ANSWER ONLY QUESTIONS 1,2,3,7!!!

Everlane: Ethical Chic and Radical Transparency in Global Supply Chains* Global supply chains have been wrought with controversy for decades now. Images and stories of global manufacturing, and particularly textile manufacturing, have highlighted issues of unsafe working conditions, child labor, unfair wages, and corruption. Enter a company called Everlane, an online clothing company founded in 2010 and committed to radical transparency. Its founder, Michael Preysman, wanted to develop a clothing brand that was both ethical and trendy, commonly known as ethical fashion, or, as Preysman described it, a brand that followed the look of Cline and the ethics of Patagonia.". He started with venture capital money to offer high-quality clothes at lower prices that would be sold online under the mission to provide radical transparency. This included providing customers information about how Everlane found the best factories in the world to ensure a factory's integrity.? Preysman then began publicizing the costs of making Everlane shirts on Facebook, which broke tradition from the unspoken protocol of keeping this information as a trade secret. He noted that in traditional retail, a designer shirt is marked up eight times by the time it reaches the customer and he promised to be fairer to the consumer by passing on the cost savings of being an online-only store to the customer. More transparency followed, focusing in on its global supply chain partners. For example, in response to the Rana Plaza collapse in Bangladesh in 2013, when more than 1,100 workers died in factories that supplied clothes to European and American retailers, Everlane posted videos and photos of the workers and factories that they use for their production. To do business with Everlane, factories have to be willing to be photographed and have their costs and audit scores made public. They must supply information about their workers' dorms, including the availability of hot water, heating, and air conditioning. All of this information To do business with Everlane, factories have to be willing to be photographed and have their costs and audit scores made public. They must supply information about their workers' dorms, including the availability of hot water, heating, and air conditioning. All of this information reinforces Everlane's commitment to radical transparency, noted on their Web site byline as, Know your factories. Know your costs. Always ask why."5 5 ETHICAL FASHION Companies like Everlane are part of a bigger fashion trend that supports the concept of ethical fashion and sustainable practices. This trend is associated with a rise in conscious consumerism that has driven many companies to make serious changes to their global supply chains and increase their reputation as good corporate citizens. Some companies have chosen to be Fair Trade certified through the nonprofit corporation, Fair Trade USA, which introduced more than 334 compliance criteria for textile factories in 2012, and whose certification now appears on 20 brands, including Patagonia and Bed Bath & Beyond.? Others have chosen to pursue a slow fashion trend that involves taking the time to source organic materials and articles made by artisans and craftspeople around the globe and viewing apparel as a more long-term investment. This trend has sparked an annual Fashion Revolution Day to generate awareness of slow fashion and a call for accountability through all steps in the clothes-making process. Everlane has not pursued certification or slow fashion, but the company is very much aware of the steps in its supply chain; it is committed to ethical production. Everlane searches for factories certified by independent outside organizationsin fact, Preysman himself spends time with each factory's owner to get some idea about whether he or she is a decent human being. The focus of Everlane is on an ethical production process, rather than using organics or fair trade collections, or artisan made" classifications, which are other alternatives for ethical fashion. 11 During a recent review of one of their Chinese suppliers. Everlane was deciding whether to 99 910 QUESTIONS FOR DISCUSSION 1. What are the ethical and social issues in this case? 2. How difficult is it for a company like Everlane to follow through on its mission? What are the challenges to its commitment to radical transparency in global supply chains? What are the different ways that a fashion company can be ethical? What interest groups might support an ethical fashion group like Everlane? How could they do this? What are the other stakeholder groups that are involved with Everlane? How would each stakeholder view Everlanes quest for transparency and ethical production? How does Everlane's approach to their supply chain differ from a large global buyer like Nike? 7. Is the Everlane business model sustainable? Or, is it just temporarily popular because it is unique? Are competitors likely to follow