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2024 SK PP Shilla Arsa Almira [19020094] - Contents

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1.Introduction Fashionindustryisanindustrythatiscontinuouslyevolvingfromtimetotimeandthe developmentitselfwillneverend.Fashionsareusuallytemporaryandconsumedshorttermby theircustomers(Sproles,1981).AccordingtoSingh(2017),inthepast5years,thegrowthfor theapparelindustryhasincreasedbyalmost100%.ThemarketforfashioninIndonesiaishighly favorable,sinceitisexpectedtogrowby5.22%eachyear(CAGR2023-2027).Fastfashion conceptwasintroducedinthe1990stokeepupwiththequickshiftforfashiontrends,which resultedinanaffordable,convenient,andattainablefashion(Wang,2022).Fastfashioncanbe definedasdeliveringthelatestfashiontrendwithanaffordableprice(Sheridanetal.,2006). Nowadays,customersaremoreattractedtofashionableyetaffordableclothingandapparel. SeveralcompaniesthatareconsideredfastfashionarePrimark,H&M,andZara.Inafastfashion industry,clothingwastehasbecomeabigenvironmentalproblem.AccordingtotheNational WasteManagementInformationSystemoftheMinistryofEnvironmentandForestryIndonesia, in2021,Indonesiaproduced2.3milliontonsoffashionwasteand0.3milliontonswere successfullyrecycled(SIPSN,2021). AccordingtoAnim&Cudjo(2015),consumersarenowconcernedaboutacompany’ssocial responsibilityandtheirenvironmentalimpact.Moreover,theymentionedthatconsumersdonot mindpayingmoreforproductsmanufacturedinsocially,environmentally,andmorally responsibleways.That’swhy,everycompanyshouldhavetheirownCorporateSocial Responsibility(CSR)inordertosucceed.CSRinvolvestheeconomic,legal,ethical,and discretionary/philanthropicexpectationsthatsocietyhas(Carroll1979p.500).Abdullah& Budiman(2019)foundthatabusiness’scorporatesocialresponsibilityaffectsconsumer’s purchaseintention.Thisstudyinvestigatestheintersectionofethicalresponsibility,corporate socialresponsibility(CSR),andconsumerpurchaseintentionintheIndonesianfastfashion market.However,thereareseveralresearchgapsintheresearchitself.Thefirstoneisthatthere islimitedresearchthatdiscussesthelivingwageinIndonesia.Yamada(2016)onlyanalyzedthe effectivenessofminimumwagesbylookingattheimpactofsignificantchangesinminimum wageinIndonesia.Magruder(2013)investigatestheeffectofminimumwageintheeconomic 4 sectorinIndonesia.Thesecondresearchgapisthatresearchonethicalpracticesinthefast fashionindustryismostlyfocusedontheenvironmentalimpactonthefastfashionindustry businessratherthantheworkerswithinthecompany.Niinimäkietal.(2020)discussmainly abouttheenvironmentalimpactonfastfashionandBack(2017)discussesethicalpracticesinthe fastfashionindustry.However,theydonotdigdeeperregardingtheimpactofgivingaliving wagetotheemployeesinthecompany. ThisresearchaimstoknowwhichCSRethicalresponsibilitypracticeshaveahighereffecton Indonesia'sconsumerpurchaseintentioninfastfashionindustriesfromdevelopedcountries. Therefore,theresearchquestionofthispaperis“Whichethicalsustainableresponsibility practicehasthehighereffectonconsumerpurchaseintentionintheIndonesianmarketwithinthe fastfashionindustryfromadevelopedcountry?”Toaddresstheresearchquestion,theresearcher willbeusingquantitativeresearchmethodologywhichinvolvesdistributingquestionnairesto approximately100peopleaged18andaboveinIndonesia.Thestudywillexplorethe relationshipbetweentheconsumerpurchaseintentionandimplementationofrefashioningin clothingwastemanagementaswellaspurchaseintentionandprovisionoflivingwagesfor employees,withageasacontrolvariable.Thedatawillthenbeanalyzedusingregression analysistoknowifthereisapositiveimpactonconsumerpurchaseintentionandcontinuedwith anindependentsamplet-testtoidentifywhichcomponentofethicalCSRhasthehighesteffect onIndonesianconsumers'purchaseintention. 