Live Project with NEXT

Fig 1. Cover image, 2019

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THE BRIEF Using technology, develop effective communication channels with workers in the supply chain in order to improve the access to grivance mechanisims

N0678005 N0892775 N0890565 N0835255 N0822299 N0866140

MA Fashion Marketing Nottingham Trent University

THE TEAM

Gemma Benjafield Tsz Kan Lee Shiying Wang Yiting Li Li-Hsuan Yang Zhibo Wang

CONTENTS

work re l a t i o n s h i p s

csr & audits

i n tr o to the re p or t

next background

9

l i tera t u re rev i ew

1

19

25

31

41

49

c u r re technol

workers rights tr a n s p a re n c y

s

big data

57

impl ementation plan findings & conclusion discussion

63

73

primary re s e a rc h

97

123

127

re fere n ce s

nt logy

79

outcome f u t u re plan

Fig 2. Filler image, 2019

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PURPOSE This report will describe and analyse the company’s logistics and supply chain strategies in correlation to the brief; “using technology, develop effective communication channels with workers in the supply chain in order to improve access to grievance mechanism”.

It will also attempt to understand the rationale behind these strategies, identifying how they have been successful and how they can be improved future forward with our proposed idea.

Sources used throughout this report are predominantly secondary; including findings from the company website, company reports, textbooks and journals. Primary research has been used where necessary; however, this is limited due to restriction of access. It is expected that all findings will shape our chosen outcome, and a detailed analysis of findings will help us produce a high-quality report.

Literature within the report will outline the current issues which are happening with supply chains, such as; labour and workers’ rights, corporate and social responsibility, audits, transparency, workers relationships and technology. A more in-depth analysis of how these issues affect NEXT, and explorations of how we can solve problems within the NEXT workers’ supply chain, to improve communication using technology, will be reviewed.

The finalised outcome from the report, has been built in reflection to our findings, and we believe that the proposed idea effectively corresponds to the brief, and this is something that NEXT can implement within their supply chain, to develop effective communication channels with their workers.

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AIM & OBJECTIVES To understand the current challenges faced by Next, and come up with a marketing strategy with better communication to improve worker relationships and ensure workers rights in the supply chain. The aim will be achieved by the following objectives:

1.

To understand Next’s internal marketing background and analyse their strength and weakness

2.

To investigate the challenges of workers’ rights in terms of supply chain faced by NEXT plc

3.

To understand business’s corporate social responsibility and problems of auditing in the supply chain

4.

To improve the To identify the importance of transparency within the supply chain

5.

To investigate how communication can strengthen the relationship between brands with workers in their supply chain

6.

To create an appropriate communication channel to improve worker relationship and rights in NEXT

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Fig 3. Filler image, 2020

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R AT I O N A L E

Fig 4. Filler image, 2020

Fig 5. Filler image, 2020

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There are various studies which have previously been conducted to study the management of supply chains. Due to the nature and logistics of supply chains, they are continually evolving both negatively and positively. Specifically, new studies can analyse the core problems within the supply chain for workers. Legalisation is in place in order to protect workers.

Therefore it is vital for businesses to not only obey by legal rights, but to understand the problems that are occurring within the supply chain, and identify how they can improve these. Previous literature of workers rights within the fashion industry will be deeply analysed (Mosley, 2017), since fast fashion businesses are rapidly growing, there is a correlation of immoral working conditions that can be identified (Sattarin, 2013), specifically in deprived countries. Theories such as Maslow (Maslow, 1994) can be applied to analysed to workers rights, to produce theorised indications and values of the significance for businesses as incorporations of these theories in the work environment can mean that companies can manage their workforce better. While there are plenty of reports into workers rights, this topic is far from being exhausted as a research area, since there are ample of scandal reports which outline companies that are

not acting ethically within their supply chains (ITUC, 2016). Today, technology is being implemented in almost all areas of professional businesses, and the widespread use of technology is changing the way companies manage their supply chain models (Van Donk, 2008). Therefore, our study will provide up-to-date research into the core factors within the supply chain such as; labour rights, corporate social responsibility, responsible business conduct, audits, and transparency, identifying the problems that transpire, and how these can be improved with the implementation of technology. Thus, our report will aim to provide new discussions about how technology can furthermore improve working conditions in the supply chain. Our research will fundamentally provide an investigation of the concerns that NEXT is being faced with within the supply chain, and how they can improve these issues. The practical contributions produced will provide initiatives for the brand, since we will identify problems for grievance mechanisms specifically for NEXT. In turn, we will provide a technology strategy which can be implemented to benefit the business, to help them communicate with workers within the supply chain.

LIT REVIEW

L I T E R AT U R E R E V I E W

NE X T BAC KG ROUND

2.

NE X T

Workers

CSR & A

Transpa

Work Re Current

overall background

vision & mission

strategies & objectives

T BAC KG ROUND

s’ Rights in the Supply Chain

Audits

arency

elationship technology

current action on transparency

supply chain overview

W H O I S N E X T plc?

NEXT plc is a British high street retailer, established in 1982. Originally launching exclusive women collections of stylish clothes, shoes and accessories, NEXT soon expanded into menswear, children clothes and homeware, exceeding the aspirations of their consumers, at prices within the reach of most individuals. Their breadth of product offering now extends more than just NEXT branded product ranges.

They have now become a direct, and indirect export, selling other brands such as LIPSY, which trades on NEXT online and instore through wholesale overseas franchise channels. The scale of their online and instore business and selling other brands has allowed NEXT to develop an increasingly powerful platform.

NEXT operates 4 main distribution channels; 2018/19 profit by segment

NEXT Retail, a chain of approximately 510 stores in the UK and Eire NEXT online, with over 5 million global consumers, serving over 70 countries NEXT international which has established around 200 franchised stories in 35 countries NEXT Finance, which currently provides around ÂŁ1.2bn of consumer credit for consumers to purchase products online and instore through NEXTpay and NEXT3step.

NEXT online NEXT retail NEXT finance NEXT international retail NEXT sourcing Other

Fig 6. NEXT 2018-19 profit by segment chart, 2019

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B R A N D VA L U E S Reliable Trustworthy Professional

B R A ND E SS E N C E Sleek Classic Contemporary Quality

VI S I ON & M I SS I ON The vision statement of the company shows its obligation to offer superiority in their product offering, at a reasonable price. The mission and vision of an organization are integral to the company’s strategy since they are used to define future goals and operational tactics (Thompson, 2019). NEXT’s mission statement plays an effective role in when creating their marketing image to both internal and external customers.

Their statement is as follows; “Our commitment is to offer exciting, beautifully designed, excellent quality clothing and homeware products that are well made, functional and safe, sourced responsibly and provide outstanding value to meet or exceed our customers’ expectations.” - (Nextplc, 2020a) 12

S T R AT E G I E S & O B J E C T I V E S The primary financial objective for NEXT is having a good relationship with their shareholders and employee’s. They deliver long term returns to shareholders through a combination of sustainable growth in earnings per share and payment of cash dividends.

This is believed to be best achieved by the following strategies (Nextplc, 2020b): • Product ranges to be continuingly improved and developed, measuring the success by sales performance.

• • Strategically amending the retail selling space for profitability. New store appraisals must meet the demanding innovating financial criteria prior to the investment being made. This is measured by the profit contribution and return on capital against appraised targets.

• • Growing the number of profitable NEXT Directory customers and their expenditure.

• • Management of gross and net margins through resourceful product sourcing, stock management and cost control.

• • Concentrating on both customer service and satisfaction levels in stores and directory.

• • Efficiently using balance sheets and securing financing structure to maintain the groups financial strength.

• • Generating and returning surplus cash to shareholders by way of share buybacks or, special dividends.

Fig 7. NEXTplc stratgey, 2019

Fig 8. NEXT store, 2015

CURRENT ACTION ON T R A N S PA R E N C Y NEXT is a transparent business whom set ethical trading priorities and share their company information publicly, which is an important element to both external and internal customers. NEXT’s Code of Practice (COP) Principle Standards, forms an integral part of their business and is overseen by their global COP team whose role is to build relationships with their suppliers through training and support, alongside ensuring NEXT’s principle standards are complied with by auditing their factories (Nextplc, 2020d).

Their corporate social responsibility can be found online which covers their; • gender pay report • modern slavery transparency statement • human rights and modern slavery • suppliers • consumers and products • environment • community

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H UMA N R I GH T S

Slavery

Workers

NEXT is a British Retailer Consortium (BRC) member, meaning they have a protocol for handling reported cases of modern slavery. They also have a protocol to tackle labour exploitation in the UK supply chain. Guidance booklets were developed for third party brands to address this, following bespoke online training for relevant NEXT employees.

All workers in their supply chain are entitled to fair wages, as they engaged with ACT

Discrimination

Privacy & Data Security

Worker interviews are carried out as part of their COP audit process and attended (ET) ethical trading initiative gender learning event series which focused on practical solutions and making progress towards gender equality in supply chains.

NEXT ensures that women represent the majority of workers in their supply chain in order to make sure there is no risk of discrimination against women and there are equal opportunities or gender, age and marital status.

Committed to ensure that they protect their consumers and employees privacy and ensure regulations and resources are in place to develop, maintain and have high security of their systems. Regular testing is carried out to ensure data is fully protected and no chance of unauthorised access occurs. Employee training is implemented throughout awareness programmes to further enhance privacy awareness.

Health & Safety

Child labour

Health and safety measurements are delivered during training for new members, including chemical management.

Examining their child labour policy and guidance for supplies to ensure child labour does not occur.

Clean water

Freedom of association (foa)

They ensure that clean water is available for workers following their COP audit. They have now joined ZDHC which provides opportunities to prevent wastewater contamination.

NEXT participate in ETI consultation workshops which have helped them to mange FoA issues if they arise in their supply chain. This is because countries they source from such Cambodia, China, India and Turkey have restricted laws, attitudes and practises with the freedom to join an independent trade union.

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Fig 9. NEXT Emma Wills Collection, 2019

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S U P P LY C H A I N O V E R V I E W Next has around 40,000 employees globally and performed around 2,073 COP audits in the year across 43 countries (Nextplc, 2020d). The company are continuously updating their enhanced supplier system and improvement lies at the heart of their business.

Performing in an ethical manner, and developing positive relationships with their suppliers is important to NEXT as this helps to raise standards of working conditions in the factories where their products are made (Nextplc, 2020c). The business are fully aware of the modern slavery that exists which is why NEXT are committed to preventing modern slavery and human trafficking throughout their supply chain by finding effective methods to eliminate this and keeping everything transparent. Ensuring their policies and procedures are reviewed regularly is key to enabling that their internal teams are aware of the issues, which is particularly foreseen when working with new suppliers within the supply chain and making sure they comply with NEXT’s transparency.

Transparency is further planned throughout the products and services NEXT buy and use from, as it is fundamental that they are treated fairly and respected whilst outlined in NEXT’s human rights (see page 15).

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Fig 10. NEXT product production, 2019

Fig 11. NEXT product supply chain, 2019

WORKE RS RIGHTS

3.

WORKE RS RIGHTS I N T H E S U P P LY C H CSR & Audits Transparency Work Relationship Current technology

Lower Cost and Risk

Limited Control & Lack of information Challenges of Outsourcing faced by NEXT Plc

Difference of each country’s laws and regulations Fashion industry: working overtime, insufficient compensation and managers’ concern Company’s credibility and reputation

The Invisible Workers -the Current Problems

The Barriers to Protecting Labour Rights

S HA I N

Non-compliance and violation of workers’ rights still exist(6 million children) Building trust with suppliers, engaging exhausted workers, busy production schedules, high turnover rate, and accessibility

Government

S U P P LY C H A I N :

Shedding lights on labour rights especially in the supply chain, understanding what barriers Next are facing and the reasons why we need to protect workers is crucial. With the rapid growth of globalized multinational companies, the global supply chain is explained as a cross-border organization that produces products or services through a variety of development, production, and delivery (International Labour Office, 2016). The global supply chain can be categorized into two different modules which are foreign direct investment (FDI) and sourcing. FDI by multinational enterprises (MNEs) has the direct ownership of their oversea factories, while sourcing does not have direct control of their subcontractor’s employment.

1. Challenges of Outsourcing faced by NEXT Plc

It is undeniable that both modules have the advantage of creating employment, promoting economic growth, but they raise the issue of labour rights due to the lack of control of their subcontractors (International Labour Office, 2016; Mosley, 2017). In detail, multinational enterprises can outsource their products without investing in factories and hiring new employees, but it is a growing challenge for the leading firms in the global supply chain due to their limited information on suppliers’ workers’ condition (International Labour Office, 2016).

While the report from International Labour Office (2016) considers foreign direct investment with a formal employment relationship is considered as offering a higher wage and working condition for the domestic workers, problems of workers right in the module of outsourcing have

been discussed in many theories. In general, subcontracts are considered to have a higher risk of violating workers’ rights (Mosley, 2017). Mosley (2017) pointed out that outsourcing with subcontractors has diverse production, lower risk for the leading brands, but the risks and problems behind the outsourcing are unavoidable. Especially when a brand has worldwide suppliers, the difference of each country’s laws and regulations put the wages, working conditions, and labour’s rights at risk (Sattarin, 2013). In details, factories and suppliers are often required to produce many products in limited time at a predetermined price, while the leading firms can easily change their demands and adding pressure to the factories especially in a short lifecycle product – apparels and electronics (Locke, et al., 2013; Mosley, 2017). This is to say, working overtime, insufficient compensation, and managers’ concern that workers’ rights will increase wage costs, are common in the industry (Mosley, 2017).

LABOUR RIGHTS & VOI C E S 2.

The – The

Invisible Current

Workers Although global brands claim to Problems subcontract with authorized factories

With the rising awareness of labour rights in the global supply chain, garment factories have been facing labour issues in developing countries and leading firms are still struggling to tackle this problem, violation of labour rights still exists and it shows the ineffectiveness of current methods. The fashion industry is evolving rapidly, adapting new technology to improve the production, but brands are not putting human beings who produce the goods as priority (Sattarin, 2013). However, after realizing cheap labour can decrease their cost, the risk of workers right violation can lead to harm to the company’s credibility and reputation (Sattarin, 2013). Hence, many brands and retailers try to promote international labour standards and put up their brand reputation. Pike and Godfrey (2014) state the core labour standards are child labours, forced labours, protecting from discrimination and freedom of association while working condition includes compensation, contracts and human resources, occupational health and safety, and working time.

only, it is difficult to apply international resources and regulations to millions of workers and thousands of factories.

Non-compliance and violation of workers’ rights still exist in the supply chain, code of conduct has raised the workers’ awareness of their rights, but it seems not to solve the issue effectively (Hoang, 2019 ). Taking the factories in Bangladesh as an example, while the research from New York University’s Stern Centre for Business and Human Rights states that 89 percent of workers are under the protection of international labour organizations, Penn State’s Centre for Global Workers’ Rights (CGWR) revealed the truth that most of the factories in Bangladesh are unapproved (Brown, 2010). Furthermore, the lack of transparency in the fashion supply chain still lead to estimated 6 million children who are in forced labour, though under the accreditation schemes such as Fairtrade Label Organisation, the Global Organic Textile Standard, and the Ethical Trading Initiative (International Labour Office, 2013; Moulds, n/a).

Fig 12. NEXT fi er image, 2020

Fig 1 . NEXT fi er image, 2020

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3. The Barriers to Protecting Labour Rights

A report from BSR (2011) mentioned the typical barriers in the supply chain which are building trust with suppliers, engaging exhausted workers, busy production schedules, high turnover rate, and accessibility. The imperfect law, low governance capacity, and corruption are considered as the main issues of improving workers’ rights in developing countries. (Lamrad, 2013).

The government plays a significant role in protecting labour rights, successful examples require the incentives of participating firms but also the government’s cooperation (Plank, et al., 2014; Mosley, 2017). Government willingness and capacity are crucial for brands to implement sustainable changes in labour conditions by skill developments, economic and social upgrading strategies (Locke, et al., 2013; Rossi, et al., 2014).

According to Holdcroft and Lee (2016), the reason for the failure of protecting labour rights is the accountability gap between the government and the brands. Companies failed to ensure the workers right in their supply chain after claiming to protect their rights. Governments are less responsible for the workers abroad, and the countries where suppliers are located are not able or willing to enforce the laws to protect workers’ rights, even if they enact the legislation. In addition, Lamrad (2013) also mentions that the local interest and the company’s goal might be against each other that makes it the biggest barrier of enhancing labours’ working conditions.

Last but not least, although most of the brands in the fashion industry claim to have limited control and access to their suppliers, UN Guiding Principle stated clearly that multinational companies are responsible for labour rights in the supply chain. A further movement is needed to clarify the roles and responsibilities of government and firms, so the workers’ rights can be ensured in supply chains.

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CSR & AUDI TS

4.

C S R & AUDI TS Next Background Workers’ Rights in the Supply Chain Transparency Work Relationship Current technology

Corporate Social Responsibility & Responsible Business Conduct

The importance of CSR, RBC and auditing

Different set of guidelines and standards from various organisations concern Commonly used standards and guidelines worldwide

Audits Details and criteria of each commonly used standards and guidelines

Auditing in NEXT

Code of Practice (COP) team and their current mission on supporting workers within their global supply chain

Challenges in terms of auditing

C S R & AUDI TS NEXT as a leading fashion company has taken up the responsibility to dedicate in raising awareness of social compliances within their supply chain, over the years, NEXT has been striving for high standards of social compliance audit for up to 98% of all of their factories worldwide. Social audit can be adopted by firms to evaluate their suppliers proactively, they can identify any problems with social compliance through the practice of social audit.

1.Corporate Social

Responsibility & Responsible Business Conduct The Corporate Social Responsibility (CSR) & Responsible Business Conduct (RBC) was introduced by European Commission (year) with the definition of “the responsibility of enterprises for their impact on society” , therefore it should always be company led. CSR is important due to its impact on the society that involves different stakeholders, for enterprises, CSR and RBC can benefits such as risk management and sustainability of operations; for the economy as a whole, CSR and RBC contributes to a more sustainable economy; for the society, CSR and RBC can enhance the coherent of

society through presenting a set of value.

RBC, on the other hand, is defined by Organisation for Economic Cooperation and Development (OECD, 2014) “making a positive contribution to economic, environmental and social progress with a view to achieving sustainable development and avoiding and addressing adverse impacts related to an enterprise’s direct and indirect operations, products or services”.

Awareness of human rights keeps rising especially in the aspect of global supply chains for businesses since factories are often based in developing countries where laws, regulations and monitoring of human rights are lacking, in other words, global supply chain of businesses have greater chances of failing to fulfil the obligation of international human rights standards.

