CORPORATE

SOCIAL
RESPONSIBILITY
Case Study of Tommy Hilfiger Company

I. Introduction
1.1 Background Information of the Company

Tommy Hilfiger is a globally renowned fashion brand that has made a significant impact
in the fashion industry. The brand was founded by American fashion designer Tommy Hilfiger in
1985 and has since become a prominent player in the market. The company's founder, Tommy
Hilfiger, was born in Elmira, New York, and had a passion for fashion from a young age. He
began his career in fashion as a high school student, selling jeans and designing his own
clothing. After moving to New York City, Hilfiger worked for several different clothing
manufacturers before launching his own label. Tommy Hilfiger's brand quickly gained
recognition for its bold and preppy aesthetic, and it became a favorite among the youth culture
of the 1990s. The brand's iconic red, white, and blue logo became a symbol of American style,
and its emphasis on casual, sporty clothing made it a standout in the fashion world. One of the
most significant turning points for the brand came in 1994 when Snoop Dogg wore a Tommy
Hilfiger rugby shirt on Saturday Night Live, leading to a wave of popularity for the brand in the
hip-hop community. This moment solidified Tommy Hilfiger as a major force in the fashion
world, and the brand's popularity continued to rise in the years that followed.

1.2 Key Programs in the Corporate Social Responsibility of the Company

One of the most notable programs that Tommy Hilfiger has implemented as part of its
CSR efforts is the Tommy Cares Foundation. This foundation is dedicated to supporting
initiatives that empower individuals and communities by providing them with the tools and
resources they need to thrive. One of the main focus areas of the foundation is education, and
it works to ensure that young people have access to quality education and career opportunities.
Through the Tommy Cares Foundation, the company has made substantial donations to
educational institutions and scholarship programs, and has also partnered with various non-
profit organizations to support educational initiatives. Another key program in the corporate
social responsibility of Tommy Hilfiger is its commitment to sustainability. As a fashion brand,
the company recognizes the environmental impact of its operations and has taken steps to
reduce its environmental footprint. Tommy Hilfiger has implemented various initiatives to
increase the sustainability of its products, such as using organic and recycled materials in its
designs, and reducing waste and energy consumption in its production processes. The company
has also set targets to reduce its greenhouse gas emissions and waste generation, and has
taken steps to ensure that its supply chain is ethical and sustainable. In addition to the Tommy
Cares Foundation and sustainability initiatives, Tommy Hilfiger has also focused on diversity and
inclusion as part of its CSR efforts. The company has implemented programs to promote
diversity and inclusion within its workforce, and has also partnered with various organizations to
support minority communities. Tommy Hilfiger has also launched initiatives to promote inclusion
and diversity in the fashion industry, such as the People's Place Program, which aims to
increase representation of underrepresented groups in the fashion industry.

1.3 Summarized Analysis of Company’s CSR

Tommy Hilfiger’s CSR initiatives is its commitment to environmental sustainability. The

company has taken measures to reduce its environmental impact through various initiatives
such as reducing water usage and greenhouse gas emissions, as well as incorporating
sustainable materials into its products. The company has also prioritized ethical labor practices
within its supply chain, ensuring that workers are treated fairly and ethically, Tommy Hilfiger
has implemented strict guidelines for its suppliers, ensuring that they adhere to labor laws and
provide safe working conditions for their employees, by championing ethical labor practices, the
company is actively working to improve the lives of workers throughout its supply chain,
promoting social responsibility and ethical business practices.

II. Evaluation of the CSR

2.1 Information about the CSR of the Company

Tommy Hilfiger has focused its CSR efforts is in the area of sustainability. The company
has set ambitious goals to reduce its environmental impact and has made significant progress in
this area. Tommy Hilfiger has implemented sustainable sourcing practices, using organic cotton
and other environmentally friendly materials in its products. The company has also taken steps
to reduce its carbon footprint, for instance, through initiatives to reduce energy consumption in
its stores and offices. In addition to addressing environmental concerns, Tommy Hilfiger has
also made efforts to improve social and labor practices within its supply chain. The company
has a strict Code of Conduct that all of its suppliers must adhere to, which includes rules on fair
wages, safe working conditions, and prohibitions on child labor and forced labor. Tommy
Hilfiger takes this commitment seriously and regularly audits its suppliers to ensure compliance.
Tommy Hilfiger has also made strides in giving back to the community through various
initiatives. The company has a philanthropic arm called the Tommy Hilfiger Corporate
Foundation, which supports various charitable causes such as education, healthcare, and
cultural programs. The company also sponsors initiatives that empower young people and
promote inclusivity and diversity. Furthermore, Tommy Hilfiger has embraced transparency and
has been forthright about its CSR efforts. The company openly shares its progress and
challenges, and regularly communicates with stakeholders about its CSR initiatives. This level of
transparency is commendable and demonstrates the company's commitment to CSR.