5 2.LiteratureReview 2.1CorporateSocialResponsibility Thesedays,corporatesocialresponsibility(CSR)isanimportantaspectinbusiness.Moreover, investorsandfinancialinstitutionsstartedtorealizethatCSRinitiativesthattakeintoaccount socialconcernstobusinessstrategyandperformanceareindicatingagoodmanagementpractice (PaulHohnen,2007).CSRiswherecompaniesvoluntarilyincludesocialandenvironmental factorsintheirbusinessoperations(EUCommissionReport,2002).CSRisavoluntaryaction fromthecompanywhichaimstoprotectthebusinessforthelongterm.Itissaidtobevoluntary becauseitisnotimposedbygovernmentalinstitutions(Rowe,2005).CSRisrelatedtothe sustainabledevelopmentconcept,wherebusinessesshouldconsiderenvironmental,social,and economicimpactwhenmanagingtheirbusinesses(EUCommissionReport,2002).Corporate SocialResponsibility(CSR)wasintroducedin1953byHowardBowen.Hestatedthat businesseshaveahugeimpactonsociety,asaresult,businesseshaveadutytoproducepolicies thatareadvantageousforthegreatergood(Bowen,1953).However,in1979,Caroll(1979) statedthatCSRshouldincludetheeconomic,legal,ethical,anddiscretionary/philanthropic expectationsthatsocietyhasfororganizationsatagivenpointintime(Carroll1979p.500). Later,in1991Carrollmadeanillustrationforthesefourresponsibilitiesinahierarchical pyramid(Carroll,1991).Economicresponsibilityisplacedonthebase,sinceitisthemost fundamental,followedbylegal,ethicalandfinallyphilanthropicresponsibilities.Carroll(2015) mentionedthateconomicandlegalresponsibilityexpectationsarerequiredtofulfillbusiness expectations,ontheotherhand,ethicalresponsibilityandphilanthropicresponsibilityarethe responsibilitiesthatarevoluntary,notrequiredbylawbutdesiredbythesociety. Nowadays,consumers,employees,andthepublicexpectcompaniestodoCSRactivitiesthatare beyondlegalrequirements(Carroll,2015).Sincelawsarenecessarybutnotsufficient,society hopesforbusinessestobeethical.Thisimpliesbusinessesshouldembraceactivitiesand practicesthatsocietyexpectsorprohibit,eveniftheyhavenot(yet)officiallyturnedintolaws. Therefore,inthispaper,theauthorwillfocusonethicalresponsibilitysincethesedaysitis crucialforabusinesstooperateaccordingtowhatsocietydesires. 6 2.2EthicalResponsibility Ethicalresponsibilityistheresponsibilitythatdemonstratestheactionsandbehaviorsthatare wantedorprohibitedbythecommunitythatarenotwritteninthelaw(Carroll,1991).He mentionedthatethicalresponsibilitycontainsthestandardsandnormsthatareacceptableto consumers,employees,shareholders,andacommunity.Carrollmentionedthatethical responsibilityishardforbusinessestodealwithsinceithasanuncleardefinition.Furthermore, hementionedthatethicalresponsibilitiesincludenewvaluesandnormsandthesocietyexpectsa companytocomplywiththenormsandvalues.AccordingtoCarroll(1991),somecomponents ofethicalresponsibilitiesare: 1.Itiscrucialtoactinawaythatalignswiththeexpectationsofsocietalmoresand ethicalnorms:Actingalignedwithsocietalmoresandethicalnormsmeanshavinga commitmenttoattitudesthatarenotjustlegalbutgobeyondsociety’svaluesand expectations.Forinstance,acompanyprovidesfairandlivingwages,reasonableworking hours,andsafeworkingconditionstotheirlabor.Bydoingthesepractices,thecompany ismeetinglegalrequirementsbutalsoaligningtheirpracticeswithethicalnorms,which isprovidingfairtreatmenttotheiremployees. 2.Itiscrucialtoacknowledgeandrespectneworevolvingethical/moralnorms embracedbysociety:Changesinethicsandorvaluesusuallycomefirstbeforethe creationoflaws.Forinstance,movementsoftheenvironment,civilrights,andconsumer showedbasicchangesinwhatsocietyvalues.Thus,thismovementcanbeseenasethical indicatorsforeshadowingnewlawslateron. 