Strategic silence in corporate communication concerning deadstock and overstock in the fashion industry
Authors: Hejlova Denisa , Ariestya Angga , Koudelkova Petra , Schneiderova Sona 
Published: January 2025

Purpose

Our study aims to fill in the gap in corporate strategic silence in the fashion industry. Given the insights into the industry practices, we asked whether important sustainability issues, namely deadstock and overstock, are discussed or disclosed in corporate sustainability reports. We assumed that only the most fashion-forward corporations would address this pressing issue. However, based on our content analysis of sustainability reports of companies listed as the signatories of the UN Global Compact’s Fashion Industry Charter for Climate Action (N = 95), we found out that only one-fifth of them touch the issues to a varied extent. Our study’s results point to a significant discrepancy between the sustainability claims of fashion companies and their communication about overproduction and demonstrate the existence of the shared industry practice of corporate silence strategy concerning uncomfortable issues, such as deadstock and overstock.

Design/methodology/approach

We conducted a content analysis of selected corporate reports (N = 95) available publicly on the company’s websites, such as sustainability, environmental or corporate social responsibility reports. Initially, we analyzed the documents to see if they addressed the issue of deadstock. Subsequently, we performed a detailed content analysis using NVivo on these reports, which mentioned the issue of deadstock (N = 23).

Findings

Our study reveals strategic silence in the fashion industry regarding deadstock and overstock. Analyzing reports of 95 signatories of the UN Global Compact’s Fashion Industry Charter for Climate Action, only one-fifth address these issues. Our research, employing content analysis with NVivo, indicates a significant discrepancy between sustainability claims and actual communication practices. Most companies focus on recycling or materials management rather than addressing deadstock and overstock directly. The findings highlight an industry-wide practice of strategic silence and the practice of shared corporate silence, avoiding transparent discussion on overproduction and its environmental impact.

Research limitations/implications

This study is limited by its focus on publicly available corporate reports from signatories of the UN Global Compact’s Fashion Industry Charter for Climate Action, which do not fully capture all corporate communication practices (those companies shall be the “pioneers” of sustainability and transparency). Additionally, the reliance on content analysis via NVivo is subject to interpretative biases, and the findings may not be generalizable across all fashion industry sectors. Future research could explore broader datasets, including internal corporate communications and consumer-facing narratives, to provide a more comprehensive understanding of strategic silence in sustainability communication.

Practical implications

Despite ongoing environmental, social and governance (ESG) efforts and sustainability initiatives, this study suggests that fashion corporations may strategically employ collective silence as a communication tactic to avoid addressing complex issues like overproduction and deadstock. This practice can undermine stakeholder trust and transparency. Therefore, fashion companies genuinely committed to sustainability and corporate responsibility should proactively incorporate discussions of unsold goods and overproduction into their ESG, impact and Corporate Sustainability Reporting Directive reports. By addressing these challenges openly, companies can enhance their credibility, foster greater consumer trust and lead the industry toward more responsible and transparent practices.

Social implications

Our research presents alarming evidence of corporate silence being strategically used to avoid addressing pressing issues in the industry. Several cases have drawn public attention to this problem, such as using the Västerås power plant in Sweden by a fashion conglomerate to incinerate clothes and disposing a vast amount of textile waste in Africa and the Atacama Desert in Chile. Our findings demonstrate that fashion corporations are reluctant to openly address these issues.

Originality/value

Our study analyzes the quiet practice of corporate silence in the fashion industry, especially around deadstock and overstock to emphasize the overproduction problem. Its unique contribution comes from using content analysis and subsequently, cluster analysis with NVivo, offering a new approach to content analysis. This approach helps reveal the gap between what companies communicate about sustainability and what they actually do. The findings add to the discussion on corporate environmental practices, suggesting a need for more transparent and responsible communication in sustainability discourse – focus more on the unsaid than published data.