2.2 Various programs under the CSR

1) Tommy Cares Program

This program focuses on supporting education and promoting opportunities for young people in
need. The company partners with various organizations and initiatives to provide scholarships,
mentorship programs, and career development opportunities for underprivileged youth.
Through Tommy Cares, the company aims to empower young people and support their
educational and professional growth, ultimately helping them to build a better future for
themselves.

2) Tommy for Good initiative

It focuses on creating a more sustainable fashion industry. The company has made
commitments to using more sustainable materials and reducing its carbon footprint. Tommy
Hilfiger also partners with various environmental organizations to promote awareness of
environmental issues and encourage sustainable practices in the fashion industry.
 Furthermore, Tommy Hilfiger has also taken steps to support and empower women
through its CSR programs. The company has partnered with various organizations to promote
gender equality and empower women in various aspects of life – including education, career
opportunities, and leadership roles. Through these programs, Tommy Hilfiger aims to create a
more inclusive and diverse society, where all individuals have equal opportunities to succeed
and thrive. Moreover, Tommy Hilfiger has also focused on giving back to the community
through its philanthropic initiatives. The company has partnered with various charitable
organizations to support causes such as disaster relief, healthcare, and community
development. Through these efforts, Tommy Hilfiger aims to make a positive impact on the
lives of communities in need and contribute to creating a more equitable and inclusive society.

2.3 Evaluation of 3 Theories of Corporate Social Responsibility

1) Corporate Social Responsibility

a. Economic Responsibilities
 The company has a significant impact on the economy through its
business operations, including manufacturing, retail, and marketing.
In terms of economic responsibility, Tommy Hilfiger has made efforts
to ensure that its supply chain is ethical and sustainable. The
company has implemented initiatives to reduce its environmental
footprint and minimize the use of harmful chemicals in its production
processes. Tommy Hilfiger also works with suppliers to ensure fair
labor practices and provides opportunities for economic development
in the communities where its products are made.

b. Legal Responsibilities
 As a fashion brand, the company must comply with various labor
laws, environmental regulations, and other legal requirements.
Tommy Hilfiger has a responsibility to ensure that its products are
 manufactured and sold in accordance with these laws. The company
has implemented policies and procedures to ensure that its operations
are in compliance with relevant regulations, and has also made efforts
to ensure that its supply chain partners adhere to legal standards.

c. Ethical Responsibility
 Tommy Hilfiger has taken steps to improve its ethical performance by
implementing programs focused on environmental sustainability,
social responsibility, and ethical sourcing of materials. The company
has also established partnerships with non-profit organizations to
support various social causes, such as education, community
development, and disaster relief.

d. Philanthropic Responsibility
 One of the most notable aspects of Tommy Hilfiger's philanthropic
efforts is his involvement in various charitable initiatives. He has been
a longtime supporter of numerous causes, including education,
healthcare, and youth empowerment. Through the Tommy Hilfiger
Corporate Foundation, he has made significant contributions to
organizations that focus on providing educational opportunities for
underprivileged youth, promoting access to healthcare, and
supporting community development programs. Another key element
of Tommy Hilfiger's philanthropic responsibility is his commitment to
sustainability. In recent years, he has made significant efforts to
reduce the environmental impact of his brand's operations and
products. Tommy Hilfiger has implemented sustainable practices in
the design, production, and distribution of his clothing, and has also
worked to raise awareness about the importance of sustainable
fashion within the industry.