2.3ConsumerPurchaseIntention Purchaseintentioncanbedefinedastheconsumer’slikelihoodtopurchaseaproductorservice fromacompany(Lahunou,2022).Togaincompetitiveadvantage,abusinesscandoCSR activitieswhichcandriveconsumerpurchasingintentionandleadtoaboostinthebusiness (Gupta,2012).AccordingtoPatricketal.(2015)consumersareconcernedaboutacompany’s socialresponsibilityandtheirenvironmentalimpact.Therefore,theyaremoreinterestedin sociallyresponsiblecompanies.Moreover,Patricketalmentionedthatconsumersdonotmind payingmoreforproductsmanufacturedinsocially,environmentally,andmorallyresponsible 7 waysPatricketal.(2015).Vahdatietal.(2015)mentionedthatCSRhasapositivedirectimpact onconsumerpurchasingbehavior.ThisimpliesthatCSRactivitiescaninduceconsumersto purchasemorefromthatcompany.Abdullah&Budiman(2019)conductedaresearch,andthe resultwasthatthecompany'scorporatesocialresponsibilityaffectsconsumer’spurchase intention.However,Abdullah&Budiman(2019)statedthatcustomerswillnottrytosearchfor informationregardingacompany'scorporatesocialresponsibility.Asaresult,acompanyshould informtheircorporatesocialresponsibilitypracticestothecustomerssothatcustomersknow theirCSRpractices.EthicalresponsibilitiesofCSRincludeenvironmentallyfriendlyand paymentoffairwagestoworkers(Carroll1998,Carroll/Buchholtz2012,Carroll2004). 2.4ImplementationofRefashioninginClothingWasteManagement Clothingwastehasbecomeanenormousenvironmentalprobleminthefastfashionindustry.The mostpopularwastemanagementstrategyinthefashionindustryis3R,whichistoreduce,reuse, andrecycle(KanchanaDissanayake,pammisinha,2013).Otherthan3R,inthefashionindustry, thereisalsoatermcalledRefashioning.Refashioningcanbedefinedasaprocessthatreworks fashionclothingandreturnstheitemtotheclothingstream,effectivelycreatinganewloopand postponingitsgraveending(Fraser2009).Indonesiaproduced2.3milliontonsoffashionwaste and0.3milliontonsweresuccessfullyrecycled(SIPSN,2021).Thisfigurerepresents12%ofthe totalwasteinIndonesia.EdricChandra,initiatoroftheDiplomatSuccessChallengeProgram mentionedthatIndonesianshavenowrealizedthatasaresponsibleconsumer,theydon'tjust “wear”,buttheyalsotakecareoftheenvironment.Theyrealizedthatsustainablefashionisthe solutiontoproblemscausedbythefastfashionindustry.Accordingtoaglobalsurveyin2018 (MediaIndonesia2022),66%ofmillennialsarewillingtobuymoreclothingproductsfor brandsthatconsiderethicalresponsibilityforsocialandenvironmentalreasons,and69%ofthem claimedthattheylookatthelabel“eco-friendly”and“sustainable”whenbuyingclothes. H1:Fashioncompaniesthatimplementrefashioninginclothingwastemanagementhavea positiveimpactonconsumerpurchaseintention 8 2.5LivingWagesforEmployees Oneoftheexamplesofethicalresponsibilitiesisgivingalivingwagefortheworkersatthe company.Legalminimumwagescanbedefinedastheminimumamountpaidtoworkersfor theirworkandcan’tbereducedbyindividual/collectiveagreement.Livingwagesisestablished bylawanditassuresthattheminimumneedsofworkersaremet(ILO,1992).GlobalLiving WageCoalition(2018)collected60definitionsoflivingwagesfromvarioussourcesandthey definedlivingwageasthepaythataworkerreceivesthatenablesthemandtheirfamiliesto affordanappropriatelivingstandardwhichincludesfood,water,housing,education,and unforeseenevents.Livingwageisvoluntaryandemployersarenotrequiredtogivealiving wagetotheirworkersbythegovernmentexceptinafewcountrieswherethere’sanunclear distinctionbetweenminimumwageandlivingwage(AnkerRichard&Martha,2017).Upuntil now,inIndonesia,thereisnolawthatrequiresacompanytogivealivingwagetoitsemployees. PeopleinIndonesiaclaimedthattheycheckforfairwages(20%)andethicaltreatmentof workers(22%).Thismeansthatthereisanincreasingawarenessregardingthelaborpractices