Corporate Social Responsibility Assignment On The Sustainability Of Est/Wst

Question

Task: This assessment comprises a case study analysis of a real business. ((For AOS Assignment Task 2: Individual Case Study, you will be analysing Est Wst. For more details, see the company website: estwst.co)) and you will be required to do the following:

The total word limit is 2,000 words. The word count does not include any table of contents, introduction, tables, conclusion, appendices list and list of references.

Answer

1.1 Type Of Est/Wst It Is (For-Profit/Not-For-Profit; Merchandiser/Manufacturer; Partnership/Company Etc.)
Estwst.co is identified as the business organisation that essentially formulates in the form of a collection of partnership where exchange between consumer and craftsman goals is taken place. The Estwst.co began with its roots at Nepal where the local communities were addressed for gaining skilled workers (Guedes et al. 2017). Nepal and India incorporated their skills to create global impacts. The prime products of textile and art were designed and produced with effect to develop the face of countries in global arena. The communities depicting South Asian culture were inspired to create expressions towards the young generation. The classical craft work was developed in the past millennia. Traditional procedures of sourcing the natural fibres are used for designing bags, clothes and accessories so that products are able to be addressing the sustainability criteria as a global message.

Estwst.co is identified to be a profit making business organisation that is essentially formed out of a collection of partnership. There are several consumers who are actively involved in design making and idea generation mechanism for the brand to function. On the other hand for the collective partnership to be generated there are several of craftspeople involved so that effective designs, textile sources and materials are possible to be procured. With the goal to create timeless products, the recycling, reusing and recreation of the fabrics are possible to be generated.

1.2 An outline of est/wst’s main products/services and activities;
The targets are to design and produce timeless products in order to foster sustainable environment through business conducts addressing future needs. They are essentially found to involve in the production and manufacturing facilities of shopping bags, shop hats and accessories. There are several other featured products offered by this brand Estwst.co. This company which is mentioned above in this assignment on corporate social responsibility essentially includes business operations that endeavour to create global connections through explorative seeking (Ksi??ak, 2016). Skilled artisans are incorporated within their business prospects emerging from Nepal and India so that products blends are possible to incorporate textile designs blending the Eastern with Western design amalgamation.

1.3 It’s Approach To Corporate Social Responsibility And Sustainability
Estwst.co is typically categorised as one of those business organisation that function with the fundamental objective in mind to integrate sustainability as the prime driving force to undertaken business activities (Ksi??ak, 2016). EST/WST sets up the appropriate approach through their business activities to support the vision of building a strong sustainable culture of textile and fabric industrial goods and product diversity. They are actively engaged into research activities concerning the textiles that they are likely to procure from all regions from across the globe. Developing sustainable materials are likely to pose positive impacts in an inevitable manner. It is through direct partnership engagement that weavers from Nepal and India are being able to contribute in their manufacturing and production mechanisms. Establishing versatile and contemporary fashion adhering to sustainable means by using effectual raw materials that are possible to contribute towards timeless business are tried to be incorporated.

2.1 Identify Four (4) Specific Stakeholder Groups That Are Likely To Benefit From Est/Wst’s Corporate Social Responsibility Focus
The four stakeholders of EST/WST’s business as discussed in this Corporate Social Responsibility Assignment that are likely to be benefited from EST/WST’s corporate social responsibility initiatives are customers, skilled artisans, environment and Indian society. The customer, environment and society are the external stakeholders of the business who are likely to benefit from its CSR activities. The skilled artisans are the internal stakeholders of EST/WST who will be benefited from the CSR activities of the business.

2.2.1 Description in detail one (1) corporate social responsibility activity est/wst is undertaking to manage the impact their operations have on each stakeholders group.
One Corporate social responsibility that EST/ WST is undertaking for Indian Society is the giving grants and technical support of the water-based rural development project in India’s rural areas to give better water facilities to the Indian rural areas. This initiative has been taken by EST/WST by the partnership with Water Harvest which is a non-profiting organisation in India giving these type of support to the water based rural development project (EST/WST, 2019).

One Corporate social responsibility that EST/ WST are undertaking for its customer is making a high quality sustainable product using environment-friendly low impact materials to provide to the customers. This type of product will be sustainable and also healthier for customers (EST/WST, 2019).

One CSR activities that EST/WST is undertaking for skilled artisans that work in the organisation is providing programs to these skilled artisans for their skill enhancement.