Hence, it is crucial to carry out audits throughout the global supply chains.

Multiple guiding principles and standards are set by international committees regarding CSR and RBC, including EU strategy 2011-14; Action plan on human rights and democracy (2015-2019); United Nations guiding principles on business and human rights; ISO26000; OECD guidelines etc.

2.Audits

for affected individuals and communities.

Businesses and enterprises who comply with the UNGPs should respect human rights and understand that these principles are expected conduct that exists over and above conforming national laws and regulations regarding human rights.

The definition of social audit was provided

by Gerald Vinten in Natale S.M. and Ford J.W. (1994, p.29), “A review to ensure that an organisation gives due consideration to its wider and social responsibilities to those both directly and indirectly affected by its decisions, and that a balance is achieved in its corporate planning between these Ethical Trading Initiative (ETI) aspects and the more traditional business- ETI an internationally acknowledged code of practice that was established at the related objectives.” conference of the International Labour Organisation (ILO), it is generally adopted ISO26000 ISO26000 is an international guidance for as a benchmark for conducting social businesses and organisations on social audits and promoting ethical trade action responsibility, even though ISO26000, plans. There are nine base code namely, strictly speaking, is a set of principles employment is freely chosen; freedom rather than requirements, it is still an of association and the right to collective important and well-known standard that bargaining are respected; working businesses and organisations follow. The conditions are safe and hygienic; child ISO26000 was developed based on a multi- labour shall not be used; living wages are stakeholder approach with input from paid; working hours are not excessive; experts in six different stakeholder groups no discrimination is practiced; regular including industry; labour; government; employment is provided; and no harsh or non-government organisations (NGOs); inhumane treatment is allowed. (ETI, 2018) consumers and service. Core subjects Accountability 8000® include organisational governance; human Social rights; labour practices; environment; fair (SA8000®) operating practices; consumer issues; and SA8000® establishes a solid foundation community involvement and development. for compliance with local laws and (ISO, 2010) international human rights. It evaluates social performance in eight different United Nations Guiding Principles areas naming child labour; forced or on Business and Human Rights compulsory labour; health and safety; freedom of association and right to (UNGPs) bargaining; discrimination; The UNGPs is also a set of guiding collective principles for business enterprises of all disciplinary practices; working hours; states; sizes; sector; location; ownership; and remuneration. SA8000® is a leading and structure, whether transnational or social certification that is applicable others. This set of guiding principles were across the globe. SA8000® contains established by the United Nation in 2011 labour provisions that also appear in the to support businesses and enterprises Universal Declaration of Human Rights to proactively identify and settle issues and ILO. (SAI, 2019)

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3.Auditing in NEXT

NEXT in-house global Code of Practice (COP) team is in charge of keeping the high labour standards within the supply chain, the COP team is an independent team of over 45 elites that leads many projects to build trust and maintain relationships with NEXT’s suppliers. Worker’s safety and human rights of workers within the global supply chain of NEXT is one of the first priority. In recent years, NEXT has succeeded in supporting 49 factories to rectify critical issues identified during COP audits. 2037 COP audits were performed in the financial year 2018/19 across 43 countries. The COP team is currently engaged with the suppliers by regular visits and meetings at NEXT offices and supplier’s factories respectively; NEXT COP audits; training workshops; and conferences. NEXT’s approach regards the United Nations Guiding Principles on Business and Human Rights (UNGPs).

(Please see fig 14&15 for more details) Despite countless existing internationally recognised guidelines and auditing standards, it is undeniable that many labour rights issues are still left unsolved due to the inefficiency of audits and Code of Conduct, by relying on a check and compliance approach, violations of workers’ rights are often overlooked.

(Louche et.al. and Egels-Zandén et.al. in Hoang, 2019).

Hoang (2019), different stakeholders in the event of auditing in supply chain factories in Vietnam seem to be acknowledging the criticalness of violating the code of conduct, as the termination of contracts is likely to be the result. “However, a coordinated effort was used to hide this practice from auditors. The union leader shares that auditors could make an unannounced visit anytime but workers on the factory floor only need a few minutes to discharge the minors through the back doors when auditors register their visit with the security guard at the front gate. “ (Hoang, 2019. p.11) Even though brands take initiative in finding out violations of workers’ rights, situations like workers working over hours or minors working during summer are harder to regulate since not only the management team in the factory are trying to hide issues from the brand who hired them, but the workers themselves wishes to sacrifice their rights to earn livings, so the workers will cooperate with the factory manager to conceal violations that take place in the factory.

Even with the proactive attitude towards auditing, firms still struggle to eliminate the problems with worker’s human rights due to many different unpredictable factors.

NEXT as a world leading fashion company that values social responsibilities, this is a driving force for NEXT to strive for a better solution that can reduce worker’s According to studies demonstrated in exploitation to minimum.

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Fig 14. NEXT corporate responsibility report, 2019

Fig 15. NEXT modern slavery report, 2019

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Definition and context transparency system

T R A N S PA R E N C Y

Transparency in differe perspectives

Transparency Impact i Different Stakeholder

5.

T R A N S PA R E N C Y Next Background Workers’ Rights in the Supply Chain CSR & Audits Transparency Work Relationship Current technology

of m

The importance of CSR, RBC and auditing Transparency can be defined: The visibility of accessibility of information It can protect investors, improve public health and safety, as well as public services; to reduce pollution and corruption in the governance structures.

Advances in technology created a world where more transparency is a given Transparency has been closely related to trust, corporate social responsibility (CSR), and ethics.

The need for transparency and encourages people to make their decisions more public to justify moral choices and to increase the decisionmaking ability of stakeholders.

Transparency in Corporate development strategy and governance

Corporation ’s strategic transparency is closely associated with its relative market position and the degree of competitiveness

Employee

The transparent governance can help build two-way trust between companies and their employees.

Business partners

Information transparent to enhance understanding between partners

Customers

Transparency with consumers can be a force for competitive advantage

Communities

Corporate transparency responds to CSR policies

Shareholders

Transparency well builds trust among shareholders, and provide investors with psychological security.

ent

in rs

DE F I NI T I ON & CONT E NT O F T R A N S PA R E N C Y SYSTEM Transparency can be defined as visibility of accessibility of information especially concerning business practices.” (Cited in Rawlins, 2008, p73). Transparency in a business is far more important than the obligation to disclose basic financial information. It can protect investors, improve public health and safety, as well as public services; to reduce pollution and corruption in the governance structures (Fung, Weil, Graham and Fagotto, 2004).

society” (Cited in Eldomiaty, T. 2004, P9).

What’s more, to cooperate effectively, companies and their business partners have no choice but to share intimate knowledge with each other (Tapscott and Ticoll, 2003). Hence, people are gaining more access to information about corporate behaviour, operations, and performances.

Businesses are now being monitored by different stakeholders through valuing products and services, sharing confidential Due to today’s complex business information regarding company’s environment, including the pressure strategies, management, and challenges. from capital markets and the importance of information flow, and from the “Advances in technology have also created perspective of business integration, there a world where transparency is a given.” is a more comprehensive explanation of (Rawlins, 2008). Technology creates the transparency in corporation management. tools to deliver greater organisational Don Tapscott has mentioned transparency transparency by providing the channel in corporation Management in “The for those with information to share their Naked Corporation” as the ability of the knowledge with others. And the Internet stakeholders of an organization are able impacts not merely the world-wide website to obtain the necessary information on for present information, but extends to matters affecting their interests (2003). email, chat rooms, Weblogs, and even This lead to issue of strategic transparency’ connection to mobile devices. These in corporate information disclosure, multi-directions communication channels “Strategic transparency is the ability of exist for employees to share information firms to signal or provide adequate and and express opinions anonymously. relevant information timely and effectively Virtually anyone can find any opinion to their shareholders, stakeholders or on any subject with simple searches to other principal parties such as policy and these opinions can be expanded, makers who motivate and constrain editorialized, and shared around the them to behave within the principal’s world within seconds. (Rawlins, 2008) interest and in an acceptable way to the

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Fig 16. NEXTfi er image, 2020

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W H AT D R I V E S T R A N S P A R E N C Y ?

For Corporate responsibility and (Community Trust)

social loyalty of key stakeholders such as Ethics employees, customers, and investors.

With increasing interest in the value of transparency, there have been more books, articles and nonprofit organisations advocating the benefits of being transparent. Transparency has been closely related to trust, corporate social responsibility (CSR), and ethics.

The literature on CSR identifies the need for transparency and encourages people to make their decisions more public to justify moral choices and to increase the decision-making ability of stakeholders.

Corporations are finding that there are solid bottom-line benefits to having the reputation of being honest, open, and concerned about society. Most important is gaining the trust and 35

(Rawlins, 2008).Employees trust towards the business is positively related to the trust between the business itself and other stakeholders (Tapscott and Ticoll, 2003).

Surveys like Edelman Public Relations (2007), Golin/Harris Trust Index, polls conducted by Gallup and Roper ASW have reported the public trust in the voice of large corporations and the official media was at record lows (Rawlins, 2008). Organizations need ‘articulate a set of ethical principles, make trust and ethics in a boardlevel corporate governance issue’.

What is more, ‘create a process for transparency that applies to all areas of the business, not just financial’ (Cited in Rawlins, 2008).

T R A N S P A R E N C Y I N C O R P O R AT E D E V E L O P M E N T S T R AT E G Y A N D GOVE RNANCE Transparency is a new form of power, which pays off when harnessed. Rather than to be feared, transparency is becoming central to business success. Rather than to be unwillingly stripped, smart firms are choosing to be open. Over time, what we call open enterprises firms that operate with candor, integrity, and engagement一 are most likely to survive and thrive. The governance structure is fairly determined by how the information transparency.

Corporation ’s strategic transparency is closely associated with its relative market position and the degree of competitiveness (Eldomiarty, 2004).

As mentioned before, the transparency of governance has become an inevitable under the trend of the popularization of digital technology, and the social community and corporation social responsibilities require enterprises to implement the strategic transparency. As a compound strategy, the Strategic transparency management is

not only for a single goal, but also brings a series of auxiliary functions which are covering all aspects. It is related to the overall development of the enterprise and the improvement of the governance scheme.

When the transparency power forms in corporate governance, as customer employees, partners, shareholders, and citizens, no matter which part of stocker holder, the corporations have become so closed and relative to everyone’s life and communities. Through the information transparency system to deliver the idea to most workers that their retirements hinge on corporate success. Because they own shares in the companies they work for, workers now think twice about going on strike. In competition between supply chains, a more transparent information system means more trust and lower transaction and better performance.

(Tapscott and Ticoll, 2003)

H OW T R A N S PA R E N C Y CA N A F F E C T DI F F E R E NT S TA K E H O L D E R S Employee: Trust is mutual.

In governance, corporations cannot expect trust and loyalty from stakeholders particularly workers in the supply chain without trusting them in the first place. In the case of transparency, organizations must trust their stakeholders on the use of information responsibly. A research in 1986 found out that one person’s trust in another strongly influences the other’s trust in that person.

In addition, Butler supports that a partner’s efforts to control the other had a negative impact on trust. This finding suggested that corporate efforts on requesting trust among stakeholders without reciprocity may have an opposite effect. (Rawlins, 2008) In the case of having the opposite effect, a research suggested employees identifies open, honest communications as the antidote for mistrust (Randstad North America, 2001, cited in Reichardt 2003).

Business partners: In the competition among supply chains, trust means lower transaction costs and better performance. Radio frequency ID tags will bring about ever more accurate realtime information. Just giving information does not continue the transparency, as too much inaccurate information can be confusing. And it is better for companies to be transparent about their own to increase understanding among their partners.

Instead of just passing on information, it is more about building an understanding between partners.

Customers : Transparency with consumers can be a force for competitive advantage.Although customer will not have too much focus on the information of supply and corporation behind the product, however, when the

enterprise retains the ability of customer tracing information and ensures the transparency of information of each resource, it also encourages customers to look up the production, products and operation. Therefore, customers have the enthusiasm of participants, and to a certain extent trains free promoters and engineers. Essentially to expand the new markets, new product ideas, and street cred (Tapscott and Ticoll, 2003).

Communities: Consider transparency in terms of accountability, act according to the adopted policies regarding CSR. A company that has a series of unethical and negative news such as environmental pillaging, inhuman working conditions and harsh treatment of employees, will greatly affect the company’s reputation and revenue. Therefore, to the communities, an enterprise’s transparency and its accountability system are better to help the company and its decision-makers to implement the strategies that in line with CSR.Through the establishment of CSR policies and calls for honest and open communication, issues such as lack of dignity and respect for workers, as well as relationships with workers, suppliers, local communities, and environmental activists can be identified and discussed regularly (Rawlins, 2008).

Shareholders: Progressive was the only Fortune 500 company to report operating costs on a monthly basis, resulting in Since 2001, Progressive’s share price has gone from $43 to more than $70. Transparency builds trust with shareholders, shown in the

37

book Tapscott and Ticoll written in 2003.

Transparency and timely disclosure of information is the primary reason for the success of this company. Clear information, good or bad, will provide investors with psychological security. Transparency well builds trust among shareholders.

Supply chain: Transparent accountability is not only the prerogative of social communities to enterprises, but also the right of stakeholders in every operational link. The supply chain in transparent organizations are also accountable for their actions and decisions, since they have to be available for others to see and evaluate. Which means the supply chain of transparent organizations need to contemplate their behaviors and decisions which “It requires that persons in transparent organizations contemplate their decisions and behaviors, because suppliers can no longer surreptitiously violate company’s requirements and guidelines in some choices. “As one author put it: ‘ if you disclose, you hide neither your light nor your trash under a bushel; you get to shine, but you have to clean up your act, too’ (Szwajkowski, 2000, p. 39, cited in Rawlins, 2008 ). ” The implementation of strategic transparency in the complex supply chain ensured that some mistakes and loopholes can be found and remedied, also the behaviors that do

not meet relevant requirements will be stopped in time. Thus, to avoid potential problems in the production and operation and protecting the legitimate rights and interests of enterprises.

Garment Workers: There is much deep investigation about the relationship between transparency and employee trust in the literature. The concept of mutual trust and the help of transparency in establishing trust relationships are also stated above. More than the direct employers, in the whole chain of operations, the workers at the bottom of the supply chain tend to be a large group but companies always pay less attention.

Unlike employees hired by companies, they have minimal direct contact with the organization, so for this group, care will be used to explain their understanding about trust and transparency. “Because human relations are extremely nuanced, involving risks we cannot calculate and conditions of action we cannot predict, …better off simply proceeding on the assumption that others mean well and will respond generously to our trust in them. (Cited in Koehn, 1996, p. 201; And Rawlins, 2008, P.3)” When employees feel the company’s attention, a good corporate culture can better stimulate their sense of belonging and responsibility.

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NE X T C UR R E N T AC T I ON ON T R A N S P A R E N C Y & L I M I TAT I O N The key priority for NEXT is to ensure we trade ethically. Between 2018 and 2019, Next has made good progress in transparency and corporate responsibility.

Next promised to guarantee the safety and human rights of its workers. And it compiled a huge list of tier 1 suppliers from around the world and posted it on its website. What’s more, Next has also planned the traceability of second-tier and third-tier suppliers in the near future. In terms of information disclosure, next tried to be more transparent and traceable. For existing problems, Next has set a COP team responsible for regularly auditing meetings, and the audit department and the COP team have supported 49 factories with serious problems in the past year.

NEXT is committed to following the principles of responsible cooperation and has been and will be addressing the social, ethical and environmental issues; as well as associated with the business in order to deliver value to all stakeholders.

However, the transparency system is still not perfect. In order to achieve better transparency, the confidentiality of knowledge and technology needs to be further developed. True, some opacity remains necessary, and transparency isn’t always easy. For example, trade secrets and personal data should be confidential.

Implementing government rules of the disclosure can be expensive. Thus, more public information is not necessarily better, They can cause disclosure to overemphasize some public goals at

the expense of others that are one more important. They can confuse information users so that their choices become counterproductive. They can be captured by narrow interests or grow outdated as markets and priorities change. Or they can use for more simply to waste resources since the information that takes time and costs on resources will then be obviously ignored.

For enterprises with strategic transparent management, it is not only the one-way transparent disclosure of information but also the need to pay attention to the specific information. that is, the simple disclosure of a large amount of information is not conducive to the enterprise or the society and the government, “As Strathern (2000) has noted, too much information often leads to less understanding, and therefore more information can lead to less trust (313) (Cited in Rawlins, 2008, p6). But in terms of communication, “the concept of substantial information is concerned with the needs of the receiver rather than the sender, transparency cannot meet this standard unless it knows what stakeholders want and needs to know.” ( cited in Rawlins, 2008, p 7). What also mentioned above, transparency has been closely related to trust, and “Communication and awareness to our suppliers is also a key focus area for NEXT.” In the future development of transparent strategic management at NEXT, more stakeholders must be invited to participate in identifying the information they need to hello NEXT making the accurate decisions.

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Fig 1 . NEXTfi er h man rights

mo ern s a ery, 2019

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WORKE R’S R E L AT I O N S H I P

6.

W O R K E R ’ S R E L AT I O Next Background Workers’ Rights in the Supply Chain CSR & Audits Transparency Work Relationship Current technology

increases work efficiency

Good worker’s relationship has Postive effect in business development

assists enhancement of mental health and reduces pressure improve employees’ loyalty concern supports company leaders to direct the whole trajectory of the team group The definition of trust

The importance of trust in worker relationships

Trust assist a positive working relationship The definition of Egagement

Egagement

ON S HI P S

How to improve Work’s Egagement:Technology communication

WORKE RS R E L AT I O N S H I P S After analyzing the problems of workers right in the supply chain, the inefficiency of auditing, and importance of transparency for the company, the research will investigate the worker relationship to understand further how effective communication channels with workers can solve these problems. Positive worker relationship plays a significant role in internal corporate marketing, worker trust and engagement in company strategy can be improved through communication.

1.A good working relationship has a positive influence on corporate development Worker relationship includes two types, one of that is personal relation, such as Co-worker, Team member, Work friend, Life friend; another one is a professional relationship, such as leader relationship or administrative relationship (Tarvin, 2010). In this dissertation, we focus on the interrelation between employee and employer that is, professional relationship.

Nowadays, the relationship between workers is becoming a dominant element in the management area; high-quality bonds is the key to successful organizations, whereas low-quality relationships result in failures (Guca, 2010). Better interpersonal relationships play a fundamental role that generates benefits for the corporation, team and individuals. Workers realized the importance of positive communication; thus, more businesses are taking actions(Podlewska, 2016). The importance of professional relationships is also demonstrated by scholars who equate the relationship with the critical aspect of

contributing self-esteem and life meaning (Reis et al., 2010).

