Transparency of sustainability disclosures among luxury and mass-market fashion brands: Longitudinal approach

Longitudinal analysis of transparency among fashion brands is the first scholarly effort to investigate sustainability disclosures among the sample of 90 major brands over the period of seven years (2017-2023) through the prisms of moral responsibility theory of corporate and supply chain sustainability. Results showed that both luxury and mass-market brands consider corporate transparency as a broad area to practice their perfect duties. Consequently, brands selectively disclose information about their policies, commitments, governance responsibilities, and processes on human rights and environmental issues but disclose significantly less about the ultimate outcomes of their sustainability efforts. Thus, results indicate that supply chain reporting areas represent the area of imperfect duties for the majority of mass-market and luxury brands. Due to the non-existence of strict reporting mandates in the fashion sector, it is up to luxury and mass-market brands' discretion which sustainability indicators they measure and report. Accurate, relevant, and externally audited disclosures are key factors influencing sustainable investment, with positive effects on the industry, market, garment workers, and consumers. Hence, to prevent fashion brands' tendency to indulge in window dressing and greenwashing, this research advocates for policy change and expects local governments to mandate and enforce reporting mandates. Additionally, non-compliance with reporting laws should be both inspected and penalized.