andethicaldimensionsoftheproductstheypurchase. H2:FashionCompaniesthatprovidesalivingwagetotheirworkers,whichexceedsthe minimumwagerequirements,haveapositiveimpactonconsumerpurchaseintention 2.6ComparisonofBothIndependentVariables AccordingtoMohrandWebb(2005),theenvironmentalareahasthebiggesteffectsonpurchase intention.ThisstatementisalsosupportedbyresearchconductedbyGrimmer&Bingham (2013)andPickett‐Baker&Ozaki(2008)thatstatesthatconsumersarewillingtopurchase productsfromsociallyandenvironmentallyresponsiblecompanies.MostIndonesiansare alreadyawareofthedamagethatiscausedbyafastfashionindustry,whichthencausesthemto beawareoftheconceptofsustainablefashion(Wijaya&Paramita,2021).Thisalsodrives Indonesiancustomerstohavethedesiretopurchasesustainablefashion,evenathigherprices. Ontheotherhand,Ford&Gillan(2017)discussedalivingwagecampaignthatisheld particularlyinIndonesiabyAsiaFloorWage.However,AsiaFloorWagedidnotgainattention inIndonesiabecausenationaleconomic,political,andinstitutionalcontextarethemaindrivers ofvariousorganizations,governments,andindustrystakeholdersinvolved.Therefore, 9 approachestolivingwagesmostlikelydonotgettractioninIndonesia.Moreover,Ford&Gillan (2017)mentionedthatthereisalsoalimitedfollow-upandeffectsonenhancinglivingwagesfor workersinIndonesiasincetheexistingminimumwageisthedominantone.Thus,itcanbe concludedthatIndonesians'awarenessofprovidingalivingwagetoemployeesisnothighsince theyfocusmoreonminimumwages. H3:Theimplementationofrefashioninginclothingwastemanagementhasahighereffecton consumerpurchaseintentionthanensuringlivingwagesforemployees 3.TheoreticalFramework Thispapercomprisesonetheoreticalframeworkwithtwoindependentvariables,onedependent variable,andonecontrolvariable.Thedependentvariableistheconsumerpurchaseintention, andtheindependentvariablesareethicalresponsibilityCSR,whichareimplementationof refashioninginclothingwastemanagementandlivingwagesforemployees.Fromthe formulatedhypothesisinchapter2,theconceptualmodelcanbedrawnasfollows: Source:Author’sownwork 10 4.Methodology 4.1ResearchDesign ThisstudyexamineswhichethicalresponsibilitypracticewithinCSRhasahighereffecton customerpurchaseintentioninafastfashionindustry.Togatherdata,aquantitativeapproachis employed.Quantitativeapproachisanapproachthatfocusesonstatisticalandnumerical analysis(Labaree,2021).Theresearcherisusingaquantitativeapproachinordertoexaminethe significanceoftherelationshipbetweenethicalresponsibilitypracticeandconsumerpurchase intention.Thedatatypethattheresearcherwillbeusingisprimarydata.Wagh(2022)defined primarydataasdatathatiscollectedbytheresearcheritselfbyconductingsurveys,interviews, andexperiments.Theresearcherchosetoconducttheexperimentusingaprimarydata questionnairemethodbecauseitallowstheresearchertodivethroughlarge-scalesampling.It givesaccesstocollectdatafromadiversesampleoffastfashionconsumersintheIndonesian market. 4.2SamplingandProcedure Samplingistheprocessofchoosingindividualstoformasampleforastudy(Zhao&Ericson, 2012).Thesamplingtechniquethattheresearcherusedwastherandomsamplingtechnique.The usageoftherandomsamplingtechniqueistopreventunbiaseddatacollection(Taylor,2023).In thisresearch,thenumberofsamplesis113Indonesianaged18andabove.Inthequestionnaire, therewere2sectionsthatrespondentsshouldfillin.Thefirstsectionisthedemographicsegment suchas“occupation”,“age”,“gender”,“nationality”,“purchasefrequency”.Inthesecond section,respondentswerepresentedwithtworandomizedscenarios:somereceivedthefirst independentvariablescenario(refashioning),whileothersreceivedthesecondindependent variablescenario(provisionoflivingwage).Bothscenariosdiscussedafastfashioncompany fromadevelopedcountrythathadplannedtoexpandintoIndonesiausingCSRinitiative.The questionsineachscenariowereidentical,differingonlyintheindependentvariable.The questionnairewasdesignedbasedoninsightsfromvariouspreviousresearchstudies. 