One CSR activities that EST/WST is undertaking for the Environment is using environmentally sustainable method for production and low impact material and cotton as raw materials for its production.

2.2.2 Explanation how these activities are likely to create value for /benefit those stakeholders.
CSR activity for the Indian society to fund and give technical support to the water-based rural development project will create value for the Indian society by the better infrastructure of the Indian rural society and lessening the different disease that the people in rural areas have due to bad water facilities.

CSR activities that EST/WST has undertaken for its customers will create value for the customers by making the products that they use more durable and healthier for them.

CSR activities for skilled artisans as mentioned in this Corporate Social Responsibility Assignment are creating value for them as they are becoming more competitive in the market and is becoming more capable of earning a higher amount of income.

CSR activities for the environment is creating value for them as these sustainable methods of production and raw materials are bettering the environment quality and not creating harmful products from its production. Also, it is also encouraging people to use more environment-friendly products.

4.1 Identify Four Corporate Social Responsibility Activities Est/Wst Undertakes Items Of Management
The brand of Estwst.co is found to be actively involved in the fundamental building and promotion of sustainable responsible actions. His is a brand that essentially uses the cotton sourced from India. It is recognised by the company that authentication using organic products are particularly applied for manufacturing the product outcomes. The textiles and fabric materials are guaranteed with use of organic raw materials (Gandhi, 2017). The essentially directs their decision making propaganda in business.

The low impact keeping raw materials are tried to be put to use by Estwst.co so that environmental threats posing risks towards the surroundings are reduced. A controlled use of products from tree yields is practiced so that massive troubles in water resourcing are possible to be effectually met.

Estwst.co has eventually decided to work towards production of Water-Harvest. Adhering to a non-profit making grant of funding through technological support channelization the water-base rural developments projects are created in India since 1987 (Uysal et al. 2018).

Estwst.co is intrinsically involved in conducting CSR activities by donating $10 for each purchase made in terms of clothing, hand bags, accessories. In order to produce more amount of organic cotton through ethical and CSR means the water development project is designed in India. Product demands are addressed to support the social cause of clean water infrastructural growth in rural India that aims to save water.

Estwst.co works towards development of durable natural fibres that can produce their traditional hand-woven textiles which can facilitate earning in developing countries through cultivation of skilled workforce (Szewczyk, 2016). Aesthetic sensibilities are highly respected through CSR activities with attainment of suitability being the core objective.

4.2 Identify two (2) benefits est /wst is likely to have gained from its focus on corporate social responsibility and/or sustainability.

1. With every decision that the company of Estwst.co takes as mentioned in this Corporate Social Responsibility Assignment, adhering to corporate sustainability as the fundamental responsibility is tried to be secured. It was observed in this assignment on corporate social responsibility that the Developing a cheap local market proposition for benefiting developing country population through recycled, organic and timeless utility products are endeavoured to be created. With rising concerns regarding fashion industry operations leading to cause destructive impacts upon the social and environmental fields, the approach adopted by Estwst.co is worth appreciation.
2. Polyester production for fabric manufacturing is strictly prohibited (Coste-Manière et al. 2018). The business decision is made within Estwst.co so that high emission rates due to cotton production are highly avoided. The pesticides and insecticides insanely manufactured are likely to be addressed.

4.3 Explanation Of Why Est/Wst Has Gained These Benefits
The business decisions are focusing upon areas of contamination of water in large amounts, destruction of soils and introduction of serious health risks within local communities. Hence the mutual partnership decision to produce natural fibre to create timeless products of hand-bags, clothing and accessories are highly appreciated (Gardetti and Torres, 2017). Severe health issues caused through chromium salt amounts rising in rural regions were tried to be encompassed. It is addressing these issues that Estwst.co decided to produce raw materials from fast growing plants originating from foothills of the Himalayas. The hand weaving crafts from villages in India shall be utilised. The textile workshops fostering organic use of textiles and recyclable products are predominantly practiced to be found in local markets. The vegetable dying protocols are used as CSR activities to adhere to organic means of generating products in local markets through organic handlooms are essentially practiced within Estwst.co.

5.1 Pricing Of The Backpack Product Of Est/Wst
The pricing of EST/WST backpack is in the range of $110-$145. Most basic backpack of the company is sold for $110 and the backpack with the highest feature and latest design currently sold at $145 (EST/WST, 2019).