The reason why building a positive relationship between owners and workers is essential is that relationships are more long-lasting compared with momentum, they create and sustain relevancy. The owner or high-level manager with an employee needs cost time to cultivate a positive relationship and the company can maximize the utilization of resources by valuing relationships. A business sustains momentum by investing in work and continually looking for ways to increase strategic-resource sharing(Glenn, 2017).

On the one hand, leaders should encourage networking in the office. In this way, the Worker might feel confident about their objective and working goal (William, 2017). Loyalty is obtained and learned from employees aligned with others who reciprocate support, and that is the first gain from the manager to build a positive relationship with the Worker (William, 2017).

On the other hand, leaders should focus on managing and living with an entrepreneurial spirit that invests in people and values relationships(Glenn, 2017).

Hence, companies not only need to concentrate on brand marketing strategies but also focus on strengthening worker relationships, which is a vital way to incorporate internal marketing. Firstly, an excellent professional relationship increases work efficiency, which promotes finding effective results and communication in a friendly atmosphere (Bugdol, 2011 and Brien, 2014). Secondly, it also assists enhancement of mental health and reduces pressure, that motivates

2.

43

employees to desire through individual and organizational learning, and improves employees’ loyalty (Podlewska and Brien 2014). Moreover, a positive relationship supports company leaders to direct the whole trajectory of the team group instead of dealing with disputes with workers and boosts morale of the employees (Tarcomnicu, 2011). Consequently, worker relationships play a significant role in corporate business development.

3.Trust in worker relationships

Trust in the interpersonal relationship is essential for maintaining personal and organizational effectiveness, and a good working relationship (McAllister,1995 and Podlewska, 2016). Gulbert and McDonough(1996) contend that “trust pertains to whether or not one individual can value what another is up to and demonstrate respect for him or her particularly when the individual’s need and those of the person taking action momentarily compete”.

Besides, Wall and Cook (1980) indicate that trust is the degree of confidence in the words and actions of others and the extent to which people are willing to attribute goodwill to others.

Furthermore, the definition of McAllister (1995)indicated relational trust as ‘ the extent to which a person is confident in, and willing to act based on the words, Action, and decisions of another.

Trust is emphasized as a determining element development team and shaping cooperation is undeniable’(Henttonen and Blomqvist, 2005).

This theory explained that trust among employees could assist a positive working relationship; in this way, increasing worker engagement and experience is an excellent way to enhance trust between Worker and corporate.

number of the report that has been trying to apply employee engagement to corporate engagement and job(Welch, 2011), it also will affect many positive work outcomes (Karatepe, 2013 and Harter et al., 2002). Likewise, Kahn (1990) reported that employee engagement as an individual employee’s desired organizational outcome through cognitive, behavioural and emotional state-guided towards ” (Shuck and Wollard, 2010). Engaged workers will show a psychological and emotional connection to their working context(Wagner and Harter, 2006; Kahn, 1990’).

Also, Worker’s engagement means the extent of enthusiasm, commitment and connection workers hold towards their daily work; an engaged employee has a lower chance to resign their job, which reduces turnover and enhances worker relationships (Chitre, 2019).

According to PWC study, the workers who are most devoted to their work put in 57 per cent more effort on the job and 87 percent less tend to leave the job than the workers who consider themselves disjoined. Further, the Gallup study demonstrates that corporates with highly engaged workforces outperform their competitor around 147 per cent(Tarvin, 2012).

Thus, in this situation, the method to improve employee engagement becomes the critical element to promote worker relationships.

Chitre (2019) indicates employee experience is the framework which supports employee engagement and satisfaction, and the first step to enhance the worker experience is to understand it through surveys, focus group method to attach excellent communication.

Tips-PwC Research is a global centre of excellence for bespoke end-to-end insight and research. PwC works with the customer to help solve the challenges with their business, and unique ability to connect with subject-matter experts across the PwC global network.

Worker engagement The conception of employee engagement became a popular theme, due to the growing 44

Fig 18. Filler image, 2020

45

Working Environment and Experience The critical consideration of worker engagement can build up a positive working context. It can reflect on the company vision created by an entrepreneur. In this way, the director can produce their degree of confidence to face their employer and pinned them in brand development.

Every Worker understands company expectations for their work. Employees who have high engagement will be more productive and positive, hence developing business company development as a whole(Shahidan and Hamid, 2016).

Karmingk(2019) mention that corporate could improve worker experience by below ways: 1), Using employee journey map which can reflect different Worker step when they in work by Visual approach; 2), Improve internal communication; 3), Invest in worker wellness; 4)Use worker benefit survey; 5), Action on worker

feedback; 6), Apply career development plan; 7) Afford manager training.

The working environment is a vital component that rooted the worker experience level in the company (Robert, 2001). If corporate business function wants that practices a pleasant working environment, they should generally focus and care for employees’ feelings and their demand through have excellent communication with their work and give positive responses, encouraging them to voice out their demand to enhance their ability, skill to be a worker with problem-solving character Therefore, an adaptable and harmonious working context that enables workers to concentrate on their job (Anitha, 2013).

Tangibly, the working environment is a crucial factor to improve worker experience.

Maslow theorized indicated recognize brilliant work outcomes. that Worker has five different 5) Self-actualization: It is a demand to demand: become all that one is capable of being to 1)Physiological needs are basic needs develop one’s fullest potential. which involve the demand to meet the principal physical condition such as water, The tremendous value of Maslow’s theory strikes the practical significance it has for air food and accommodation. every management of business (Greenberg 2)Safety needs are the second demand. and Baron, 2003).

They appoint workers to work on a safe Accordingly, the incorporation of the need working condition, no harm and threat. theory into the work environment today 3)Social needs are also essential. Social could be owing to the contributions made needs to classify the demand to be affiliated before by Maslow’s theory. that is (the needed to be loved and accepted by other people). To meet this demand, The best solution for workers to repay their companies encourage workers to take company’s kindness is to show a great extent of engagement(Saks, 2006). Thus, part in social events. the Maslow model gives a clear vision of a 4)Esteem needs. It includes the need theoretical framework about why workers for self-respect and approval of others. choose to put themselves either more or Brands introduce awards banquets to less engaged in their work and within the corporate.

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Organizational culture model and organization well-being The organizational culture is one model based on four cultural feature effects on corporate involvement, consistency, performance, adaptability, and mission (Denison, 1990; Denison et al., 1995).

establish a suited course of Action for the company. It also can internalize, identify, and integrate business missions that contribute to both short and long-term commitment to the company. In the model, this trait includes three-step: Strategic Direction and Intent, Goals and Objectives 1)Involvement.

Active companies empower their staff and and Vision. also have a high worker engagement, build their grouping around teams, and develop Organization Well-being is a vital employee capability at different degrees assessment of assurance for worker (Block, 1991; Katzenbach and Smith, engagement (Anitha, 2013). Well-being 1993; Lawler, 1986). It involved three- is fundamental for effect on what people stage: Empowerment, Team Orientation, think and experience in their life(Rath and Harter, 2010). Particularity, well-being Capability Development. is considered the essential measure of taking the influences of a corporate 2) Consistency. towards their Worker (Anitha, 2013). Many The business companies are active when scholars investigate the importance of they are well integrated and consistent well-being as the most critical determinant (Saffold, 1988). Managers and employees of engagement as they impact the senior are skilled at meeting agreement and management level of interest toward their integrating different opinions, and the employee well-being. (Towers Perrin organizationĂ­s activities are well combined Talent Report, 2003). Company well-being (Gordon et al, 1992 and Treacy et al, 1995). is a vital assessment of determination of This feature is measured with three worker engagement (Anitha, 2013). catalogues: Core Agreement, Values, integration, Coordination.

Thus, with the development of technology, the amount of business finds a worker 3)Adaptability. engagement App is an ideal tool which Adaptable companies translate the demand can enhance both worker experience and of the corporate context into Action and engagement (Chitre, 2019). take risks, at the same time learn from their mistakes, improving the capability Technology communication is an essential (Katz and Kahn, et al, 1978). In the model, way for brands to improve worker this character is measured with three-way: experience, commitment and trust. It is one Customer Focus, Organizational Learning strategy in internal business marketing to and Creating Change. establish a positive working relationship.

Meanwhile, It is essential to establish an 4)Mission. efficiency tool for communication which A mission brings meaning and direction can improve Organization Well-being through exterior goals for corporate also through achieved worker involvement, defining a social role. Mission provides a consistency, adaptability, and mission. clear direction and objective that serve to Strengthen company internal marketing.

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Fig 19. Proposed conceptual framework graph, 2018

48

t

bi Current Technology

CURRENT T E C H NO LO GY

Case studies

7.

linked in

terminal application

weechat

ig data

Ding talk terminal applicationAdvantages

Efficient and digitalized communication Privacy issues Forced lifestyle changes

intro

More emotional Efficient communication

advantages + disadvantages

Prone to dependency High cost

all

Levi’s

Information technology security

Patagonia

Grievance System Toolkit (EDI)

C A S E S T UDY As the problems and risks of outsourcing, the importance of improving workers’ relationships , and transparency are discussed, technology used for better communication will be discussed in this section. In detail, the challenge Next is facing is because comparatively cheaper labor cost and more effective production in those underdeveloped countries helps organizations gain more economic benefits (Chopra, 2019). However, some common issues during the process have not been effectively addressed: employees in developing countries are being unfairly treated and their wages are relatively low (Samuel, 2014). In this case, effective and efficient communication between organizations and bottom tier employees appear significant. Considering the wide usage of technology in business, it is likely that utilization of technologies in this communication will also be feasible.

In consideration and Patagonia and Levi’s have performed due diligence to protect employee’s rights in the fashion industry through communication, they will be studied. Meanwhile, potential benefits will be discussed. In addition, all discussions will be summarized.

Primarily, Patagonia, as a globallyrecognized brand has fully leveraged the technology used in the communication in its supply chain. Realistically, this firm has relatively high employment engagement and remarkably low employee churn rate (Katya, 2017). A major reason for this could be: Patagonia highly emphasizes on effective communication with employees even including those junior employees. In order to make employees establish trust

with management and have an approach to share their concerns, Patagonia has wielded technologies in the communication.

Significantly, Patagonia has developed the Grievance System Toolkit which utilizes information-sharing to elevate voices of employees (Rachael, 2020). Realistically, this could be reckoned as utilization of technologies in communication of Patagonia, to a great extent.

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Firstly, this toolkit automatically differentiates factories and employees on the platform: “red” type needs to be mainly focused on because it has vacancies on appropriate complaint systems, or “silver” which has well-trained compliant handlers and continuously-improving grievance system and some others. This clearcut division of employees and factories takes the place of manual operation on differentiation and further facilitates the communication between management and bottom tier employees. This is because junior employees will be specifically focused on for being categorized as “red” type. It means that the automatic division of grievance system toolkit hugely enhances the communication efficiency of Patagonia. Secondly, considering that all these data which reflects feedback and concerns of employees should be inputted and outputted on this toolkit from a computer to another (Patagonia, 2020), in a sense, it could be reckoned as the utilization of EDI (electronic data interchange). This is because its process conforms to the definition of EDI: the exchange of electronic data (Samuel, 2014). Basically, EDI in the outsourcing link in the supply chain makes the complaint

visible and accessible for managers (Stevenson & Spring, 2007). In this case, employees could voice their concerns in the communication. Furthermore, managers could update the complaint and rapidly address issues. It implies that EDI in the grievance system toolkit helps to produce better communicative results because issues could be solved more rapidly.

Nevertheless, underlying risks could also occur when Patagonia utilizes EDI and automatic division in the grievance toolkit. This point closely correlates with the inherent risk of EDI. According to Samuel (2014), on condition that EDI has been uploaded or stored on the Internet, organizations could have the chance to encounter data security issues including loss or modification of data. This could seriously affect the business operation of an organization. Therefore, potential data security issues should also be used when using technology in the communication between employees in the supply chain.

Additionally, Levi’s, the acronym for Levi Strauss & Co, is a leading firm which is noted for its iconic jeans and pants (Levi’s, 2020). Significantly, this firm is also fairly reputational in the fashion industry due to high-quality communication with employees, so has also been explored.

Indeed, it also takes full advantage of technology in its grievance system which strives to communicate with grassroots employees. Specifically, in the case that a Levi’s employee has been inappropriately treated with, he could report these to the grievance system anonymously.

According to Labor standards of Levi’s (2017), it will be ensured that this entire grievance will be confidentially presented to upper management so as to prevent possible retribution. This could be viewed as the utilization of secure technologies (or information technology security).

Samuel (2014) has specified that secure technology aims to protect and safeguard information and is essential for IT infrastructure. In practice, utilization of

information technology security helps information-users could store or process data in a more controllable and secure way (Samuel, 2014).

Utilization of this technology – secure technology in practice is meaningful for Levi’s, particularly for the safeguarded communication with suppliers. To be more specific, The privacy policy of Levi’s has specified that it will attempt to establish a confidential appeal system and procedure to solve disputes in the workplace, particularly disputes with trading partners which include outsourcers in the supply chain (Levi’s, 2020). Therefore, on condition that a Levi’s employee lodges a complaint to its HR department, all their data and information will be efficiently collected and protected. In this way, adoption of secure technology in the communication, especially communications in the grievance system with employees in the supply chain, helps protect the communication. In addition, given the fact that numerous foreign employees that residents in developing countries will be hired in the outsourcing link in the supply chain, using a grievance system which allows distant communication also makes communication will not be constrained by their location. These are 2 benefits.

In conclusion, utilization of technology in the communication in supply chain realistically improves the communication. To be more specific, the case of Patagonia indicates that: EDI makes communication between management and bottom tier employees in the supply chain become more efficient.

Meanwhile, the communicative result has also been enhanced. Besides this, the case of Levi’s implies that utilization technology in the supply chain helps protect the communication through protection of confidentiality of employees. Moreover, it also makes communication not be constrained by geographical distance.

Te c h n o l o g y A p p l i c a t i o n on Communication Previously, business communication was related with formal business letters and face-to-face communications in the workplace. However, in the contemporary society with the advanced information and technologies, unprecedentedly instant and highly efficient communication becomes achievable. This facilitates the communication, operation and management of a company (Jue et al, 2010). According to Malaquias and Hwang (2016), when technologies have been fully leveraged in business communication, interactions with consumers, clients, suppliers could be greatly enhanced.

Indeed, the positive effect of technologies in company communication has been

verified in a wide range of literature.

Among all these literatures, Alicja and Anna (2017) has pointed out the social media is gradually becoming one of the dedicated communication tools for the company communication. It seems that the significance of technologies and social media in the company communication could be underlined. In order to discuss this, firstly, currently-used technology of Next Plc. in company communication will be articulated. Secondly, corresponding benefits that technologies bring about in the company communication will be discussed. Thirdly, disadvantages will also be explored. Fourthly, a critical evaluation will be given as a summary.

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Linkedin Technology that Next Plc. has applied for company communication and will be studied in this part. Realistically, Linkedin has played a significant role in the business communication of this firm - Next Plc. and its official account could also be found (Linkedin of Next, 2020). Specifically, Linkedin is a professional platform for professionals to stay in touch with colleagues, supervisors, clients and exchange information with them (Elad, 2018). Groups could be created on linkedin with ease to connect likeminded colleagues and clients together. This group chat allows colleagues to freely share business information on this group. The utilization of Linkedin could enhance the communication efficiency of Next Plc when compared with traditional face-to-face communication. Meanwhile, members in this firm could be more cohesive because of efficient and constant communication on Linkedin.

Ding talk Potential benefits of application of technologies in company communication will be articulated in this part. Technologies could provide video or audio conference calling services to improve the communication efficiency. In order to clarify this point clearly, a social media app for office: Ding talk will be introduced. It is a communication platform that is specially designed for companies to streamline the communication system (Ding talk, 2020). Its active users have dramatically boasted to 7 million until 2018 (Christian, 2018). One of the reasons that contribute to its rapid increase of active users could be the audio and video conference calling service. When compared with traditional faceto-face business communication, video conference that is accessible from phones makes participants have a stable and efficient communication from different locations.

In addition, Ding talk allows the conference administrators to make the host of the meeting become simple – they could clearly find that who is speaking (Ding talk, 2020).

Conclusively, technologies provide video and audio conference calling and makes the remote interactive communication in business become more efficient and structuralized.

Indeed, this could be fully utilized by Next Plc. to enhance the efficiency of business communication.

Wechat Technologies make inter-enterprise communication, especially communication in the aspect of working schedule and periodical report becomes more efficient. In order to articulate this, another app that adopts highly advanced technologies will be discussed – Wechat Talk. It is a dedicated and tailored app for the enterprise to communicate and operate which has a large number of users (Wechat Work, 2020). It makes the work progress of staff becomes trackable for those administrators. This is because the staff are required to upload their daily report, weekly report, and monthly report which reflects their work progress (Wechat work, 2020). In this case, when administrators tap the corresponding section on Wechat work on the mobile phone, work progress of employees could be obtained with ease. This makes the communication, especially that relates to work progress, between administrators and subordinates become more efficient and convenient in a company. Realistically, Next Plc. could take advantage of this point to rapidly gain information of work progress and further facilitates the company communication.

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Fig 20. NEXT fi er image, 2019

Efficient and Communication

Digitalized paperwork to administer (Becerra, 2009).

Technologies make the communication, particularly which mainly focuses on approval, becomes more digitalized and efficient. In the past, a series of steps are needs to gain approval from administers (Becerra, 2009). On condition that staff needs the approval including reimbursement and leave, they are required to deliver related

Nevertheless, in the case that administers are occupied with other tasks, the waiting time could be long. With the emergence and popularization of office app, the approval process could become faster for the digitalized process (Dingtalk, 2020).

Significantly, technologies advancement makes the communications that relates to approval become more efficient and digitalized, taking the place of traditional

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and time-consuming approval process.

In a sense, Next Plc. could benefit from of digitalized communication which has been brought by current technology to accelerate its approval process.

Risk of Utilizing Technology It could be found that technologies make company communication more efficient, structuralized, digitalized and convenient for comprehensive functionality of mobile apps (also a type of social media within the company). On the other hand, application of technologies to the company could also lead to some issues. These will be evaluated in this part. Firstly, the privacy disclosure could be a serious issue. In fact, Li et al (2015) has pointed out that privacy disclosure is gradually becoming an unavoidable issue especially on the network. As previously mentioned, Dingtalk offers the phone number and personal profile of co-workers on the app (Dingtalk, 2020). This could be viewed as invasion of privacy, to some extent. Realistically, this information could be utilized by advertisers or salesmen to promote products and negatively affect the lives of users (Zhen & Ming, 2018). Hence, when considering the application of company communication with apps or social media, issues of privacy disclosure should also be taken into account. Apparently, Next Plc. should take the possible privacy disclosure issue seriously and make efforts to protect privacy of company members.