11 5.Results Inordertotestthehypotheses,2statisticaltestswereperformed.Forhypothesis1and hypothesis2,regressionanalysiswasperformedat95%confidencelevel.Meanwhile,for hypothesis3,theresearcherusedanindependentsamplettesttocomparemeansbetween groups,sincethereare2differentscenariosandwewanttoknowifrefashioning(independent variable1)hasahighereffectonconsumerpurchaseintention(dependentvariable)than providinglivingwagesforemployees(independentvariable2). 5.1DescriptiveStatistics Thefirststepwastodifferentiateexperimentalconditionsbycreatingdummyvariableswith 1=refashioningscenarioand0=livingwagescenario.Theresearcherthenperformeddescriptive analysisforthedemographicsection.Table1.1:Demographic-Gender FrequencyPercentValidPercentCumulativePercent ValidMale 39 34.5 34.5 Female 74 65.5 65.5 Total 113 100 100 Table1.2:Demographic-Age FrequencyPercentValidPercentCumulativePercent Valid 18-22 53 46.9 46.9 23-27 9 8 54.9 28-32 3 2.7 57.5 >32 48 42.5 100 Total 113 100Table1.3:PurchaseFrequency FrequencyPercent Valid PercentCumulativePercent Valid Onceortwicea month 4842.5 42.5 42.5 12 Onceeverythree months 3228.3 28.3 70.8 Onceeverysix months 1916.8 16.8 87.6 Onceayear 1412.4 12.4 100 Total 113100 100 AswecanseefromTable1.1,therewere113respondentsand74%oftherespondentswere female,39%ofthemweremale.BasedonTable1.2,itcanbeseenthatthemajorityof respondentswereintheagerangeof18-22years,constituting53%,followedbyindividuals agedover32yearswith48%.AccordingtoTable1.3,mostrespondentspurchaseclothingonce ortwiceamonth(42.5%).Inthefirstscenario,whichistheimplementationofrefashioning,the majorityofrespondentsisbetweentheages18-22yearsoldwith47.5%.Ontheotherhand,in thesecondscenario,whichistheprovisionoflivingwage,themajorityofrespondentsare peopleaged18-22and>32yearsold,whichaccountsfor46.3%each. 5.2Reliability Beforeperformingthestatisticaltest,theresearcherconductedareliabilitytest.Thisallowsthe researchertoseeiftheresultisconsistent.TheresultofthereliabilitytestisshowninTable2. Fromthetablebelow,thevalueofCronbach’sAlphais0.774,andsincethevalueismorethan 0.6,itcanbeconcludedthatwecansumthevariableandcreateanewone.Thisalsoindicates thattheresultoftheexperimentisgoodandconsistent.Table2:ReliabilityAnalysis 5.3RegressionAnalysis Inordertotestthefirstandsecondhypothesis,theresearcherconductedalinearregression analysistomeasurewhetherthereisapositiveimpactfromtheimplementationofrefashioning andtheprovisionofalivingwageinafastfashioncompanyonconsumerpurchaseintention. TheresultcanbeseeninTable3. 13 Cronbach'sAlphaNofItems 0.774 5 Table3:RegressionAnalysis ModelSummaryRegression Model R RSquare AdjustedR SquareStd.ErroroftheEstimate .450 .202 .180 .55076 ANOVA Model Sumof Squaresdf Mean SquareF Sig. 1Regressio n 8.3872 32.7969.217<.001b Residual33.0641090.303 Total41.451112 Coefficients Model UnstandardizedCoefficient B Std.Error Standardized Coefficient Beta t sig. (Constant)2.363 0.471 5.015<.001 Refashioning0.330 0.087 0.3393.781<.001 Living Wages 0.113 0.067 0.1481.7030.071 CV-Age 0.091 0.037 0.2142.4670.015 Inthisanalysis,theresearcherusedsignificantlevel0.05anditcanbeseenintable3thatthe resultsofthisregressionanalysisweresignificant.TheadjustedR^2=0.180,F(3,109)=9.217, andP<0.001,whichmeansthattheindependentvariableswhicharerefashioningandprovision oflivingwagessignificantlypredictconsumerpurchaseintention.Italsoimpliesthat18%ofthe varianceintheconsumerpurchaseintentionisexplainedbytheindependentvariables.Sincethe pvalueofrefashioningequalsto<0.001,ithasastatisticallysignificantimpactontheconsumer 14 purchaseintention.Ontheotherhand,thepvalueoflivingwagesalsoequalsto0.071,which meansthattheresultdidnothaveasignificantimpactontheconsumerpurchaseintention. Therefore,hypothesis1wassupportedandhypothesis2wasnotsupported. 