2) The Triple Bottom Line

a. Economic Sustainability

 Tommy Hilfiger has taken steps to ensure that its supply chain is
transparent and responsible. The brand has set up a comprehensive
code of conduct for its suppliers, which outlines the standards that
they must adhere to in order to do business with the company. This
includes guidelines on labor practices, working conditions, and
environmental impact.
 Tommy Hilfiger has made efforts to reduce its environmental footprint
through its sustainable practices. The brand has implemented various
initiatives, such as using eco-friendly materials, reducing water and
energy consumption, and minimizing waste in its production
processes. This commitment to sustainability not only helps to protect
the environment, but also contributes to long-term cost savings for
the company.
 Tommy Hilfiger has invested in community-based initiatives that
support economic development and social welfare. The brand has
partnered with various non-profit organizations to promote education,
health, and economic empowerment in the communities where it
operates. By supporting these initiatives, Tommy Hilfiger is
contributing to the well-being of its employees and the local
communities, which in turn helps to foster long-term economic
sustainability.
 Tommy Hilfiger has also embraced technology and innovation to
enhance its economic sustainability. The brand has invested in
digitalization, e-commerce, and other technological advancements to
streamline its operations and reach a wider audience. By doing so,
Tommy Hilfiger is able to adapt to the changing market dynamics and
remain competitive in the long run.
b. Social Sustainability
  One of the ways in which Tommy Hilfiger has demonstrated its
commitment to social sustainability is through its efforts to
promote diversity and inclusion. The brand has actively worked to
embrace diversity in its modeling campaigns, featuring models of
different races, ethnicities, and body types. By doing so, Tommy
Hilfiger has helped to promote a more inclusive and
representative image of beauty and fashion, which is essential for
creating a more accepting and diverse society.
 Tommy Hilfiger has made efforts to be more environmentally
friendly and sustainable in its operations. The brand has focused
on reducing its environmental impact by implementing initiatives
aimed at conserving water, reducing energy consumption, and
decreasing waste. By doing so, Tommy Hilfiger has demonstrated
its commitment to environmental sustainability, which is crucial for
the well-being of future generations.
 Tommy Hilfiger has been involved in various charitable initiatives
aimed at giving back to the community. The brand has partnered
with various non-profit organizations and charities to support
causes such as education, health, and youth empowerment. By
doing so, Tommy Hilfiger has demonstrated its commitment to
making a positive impact on society and helping those in need.
 Tommy Hilfiger has been an advocate for fair labor practices
within its supply chain. The brand has worked to ensure that its
suppliers adhere to ethical and responsible labor practices,
including fair wages and working conditions. By doing so, Tommy
Hilfiger has shown its commitment to ensuring that workers within
its supply chain are treated with dignity and respect, which is
crucial for promoting social sustainability.

c. Environmental Sustainability
  Tommy Hilfiger has been taking steps in this direction by incorporating
sustainable materials such as organic cotton, recycled polyester, and
TENCEL™ Lyocell into their clothing lines. These materials are not only
better for the environment, but they also appeal to the increasingly
environmentally conscious consumers. By utilizing these sustainable
materials, Tommy Hilfiger is reducing its environmental footprint and
promoting a more sustainable approach to fashion production.
 Tommy Hilfiger is also committed to reducing its overall environmental
impact. The brand has set ambitious goals to minimize their greenhouse
gas emissions, water consumption, and waste generation. This
commitment is demonstrated through their membership in the
Sustainable Apparel Coalition and their participation in the UN Fashion
Industry Charter for Climate Action, which aims to reduce the fashion
industry's greenhouse gas emissions by 30% by 2030. Furthermore,
Tommy Hilfiger has also implemented energy-efficient practices in their
stores and offices, and is investing in renewable energy sources to power
their operations.
 Tommy Hilfiger has demonstrated its commitment to this by
implementing strict ethical guidelines for its suppliers and manufacturers.
The brand has a robust social and environmental responsibility program
in place, which includes strict labor and environmental standards that all
of its suppliers must adhere to. Additionally, Tommy Hilfiger conducts
regular audits and inspections to ensure that these standards are being
met and constantly seeks ways to improve and evolve its ethical sourcing
practices.
 Tommy Hilfiger has also been actively involved in promoting circular
fashion and encouraging consumers to recycle and repurpose their
clothing. The brand has launched several initiatives to promote clothing
recycling and has collaborated with various organizations to increase
awareness about the importance of recycling and reducing textile waste.