Secondly, another disadvantage could be the work-life conflict that occurs when users use mobile social networking app.

This has been supported by Sheng et al (2015). Their research indicates that employees still receive overwhelming messages from social networking apps

when they have returned home. This is because these networking tools make clients, colleagues and supervisors could find users and communicate with them online during the after-working-hours (Boswell & Olson, 2007). In this case, the omnipresence of messages that relates to work becomes possible even in the offwork time. In a sense, the relaxation and leisure which users of social networking tools for company communication during the off-work time becomes hard to obtain.

It is for the reason that they need to respond to requests and requirements from supervisors or clients (Wang et al, 2016).

In the meantime, the boundaries between working hours and after-working-hours become blurred. This makes the conflict between life and work become intensified.

This implies that Next Plc. need to reasonably allocate tasks to employees within on-work time and not exploit their leisure time to work.

Conclusion Realistically, application of technologies in the company in the contemporary society could improve the interaction and communications with consumers, clients, suppliers. Specifically, it makes the remote interactive communication in business become more efficient and structuralized.

Secondly, it makes communication, especially those related to work progress become more efficient and convenient.

Thirdly, makes the communications that focus on approval become more efficient and digitalized. Nevertheless, some disadvantages have also been found: privacy issues. Additionally, intensified conflict between life and work is also important. All these are suggestive for Next Plc. to wield current technology to facilitate company communication reasonably.

Big data important

BIG D ATA

The benefit d

Challen oppor

8.

a become t in business

ts of using big data

nges and rtunities

Volume, Velocity, Variety, and Veracity

data is the main critical basics in the business company

Big data was listed in the “Top 10 Critical Tech Trends For The Next Five Years�

Enhancing the productivity and competitiveness of business

1) new product development and optimized offerings, 2) cost reductions,3) time reductions, and 4) smart decision making Oppotunities:reduces reliance on human supervision

Challenges: data searching, sharing, capturing, storing, and analyzing,security

The growing importance of Big data in business

Businesses and different industries have been through many revolutions throughout the last century up until recently; the 1st industrial revolution is commencing the use of water and steam to motorize production. The 2nd industrial revolution is electrification; it brought the world into mass production. The 3rd industrial revolution leads to the rising of technology.

In recent years, the 3rd industrial revolution has grown into the 4th, which includes the Internet of Things (IoT), and its primary focus is on the combination of analytics, physical technologies, and big data (Schwab, 2017 and Rüßmann .et al, 2015).

Big data is a humongous amount of data that can be defined by the 4V’s –Volume, Velocity, Variety, and Veracity(McAfee. et al, 2012). In terms of volume, businesses collect data from various sources, such as industrial equipment, videos, smart devices. In terms of velocity, data streams into corporate at a different speed and is delivered promptly. In terms of variety, data is collected in all types of formats.

Moreover, finally, for veracity, it refers to the biases, noise, and abnormality in data (Manyika and Chui, 2016). Tangibly, data is the main critical basics in the business company in recent times; the consolidated data model is crucial to those strong foundations. The rest of the house will fall without a solid foundation(Data clarity, 2019).

Big data plays a significant role in the fashion world recently (Madsen and Steinheim, 2016). It is Progressively being used in analyzing customer behaviours, preferences, and emotions, trend forecasting, and also, supply chain management (Lohr, 2012). Big Data is one of the current and future research

confines. Big data was listed in the “Top 10 Critical Tech Trends For The Next Five Years” (Savitz, 2012) and “Top 10 Strategic Technology Trends For 2013’’ (Savitz, 2013). Big Data was listed in both(Chen and Zhang, 2014). Moreover, Big Data is a database which collects wide-ranging data sets with a tremendous multiplicity of types. Thus, it becomes more challenging to deal with using traditional data processing platforms(Chen and Zhang, 2014). “Big data refers to the large, diverse sets of information that grow at everincreasing rates”(McAfee, 2013). Big data can be divided into two types: 1. Structure data: Transactional data can be collected into a database where various tools can slice and craps the data to extract insights and patterns.

2. Unstructured data: Social communication tools can analyze text or audio and relationships between people and networks using computer algorithms(Data clarity, 2019).

The benefits of using big data With big data, integration rises in more and more industries, whether for social administration or the global economy, the world has entered the generation of big datas(Chen and Zhang, 2014). Recently, a report (Manyika et al, 2012) from McKinsey Institute gives transformative potentials of Big Data in five domains: public sector administration of European Union, retail of the United States, health care of the United States, global manufacturing and lastly, personal location data. Their research shows that big data can contribute to the prominent growth of the world economy by enhancing the productivity and competitiveness of businesses(Chen and Zhang, 2014).

People can take the data and analyze it to explore answers that enable: 1) new

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product development and optimized offerings, 2) cost reductions,3) time reductions, and 4) smart decision making. “Deep learning craves big data because big data is necessary to isolate hidden patterns and to find answers without overfitting the data. With deep learning, the more good quality data company have, the better the results.� (Manyika et al ,2020).

Challenges and opportunities database where various tools can slice Big data creates the opportunity, which reduces reliance on human supervision through learning from diverse, streaming, and massive data sources straightly(Lina, et al., 2017). Challenges often accompany opportunities. Big data brings attractive opportunities; at the same time, the company is also facing many challenges (Ahrens, 2011). One of the challenges of using big data is the link with the temperament of the information itself: 1) Processes are related to a series of techniques: how to integrate data, capture data, or transform data. 2), Management in terms of ethical, security, privacy, governance.

(Sivarajah, et al., 2017). When dealing with problems that come with the use of Big Data, difficulties lie in data searching, sharing, capturing, storing, and analyzing.

If a business cannot overcome those challenges, it does not have the capabilities to explore it, especially when information surpasses the ability to harness(Chen and Zhang, 2014). When talking about big data, security is always under the spotlight; major security problems may concern data security protection, personal privacy protection, financial information protection, intellectual property protection commercial secrets(Smith and Szongott, 2012). As a consequence, as research points to a different perception of big data, over time, in its applicability, there is little consensus of the risk of big data is more significant than its advantages.

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Usa ge of AI in emplo yee communication The effective implementation of advanced technology has made the workplace is gradually evolving. According to Sheng (2017), usage of AI (artificial intelligence) allows employees to enhance their working efficiency because AI will take the place of employees to perform tedious and repetitive tasks. In this way, employees could have a higher level of engagement in the workplace and effectively communicate with each other.

Based on this, it is likely that employees could quickly respond to the customers’ needs and generate more margins for firms (Broussard et al, 2019). Hence, usage of AI in employee communication will be explored in following content. Firstly, a simple explanation of AI will be given.

Secondly, the influence of AI in employee communications will be offered, including both positive and negative aspects. Thirdly, discussions will be summarized.

advanced technology which streamlines communication and further increases productivity seems meaningful for an organization. In fact, Atov et al (2020) has pointed out that AI could be taken advantage of in the workplace to bolster the employee engagement. Indeed, usage of AI could be beneficial for employee communication in 3 perspectives. Firstly, AI could help employees have more fluent communication because of reduction in unnecessary burden. To be more specific, application of AI in the workplace enables users to wield the voice recognition to interpret the voice and further convert it into recognizable text through the algorithm and recognition programs.

Realistically, this helps the real-time conversion from speech to text in the workplace for the minutes of the meeting and communications between employees.

During the process, employees will not need to manually record notes or type words so real-time communication will be possible (Ge et al, 2019). In this way, communications between employees will be more fluent for the transcription and voice recognition function offered by AI.

According to Ryan et al (2019), AI (abbreviation for artificial intelligence) could be understood as the simulation of intelligent behavior to perform tasks through mimicking human behavior. Realistically, usage of AI in practice has brought about benefits for various industries including mathematics, journalism, logistics and some others (Davenport, 2018). For instance, the auto-pilot in the autonomous vehicles has wielded AI to compute data and handle complex situations to avoid collision. Besides application of AI in these fields, it could also be used in the internal communication within a firm. This will be discussed in the following content.

Secondly, AI makes the communications between employees within an organization become more efficient. Specifically, a digitalized workplace that combines powerful tools – AI (including Chatbots) and some systems including: CRM (customer relationship management), ERP (enterprise resource planning), intranet sites and some others enable the completion of information integration (Taylor, 2019). In this way, it is likely that employees could rapidly search and obtain information that they will use in the communication more efficiently. Prior to the invention of AI, when employees need to look for information that are

Given that employee communication is significant for an organization because ineffective communication could lead to low working efficiency and high turnover (Boswell and Olson, 2007), 61

useful for them to understand the needs and schedule of colleagues, face-toface communication is needed (Edwards et al, 2018). This conventional way of communication is ineffective and timeconsuming. Nevertheless, the emerging technology - AI integrates all useful information and reduces the time waste so facilitating the communications between employees become more efficient.

Thirdly, AI plays a significant role in the emotion recognition, along with comprehension of employees’ needs, hence further promotes the employee communication. Specifically, the rise of AI makes face recognition in the workplace possible and makes the emotional state of employees could be identified with AI (Lu et al, 2018). In this way, when an employee needs to communicate with another, he could scan the real-time emotional state of his communicator, and choose appropriate timing points to communicate – when his communicator is enjoyable, instead of distressed. This could make communication more productive and effective. Meanwhile, considering that AI enables the speculation of needs of employees through the machine learning algorithm (Hsieh, 2016) it also helps employees have a more comprehensive understanding of the needs of his communicator. Based on this, the communication content could be more customized and enchanting for the communicator, further improving the communication and collaboration between employees. Consequently, the internal communication efficiency between employees could be greatly enhanced.

exhibits attributes that are linked with behavior and the mind of humans could also have some negative effects. Porter (2017) has stated that AI is expensive and this could be an unbearable expenditure for most small and medium sized enterprises, especially in the maintenance. Moreover, if several breakdowns occurred, the time cost for repairing the machine and recovering lost codes could be fairly huge (Naidoo and Dulek, 2018). Hence, whether to wield AI in the evolving workplace needs to be carefully considered by organizations. In addition, AI could make users become highly dependent on it (Gunkel, 2019) so their creativity could be hindered. This is not beneficial for the further development and expansion of firms. This could be major limitations of AI.

In conclusion, in the contemporary society that employees are inundated with information in every single day, AI helps the employee communication become more effective and helps firms to wield the full potential of employees. Specifically, AI makes the internal communication become more fluent due to the convenience brought about by the voice recognition algorithm.

Secondly, AI makes the e communications between employees within an organization become more efficient for the integrated information, Thirdly, AI makes the communication content focus on particular and specific needs of employees, and in the meantime, the emotional state of communicators could be identified. In this way, the communication between employees could become more productive.

Nevertheless, it also has some limitations: high maintenance cost and damage to the It appears AI has the ability to facilitate creativity of employees. the communication between employees and brings about advantages for an organization. On the other hand, AI which 62

Fig 21. NEXT fi er image, 2020

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P R I MA RY RESEARCH

9.

B I G D ATA The reason why we need to do this primary research is that existing knowledge of big data is limited to secondary research, and literature might be outdated. Meanwhile some secondary research is from the Data services company, which reflects information ideally. In addition, extensive data used in the supply chain factory and technical support of literature is less. Our group might not come according to secondary information to evaluate the feasibility of implementing the technology in factories and cost.

Therefore, Our group wants to have a deep understanding of some brands and the views of employees who are professionals in the management of big data, to fill the gap of secondary information through this questionnaire.

The overriding question we aim to achieve is: Has any brand ever had the idea of using big data management in a factory?

How many people are in favor of doing this?

What kind of data can help companies increase trust among employees and respond effectively to problems?

What do prominent data managers think about the pros and cons of implementing data in a factory?

Which or what type of AI company can provide technical support?

Assess the budget for technology.

Lastly, the method our group used in primary research is Interpretivism, which is qualitative, relative, and subjective. We adopt interviews with different field management of data as a research method for data collection.

However, due to the effect of Coronavirus, the primary research cannot do face to face interviews with participants, even online video interviews. Thus, our group decided to use depth of investigation questionnaire mode instead of conversation, to analyse their text, also understanding the meaning through the question paper. Besides, we had planned to interview the person in charge of data clarity, which has one lecture about data-driven in this term. However, due to the influence of Coronavirus, we could not contact the person anymore. Hence, our group transferred the participants to the data management staff in the retail industry for email and online interviews.

We researched by introducing background information in the questionnaire and guiding the respondents from general to specific questions, as well as explaining in the email.

The survey participant is the data management personnel in the retail industry, four people in the different retail brands, which is a famous fashion brand in china marketing: Me&City, Metersbonwe, FILA, Ellassay, the response rate is 90%. For ethical consideration, some data management personnel work in the brand, privacy and security are considered. In this way, some information and application procedures of the brand need to be kept secret.

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Documentary interviews to Chinese retail brand data professional manager Answer 1 Brand: Metersbonwe Name： Yanlinyu Wang Gender：Female Age：25 Working Position：Retail Store Data Manager in Kunming city Answer2 Brand: Me&City Name：Minghao Wang Gender：Male Age：36 Working Position：Retail Store Data Manager in Kunming city Answer 3 Brand: Ellassay Name: Junru Gao Gender: Female Age: 30 Answer 4: Brand：Ellassay Name:Di Li Gender: Male Age：28 Working Position：Data Manager of Commodity Department in Guilin city

Answer 5: Brand: FILA Name: Yitian Chen Gender：Female Age：23 Working Position：Worked in Commodity Department in Beijing city Q1:Do you have any projects that have received communication and management

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Q1:Do you ha e any projects that ha e recei ed communication and management data from supply chain factories ow many cases All of the answers: None Q2:What kinds of data do you think can help the company impro e its trust among employees and effecti ely respond to pro lems A1: Employee s daily work status work goal and output report and periodic work summary suggestions or opinions for themsel es colleagues and e en the company A2：Effecti e and accurate factory feed ack data such as employee satisfaction working hours and whether there is sufficient rest A3：No people change a lot Machines cannot help impro e relationships they should e maintained y people A4：Statistical analysis of worker satisfaction A5: No reply Q3:Is the analysis and application of ig data applica le to factory management in the supply chain What is your opinion on this Big data is now widely used in retail such as statistics of daily passenger flow customer unit price low transaction alue and total re enue Is it feasi le to use it in statistics such as factory worker satisfaction or daily working hours A1: It is possi le With the efficient and rapid production re uirements enterprises need to pay attention to the working status of employees who are in the front line he application of the ig data system can effecti ely and timely pay attention to the work status of each employee capturing the work efficiency data of each jo Effecti ely formulate indi idual production inde tasks or reasona ly arrange the team to match personnel pay attention to the daily or periodicity of employees work status targeted employee status counselling A2: Yes Big data is the trend of the times Perfecting the ig data ackground and pro iding a platform will undou tedly ena le etter management and accurate positioning nly through the effecti eness and accuracy of ig data any industry department can accurately determine the demand for rapid de elopment A3: No Big data is widely used in retailing ecause these data can e uantified and uni ue it is applied to the supply chain to measure worker satisfaction he data is not correct is there a time attendance system for daily working hours A4：Not really the analysis of retail data is useful for commodity personnel he commodity personnel can then connect with the factory through data statistics to produce orders herefore the factory is not directly connected to retail owe er it is affected y retail data A5: You can try it out register and input daily data and there is a reference alue it will not last long it is a it cum ersome

Q4 Can the e isting technology e used to classify and count the non digital option information

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owe er

for e ample to help the company identify and classify the priorities of the pro lems reported y the workers to facilitate the company s departments to deal with and respond to them A1: For now I ha e not een e posed to ig data statistical tools for non digital information ut I elie e that in the future there will e software companies that can de elop related ig data tools For e ample when designing non digital ig data tools you can target different Non numeric information contained in the ig data ase that can e different for the needs of the enterprise At that time the enterprise can screen the keywords through the ig data tool to summari e the se erity of the pro lems reported y the employees and then formulate a targeted solution A2：Not for the time eing the importance of the data is human judgment A3：Yes you can search for keywords or high fre uency words A4：Yes A5: No Q5 What do you think is the ad antage of data reflecting the status of workers in real time Multiple choice uestions e plaining which option is crucial and supplement your own opinion A

ime sa ing for factory managers to communicate with workers

B Cost sa ings intelligent feed ack information sa es la our costs C igh efficiency a le to grasp information in real time and make management decisions for internal structure A1: ABC A2：A B and C are all included and ig data can reduce the error rate increase pro a ility analysis and e more accurate and precise A3：A he ig data in the supply chain factory can e refined to the time of making the garments and the time to pay for the ready made garments he status of the workers depends on performance or piece counting A4：ABC A5:C It can strengthen the management of the enterprise supply chain reduce the complicated management process and ensure the efficient operation of enterprises and economic enefits Q6 What do you think are the risks and disad antages of using ig data to integrate information in the factory Multiple choice uestions e plaining which option is crucial and supplement your own opinion A It needs the support of high tech intelligent machines and the price is relati ely high B Workers will not use high tech e uipment C

here are pro lems of data leakage security and pri acy

D Difficult to analy ed after the data is o tained

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For e ample retail store collected ig data such as knowing which clothes are selling well how much the unit price is and how many transactions are retailer can make a physical store marketing plan ased on the data such as adjusting display r replenishment of e plosi e clothes how should the factory sol e some pro lems after the rele ant ig data is o tained A1: A D In terms of personal e perience factories use ig data tools Currently only digital data can e effecti ely analy ed and production pro lems can e summari ed y analy ing digital results owe er in terms of understanding the working status of employees there is still research and de elopment ecause the personal status of employees is different he su mitted test results will e more fle i le which re uires a significant and large amount of data in the ackground of the ig data therwise it will not e a le to identify and count the personal pro lems of employees Carry out negotiations which increases the workload and time of managers and the in estment cost of researching ig data tools will also increase A2ďźšA is re uired according to the data re uirements ut the professional institution ser er B can pro ide the e tensi e standard data ase and C are oth technical solutions he pro lem is not risk D is to find data according to the pro lem the results gi en y ig data are not oriented What factories need to e oriented he risk of ig data is mainly related to personal pri acy and the risk of pri acy leaks he disad antage is that the la iness will ecome greater and higher and users will only operate in a mode A3ďźšB he terminal retail ig data is acti ely generated and related to many departments the authenticity can e refined and it is already a ery mature system ut the ig data of the supply chain factory is collected passi ely he workers cultural le el is une en It is difficult to programmatically A4ďźšABCD A5: AC Big data statistics re uire smart de ices to e porta le and accurate and de ices with high re uirements are not cheap Small de ices although cheap cannot meet high re uirements

Q Can you share how important you think ig data is to a company Com ine your work e perience A1: As a commodity manager I personally elie e that ig data has essential meanings and functions for our retail companies: 1 Measure the operation status of the enterprise through the completion of arious indicators and timely understand the o erall operation of the enterprise at the current stage 2 After the status uo analysis it is necessary to carry out a cause analysis further to determine the specific reason for the decline in re enue and make operational strategies Make adjustments 3 After understanding the current situation and analy ing the reasons it is to predict the future de elopment trend of the enterprise and pro ide useful references and decision making asis for formulating the enterprise s operation goals and strategies to ensure the sustaina le and healthy de elopment of the enterprise se significant data reading function to conduct a statistical summary analysis of many factors such as in entory financial costs la our costs sales statistics etc so that arious operating

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indicators can genuinely enter the uantitati e management stage and pro ide the company with a digital o jecti e decision asis in a timely manner here y a oiding unfa oura le factors such as su jecti e influence and ague impressions in daily management making the decision effecti ely guide the company s usiness direction A2：Big data plays a ital role in the accuracy of the company s uarterly apparel orders Future fashion is missing the market likes to colour ody si e consumption ha its price range etc A3： he work efficiency is impro ed the analysis is ased on e idence and the results of the analysis are resol ed symptomatically A4：Big data can comprehensi ely analy e the current status and e isting pro lems of the enterprise he more accurate the ig data the more accurately the pro lem can e reflected and guide the enterprise s ne t marketing and production eha iour A5: It must e closely related to the future scale and de elopment of the enterprise All product data operation data supply chain data and e ternal data of the enterprise come from the information system which is accurate and relia le and is the asis of the company s operation In our daily work when faced with pro lems we often use e perience feelings etc as the asis for judgment Big data can pro ide more accurate and efficient feed ack information Q8 Is there a cooperati e AI technology company that can de elop an intelligent machine that can e placed in the factory the de ice is used to communicate with employees and enterprises in the supply chain All of the answers: None Q Based on your own e perience please e aluate the price if you de elop such a ig data collection machine refer to the cost of passenger flow technology A Less than or e ual to 1000GBP B Between 1000 5000GBP C Greater than 5000GBP A1:C A2：B the price determines the use of e uipment A3: B A4：C A5: B

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F I NDI NG S F ROM T H E SURVEY According to our questionnaire survey above, all brand data managers have no experience or knowledge about the concept of applying data to factories.