5.4ComparingMeansofRefashioningandLivingWage Inordertotesthypothesis3,theresearcherusedanindependentsamplet-testtocomparemeans betweentheindependentvariablerefashioningandlivingwage.TheresultcanbeseeninTable 4.Table4:IndependentSampleT-Test TTEST ExpGroup N MeanStd.DeviationStd.ErrorMean DVScenarioRefashioning59 3.82030.59038 0.07686 ScenarioLivingWage54 3.8111 0.63295 0.08613 Levene'sTest for Equalityof Variances T-testforEqualityofMeans 95%Confidence Interval oftheDifference FSig.tdf Significance Mean Differe nce Std.Error Difference One- Sided p Two- Sided p LowerUpper Equal variances assumed 0.0510.8220.081110.4680.9360.009230.11508-0.2188 2 0.23727 Equal variancesnot assumed 0.08108.270.4680.9360.009230.11544-0.2195 9 0.23805 Anindependent-samplest-testwasconductedtocomparetheconsumerpurchaseintentionfora companythatimplementsarefashioningstrategyandacompanythatprovideslivingwagetothe employees.FromTable4,itcanbeconcludedthattherewerenosignificantdifferences(t(111) 15 =0.08),p=0.936)inscoresforacompanythatimplementsarefashioningstrategy(M=3.8203, SD=0.59)andacompanythatprovideslivingwagetotheemployees(M=3.8111,SD=0.63). Thedifferencesinthemeans(meandifference=0.009)wasverysmall.Hence,H3isnot supported. ControlVariable Agewasusedasacontrolvariable.Inordertochecktheeffectofageonconsumerpurchase intention,aseriesofANOVAanalyseswereperformed.Theresultshowsthattherewasno significanteffectofage(F(1,111)=2.643,P=.107)onconsumerpurchaseintention. 6.Discussion ThisstudyaimstoidentifywhichCSRethicalresponsibilitypracticeshaveahighereffecton Indonesia'sconsumerpurchaseintentioninfastfashionindustriesfromdevelopedcountries. Therewere3formulatedhypothesesandonlyhypothesis1wassupported.Ontheotherhand, theresultshowsthattherewasnotenoughevidencetosupporthypothesis2and3.Thefindings ofthisresearchimpliesthatinafastfashionindustry,acompanythatimplementsarefashioning strategyinclothingwastemanagementhasapositiveeffectonconsumerpurchaseintention. Basedonthefindings,animplementationofrefashioningstrategyindicates33%increasein consumerpurchaseintention.Sustainabilityeffortsoffashioncompanieshaveapositiveimpact oncustomerpurchaseintention(MinKong&Ko,2017;Younusetal.,2015).Theresultofthe researchisalsoinlinewithpriorresearchfromWijaya&Paramita(2021)whichstatedthat Indonesiansawarenessonsustainabilityhasapositiveimpactoncustomerpurchaseintention. AccordingtoWijaya&Paramita(2021),Indonesiansdoalreadyhaveanawarenessofthefast fashionindustry’sdamageaswellasthesolutiontothat,whichissustainablefashion.Therefore, Indonesiancustomersintendtopurchasefastfashionbrandsthatimplementsustainability practice.Sincerefashioningisoneofthesustainabilityeffortsofafastfashioncompany, implementingrefashioningincreasespurchaseintention. Inhypothesis2,itishypothesizedthatfashioncompaniesthatprovidealivingwagetotheir workershaveapositiveimpactonconsumerpurchaseintention.However,theresultofthe 16 hypothesiswasnotstatisticallysignificantandthereforewasnotsupported(p=0.071>0.05).In general,thelivingwageisvoluntaryandemployersarenotrequiredtogivealivingwageto theirworkersbythegovernment(AnkerRichard&Martha,2017).InJune2014,therewasan AsiaFloorWageactivityheldinIndonesia.However,inthatactivity,Ford&Gillan(2017) mentionedthatthereisalimitedfollow-upandeffectsonenhancinglivingwagesforworkersin