Signalling mandatory due diligence in the textile industry

: the impact of certification labels on purchase behaviour

Abstract

In response to the pressing need for transparency, accountability, and sustainability in the European fashion industry, policymakers have realised the importance of mandatory due diligence practices for global supply chains instead of voluntary guidelines. Certification labels not only ease a company’s compliance with regulations but are also frequently used to signal a product’s sustainable attributes. For labels to be accepted by consumers, they should successfully enhance trust in the product’s sustainability claims. This research adopted an in-between experimental study design to investigate the role of certification labels signalling compliance with mandatory supply chain due diligence in shaping purchase intentions and the mediating role of consumer trust. In a quantitative online survey, participants were presented with a purchasing scenario featuring a clothing item either with or without a certification label. The results show that despite legal backup, fashion consumers are more willing to buy a product if it has a label that indicates compliance with due diligence. Furthermore, consumer trust has been found to mediate the relationship between label disclosure and purchase behaviour fully, thus playing a fundamental role in shaping consumer decisions. Therefore, by connecting regulations and consumer perspectives, a literature and practice gap has been addressed. Firstly, the findings hold valuable implications for stakeholders in the fashion industry, including policymakers and retailers, thereby advocating for adopting transparent and credible labelling practices to promote the sector’s sustainability. Secondly, the study contributes to the existing knowledge of sustainable fashion and purchase behaviour by uncovering mechanisms underlying consumer perceptions of certification labels.

Date of Award	28 Jun 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Filipa Andrêa Godinho de Lancastre Serpa Pinto (Supervisor)