60% of the participants indicated that they counted employee satisfaction, their voices, whether they got enough rest time is conducive to enhancing employees’ trust in the company, and effective satisfaction issues, 20% believe that machine statistics have no practical effect, other Reply.

40% of data managers believe that big data statistics can be used in factories to respond to problems efficiently. At the same time, 40% think that data statistics are only applicable to retail, external marketing rather than internal decisionmaking, and 20% think they can be tried, but not necessarily long-term Accepted.

A few employees believe that big data can now be used to classify and count the nondigital / option information through highfrequency keywords, and most believe that there is no way to do it.

the management of the supply chain factory and reduce manpower. At the same time, the data accuracy is high, and human and emotional judgments are subjective.

However, they believe that one of the main drawbacks of applying this skill to the factory is that high technology is challenging to be adopted by the workers, and the price is relatively high. The employees of the factory might not know how to use it.

Most people believe that once the technology is developed, the price is between 1000-5000GBP. Regarding the technology companies and technical support of the cooperation, the investigator has no partner and cannot give contact information.

Finally, the overall investigators, combined with their work experience, show that big data is indispensable in this era, the advantages outweigh the disadvantages, can save time, improve efficiency, and Once the big data is applied to the benefits quickly respond to problems, is an of factory development, most of the indispensable part of the fashion industry. responses are positive. It can strengthen

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CONCLUSION These two surveys provide further insight into the inner thoughts of factory employees, as well as the views of data management professionals on the use of big data management in the supply chain to provide real-time feedback to workers. It fills the gap of our second research and makes the application of the technology our group wants to develop clearer.

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PRIMARY RESEARCH

9.

Fig1 : Next Women's Denim Guide | Guide To Next Jeans

Based on the secondary research, the systematic study about all the knowledge related to this project as well as in-depth understanding of NEXT's operating philosophy and governance structure. The primary research will be necessary to provide more practical information. Thus, the primary research for this project will mainly contain two perspectives, one is the real in touch with the project object— Supply chain Workers, it aims to be close to their internal thoughts, trying to understand their needs and concerns as much as possible from a first-person perspective.

This information will help with designing the final product that will be really helpful to them.

The second part of the research is to develop a more considered project implementation plan.

Based on Next's brief that applies technology to solve problems, this project will cite a lot of front-end technology, like big data and Artificial intelligence programs. This tech’s implementations require more detailed consultation with an expert.

PRAT 1 RE S EAR CH S U P P LY CHA IN WO RKE RS

1.1 Documentary interviews to China Garment factories workers Although there are a lot of existing academic researches on the corporation internal governance have begun to focus on the employees’ psychology and behavior, still few of them can involve the base of the supply chain, the large number of worker groups. And the real connection with the supply chain workers is difficult, because most of them do not have public channels such as LinkedIn or other websites, either impossible for us to go to sites in various countries to conduct research in reality. Therefore, we can only carry out a qualitative investigation based on the limited resources available. Through a list of Tier 1 suppliers posted on NEXT's website, most of the manufacturers were based in developing countries. And China, with its relatively cheap labour and advanced production technology, accounted for a large part of next's suppliers . We designed an interview questionnaire, including questions about the factories’ regulations, physical facilities and humanistic guarantee, to understand the reality of the Workers in the ordinary garment manufactory in China.

As for this survey, we hope to know the working conditions of the real garment factories, as well as the daily workload and treatment of the workers, as well as, the problems that can help us to understand at a deeper level about what workers need when they encounter problems in their work; what are their concerns and wishes for this communication improvement support program.

In this research, the workers from two clothing suppliers are both a private clothing production factory in Ningbo, Zhejiang province, China. The factories are mediumsized to large, and they produce and supply well-known domestic clothing brands.

Due to a lot of practical constraints, the survey could not reach a full coverage in terms of quantity or geography. These two individual cases of workers from garment factories of different sizes will provide some limited information for this project. I will ask them the same question, and Answer1 is Ms. Zhou, Answer2 is Ms. Jiang.

Answer 1

Answer2

Name：Biyu Zhou

Name: Lingjiao Jiang

Gender：Female

Gender: Female

Age：45

Age: 36

Working Position：Lathe Worker

Working Position: Lathe Worker

Q: Please describe working conditions (e.g., signed petitions from workers, posted notices from management forbidding bathroom use, etc.).

A1: Normal factory working environment is better, safety facilities are perfect, lunch break time is generally 45 minutes, food collocation is reasonable.

A2: The factory has standard facilities and safe security, food is included without extra payment and distributed as a set meal.

Q: What is the maximum number of days that the factory allows a worker to work without a day off?

A1: We generally do not have days off, but there are fixed national holidays, you can also choose to ask for leave. Sometimes the number of consecutive working days without a day off can be more than 20.

A2: Usually working 7 days a week.

Q: What are the standard working hours and workdays?

A1: The standard working hours are set at 8 hours a day, with 2 days off a week.

However, the actual working hours are basically 11 hours a day, and 7days a week.

A2: Our standard working hours are 8:00AM to 5:00 PM

Q: Do workers have a choice in whether or not to work overtime?

A1: Overtime work needs to follow the arrangement of superior leaders, and few independent choices.

A2: Whether to work overtime depends on the arrangement of the leader, the overtime situation is usually for complete the urgent orders

Q: Does the factory monitor your breaks, such as how many times a day you are allowed to use the bathroom? Is there enough time to use the toilet, lunch break, etc.?

A1: Generally there is no special supervision or clear provisions about it, it’s relatively free. You can take a 30-minute break at noon.

A2: There is no one to regulate this.

Because our performance is measured by how many pieces of garment we accomplish in a day, if we take more breaks which means we produce less, and will get less payment, so our time is more discretionary.

Q: Does the factory have any department or staff to respond to workers' voices?

A1: The factory has a workshop leader and a director to deal with the problems that we have reported.

A2: The management system is more direct and simple, there are problems we will find the factory director to solve, most of them can be solved.

Q: How do workers respond to problems, and are they generally addressed effectively?

A1: We usually will directly report to the person in charge of the workshop, and the leader or the factory will try their best to solve it.

A2: If time permits, we'll go to the director's office and report our situation to him. The factory Manager do made me feel being cared and treated fairly

Q: If a third party other than your direct employer is willing to listen to your problems and difficulties, will you feel that you are being helped and willing to communicate with us proactively?

A1: If you can provide good help, I am willing to take the initiative to communicate with you.

A2: I think it would be helpful to have thirdparty supervision, and I am very willing to communicate with you actively.

Q: What do you think is your biggest concern for you to report the problems in your factory/working?

A1: Whether the problems I have reflected can be paid attention to and effectively solved and helped.

A2: I'm afraid the problem has not been dealt with and solved in time.

Q: Please rate or supplement the most important of the following for using this thirdparty feedback system (5 is the most, 1-5).

A1: I am very concerned (5/5) about whether you keep the information confidential, and would my leaders and the factory be dissatisfied with my behavior. Secondly,(4/5) I hope that the operation of the equipment can be simple and easy to understand, so that I can have timely feedback on the problems. And then, I don't have a lot of requirements(3/5)for the privacy of the surrounding environment, the privacy of the standard is enough. As for the question whether they really can be finally settled, I’m thankful for your help, but I also hold enough understand (2/5) for some helpless

A2: For me, I will be very concerned about the confidential treatment of information privacy, and also very concerned about the attitude of the boss in the factory. I hope that the privacy of the equipment environment can be better to avoid some troubles. And the Simple operations and timely help will be relatively less demanding.

1.2

Findings of the survey:

In China, where the economy has grown rapidly in recent decades, working conditions and the declaration of human rights seem to be further emphasised, this could also be identified in our primary research. The two cases mentioned above are ordinary and general factories. The workers are relatively satisfied with the working environment, and the management system of the factory is relatively improved. However, it still can be found that the work pressure is very high, in order to adapt to the booming demand of the fast fashion market, workers need to work continuously for a week, and sometimes even need to work overtime continuously to fulfill the order quantity. So although the safety facilities are perfect, the continuous tired working state still exists some safety risks.

As for the feedback system, the workers all said that if needed, they could communicate directly with their supervisors and most problems can be resolved, and so far there has been no discontent. However, to speak to a direct manager will eventually cause some psychological burden to the employees, due to the state of employment and affiliation. It will need more courage and concern to speak with the boss. They all said they would like to have a third party channel to listen to them and help.

Again, the scale of these two factories is relatively large, and the governance system is also very formal, but this does not mean that many small factories can also have a better working situation. What's more, there are a lot of garment manufacturers are in backward areas/countries, Where might still have serious unethical operation problems

P RAT 2 R E S EARCH BI G D ATA

The reason why we need to do this primary research is that existing knowledge of big data is limited to secondary research, and literature might be outdated.

Meanwhile，some secondary research is from the Data services company, which reflects information ideally. In addition, extensive data used in the supply chain factory and technical support of literature is less. Our group might not come according to secondary information to evaluate the feasibility of implementing the technology in factories and cost.

Therefore, Our group wants to have a deep understanding of some brands and the views of employees who are professionals in the management of big data, to fill the gap of secondary information through this questionnaire.

The overriding question we aim to achieve is: • Has any brand ever had the idea of using big data management in a factory?

• How many people are in favor of doing this?

• What kind of data can help companies increase trust among employees and respond effectively to problems?

• What do prominent data managers think about the pros and cons of implementing data in a factory?

• Which or what type of AI company can provide technical support?

• Assess the budget for technology.

Lastly, the method our group used in primary research is Interpretivism, which is qualitative, relative, and subjective. We adopt interviews with different field management of data as a research method for data collection.

However, due to the effect of Coronavirus, the primary research cannot do face to face interviews with participants, even online video interviews. Thus, our group decided to use depth of investigation questionnaire mode instead of conversation, to analyse their text, also understanding the meaning through the question paper.

Besides, we had planned to interview the person in charge of data clarity, which has one lecture about data-driven in this term. However, due to the influence of Coronavirus, we could not contact the person anymore. Hence, our group transferred the participants to the data management staff in the retail industry for email and online interviews.

We researched by introducing background information in the questionnaire and guiding the respondents from general to specific questions, as well as explaining in the email.

The survey participant is the data management personnel in the retail industry, four people in the different retail brands, which is a famous fashion brand in china marketing: Me&City, Metersbonwe, FILA, Ellassay, the response rate is 90%.

For ethical consideration, some data management personnel work in the brand, privacy and security are considered. In this way, some information and application procedures of the brand need to be kept secret.

2.1

Documentary interviews to Chinese retail brand data professional manager

Answer 1

Answer2

Brand: Metersbonwe

Brand: Me&City

Name： Yanlinyu Wang

Name：Minghao Wang

Gender：Female

Gender：Male

Age：25

Age：36

Working Position：Retail Store Data Manager in Kunming city

Working Position：Retail Store Data Manager in Kunming city

Answer 3

Answer 4:

Brand: Ellassay

Brand：Ellassay

Name: Junru Gao

Name:Di Li

Gender: Female

Gender: Male

Age: 30

Age：28

Answer 5: Brand: FILA Name: Yitian Chen Gender：Female Age：23 Wo r k i n g P o s i t i o n ： Wo r k e d i n Commodity Department in Beijing city

Working Position：Data Manager of Commodity Department in Guilin city

Q1:Do you have any projects that have received communication and management data from supply chain factories? How many cases?

All of the answers: None.

Q2:What kinds of data do you think can help the company improve its trust among employees and effectively respond to problems?

A1: Employee's daily work status, work goal, and output report and periodic work summary, suggestions or opinions for themselves, colleagues and even the company A2：Effective and accurate factory feedback data, such as employee satisfaction, working hours, and whether there is sufficient rest.

A3：No, people change a lot. Machines cannot help improve relationships; they should be maintained by people.

A4：Statistical analysis of worker satisfaction A5: No reply

Q3:Is the analysis and application of big data applicable to factory management in the supply chain?

What is your opinion on this?

(Big data is now widely used in retail, such as statistics of daily passenger f l o w, c u s t o m e r u n i t p r i c e , l o w transaction value, and total revenue.

Is it feasible to use it in statistics such as factory worker satisfaction or daily working hours?)

A1: It is possible. With the efficient and rapid production requirements, enterprises need to pay attention to the working status of employees who are in the front line.

The application of the big data system can effectively and timely pay attention to the work status of each employee, capturing the work efficiency data of each job. Effectively formulate individual production index tasks, or reasonably arrange the team to match personnel; pay attention to the daily or periodicity of employees' work status; targeted employee status counselling.

A2: Yes, Big data is the trend of the times.

Perfecting the big data background and providing a platform will undoubtedly enable better management and accurate positioning. Only through the effectiveness and accuracy of big data, any industry department can accurately determine the demand for rapid development.

A3: No, Big data is widely used in retailing because these data can be quantified and unique; it is applied to the supply chain to measure worker satisfaction. The data is not correct, is there a time attendance system for daily working hours A4：Not really, the analysis of retail data is useful for commodity personnel. The commodity personnel can then connect with the factory through data statistics to produce orders. Therefore, the factory is not directly connected to retail. However, it is affected by retail data.

A5: You can try it out, register, and input daily data, and there is a reference value.

However, it will not last long; it is a bit cumbersome.

Q4. Can the existing technology be used to classify and count the nondigital/option information? (for example, to help the company identify and classify the priorities of the problems reported by the workers, to facilitate the company's departments to deal with and respond to them) A1: For now, I have not been exposed to big data statistical tools for non-digital information, but I believe that in the future, there will be software companies that can develop related big data tools. For example, when designing non-digital big data tools, you can target different Nonnumeric information contained in the big database that can be different for the needs of the enterprise. At that time, the enterprise can screen the keywords through the big data tool to summarize the severity of the problems reported by the employees, and then formulate a targeted solution A2：Not for the time being, the importance of the data is human judgment A3：Yes, you can search for keywords or high-frequency words; A4：Yes A5: No

Q5.What do you think is the advantage of data reflecting t h e s t a t u s o f w o r k e r s i n re a l time?(Multiple choice questions, explaining which option is crucial and supplement your own opinion) A) Time-saving for factory managers to communicate with workers; B) Cost savings-intelligent feedback information saves labour costs; C) High efficiency-able to grasp information in real-time and make management decisions for internal structure.

A1: ABC A2：A, B, and C are all included, and big data can reduce the error rate, increase probability analysis, and be more accurate and precise.

A3：A, The big data in the supply chain factory can be refined to the time of making the garments and the time to pay for the ready-made garments. The status of the workers depends on performance or piece counting.

A4：ABC A5:C It can strengthen the management of the enterprise supply chain, reduce the complicated management process, and ensure the efficient operation of enterprises and economic benefits

Q6.What do you think are the risks and disadvantages of using big data to integrate information in the factory?(Multiple choice questions, explaining which option is crucial and supplement your own opinion) A) It needs the support of high-tech / intelligent machines, and the price is relatively high; B) Workers will not use high-tech equipment; C) There are problems of data leakage, security and privacy; D) Difficult to analyzed after the data is obtained (For example, retail store collected big data, such as knowing which clothes are selling well, how much the unit price is, and how many transactions are retailer, can make a physical store marketing plan based on the data, such as adjusting d i s p l a y, O r r e p l e n i s h m e n t o f explosive clothes, how should the factory solve some problems after the relevant big data is obtained)

A1: A, D. In terms of personal experience, factories use big data tools. Currently, o n l y d i g i t a l d a t a c a n b e e ff e c t i v e l y analyzed, and production problems can be summarized by analyzing digital results.

However, in terms of understanding the working status of employees, there is still research and development because the personal status of employees is different.

The submitted test results will be more flexible, which requires a significant and large amount of data in the background of the big data. Otherwise, it will not be able to identify and count the personal problems of employees. Carry out negotiations, which increases the workload and time of managers, and the investment cost of researching big data tools will also increase A 2 ďźš A i s re q u i re d a c c o rd i n g t o t h e data requirements, but the professional institution server, B, can provide the extensive standard database, and C are both technical solutions. The problem is not risk, D is to find data according to the problem, the results given by big data are not oriented. What factories need to be oriented. The risk of big data is mainly related to personal privacy and the risk of privacy leaks. The disadvantage is that the laziness will become greater and higher, and users will only operate in a mode A3ďźšB. The terminal retail big data is actively generated, and related to many departments, the authenticity can be refined, and it is already a very mature system, but the big data of the supply chain factory is collected passively. The workers' cultural level is uneven. It is difficult to programmatically.