Indonesiasincetheexistingminimumwageisthedominantone.Therefore,itcanbeconcluded thatIndonesians'awarenessofprovidingalivingwagetoemployeesisnothighsincetheyfocus moreonlegalminimumwages.InIndonesia,livingwageisnotrequiredandthereisnolawthat requiresacompanytogivealivingwagetoitsemployees.Asaresult,withthislimited awarenessandknowledgeaboutlivingwages,acompanythatgivesalivingwagetoemployees hasnoimpactonconsumerpurchaseintention.Inaddition,Sampson(2022)statedthatthetarget marketforfastfashioncompaniesarecustomersaged18-24(GenZ),withwomenandyoung girlsasthemajority.In2023,only15%ofGenZrepresentedtheUSandUK’sworkforce (Koop,2023)andingeneral,GenZhadtheleastfull-timeworkforcewithonly17.1million workers.InIndonesiaitself,thetotalnumberofunemployedis7.86millionand19.4%ofthem areGenZ.Itcanbeconcludedthatfastfashion’stargetmarketisGenZ(youngerconsumers), andonlyafewofthemhaveajob(NationalLabourForce,2023).Theydon’thaveanincome andtheirownwage,asaresult,theirawarenessregardinglivingwageisstilllow. Inhypothesis3,itwasstatedthatinafastfashionindustry,implementationofrefashioningin clothingwastemanagementhasahighereffectonconsumerpurchaseintentionthanensuring livingwagesforemployees.However,basedontheresultoftheexperiment,thishypothesiswas notstatisticallysignificant(p=0.936).Therewerenodistinctdifferencesinscoresforacompany thatimplementsarefashioningstrategy(M=3.8203,SD=0.59)andacompanythatprovides livingwagetotheemployees(M=3.8111,SD=0.63).Therefore,hypothesis3wasnotsupported. Indonesianconsumershavedevelopedawarenesstowardsthedamagecausedbyafastfashion industry(Wijaya&Paramita,2021),whichmakesthemawareoftheconceptofsustainable fashionthatleadstoapositiveimpactonpurchasingintention.However,Indonesianconsumers' awarenessofprovidingalivingwagetoemployeesisnothighsincetheyfocusmoreonlegal minimumwages.Livingwageisnotmandatory,thustherearealotofIndonesianconsumersthat arenotyetawareofthelivingwageconcept.Livingwageisnotacommonthingandthereis 17 stilllimitedresearchthatdiscusseslivingwageinIndonesia.Upuntilnow,inIndonesia,living wageisnotdiscussedbecausetheyaremoreconcernedabouttheminimumwage.Afifa(2023) mentionedthatemployeesareforcingtheIndonesiangovernmenttomakeaclearandfast decisionontheirrequestforanincreaseintheirminimumwagein2024.BecauseIndonesian consumersfocusmoreonminimumwage,theydonothaveenoughknowledgeregardingliving wage,becauseitisrarelyused.Therefore,Indonesianconsumerscan’treallycomparebetween refashioningandlivingwage,whichleadstoaninsignificantresultbecausebothofthemare incomparable.AccordingtoresearchconductedbyRahmiati(2016),itisconcludedthatprice andenhanceddesignarethetopconsiderationsforconsumerpurchaseintentioninafastfashion industry.Furthermore,itcan’tbedeniedthatconsumerbehaviordoesaffectpurchasing intention.ThisissupportedbyBanytėetal(2023),whichstatedthatinordertomakeapurchase decisionandintention,consumersusuallytakealookatbothpracticalandethicalattributesof theclothingitself.Nevertheless,intheend,consumerstendtolookatthepracticalattributesas theirmainfactortodecisionmaking(Banytėetal.,2023).Therefore,itcanbeconcludedthat consumerbehavioralsoplaysanimportantroleinpurchaseintention.Sincethethirdhypothesis wasnotsupported,itisadvisabletoalsoincludeconsumerbehaviorwhencomparingbetween thetwogroups. 6.1ManagerialImplications Thefindingsandresultofthisstudyimpliesthatfashioncompaniesthatimplementrefashioning inclothingwastemanagementhaveapositiveimpactonconsumerpurchaseintention. Therefore,afastfashioncompanyfromadevelopedcountrythatwantstobesuccessfulin Indonesiashouldconsiderimplementingarefashioningstrategybecauseitleadstoahigh purchaseintention.MostIndonesiansarealreadyawareofthedamagethatiscausedbyafast fashionindustry(Wijaya&Paramita,2021)andasaresult,thisleadstothestatementthat Pickett‐Baker&Ozaki(2008)made,whichisconsumersarewillingtopurchaseproductsfrom sociallyandenvironmentallyresponsiblecompanies. 