5.2 Identification Of The Different Types Of Cost Of Est/Wst’s Backpack
In this section of the Corporate Social Responsibility Assignment, the two examples four different types of cost of EST/WST Backpack will be identified and discussed. The first type of cost that will be discussed is Variable cost. The two examples of the variable costs of Backpack include the cost of cotton and Zip material of the backpack. The cotton cost and the zip material cost is taken as the variable cost of the Backpack of the company as all backpack are made of cotton material to be environment-friendly and also almost all backpacks of the company have zip pockets facilities. Therefore, these two materials will be needed to make the backpack of EST/WST. These costs are considered to be variable cost as the amount of cotton and zip material needed in operation is directly depending on the level of production of the company.

The two examples of the second type of cost that will be discussed in this section are the fixed cost. The two examples of the fixed cost of EST/WST’s backpack are labour cost of the skilled artisan and rent cost of the premises in which the backpack of EST/WST. The labour cost of the skilled artisan is taken as the fixed cost of the backpack of the company as it is stated in one of the official journals of the company that the company products are designed and manufactured by the skilled traditional artisans in Nepal and India and these skilled artisans are the employees of the business. The company gives a specific amount of remuneration to these skilled artisans. Therefore, this is one of the fixed costs of the backpack of EST/WST. Rent cost is another fixed cost of the business as the main electricity cost as the company had to pay a fixed amount of rent for the premise in which its manufacturing process is going on(EST/WST, 2019).

The third type of cost that will be the direct cost of Backpacks of EST/WST. The two examples of the direct cost of the company are the labour cost of skilled artisan appointed for making backpack of the company and cotton material cost of the backpack of the company. The labour cost of skilled artisan appointed for the manufacturing of backpack is considered the direct cost of Backpack as it has been linked to backpack manufacturing only and this is the reason for calling it the direct cost of Backpack. The cotton material used in the backpack is also specifically ordered according to the design of the backpack. Therefore, this cost is directly linked with the backpack product in EST/WST, and this is the reason for calling it a direct cost.

The fourth type of cost discussed in this Corporate Social Responsibility Assignment that will be discussed is the indirect cost. The two examples of this type of cost in backpack product of EST/WST are marketing cost and shipping cost of the backpack product. The marketing cost of EST/WST product in the USA and another western market cannot be directly linked to the Backpack product of the company, but these marketing activities aim to increase the sales of all products including the backpack of EST/WST. The company also operates by manufacturing its product in Nepal and India and then it is shipped to the USA to sell in the USA and other western domestic markets. This shipping charge cannot be directly linked with the backpack specifically and is incurred for shipping of all item from India and Nepal to the USA. Therefore, the shipping cost of EST/WST is the indirect cost of the business.

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List Of References
Coste-Manière, I., Charpentier, P., Boyer, G., Croizet, K., Van Holt, J. and Chhabra, S., 2018. Innovation and Sustainability in the Luxury Fashion and Fabrics Industry. In Models for Sustainable Framework in Luxury Fashion (pp. 11-34). Springer, Singapore.

EST/WST. (2019). About Us. [online] Available at: https://estwst.co/pages/about-us [Accessed 10 May 2019].

EST/WST. (2019). About Us. [online] Available at: https://estwst.co/pages/about-us [Accessed 10 May 2019].

EST/WST. (2019). The Global Effect: Why Your Purchases Matter. [online] Available at: https://estwst.co/blogs/news/your-purchases-matter [Accessed 10 May 2019].

Gandhi, A., 2017. Corporate Social Responsibility in Indian Apparel Industry. In Dimensional Corporate Governance (pp. 205-212). Springer, Cham.

Gardetti, M.A. and Torres, A.L., 2017. Sustainability in fashion and textiles: values, design, production and consumption. Routledge.

Guedes, M.D.G., Ferreira, F., Urbano, L.M.O.G. and Marques, A.M.D.R., 2017. Corporate social responsibility: competitiveness in the context of textile and fashion value chain.

Ksi??ak, P., 2016. The CSR challenges in the clothing industry. Journal of Corporate Responsibility and Leadership, 3(2), pp.51-65.

Szewczyk, M., 2016. Corporate Social Responsibility in the Textile and Apparel Industry: Barriers and Challenges. Journal of Corporate Responsibility and Leadership, 3(4), pp.67-81.

Uysal, F.F., Demir Askeroglu, E. and Kastaci, B.B., 2018. A Field Survey on Social Responsibility Practices Carried out by Textile Companies in Turkey within the Scope of Sustainable Development. J. Mgmt. & Sustainability, 8, p.36.