A4ďźšABCD A5: AC. Big data statistics require smart devices to be portable and accurate, and devices with high requirements are not cheap. Small devices, although cheap, cannot meet high requirements.

Q7. Can you share how important you think big data is to a company?

Combine your work experience.

A1: As a commodity manager, I personally believe that big data has essential meanings and functions for our retail companies: 1, Measure the operation status of the enterprise through the completion of various indicators, and timely understand the overall operation of the enterprise at the current stage; 2. After the status quo analysis, it is necessary to carry out a cause analysis further to determine the specific reason for the decline in revenue, and make operational strategies Make adjustments; 3. After understanding the current situation and analyzing the reasons, it is to predict the future development trend of the enterprise and provide useful references and decision-making basis for formulating the enterprise's operation goals and strategies to ensure the sustainable and healthy development of the enterprise.

Use significant data reading function to conduct a statistical summary analysis of many factors such as inventory, financial costs, labour costs, sales statistics, etc., so that various operating indicators can genuinely enter the quantitative management stage, and provide the company with a digital objective decision basis in a timely manner. Thereby avoiding unfavourable factors such as subjective i n f l u e n c e a n d v a g u e i m p re s s i o n s i n daily management, making the decision effectively guide the company's business direction A2: Big data plays a vital role in the accuracy of the company's quarterly apparel orders.

Future fashion is missing; the market likes to colour, body size, consumption habits, price range, etc.

A3: The work efficiency is improved, the analysis is based on evidence, and the results of the analysis are resolved symptomatically.

A4: Big data can comprehensively analyze the current status and existing problems of the enterprise. The more accurate the big data, the more accurately the problem can be reflected and guide the enterprise's next marketing and production behaviour.

A5: It must be closely related to the future scale and development of the enterprise. All product data, operation data, supply chain data, and external data of the enterprise come from the information system, which is accurate and reliable and is the basis of the company's operation. In our daily work, when faced with problems, we often use experience, feelings, etc. as the basis for judgment. Big data can provide more accurate and efficient feedback information.

Q8.Is there a cooperative AI technology company that can develop an intelligent machine that can be placed in the factory? -- the device is used to communicate with employees and enterprises in the supply chain.

All of the answers: None

Q9.Based on your own experience, please evaluate the price if you develop such a big data collection machine (refer to the cost of passenger flow technology) A, Less than or equal to 1000GBP. B, Between 1000-5000GBP. C, Greater than 5000GBP. A1: C A2: B, the price determines the use of equipment A3: B A4: C A5: B

2.2 Findings of the survey

According to our questionnaire survey above, all brand data managers have no experience or knowledge about the concept of applying data to factories.

60% of the participants indicated that they counted employee satisfaction, their voices, whether they got enough rest time is conducive to enhancing employees' trust in the company, and effective satisfaction issues, 20% believe that machine statistics have no practical effect, other Reply.

40% of data managers believe that big data statistics can be used in factories to respond to problems efficiently. At the same time, 40% think that data statistics are only applicable to retail, external marketing rather than internal decision-making, and 20% think they can be tried, but not necessarily long-term Accepted.

A few employees believe that big data can now be used to classify and count the non-digital / option information through high-frequency keywords, and most believe that there is no way to do it.

Once the big data is applied to the benefits of factory development, most of the responses are positive. It can strengthen the management of the supply chain factory and reduce manpower. At the same time, the data accuracy is high, and human and emotional judgments are subjective.

However, they believe that one of the main drawbacks of applying this skill to the factory is that high technology is challenging to be adopted by the workers, and the price is relatively high. The employees of the factory might not know how to use it.

Most people believe that once the technology is developed, the price is between 1000-5000GBP. Regarding the technology companies and technical support of the cooperation, the investigator has no partner and cannot give contact information.

Finally, the overall investigators, combined with their work experience, show that big data is indispensable in this era, the advantages outweigh the disadvantages, can save time, improve efficiency, and quickly respond to problems, is an indispensable part of the fashion industry.

CONCLU S I O N P R IM ARY RE SE A RCH

These two surveys provide further insight into the inner thoughts of factory employees, as well as the views of data management professionals on the use of big data management in the supply chain to provide real-time feedback to workers. It fills the gap of our second research and makes the application of the technology our group wants to develop clearer.

Fig1 : Next Women's Denim Guide | Guide To Next Jeans, [photograph], Available at: https://www. next.co.uk/women/denim-guide?crlt.pid=camp.KUrYt6Q9Mv8U

FIG RE F E RE N C E S

Fig 22. F o er fi er image, 2020

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F I NDI NG S & DI S C U SS I ON

10.

The nature of garment factories

Businesses and different industries have According to the primary research, it can be proved that the nature of garment factories increases the barriers of protecting the workers. The fast pace of the working environment in the factories indicates the shortage of time for workers to use any channels to protect their rights, thus it could be an inevitable barrier for Next to hear the voice from these workers. In detail, our primary research shows that the intensity of the workers’ schedules is due to their salary which is based on the number of garments they made. Hence, we found the workers are not having enough time for a break or going to the toilet, and working overtime. The intensity of their schedule is discovered by one worker saying she does not have days off in a week, while the other saying she works every day for 21 days.

Based on the research of Mosley (2017), stating that cost and time pressure in the garment factory have a higher risk of violating workers’ rights. In this case, the nature of garment factories is due to the huge quantity of orders, limited time, and predetermined price and the fast pace of the fashion industry (Locke, et al., 2013). This is to say, although the workers we interviewed seem to be in a more friendly environment, it does not mean the worldwide factories with millions of workers will not face such problems.

The importance of ease-ofuse: Artificial Intelligence

With big data, integration rises in more The nature of garment factories leads to the importance of ease of use in terms of any possible channels we are planning to construct. It is discovered by our primary research that the workers care about the ease of use when it comes to using any channel to report problems. Based on the theory of technology acceptance model

by Venkatesh and Davis (1996), perceived

ease-of-use and perceived usefulness will be taken into considerations in terms of persuading the workers to adopt the plan that we propose. In detail, perceived easeof-use is defined as “the degree to which a person believes that using a particular system would be free from effort” (Venkatesh & Davis, 1996). The importance of ease of use is not only mentioned by the workers in our primary research, but also by Shih (2004) who points out the ease-of-use is positively related to users’ attitudes and intentions toward utilizing a technology.

In this case, Artificial intelligence (AI) is useful based on our literature review. A more efficient way of communication is delivered by AI to increase the experience of ease-of-use. In other words, AI provides a more fluent communication which reduces unnecessary burden possible (Ge et al, 2019), such as voice recognition, automatic translation, and chatbot. Hence, AI will be adopted in our plan to improve the ease-of-use and a higher acceptance of workers by its characteristic of efficient and fluent communication. However, technology should act as a supporting role, not making them feel unfamiliar. The risk of not accepting by the workers could be decreased by training them, which is suggested by Venkatesh and Davis (1996) that the possibility of accepting the system could be improved by training interventions which improve self-efficacy of users.

Hence, AI must be concluded in our plan to improve the ease-of-use, and further decrease the risks of not having enough time for workers to report the problems.

The willingness to be helped: The channel for their voice

The need of building a channel for Next to communicating with the workers directly is proved by the primary research, which both of the workers show that the manager or the leader of the factory is their channels of reporting a problem, but it is only for

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general problems about the production.

Looking from the factory and Next’s perspectives, none of the existing channels can thoroughly protect the workers.

From the factory’s perspective, additional concerns are included when reporting a problem through its factory, which is also discussed in the literature review. In other words, ensuring the workers’ rights might increase the workers’ wage, and in the fashion industry, the brands can switch suppliers with almost no cost (Vogel, 2006). Hence, the difficulties of solving the issues increase when the cost is involved and leads to insufficient compensation and managers’ concern that workers’ rights will increase wage costs (Mosley, 2017). In this case, the workers from our primary research reporting the problems to their managers or leaders still put their rights at risks.

From Next’s perspective, the flaws of the existing audits and the transparency for business are also discussed in the literature review. The long working hours and violations of labour rights still exist in the fashion industry (Hoang, 2019).

In addition, the need for a transparent channel for workers can be seen from the literature, pointing out that improving the transparency information system in the supply chain can lead to a better performance of the company, trust in key stakeholders (Tapscott and Ticoll, 2003; Rawlins, 2008).

the auditors. This is because workers themselves rely on their jobs to earn livings, practices such as code of practice audits and meetings might expose them to their managers or leaders, and further put them at risk of losing their jobs. In other words, the existing channels do not ensure the workers’ privacy of reporting any problems. Hence, the concern about their manager or leader’s opinion is identified as a risk of their willingness to communicate with Next. Privacy will be included in our plan to lower the risk.

The importance of immediate communication: Technology

According to the answers we got from the questionnaires, workers care about the immediate response they get in terms of solving a problem. A better way of communication is fully discussed in the section of ‘current technology for communication’ in the literature review.

More specifically, technology provides stable and efficient communication from different locations (Ding talk, 2020). The key points that are mentioned in the literature are efficiency, immediate, and not constrained by geographical distance.

In this case, utilising technology platforms can provide an immediate communication channel for Next to response and communicate with the worldwide The Importance of workers. However, privacy disclosure of privacy the data is discovered in scholars in terms The primary research indicates the of adopting technology communication. importance of privacy in terms of Hence, the encryptions of the message reporting a problem from workers. In will be implemented in our plan. detail, the workers want the problem to be addressed, but they care about privacy and the leader’s opinion more.

This could be supported by the section of audits in our literature review. According to the study of Hoang (2019), factories would hide their unethical practices from 76

Utilising big data for ensuring workers right

For more efficient management of the worldwide workers, the benefits and risks of big data have been fully discussed in the literature review and are identified through our primary research. Although big data has been used in supply chain management (Lohr, 2012), no related studies of utilising big data for analysing workers’ condition are found. From the big data workers’ point of view, it is regarded as a new approach and has possibilities to ensure workers’ rights. Specifically, the respondents from our primary research hold both positive and negative opinions.

Apart from the key benefits of efficiency and immediate information, the solution

to these respondents’ concern will be discussed. One of the respondents points out that systematic numbers could not represent workers’ emotions. According to Data Clarity’s methods of analysing consumer behaviour (Data Clarity, n/a), we believe workers behaviour could also be analysed. In detail, Data Clarity based on customers’ purchase history, demographics, frequency of visiting the store, and many other aspects to predict their preferences. This is to say, analysing workers demographics, frequency of going to the toilet, reflecting their mood can be added to our plan for collecting data. Furthermore, recommendations are given by the questionnaires’ respondents, suggesting big data could provide an insight into the weakness that managers can support those workers specifically.

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So, how are we going to analyse the workers with big data and identify the problem?

According to the literature review, big data can be categorized into structured and unstructured data. Structured data can be collected into a database where various tools can slice and craps the data to extract insights and patterns, while unstructured data is used to analyse text and audio. This is to say, structured data could be collected through the following criteria: 1. Workers demographics 2. Frequency of going to the toilet 3. Choosing 1-5, their degree of pressure/ depression/ satisfaction 4. Choose Yes/No if they have fair wages/ safe working environment 5. Choose Yes/No if they see any discrimination/violation 6. Working hours As for the unstructured data, it is suggested by the big data agencies from the questionnaire that if the technology of big data can recognise keywords from the voice messages, this could be very helpful for improving workers’ rights. As a result, a channel should be constructed and be used to collect and interpret voices efficiently.

By analysing workers’ conditions, these numbers and data could be compared and summarized efficiently amongst millions of workers around the world, and identify the factories with violations of workers right for Next’s office immediately.

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Fig 2 . NEXT fi er image, 2020

Fig 2 . NEXT fi er image, 2020

11.

THE OUTCOME (our idea)

concept idea

MOCKUPS

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s c re e n b ox

Fig 25. Screen concept mockup, 2020

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simplistic clear brand dna user-friendl y

Fig 26. Screen mockup, 2020

interactive portal

effective communication

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Fig 27. Screen mockup, 2020

BASICS

intelligentl y & effectivel y intergrates

Fig 28. Screen mockup, 2020

engagement

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Fig 29. Screen mockup, 2020

SCREEN BROUCHURE

Fig 30. Brochure mockup, 2020

(pg1 of bookl et)

NEXT |NTU INTERACTIVE SCREEN DESIGN MANUAL

THE INTERACTIVE SCREEN

•

Delivering the brand’s messages and interacting with the workers

•

It combining the function of communication •

Fig 31. Brochure mockup, 2020

Improve the engagement of workers

(pg2 of bookl et)

•

Promotion of corporate culture

•

User-friendly design

•

•

en y and ntell en e

Direct communication and trust-worthy channle

Fig 32. Brochure mockup, 2020

(pg3 of bookl et)

•

Voice recognition

•

Live online support

•

Automatically translation

•

Multiform communication for reading or hearing d lt es.

EFFICIENCY & INTELLIGENCE

•

h s ma h ne ntell ently and e integrates.

ently

Workers' voices and daily job satisfaction information into big data and reports to the headquarters immediately.

Fig 33. Brochure mockup, 2020

(pg4 of bookl et)

PROMO

Fig 34. Brochure mockup, 2020

(pg5 of bookl et)

OTION OF CORPORATE CULTURE •

When there is no touch control, the screen will automatically scroll to show the brand promotion map, showing the brand image to make the workers have a sense of participation

•

A sense of engagement can strengthen the relationship and trust between factory employees and the brand.

USER-FRIENDLY

•

Inspired by the old-fashioned telephone booth, the heritage of classic cultural characteristics

Fig 35. Brochure mockup, 2020

•

Design of user interface, simple, clear and purposeful

(pg6 of bookl et)

•

a

lass.

Magic glass is a technology where arrangement of particles within the glass is adjusted by electricity.

Transparent glass can be switched to frostedglass when workers enter to use the omm n at on system. and s t hed ba to normal a ter the or er has n shed s n t.

•

It guarantees the privacy and private space of users and maximizes the propaganda function of the screen when needed

Fig 6. NEXT fi er image, 2020

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I M P L E M E N TAT I O N PLAN

12.

INTRODUCTION Throughout the primary research and the literature reviews to deeply understand the current situation Next is facing, this plan aims to utilize interactive big screens which combine AI and big data technology to decrease the risks of code of conduct and audits which are currently adapted by most of the brands in the supply chain, protect the workers directly, and fill the gap efficiently between the head office and worldwide workers who play a vital part for Next’s success. Direct communication, transparency, efficiency, protection of users, and engagement are delivered by our plan, by including the functions of communication, promotion of corporate culture, efficiency and intelligence, and user-friendly design..

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Fig

. NEXT fi er image, 2020

How do we come up with the idea?

A direct communication and a full access for the tier 1 supply chain is needed to achieve the goal. From the secondary research, we summarize the problem of outsourcing while many brands failed to protect workers right through human resources and they still struggle to reach the workers directly. Although we had ideas of distributing managers to each factory to experience the real life of workers, putting on reality shows in different factories,or distributing a device to each worker to communicate with the brand, the feasibility is limited while taking the number of workers and the costs into consideration. In detail, giving a device to each worker is impractical while Next has more than hundreds of factories worldwide with thousands of workers.

In addition, Next’s suppliers are mainly located in developing countries where the use of smartphones is not proliferated, developing a mobile app can do the easiest job but it limits the access for every worker in the supply chain. Therefore, compared to the existing methods which only a group of

workers can be heard through interviews or managers in a specific period of the year (Next plc, 2019), setting up several interactive touch screens in factories can ensure every worker in the factory access the service and reach the brand anytime.

Transparency and efficiency are also the main areas we want to improve in terms of protecting the workers; thus, technology will be relied on heavily. We were amazed by the Data Clarity who utilises big data to efficiently analyse customers behaviour and predict their shopping motivation to increase the sales and enhance customer relationship, so the AI technology and big data are adopted in our screen to have an efficient analysis of workers’ condition, preferences, and emotions (Lohr,2012), and it could be expected to enhance productivity and business’s competitiveness(Chen& Zhang, 2014).As what was mentioned in the report’s literature review, difference of each country’s laws and regulations (Sattarin, 2013), government willingness to enforce the law to work with business

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(Holdcroft & Lee, 2016), and the common phenomenon in garment factories (Locke, et al., 2013; Mosley, 2017) make the protection of workers more challenging.

Therefore, technology provides a more direct, transparent, and efficient communication throughout the supply chain without going through any third organisations or people. Next can deliver messages directly to workers, while workers’ voices are ensured to be heard.

The trust-worthy feature will be promoted to win workers’ trust before they decide to use our interactive screen while facing issues, hence the protection of their messages and ease of use are taken into consideration. To put it in details, we assume that workers feel insecure to speak while facing issues due to the fear of embarrassment and the risk of losing their jobs, this is also mentioned as the disadvantages of audits.

Hence, encrypted messages, anonymous systems, and the allocation of the screen will be implemented cautiously to decrease workers’ worries about being exposed.

In addition, the design of the screen will

also be discussed to encourage workers to adopt this channel.

Lastly,our plan is designed not only to protect workers, but also to enhance their engagement. Delivering the brand’s messages and interacting with the workers could improve the engagement of workers through the screen. The importance of worker relationship and engagement was proved in the literature review, stating that a positive worker relationship through better communication leads to the success of internal corporate marketing, worker trust and engagement. We expect that by winning their trust toward Next and more interaction with the brand, this screen can bring a higher satisfaction and engagement of workers. To put it in action, we see the possibility of promoting corporate culture through our screen, such as displaying store images and roll titles. Seeing the clothes that they made being sold in the store and roll titles which show company’s concern about their rights, we assume this can motivate and encourage factory workers to engage with Next.

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Accessibility

Engagement

Direct Communication Interactive Screen

Transparency & Efficency

Trustworthy Channel

Fig 38. Screen elements diagram, 2020

Overall Practical Strategy: What do we want to do?

We aim to deliver an interactive screen which can allocated into factories, combining the function of communication (voice command, automatic translation, image communication, live online support), promotion of corporate culture (store image display, voice + visual roll title), efficiency and intelligence (big data, encrypt message), and user-friendly design (design of the look, private space)(See Fig.xx). This plan will be targeting general workers from tier 1 of the supply chain. The interactive screen provides a secure channel for workers to convey their messages to Next directly, improve engagement, and an immediate analysis of workers’ condition for Next. As for Next, this plan will enhance the transparency of Next’s supply chain and satisfaction of workers. Each function will be analysed and discussed below.