3) Stakeholder Theory
Five Cardinal Stakeholders

(1) Investors and Shareholders - These individuals and entities provide

the necessary capital and resources for the brand to operate and expand
its business. By delivering strong financial performance, strategic growth
plans, and sustainable business practices, Tommy Hilfiger can attract and
retain the support of its investors and shareholders, which is vital for the
brand's long-term success and stability.
(2) Workers - The brand relies on a dedicated team of designers,
marketers, sales associates, and other professionals to bring its vision to
life and maintain its competitive edge in the fashion industry. It is crucial
for Tommy Hilfiger to provide a stimulating and supportive work
environment, as well as opportunities for growth and development, in
order to retain top talent and drive the brand's success.
(3) Suppliers - The brand relies on a network of suppliers and partners to
source materials, manufacture products, and distribute them to various
retailers and outlets. By maintaining strong relationships with these
stakeholders, Tommy Hilfiger can ensure the quality and consistency of
its products, as well as efficient and timely delivery to its customers. The
company relies on a network of suppliers to provide materials and
production services. By maintaining strong and ethical relationships with
these suppliers, Tommy Hilfiger can ensure the quality and reliability of
its products while also contributing to the sustainability of its supply
chain.
(4) Customers - The brand's success is heavily reliant on its ability to cater
to the needs and preferences of its consumer base. Tommy Hilfiger has a
diverse range of customers spanning different demographics and regions,
and it is essential for the brand to understand and meet the demands of
these customers. By constantly innovating and delivering high-quality
products, Tommy Hilfiger can ensure customer satisfaction and loyalty,
which in turn drives sales and revenue. The company aims to create
 products that meet the needs and desires of its target market, providing
high-quality and stylish clothing that reflects the brand's image. By
understanding and responding to customer feedback, Tommy Hilfiger can
maintain a loyal customer base and attract new customers.
(5) Communities and Societies - The brand has a responsibility to
contribute to the well-being and development of these communities,
whether through charitable initiatives, ethical business practices, or
environmental sustainability efforts. By prioritizing social responsibility
and community engagement, Tommy Hilfiger can build a positive
reputation and foster goodwill among its stakeholders, which can
ultimately contribute to its success and longevity. The company has a
responsibility to be a good corporate citizen, contributing to the well-
being of the communities in which it operates. This can include charitable
giving, environmental sustainability efforts, and ethical business practices
that benefit the community as a whole.

By considering the needs and concerns of all these stakeholders, Tommy Hilfiger can create
long-term value for the business while also contributing to the well-being of society. By taking a
stakeholder approach, the company can build a strong reputation and maintain its position as a
leader in the fashion industry.

III. Proposed Solution and Changes

The fashion industry is a fast-paced and highly competitive environment that requires
companies to constantly innovate and adapt to changing consumer preferences. As such,
implementing effective programs is crucial to the success of any fashion brand. In the case of
the iconic fashion brand, Tommy Hilfiger, several programs have been implemented, some of
which have been successful, while others have fallen short of expectations.
  Sustainability Initiatives- one program that has been working well for
Tommy Hilfiger is their sustainability initiatives. The brand has made
significant strides in reducing its environmental impact by implementing
sustainable practices throughout its supply chain. From using organic
cotton in their clothing to decreasing water usage in their manufacturing
processes, Tommy Hilfiger has demonstrated a strong commitment to
sustainability. This has not only helped to reduce the brand's carbon
footprint but has also resonated with eco-conscious consumers, ultimately
boosting the brand's appeal and profitability.
 Collaboration with celebrities and influencers- By partnering with
high-profile individuals such as Gigi Hadid and Lewis Hamilton, Tommy
Hilfiger has been able to tap into new markets and reach a wider
audience. These collaborations have resulted in increased brand visibility
and have helped to cement Tommy Hilfiger's status as a leading fashion
brand.

On the other hand, there are programs within the company that have not been as successful.