6.2Limitation&FutureResearch Firstly,thelimitationofthisstudyisthattherewereonly113samplestakenfromIndonesian customersindifferentagegroups.Inthisresearch,agegroupistheonlycontrolvariableand 18 sincetheresultofadjustedR^2isreallysmall(AdjustedR^2=0.180),themodelwasnotfitand thereforeforfutureresearchitisbetterifmorevariablesareincludedintheexperimentsuchas gender,astestedbySreenetal.(2018)andeducationlevel(Dienaar,2022).Secondly,inthis study,thequestionnairewasconductedusing2randomizedscenarios.However,thenumberof respondentsineachscenarioisnotthesame,sothedistributionisnotequal.Byusing randomizedscenarios,wearenotabletocontrolcharacteristicsineachgroup,whichthencan impacttheinterpretationoftheresultduetoanunequaldistributionofspecificvariables.Lastly, sincethisisthefirstresearchthatcomparedtwoethicalCSRpracticesofthefastfashion industryonpurchaseintention,itcanbeconcludedthatsustainabilitycanbetheindependent variableforfutureresearch.However,whendoinganexperimentontheIndonesianmarket,itis advisabletouseminimumwageorotherethicalpracticessuchasfairtreatmenttoworkersin generalinsteadofusing“livingwage”asanindependentvariablesinceitisnotcommonin Indonesia.Danzetal.(2021)mentionedthatconsumersareabletomakeapurchasingdecision basedonhowcompaniestreattheirworkers.Infutureresearch,itissuggestedtotalkabout consumerbehavior/attitudeandlinktheresearchregardingCSRethicalresponsibility,consumer behavior/attitude,andconsumerpurchaseintention.Consumerattitudehasaneffectonconsumer purchaseintention,asstatedbyCopley(1988).Thisresearchdidnotstudyconsumerattitudeand behavior.Asaresult,infutureresearch,itisimportanttoalsoconsiderandstudyconsumer attitudestostudytheirwillingnesstopurchasefromthefastfashionindustrysincethereare variousconsumerattitudes. 7.Conclusion Inthisresearch,theresearcherintendedtoexplorewhichethicalresponsibilityCSRpracticehas ahighereffectonIndonesia’sconsumerpurchaseintentioninfastfashionindustries.The researcherstartedbyintroducingtheconceptoffastfashionandcorporatesocialresponsibility (CSR)aswellasCaroll’spyramidCSR.Theresearcherthenfocusedmoreonethical responsibilityCSRandpurchaseintentioninafastfashionsetting,withageasacontrolvariable. Theethicalresponsibilitiesthattheresearcherfocusedonareimplementationofrefashioning (sustainability)andprovisionoflivingwages.Fromtheexperimentconducted,itisconcluded thatimplementingarefashioningstrategyhasapositiveimpactonIndonesianconsumers' purchaseintention.However,wehavenotenoughevidencetosupportthesecondhypothesis, 19 whichisthatacompanythatprovidesalivingwagetotheworkershasapositiveimpacton purchaseintention.Moreover,eventhoughtheresultofexperimentimplementingrefashioning hasslightlyahighereffectonpurchaseintentionratherthanprovisionoflivingwages,thereis nodistinctdifferencebetweenbothofthescores.Providingalivingwagetoemployeeshasno significanteffectintheIndonesianmarketsinceIndonesians'awarenessofthelivingwageisstill low.Inconclusion,afastfashioncompanyfromadevelopedcountrythatwantstoexpandto Indonesiashouldimplementsustainabilitystrategyinordertoachieveahighpurchaseintention andimplementationofrefashioningstrategyisoneofthestrategiesthatisconsideredasethical, acceptable,andhaveapositiveimpactonpurchaseintention.Lastly,inthefuture,thisresearch canbestudiedbyusingadifferentindependentvariable,addingmorecontrolvariables,and moresamples. 20.