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Fig 9. NEXT fi er image, 2020

Fig 40. implementation breakdown diagram, 2020

Communication

Efficiency & Intelligence

Promote Corporate Culture

User Friendly

Voice Command

Big Data

Display brand image -brand culture -brand journey

Design the look

Translation

Encryption (dark web)

Private spaces

Image

Online Support

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Fig 41. NEXT Emma Willis collection, 2019

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C O M M U N I C AT I O N

It is without a doubt that the introduction of new technologies in our lives, both privately and professionally, has created both communication barriers, as well as improving communication. The way a business is conducted has changed through this use of widespread technology, which has resulted in many new business and supply chain models (Van Donk, 2008). Our idea intends to improve the current communication barriers NEXT may be facing, and aims to sufficiently improve the transparency of communication for workers within the supply chain. Communication implementation is being efficiently proposed in the following functions within our model:

1. Voice recognition; The AI technology within the machine will create an virtual assistant, which automatically resonates to workers’ voices, picking up their speech, in both a voice or text entry. Conversational milestones can be communicated verbally into the screen. Having this element within our screen will efficiently create enhanced communication for workers by them simply speaking to it, allowing a handsfree interaction to reflect on the questions and tasks presented to them. This means it’s efficiently quick and easy for them to understand and wont consume their time manually writing questionnaires etc. The VR will be trained to understand multiple languages to ensure it understands the language of workers it is based in. Since Google home supported 30 languages by the end of 2018 (Templeton, 2020), we believe that these languages that workers speak (in the factory it is installed in) can be implemented for VR to recognise and therefore this breaks down any language barriers which may face without VR. Leading on from this, the voice assistant provides convenient communication for all individual workers as it is a conventional way of breaking any misinterpretation of language barriers and is time convenient.

Automatic voice assistance speeds up the process of communicating. The time spent struggling to understand troublesome language barriers will be gone, and the need to find time to schedule face-to-

face communication such as a factory worker speaking to their team leader/ manager, or audits being planned and held can be reduced. Therefore, promoting efficient time proficient communication and reducing time waste.

The function of voice recognition also creates a future forward communication strategy within the supply chain for NEXT. The prominence of voice recognition has significantly risen with the rise of famously known AI and intelligent assistants such as Apple’s Siri and Amazon’s Alexa. The future of voice recognition is a growing trend which is only expected to advance due to the shift towards voice user interfaces in user demands. There is an increased overall awareness and level of comfort demonstrated by users using voice recognition. Voice recognition is advancing to various utility applications, devices, appliances and in this everevolving digital world, it is predicted that nearly every application will integrate voice commandment in some form within the upcoming 5 years (Ciligot, 2020).Thus, by implementing a voice assistant within the NEXT supply chain, this AI communication is future forward for the brand, and this element will keep NEXT ahead of the game with communicating to workers within the supply chain. Brands have already started to research and roll out this communication implementation, so it makes a sense for the brand to naturally evolve in this too, and could be a leader in the field of communicating with their supply chain.

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Despite the positive aims for voice recognition explained above, we must also acknowledge any potential hurdles which may be faced for a voice controlled assistant when communicating. For example, contradicting our positives, it may take certain workers time to feel comfortable with new technology, despite this being an overall quicker process of collecting their data. Equally, in order for the VR to communicate remarkably and learn to recognize different languages or phrases, this may take added time and money to roll out.

2.Translation;

The automatic translation function within the screen will completely wipe out any hurdles in translating communication within the workers within the factory, to NEXT head office. Language barriers can often cause huge hurdles within the workforce. Due to the AI technology, the screen will efficiently convert different languages where necessary, leading to better understanding of interaction.

The VR element helps to enhance this translation to understand what the individual is saying. Furthermore, this leads to a better relationship when communicating, leading to a higher level of trust and satisfaction for all workers, and overall enhancing individual engagement.

Although there are examples to show that this can efficiently work, there is always the uncertainty that sometimes technology can fail and there could be particular words or accents that may cause a hurdle due to the translation not understanding.

This may occur a minute amount of times, but it is a hurdle which will always be problematic within communicating and it cannot be helped when language barriers are involved. However, the screen has a significantly higher impact in improving translation barriers, than still having them, thus we believe that the screen will help to positively enhance the translation barriers which are previously occurring.

3.Image;

Imagery within our screen also plays a role in improving communication barriers. Thumbnails and images will enhance the workers communication experience. Some individuals may prefer vectorized symbols to explain prompts or questions to them, as well as answering with them. For example, different smiley faces to show how they are feeling about particular work and responses to questions that the screen asks. Imagery is a simplistic easy to use element which does not require any unnecessary time, or language barriers like words do.

Therefore, it is particularly effective for any individuals who may have reading or hearing difficulties. Furthermore, since colour can be used to signal action, influence more, and create physiological reactions, it is a powerful communication element for the imagery on the screen, since studies show it can have a positive impact on performance (Cherry, 2019).

4.Live online support;

The chatbot within the screen will act as a 24 hour live assistant. The online bot will artificially live on the screen and will be available to workers at any time. The bot will respond to workers using the linked up elements of voice recognition, translation and imagery. The bot will provide a relationship to the worker, by speaking to them and guiding them through features in the screen. The bot can also help the worker to feel that their privacy is being successfully safe, and they do not have to disclose any information to any colleagues they may not feel like they can talk to. By the chatbot acting as a friend to the worker, this helps to promote trust and build a relationship between the individual and the bot, in turn, making the worker feel like they can relay any issues to the bot and therefore effectively improving communication.

Largely, the live online support will

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specifically improve the interaction in communicating within the workforce.

Despite the pros of an online support bot, there are again risks in communicating elements which must be explored. For example, on the other hand, privacy being improved, equally, privacy issues could occur, since the privacy disclosure is gradually becoming an unavoidable issue in the network as hackers and other unaccountable individuals may manage to get into the system (as discussed in current technology chapter). Therefore, NEXT must make efforts to protect the privacy disclosure seriously and the built in system should ensure that these potential issues will not occur. Additionally, any responses or issues from workers to the chat bot, may not be resolved straight

Fig 2. NEXT fi er image, 2020

away, as the information may need to be reported to a member higher up in the supply chain. Therefore, there may be disadvantages in the chatbot managing to relay important information that a worker is disclosing straight away, and it may take a little longer to resolve the matter.

In conclusion, although when overlooking the positives, there are disadvantages to communication elements through the screen, which may have the potential to arise. However, we believe that our idea will sufficiently improve current and future communication barriers in the NEXT supply chain with the use of voice recognition, translation, image, and live online support will assist this.

EFFICIENCY & INTELLIGENCE Our project proposes the development of a machine placed in the factory to collect workers ‘voices. This machine intelligently and efficiently integrates workers’ voices and daily job satisfaction information into big data and reports to the headquarters immediately. The headquarters can grasp different areas in real-time. A working situation and status of different types of workers in the factory, and make appropriate management strategies promptly.

office. The dark web is a small part of the deep web that is kept hidden on purpose.

Data on the dark web do typically require a particular tool to enter (Paul 2018). The advantage of the dark web is anonymity.

Because no people know who anyone else is in the physical world when they take the necessary precautions. Users are free from the prying eyes of others(Paul 2018). The dark web also ensures that the rights of workers are not infringed. Don’t worry about the feedback being obtained The development of this technology has by the factory management, which will improved the work experience of workers, cause the feedback data to be untrue. strengthened worker participation, and mobilized work enthusiasm, and Besides, encryption is the foundation at the same time, established good of the Dark Web. Most of the Dark Web trust between workers and executives. exists on the Tor Hidden Services network, which uses various layers of sophisticated “Big data refers to the large, diverse encryption and random routing to sets of information that grow at ever- protect people’s identity (Sydney 2019). increasing rates”(McAfee, 2013).

For example, the Email provider’s Big data can be divided into two types: encryption can protect people’s information from interference, but 1. Structure data: Transactional data other people still read their message. can be collected into a database where various tools can slice and craps the Thus, we will use Pretty Good Privacy (PGP), data to extract insights and patterns. which is an incredibly powerful encryption 2.

Unstructured data: Social technology that has been protecting all communication tools can analyze text sorts of sensitive communication. It allows or audio and relationships between you to take control of any email text you people and networks using computer send to a destination on the Dark Web. algorithms(Data clarity, 2019).

The reason why PGP is special is that it barely Also, the data we collect is encrypted by balances the strength of its encryption the dark network to ensure the absolute algorithm with ease of encryption and security of the data will not be leaked out speed. It is not the most robust encryption and obtained by the factory management out there, but it is strong enough to keep staff; it is direct feedback to the head just about everyone out(Sydney 2019).

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S T R AT E G Y Step 1:

The collection of this type of data is quantitative and can be implemented Collect data from workers in the factory. for each worker. The problem setting is We divide the data to be counted into two types: relatively simple and can be collected repeatedly with high frequency.

1. Structural data integration. The questions are set as multiple-choice questions. After 2. Unstructured data the workers answer the information, they The communication function of this are unified into the database. The percentage intelligent technology, as mentioned above, of different answers is analysed. The is classified as unstructured star data, enterprise can set the following aspects: analyzing the text or audio feedback of workers, and using computer algorithms 1) Physiological needs are primary to analyze the relationships among them. demand, which includes air, water, This data collection is different from the food, and regular use of the bathroom. structure. He is more biased and qualitative.

It is like a machine interviewing workers.

2) Safety needs are a safe working Workers can describe their difficulties or environment free from any harm or threat. bad experiences and unequal treatment in the factory by verbally. Of course, this 3) Social needs are to identify the need data is collected in an environment that to be affiliated, that is (the need to be guarantees privacy and security. Workers loved and accepted by other people). directly feedback to the machine to avoid the embarrassment of the factory management 4) Esteem needs are the need for self-respect and the untrueness of the answers. and approval of others (Maslow, 1994)

Step 2:

For example, based on the discussion, Internal Marketing: these could be further collected Assuming that employees report that through the following criteria: they do not have a sense of belonging and identity, companies need to consider • Workers demographics strengthening their internal marketing • Frequency of going to the toilet methods, such as promoting the company • Choosing 1-5, their degree of culture, mission, and vision in the factory. pressure/ depression/ satisfaction • Choose Yes/No if they have fair wages/ Step 3: safe working environment Personalisation, using different • Choose Yes/No if they see any management methods for discrimination/violation factories in different regions.

• Working hours For example, Many workers—such as The daily working hours, whether they get female factory workers who often work proper rest during the day, whether female in isolated spaces—report higher than workers have received sexual harassment average rates of assault and sexual in the factory, whether they have the same harassment(Fernández Campbell 2018; rights as male workers, are treated equally, Yeung and Rubenstein 2013; Yeung 2015). company’s headquarters is and whether salaries are paid on time. The considering replacing male managers in the factory with women in the region 111

when some area factory has this situation.

Step 4: Action, timely rectify, and monitor the factory with poor big data statistics.

The advantage of big data used in technology is that it provides communication between the worker and company high-level manager is that it can accurately and effectively feedback problems, save costs and time, and the data is more authentic and persuasive.

However, it involves privacy, which needs to be set up cautiously, such as the use of dark web, which may require higher technical costs and higher costs.

P ROMOT E C O R P O R AT E C U LT U R E Promoting Corporate Culture is important because it is a way to build trust and strengthen workers and brand relationships. Promoting corporate culture through our communication system is based around the Denison model, with traits provided by Denison and Mishra (1995), there are four cultural traits of effective organisations that includes involvement, consistency, adaptability and mission. Within the four traits of corporate culture that construct an effective organisation, despite the equal importance of all four of them, involvement appears to be more relevant when considering building trust and relationship with workers within the supply chain. The sense of involvement empowers all levels of employees from executives, managers to workers, allowing them to be committed to their work, at the same time, feel as if they “own a piece of the organisation” (Denison D.R. et. al., 2003 p.208). Involvement is important because it enables employees at all levels to recognise that the outcome of their work is directly linked to the goals of the brand (Katzenberg and Spreitzer in Denison D.R. et. al., 2003).

Having this fundamental philosophy in mind, implementation of our communication system should approach our targeted Tier 1 supply chain workers accordingly.

DI S P L AY B R A ND I MA G E Displaying brand image is key for creating a sense of involvement among workers because it shows factory workers not only where the products go, how they are displayed in stores and how they are sold, it also shows factory workers what the brand values and the brand’s purpose.

The sense of involvement can strengthen the relationship and trust between the factory workers and the brand. From the excitement when people pick up a product that is made by the workers , to the joy on people’s faces when they use the products, all these visual presentations can stimulate involvement of workers. In terms of delivering store image to factory workers, displays and big screens will be used with slides of pictures, photos, and slogans. Occasionally audio will be added if necessary, it will not be consistent since it can distract workers. Store images that are presented in displays can be sorted into two different categories: A) Brand culture and B) Product journey from factories onward.

Brand culture Brand culture can include many different aspects of a brand, namely: People, Passion, Purpose, Story, Image and Experience.

People: People of the brand more than often means employees that work within the brand itself, however, since this approach has been taken into the application of this communication system with factory workers, the attention will be shifted to factory workers. Factory workers are at the top of priority, their feelings and experience will be at top concern to NEXT and their opinions are valued by NEXT. With this new communication system, these elements will be put under the spotlight.

Passion: As a fashion company, NEXT heavily based on fashion retail, huge effort has been put into manufacturing great designs and a wide range of products over the

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years, and all these are only possible with the backing of skillful factory workers that work alongside every project.

Sharing the passion towards fashion with factory workers and acknowledging their achievements are important when promoting corporate culture through this communication system.

Purpose:

showing the story of NEXT, factory workers have the opportunity to understand the products they are manufacturing, in that way, workers can feel more connected to the brand and their products.

Image: Brand Image is, simply put, what NEXT stands for, this includes brand personality, standards, core values etc. In other words, NEXT’s brand image is how their target associates with the brand, be it NEXT’s target customers or factory workers, being able to associate with the brand is helpful for enhancing relationships.

In 2020, striving for a higher standard of CSR is the aim and communicating with factory workers would be a big part of that. When delivering corporate culture with this communication system, it is important to make sure that factory Experience: workers are aware of this aim, upon In terms of experience, it usually describes realising such endeavor, it is hoped that customer’s experiences in-store and the relationship and trust between NEXT customer services which appears to and the factory workers can be heightened. be irrelevant to promoting corporate culture to factory workers. Nonetheless, Story: experiences can be reinterpreted to fit Story can mean different things for a brand, the aim of this communication system, it could be the heritage, it could also be the experiences and feedback on this new changes throughout the years, but here, we communication system received from are targeting supply chain factory workers. factory workers can be announced, in this NEXT’s story for factory workers is more way, workers can feel more related to this likely to be about the products, it could be new communication system, as the same the design concept and inspiration of the time, NEXT can show how they improve product, it could be how NEXT’s products and adjust the system accordingly to do good to the community and society. By factory worker’s needs and preferences.

P R OD U C T J OUR NE Y Product journey is not a short process, to record it and show it to factory workers may not have any effects at all due to two main reasons: First, simply showing where the products go is an absolutely objective illustration, hence effectiveness on strengthening relationships is doubtful. Second, most factory workers are paid per piece they produce, they are encouraged to work with high efficiency, therefore, incentive to watch a video about product journey is low.

correspondingly. The focus of structuring a video about product journey should be keeping it warmhearted and short.

Examples like filming from a factory manager point-of-view handing over the products to a delivery man who smiles and says ‘Thank you!’, then from the delivery man point-of-view handing over the products to a warehouse representative who smiles and says ‘Cheers!’, similarly until the product reaches NEXT’s customers. Adding human interactions into the video can raise emotional Showcasing product journey can still reactions and leave a more memorable be effective despite the above raised impression, warmhearted visuals issues, approach has to be adjusted are more likely to contribute towards 114

strengthening relationships between even if workers have no obvious intention NEXT and factory workers compared to to watch the whole video, they can objective visuals. It is also important that understand the message immediately. these clips are short, in such a manner,

U S E R - F R I E N D LY

When planning on designing the look of the interactive screen, elements in user interface and the features of hardware were both put into consideration, giving both aspects contributes to the level of user-friendly.

User Interface The aim of this system is to communicate, so when considering the design of user interface, simple, clear and purposeful are the key words. Interface has to be simple since this is a two-way system where factory workers’ input towards the system is very important, every design detail has to be user-oriented, keeping it simple enables the ease of use for the factory workers to understand and control.

To maximise efficiency, the system has to deliver messages clearly to users, it should be simple and generic. Page layout has to be purposeful so that during the experience of using this interactive screen, every action and placement of elements and information makes sense to users.

system, including MDI, FBI and NKI.

Menu Driven Interface (MDI) As the name implies, menu driven interface is constructed with simple menus and sub-menus, it is often operated by either pressing buttons or touch screen. Menu driven interface is seen in ATM machines and information kiosks, it is easy to use since commands are categorised for efficient actions. This kind of interface is more suitable for this new communication system designed for NEXT because it can fulfil users’ command with simple and direct options that are provided.

Form Based Interface (FBI)

Form based interface is also useful in this new communication system, it is an interface where textboxes, checkboxes and dropdown menus are used. These kinds of functions are helpful when collecting data, such as name, age, gender etc. It is also a quicker option when collecting data. Form based interface provides clear and direct instructions, making it easy to comprehend and efficient There are different types of common when collecting basic data from the user. user interfaces, including command line interface (CLI), graphical user interface (GUI), menu driven (MDI), form based (FBI) Natural Language Interface and natural language (NLI). CLI requires (NLI) users to remember and type in different Natural Language Interface is very commands, so CLI is not suitable for popular during recent years, many people this communication system. GUI is more are familiar with Siri from Apple inc. and friendly for the general public however Alexa from Amazon, these are examples it requires a pointer to operate and fulfil of natural language interfaces. Its main commands, the screen that is designed for function is receiving instructions through NEXT is a touch screen for the ease of use speech, user input command through and convenience, GUI therefore, is not the spoken language, and the system responds best choice for this project. The remaining in speech, therefore it is sometimes three user interfaces fit better for the referred to as ‘conversational interface’. function and set up of the communication 115

This interface can overcome challenges like illiteracy of users, some factory workers in less developed countries may not have a chance to receive education in their lives.

Private Spaces

needed, considering the function of the system, boundaries should be designed accordingly. Crowded space should also be taken into consideration due to the fact that not all factories are spacious.

Conversation should be kept non-audible from outside the private space, foam mat is a common soundproofing material, the cost of foam is low and it is effective, it can be very cost-efficient when a large amount of new screens have to be installed.