 Foray into the Smart Clothing Market- In recent years, Tommy

Hilfiger has tried to capitalize on the growing trend of smart clothing by
offering products such as "smart" jackets and shirts. However, these
products have failed to gain traction among consumers, partly due to
their high price point and limited functionality. As a result, the smart
clothing program has not yielded the desired results and has not been a
profitable venture for the brand.
 Expanding into Certain International Markets- The brand has
struggled to gain a strong foothold in certain regions, particularly in Asia,
where local competition and cultural differences present barriers to
success. This has resulted in underperformance in these markets and has
hindered the brand's overall growth potential.
 Online Sales Program- While the company has made strides in
improving its online presence and increasing its e-commerce sales, there
are still several issues that need to be addressed. For example, the
 website navigation can be confusing and the checkout process can be
cumbersome, which leads to a high rate of cart abandonment.
Additionally, the company's online customer service is often slow to
respond to inquiries and complaints, impacting the overall customer
experience.
 Diversity and Inclusion Program- While the company has made
efforts to increase diversity in its workforce and promote inclusion, there
are still issues with representation and equal opportunities for employees
from diverse backgrounds. Reports of discrimination and lack of support
for minority employees have tarnished the company's reputation and
hindered its ability to attract and retain talent from diverse backgrounds.

(1) Commitment to Sustainability- The company has taken proactive steps to address
environmental concerns and reduce its carbon footprint. One of the most successful
sustainability programs is the Tommy Hilfiger Sustainable Tommy program, which
focuses on sustainable sourcing, ethical production, and minimizing waste. By working
with sustainable materials and implementing eco-friendly production methods, the
company has been able to reduce its environmental impact significantly. This has not
only improved the brand's reputation but has also appealed to a growing number of
environmentally conscious consumers.
(2) Inclusivity and Diversity - Tommy Hilfiger should focus on inclusivity and diversity.
The company has made an effort to showcase diversity in its advertising campaigns and
has also launched initiatives to support underrepresented communities. The Tommy
Hilfiger Adaptive program is a fantastic example of the company's commitment to
inclusivity. This program offers fashionable clothing for people with disabilities, providing
them with stylish and functional options that were not previously available to them. By
embracing inclusivity and diversity, Tommy Hilfiger has been able to reach a wider
audience and create a positive impact in the fashion industry.
(3) Implementing Technology Solutions- Tommy Hilfiger has been successful in
implementing technology solutions that have improved its operations. The company has
embraced digital innovation by adopting advanced technology in its design and
 manufacturing processes. The use of 3D technology has allowed the brand to streamline
its production, reduce waste, and improve the accuracy of its designs. Furthermore, the
company has also invested in digital marketing and e-commerce, providing customers
with a seamless and personalized shopping experience. By integrating technology into
its operations, Tommy Hilfiger has been able to stay ahead of the competition and adapt
to the changing demands of the industry.

IV. Recommendations

Tommy Hilfiger is a popular fashion brand known for its innovative designs and high-
quality products. In recent years, the brand has taken steps to implement various solutions and
changes within its programs to adapt to the evolving needs of its customers and the market.
There are several strategies that can be employed to accomplish these changes and ensure the
success of Tommy Hilfiger programs.

(1) Conduct thorough market research and analysis to identify areas for improvement within
the brand's programs. This can involve gathering customer feedback, studying the latest
fashion trends, and analyzing competitor strategies. By understanding the current
market landscape, Tommy Hilfiger can tailor its programs to better meet the needs and
preferences of its target audience.
(2) Prioritize Sustainability and Ethical Practices within its programs. This can involve
implementing eco-friendly production methods, reducing waste and carbon footprint,
and supporting fair labor practices. By aligning its programs with sustainability goals,
Tommy Hilfiger can appeal to the growing number of environmentally conscious
consumers and demonstrate its commitment to social responsibility.
(3) Effective Communication and Marketing Strategies are essential to promote the changes
and solutions implemented within Tommy Hilfiger programs. This can involve utilizing
social media platforms, collaborating with influencers, and organizing promotional
events to generate buzz and educate customers about the brand's evolved programs. By
effectively communicating the brand's new initiatives, Tommy Hilfiger can generate
excitement and attract a new wave of loyal customers.
(4) Continuously Solicit Feedback and assess the impact of the implemented changes. This
can involve analyzing sales data, monitoring customer reactions, and adapting programs
based on the feedback received. By staying responsive to the market and customer
needs, Tommy Hilfiger can ensure that its programs remain relevant and successful in
the long run.