rarely, do Apple and H&M's marketing campaigns address the challenging circumstances of their supply chains. Due to the company's lack of openness, it can preserve a positive brand image at the risk of deceiving customers who think their purchases are morally ethical. The core concept of H&M's brand is "fashion for all." A wide variety of models representing all ages, body shapes, and races are featured on their websites and ads, promoting inclusivity and targeting all demographics. Brand slogans such as "Think Different" and "Shot on iPhone" portray Apple as a company that challenges convention and fosters innovation. This advertising promotes brand loyalty and the idea that Apple products are lifestyle choices rather than just technology. Apple's dedication to innovation is evident in its marketing approaches, yet it may not always permeate its supply chain. Although their websites highlight their social and environmental responsibility programs, it is concerning that the corporation depends on foreign manufacturers that often have unethical labor practices. In a similar vein, H&M cultivates a young, fashionable image, yet films such as "True Cost" reveal the environmental and social consequences of their fast-fashion business strategy. The discrepancy between production methods and brand image creates moral concerns regarding corporate accountability. H&M's labor practices throughout the supply chain undermine the company's commitment to sustainability and ethical fashion. Despite attempts to uphold ethical labor practices, several reports have revealed human rights abuses in factories that make H&M clothing, especially in Bangladesh and Cambodia. For example, According to the Global estimates of forced labor, workers in factories that supply H&M have been investigated for unethical pay, hazardous working conditions, and nonexistent insurance security. Furthermore, even though H&M markets its recent clothing as a step towards sustainability, it can be argued that this is a greenwashing ploy to divert attention away from the company's larger environmental impact and labor violations throughout its supply chain. H&M's application to the Higg Index, an organization intended to gauge the environmental impact of clothing, revealed that H&M failed to accurately report chemical runoff from their lead Cambodia manufacturing facility. H&M's assertions of sustainable operations are called into question by this lack of openness.

Transnational corporations play a significant role in the globalization of the economy, Apple and H&M are two prominent examples. Customers must be aware of the differences between the public perception and the ethical and environmental concerns of manufacturing. Companies should be encouraged to uphold ethical manufacturing processes and limit environmental harm. Collaborating with programs such as the EPA and the Department of Justice will allow Apple and H&M to receive fair trade certifications and gain access to ethical sourcing procedures. We the consumers can change business practices and reshape globalization into a more just and sustainable paradigm. Transnational corporations must push to develop a brand image that highlights ethics and social responsibility.

Works Cited

Rosenfeld, S. (2019, January 10). Inside the iPhone Factory. The New York Times. https://www.nytimes.com/2022/11/18/business/apple-foxconn-china.html [4] Rosenfeld, S.

(2014, April 24). Bangladesh Factory Collapse: The Clothes We Wear and the Lives Lost. TheGuardian.https://www.theguardian.com/world/2013/may/23/bangladesh-factory-collapse-rana-plaza

Davenport, Sarah. Fashion’s Dirty Laundry: The Dark Side of Glamour. Black Inc., 2017.

International Labour Organization. "Global estimates of forced labour" (2016). https://www.ilo.org/publications/major-publications/global-estimates-modern-slavery-forced-labour-and-forced-marriage