However, since the screen has another important function which is promoting corporate culture, putting foam on the wall around the screen is not practical. Glass, on the other hand, is a better choice. Glass is transparent so it enables the screen to show images and clips to factory workers when no one is using the system. Yet, the best choice may be a smart material called Magic Glass. Magic glass is a technology where arrangement of particles within the glass is adjusted by electricity, in that way, transparent glass can be switched to frosted-glass like when workers enter to use the communication system. The Magic Glass can be switched back to normal after the worker has finished using it.

In this way, the screen can fulfil both of its main functions while maintaining Since this communication system involves privacy when needed and maximising inputting personal information on screen contact with people when needed. and sometimes spoken interaction if Private spaces are crucial when setting up communication systems, the reason is, information being shared during the communication is usually confidential, it could be about personal lives, reporting exploitation, or many other reasons.

Factories are often open-plan spaces due to factors such as the scale of business of a factory, ease of communication, monitoring employees. As discussed before in literature review, trust is crucial when it comes to helping relationships.

Beauchamp and Childress in Glosoff and Pate (2002, p.22) defines privacy as “allowing individuals to limit access to information about themselves.� Privacy can mean various things when discussed in different aspects, in terms of a userfriendly design, private spaces around the screen set boundaries to offer users the right to limit other people accessing their personal information, and this is crucial for building trust with workers.

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COST

***************************************************** P R E D I C T E D I M P L E M E N TAT I O N C O S T F O R O U R I D E A Screen (43“ inches touch screen computer system) Magic Glass (per square meter) Installation Fee

RMB$ 5,500 RMB$ 3,600 RMB$ 500 RMB$ 9,600

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Per setup = GBP£ 1,096.16(as of 12 April 2020 exchange rate) *Note that installation fee may be higher in the UK due to higher pay rate. **Delivery fees, taxes and software development are not included.

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Number of factories for NEXT in different countries: China 533 India 172 Bangladesh 145 Turkey 99 Sri Lanka 55 Great Britain 49 Vietnam 48 Cambodia 42 Myanmar 40 (Remaining 31 countries/ regions consist of 147 factories in total) Total number: 1328 -----------------------------------------------------------------------------------------

Estimated implementation cost for each country: [Number of factories x estimated cost per setup (assuming 1 machine in each factory)] China £584,253 India £188,540 Bangladesh £158,943 Turkey £108,520 Sri Lanka £60,289 Great Britain £53,712 Vietnam £52,616 Cambodia £46,039 Myanmar £43,846 (All rounded off to nearest integer)

SWOT After constructing the implementation plan, an evaluation of the plan is crucial.

Managers should concern further implications to maximize the strength, take advantage of opportunities, compensate for the weakness, and avoid the threats.

1. Business competitiveness Gugler and Shi (2009) point out that many corporations implement a short-term approach to implement their corporate social responsibilities by the need to enhance their reputation, but only business with pioneer innovations will benefit its competitiveness.

More specifically, Brik (2007) defines CSR innovation ‘‘as the willingness and the capacity to discover, adapt, evaluate and exploit new technologies, products, services or processes for environmental and societal benefit’’.

By building an effective channel to communicate with the workers, Next’s competitiveness within the industry can be enhanced, this is supported by the research of Popescu and Crenicean (2013).

2. A better understanding of the workers The plan is based on a better understanding of the workers through interviews with them. We aim to understand their internal thoughts and actual needs and provide a secure and trustworthy channel.

ST R E NGT H S

Practice Conducts and have audits from Next every year (Next plc, 2019), we believe most of the factories are on the same page with Next protecting workers’ rights.

Hence, this plan could be accepted by the suppliers more easily and collaborate for better communication.

3. Real-time information Compared to the existing audits, this plan ensures an immediate understanding of the workers’ conditions and real-time communication between Next and the workers.

Real-time information enables the business to 6. A win-win for Next react in the shortest time. and the suppliers We believe this 4. Efficient communication channel management can enhance the We ensure access for every relationship between worker in the supply chain, Next and suppliers, this is so it would be a challenge supported by Malaquias to manage all the factories and Hwang (2016), stating in different countries. Our that the maximum impact plan reduces the time of of technology on business collecting and analysing communication could the data, and transfers enhance the interactions them into systematic with consumers, information to implement clients, and suppliers. efficient management.

This plan is a win-win 5. Feasibility for both sides as they not As Next plc (2019) only can build a bridge in states their priority between but also make as “Communicate and use of the channel as a support the achievement marketing tool. In detail, of compliance with our suppliers can show their ethical requirements”, it ethical standards and is undoubted that Next practical actions to win has been working hard to other brands’ trust while achieve ethical standards of Next can win a reputation their supply chain. As Next’s within the industry. suppliers are following their existing Code of 119

W E A K NE S S E S

1. Not originally solving the problem of workers’ rights Although this plan is aimed to improve workers’ rights and to build a direct communication channel between Next and the workers, we are aware that this plan does not have any bindings on illegal actions.

In other words, Next could put pressure on the suppliers that have illegal labours, but the problem might still exist after Next decides to terminate the contract. Hence, this plan can decrease the risk of having a violation of workers’ rights, but it still relies on the government

to punish illegal behaviors. 3. Complication of data Next has around 1.4 million 2. First time workers in tier 1 supply adopting AI chain (Next plc, 2019), technology and big building the communication data Although Next has been channel to the suppliers using an online system around the world is truly a to track suppliers and challenge. When we collect their subcontractors (Next the unstructured data such plc, 2019), it would be as voice recognition, the a challenge for Next to amount would be huge and adopt AI and Big data to difficult to interpret. The protect workers for the capabilities to explore and first time. Challenges and the result would be limited difficulties might appear if we could not overcome if the management team these challenges (Chen & and the supply chain is not Zhang, 2014). However, it fully prepared for adopting could be improved with deep the new technology. learning, as better-quality data can have a better result (Thompson, 2019).

OPPORTUNITIES 1. Consumer awareness of fair labour and transparency It is mentioned by a report from Business of Fashion and McKinsey (2019) that fair labour in the supply chain is becoming an important issue for consumers. More specifically, 66 percent of them are willing to pay more for sustainable goods while 42 percent of millennials care about the background of the products. It is believed

that more businesses in the industry will highlight their ethical practices, and adopt new technology to improve supply chain transparency (Business of Fashion & McKinsey, 2019). As a result, Next can take advantage of this trend to build up reputation by protecting workers proactively.

review, no business in the fashion industry has a more efficient way of protecting workers than applying the Code of Conduct and audits.

Next has the opportunity to demonstrate a more direct and efficient method of protecting workers in the fashion industry. Bring a positive impact on other competitors and persuade 2.

Pioneer in the them to join this plan. fashion industry According to the literature

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T H R E AT S

system which Next is using to track the subcontractors of the suppliers, Next does not have direct contracts with those subcontractors.

It is a challenge to map the whole supply chain while an apparel company might think they only have 1,000 to 2,000 suppliers, but the number could be up to 50,000 while including the sub-suppliers (Business of Fashion & McKinsey, 2019). Therefore, Next needs to have 2. Participation and strict rules for supplier’s the adoption of the subcontractors while our workers 3. Subcontractors plan can not be applied Our plan is designed to Apart from the online to the subcontractors.

1.

The cost Although using AI and Big data can reduce the cost of labours (Sas, 2019), the cost of maintenance is fairly huge (Naidoo & Dulek, 2018). We are aware of the cost of installing the screens in many factories and the maintenance of the machines and hightechnology, so the amount of money we are spending on this channel needs to be calculated cautiously.

maximumly encourage the workers to communicate with Next, but it relies on the participation of the workers.

In other words, workers might not be used to such high-tech equipment, hence training is required to educate the workers and enhance the participation of the workers. This is suggested by the theory of Venkatesh and Davis (1996), stating that training could enhance the self-efficacy of users and acceptance of the technology.

Fig 43. NEXT Emma Willis collection, 2019

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Fig 44. Future plan timeline, 2020

13.

FUTURE PLAN

timeline First year: Develop software and purchase hardware will be the first mission, after having these ready, delivery of hardware shall be arranged. The United Kingdom will be the first to implement this new communication system since the UK is the base of NEXT, issues and technical problems can be easily fixed if found.

Second year: Data starts to be generated from the UK system, data will be saved and analysed for further software development. Feedback of user experience will also be collected and the user interface shall be adjusted. More purchases will be acquired for the next stage of the project. China and India will be the next two target regions according to the number of factories hired by NEXT, with 533 factories in China and 172 in India (as of Jan 2020) Third year: The system will be introduced to Bangladesh (145 factories), Turkey (99 factories), Sri Lanka (55 factories), Vietnam (48 factories), Cambodia (42 factories) and Myanmar (40 factories) (data as of Jan 2020) Fourth year: Remaining 31 countries/ regions consist of 147 factories in total (as of Jan 2020).

NEXT can decide when to continue implementing communication systems in those countries/ regions depending on situations and feedback, since some places only have 1 to 2 factories. Meanwhile, data will be widely collected and stored for analysis.

Fifth year on: Data collection will go on and contribute to a massive database, which enables NEXT to possess big data that contains valuable information for developing precise solutions to problems or predict trends in the future.

ME AS UR E ME NT Basically, this report aims to utilize technology, develop effective communication channels with workers in the supply chain in order to improve access to grievance mechanisms. In order to provide a feasible scheme for Next Plc. to resolve this issue, firstly, a plan which outlines key actions that it needs to take.

Secondly, in addition to key actions, the measurement of effects is also significant.

This is because measurement helps the executors and organizers of decisionmaking in Next Plc. master the information of decision outcomes. In the meantime, they could also comprehend the limits of these decisions, alternatively, which aspect needs to be improved. Based on these, Next Plc. could draft and implement a more reasonable and practicable plan in the future. Thirdly, given that criteria helps decision-makers to make a judgement of the gap between actual effect and desired outcome of the plan, from a measurable perspective, it will also be utilized.

Action plan 1: In the face of escalating difficulties for companies to have effective communications with workers, particularly when workers in factories could not make complaints to the head office, it is necessary for Next Plc. to cultivate the employee awareness. This is because employee awareness denotes that employees have a certain level of knowledge of policies, documents, and some other significant information of a company. On this premise, it is likely that employees could fully leverage companies’s policies to feedback to head office about their difficulties in the workplace: sexual harassment, forced labours, inferior working conditions and some others. In summary, the first step for Next Plc. should be: to cultivate the employee

awareness of workers in the supply chain.

Measurement: 1, to examine the reach of companies’ communication too l 2, to measure the interest of workers to the grievance system and communication tool within the company 3, to measure the employee awareness through a survey (annual surveys or small regular polls) to gain both qualitative and quantitative data

Criteria: 1, how many employees have subscribed to the social account of Next Plc. on the social media or official website (and the increased number within a year); how many employees have utilized the dark web to deliver feedback (and the change of number); how many employees have used the email to make complaints (as above); the number of employees that have offered feedback in employee suggestion box

2,the

number of click-throughs of workers in the supply chain on emails or push notifications of Next Plc.; the number of visits to Next Plc. on social media via corporate intranet

3,the qualitative and quantitative data obtained from the survey (for instance, the number of employee that has knowledge of companies’ policies)

Action plan 2: Next Plc. should also conduct the internal marketing to enhance worker’s sense of belonging, identify, engagement, retention, satisfaction and some other significant aspects through promoting the company

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culture and Mission, Vision in the factory.

In addition, Next Plc. could also consider collecting data on workers in the factory so that the preferences and needs of workers could be comprehended (for instance, satisfaction degree of work/life balance; career prospect) . This could also be completed with employee engagement surveys. In a sense, this is also an effective method to enhance internal communication of companies. Besides this, it is suggested that Next Plc. should provide training and coaching for workers to elevate and reinvent themselves.

Measurement: 1, to measure the sense of belonging,

increase the performance and productivity of workers in the supply chain by improving the grievance system. In order to complete this goal, Next Plc. should map out key performance indicators of workers and assess their performance. For the aim of accurately identifying KPIs, the overall business goals of Next Plc. should be found. In addition, it is also significant for Next Plc. to rectify inappropriate actions and monitor the progress of actions.

Measurement: 1, to measure productivity quantitatively 2, to measure the sales productivity 3, to measure the service productivity 4, to measure the time management

identify, engagement, retention, satisfaction of workers (some tools could be used: 360 feedback, one on one conversations;Management by Objectives;Self-Evaluation and some others ) 2, to examine the understanding of head office to the demands of workers 3, to assess the education and coaching of workers from Next Plc.

productivity 5, to measure the profits

Criteria: 1,the number of produced clothes, shoes

Criteria: 1, scores and ranking of workers in employee engagement surveys; the absence rates and turnover rates of workers (and change within a year); the retention rate 2, the number of solved difficulties (whether they have the same rights as male workers, are treated equally, and whether salaries are paid on time) that troubles workers in the supply chain 3, the number of workers that have undergone or are undergoing training or coaching that are offered by Next Plc.

Action plan 3: Considering that the final aim of Next Plc. is to increase margins and have more effective communication with employees, the most significant aspect for it could be: to

and accessories in a particular period of time (for instance, a day, a month, a quarter); the average volume of products that are produced by workers in the supply chain in a particular period of time 2,the total amount of sales within a given time period; the total amount of sales to existing customers; the total amount of sales to new customers; the return on each call made to customers; 3,the time that a worker spend on work; the time length that a customer could be remained; the number of complaints from customers; the number or returned commodities; 4, the time that workers spend on work duty; the time workers spend on meaningless activities (for instance, chat); whether the assigned task have been accomplished in time; 5, the revenue; asset; liabilities; margins; price ratio; income after taxes; net income and some others.

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Fig

.

a fi er image, 2019

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CONCLUSION & R E C O M E N D AT I O N S

14.

Conclusion In conclusion, this report specifically focuses on Next Plc. (a British retailer that sells laundries and homeware) and aims to fully leverage technology, develop effective communication channels with workers in the supply chain in order to improve access to grievance mechanism.

In order to complete this goal, this report has been divided into 6 parts including: comprehension of the internal marketing of this firm; investigation of rights of labors in the supply chain; significance of auditing and CSR; implications of transparency; connotation of relationship between brands and workers and usefulness of communication channels.

In the first part, it has been ascertained that Next Plc. has mainly adopted 4 distribution channels: chain; franchised stores; online stores and global business.

These channels help Next Plc. become an increasingly powerful enterprise in the worldwide. In the meantime, this firm has paid special attention to the CSR and transparency. This could be reflected on its principle standards that cover: human rights and modern slavery; environment; code of practice and some others. All these assists Next Plc. commit to protecting rights of workers in the supply chain.

In the second part, some noteworthy challenges for Next Plc. to ensue effective communication with workers in the supply chain have been identified through

reviewing literature and commentary. For instance, it has been found that FDI could violate rights of workers in the supply chain (working overtime, insufficient compensation, discrimination and some others). In this case, although the global supply chain has gradually realized that labor rights are fairly significant, rights of workers in fashion industry still have not been effectively protected.

In order to have more comprehensive understanding on this thesis, in the third and fourth part, some significant concepts have been studied: CSR (the responsibility of enterprises for their impact on society); auditing (to ensure that an organization gives due consideration to its social responsibilities) and transparency (closely related to CSR). Besides of this, it has been gleaned that effective communication in the supply chain could play a crucial role in the corporate development, employee trust; employee engagement; positive working context; and also, the company internal marketing.

In order to resolve these issues with usage of technology, some cases have been cautiously studied: the grievance system toolkit of Patagonia and Levi’s; dedicated communication tools for companies (Linkedin, Ding talk, Wechat). Meanwhile, primary research has been conducted to reflect realistic and real-time information that relates to big data in the fashion industry.

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Basing on all these descriptions and discussions, some recommendations that help workers in the supply chain of garment industry to protect their rights through effective communication with head office could be offered. Firstly, big data could be used to effectively obtain, gather, sift and interpret voice messages that are collected from workers in the supply chain. In this way, managers could utilize structured data from big data to identify workers that need to be paid special attention to (because of violation of rights) to effectively ensure their rights. Indeed, this point has also been supported by Ye et al (2018) and they have expressed that: big data could be reckoned as a novel method to manage data to effectively analyze instant information and further allows managers to rapidly respond to demands or complaints of workers in the supply chain.

Secondly, the AI technology could also be considered to make more fluent communication becomes possible in the supply chain. According to Ye et al (2018), voice recognition which has been widely

used in AI and this contributes to the prosperity and efficiency in the business field. Realistically, it could also been adopted in the communications between workers and managers in fashion industry.

Specifically, it is likely that firms’ uses voice recognition to implement the speechto-text software and make the timeconsuming voice messages be converted to visible text information (Li et al, 2019).

In this way, workers could use less time to give feedback to management because voice input is more efficient. Meanwhile, the management could save time to receive feedback because text message could be extracted and handled more easily. However, a significant point needs to be underlined: the messages delivered by workers to head office needs to be encrypted and be presented anonymously or else employees will be worried about possible exposure. According to Andress et al (2014), information protection in the workplace helps workers have more trust on a company. All these could motivate and facilitate workers in the supply chain to have better communications.

& Recomendation

130

Team Manifesto Team Roles Team Leader (Task assignment, Task supervisor)

Lihsuan Yang (Irene)

Team Recorder (meeting records)

Yiting Li (Zoe)

Report Designer

Gemma Benjafield

Mock-up/Product Instruction Designer

Shiying Wang (Cathy)

Proof Reader (structure & language)

Lihsuan Yang (Irene), Tzukan Lee (Vivian)

Researcher

Everyone

Writing Tasks Assignment Introduction & Rationale

Gemma Benjafield

Literature Review 1. Next’s Background

Gemma Benjafield

2. Supply Chain: Labour Rights and Voices

Lihsuan Yang

3. CSR and Audits

Tzukan Lee

4. Transparency

Shiying Wang

5. Current Technology - Case Study - Technology Application on Communication - AI

Zhibo Wang

6. Current Technology: Big Data

Yiting Li

Primary Research Research & Findings: Factory workers

Shiying Wang

Research & Findings: Big data

Yiting Li

Discussion

Lihsuan Yang

Implementation Plan 131

1. Introduction

Lihsuan Yang

2. ey Ideas: Communication

Gemma Benjafield

ey Ideas: Efficiency & Intelligence

Yiting Li

ey Ideas: Promote corporate culture

Tzukan Lee

ey Ideas: ser-Friendly

Tzukan Lee

3. Implementation Cost

Tzukan Lee

4. SW T

Lihsuan Yang

5. Future Plan

Tzukan Lee

6. Measurement

Zhibo Wang

onclusion & Recommendation Limitation

Zhibo Wang Lihsuan Yang

word count: 26, 773 Irene: 4,575 Vivian: 3,406 Yiting Li: 6057words Cathy: 3778 Gemma: 3330 Steven: 5627 words

132

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