Veja Sneakers with a Conscience Case Solution

Also to this, the labor conditions at Veja were very different than conventional fashion businesses. The labor force in conventional fashion companies includes forced overtime, low wage rates and long working hours. On the other hand, Veja not only complies with International Labor Standards but also believed in providing the dignified working environment to the laborers. Also, to overtime pay and annual bonuses, the average wage of Veja laborers was also higher than the industry average. Besides the fair-trade certification, Veja worked on increasing the credibility of the farmers and worked for their social equity and improved lifestyles.

2. What role do those differences play in terms of partnership and acquisition?

The partnership and acquisition opportunities for conventional fashion industry brands are different than those of an ethical fashion brand. For conventional fashion brands that are less concerned about the ecology, raw material or the labor standards, the opportunities for business partners are wide. Whereas, Veja has stringent policies with respect to labor rights, ethical production and conservation of energy and environment and raw material requirements; thus, limiting the partnership opportunities. Moreover, larger fashion industry brands make an acquisition of small brands. As the main objective of such brands is profit-making rather than the maintenance of ethical standards. However, for a business that is strongly focused on social equity and fair trade, the acquisition of smaller companies or companies that are struggling with their finances does not seem an appropriate choice.

For ethical companies like Veja, a more appropriate way of establishing business partnerships is to help smaller companies or start up to improve their business processes and align them with ethical and ecological standards. This will not only help smaller firms to attain profitability but also strengthen the industry of ethical fashion brands. For ethical fashion deals, it is important that all the businesses and stakeholders involve complying strongly with ethical and labor standards.