THE PRICE THAT IS NOT ON THE TAG: FAST FASHION, ISO 26000 AND THE BALANCING OF STAKEHOLDER INTERESTS IN INDIA Displaced Cost, Disclosed Cost and the Transmission Deficit in Indian ESG Regulation
DOI:
https://doi.org/10.29121/ShodhPrabandhan.v3.i3.2026.147Keywords:
Fast Fashion, Esg, Iso 26000, Stakeholder Balance, Corporate Social Responsibility, Business Responsibility and Sustainability Reporting, Extended Producer Responsibility, Corporate Sustainability Due Diligence, Indian Textile and Apparel Industry, GreenwashingAbstract
Fast fashion sells a garment at a price its production did not cost. The difference is not efficiency but displacement, the migration of production costs from the seller's income statement to parties who never contracted to bear them: the worker paid below subsistence, the watercourse receiving untreated effluent, the municipality inheriting the garment as waste, and the consumer sold an unsubstantiated sustainability claim. This paper distinguishes displaced cost from disclosed cost and argues that India's environmental, social and governance architecture, comprising the Companies Act 2013, the Business Responsibility and Sustainability Reporting framework, the four Labour Codes and the environmental consent regime, has been built almost entirely around the second. Drawing on the political economy of purchasing practices, the critical scholarship on private social auditing and the legal analysis of mandatory due diligence, it contends that the regulatory locus of the problem has migrated to the demand-side jurisdictions of the European Union, leaving India, a supply-side jurisdiction, to choose between derived compliance, arbitrage retention and autochthonous equivalence. The paper reassesses ISO 26000:2010, treating its refusal of certifiability not as institutional weakness but as a design choice matched to its object, and identifies its central defect as a transmission deficit rather than a normative one. It proposes converting section 166(2) of the Companies Act 2013 from balance-as-mention into balance-as-decision-rule, relocating due diligence from the audited factory to the placed order, and giving ISO 26000 transmission through Bureau of Indian Standards sectoral guidance, procurement conditionality and a textile extended producer responsibility scheme.
References
Al-Emadi, T. A., Pereira, E. G., al-Masry, M., and Fowler, R. M. E. (2025). The EU Corporate Sustainability Due Diligence Directive: Implications and the Qatari Case Study. The Journal of World Energy Law & Business, 18(4), Article jwaf022. https://doi.org/10.1093/jwelb/jwaf022 DOI: https://doi.org/10.1093/jwelb/jwaf022
Anner, M. (2019). Predatory Purchasing Practices in Global Apparel Supply Chains and the Employment Relations Squeeze in the Indian Garment Export Industry. International Labour Review, 158(4), 705–727. https://doi.org/10.1111/ilr.12149 DOI: https://doi.org/10.1111/ilr.12149
Anner, M. (2020). Squeezing Workers' Rights in Global Supply Chains: Purchasing Practices in the Bangladesh Garment Export Sector in Comparative Perspective. Review of International Political Economy, 27(2), 320–347. https://doi.org/10.1080/09692290.2019.1625426 DOI: https://doi.org/10.1080/09692290.2019.1625426
Badhwar, A., Islam, S., Tan, C. S. L., Panwar, T., Wigley, S., and Nayak, R. (2024). Unraveling Green Marketing and Greenwashing: A Systematic Review in the Context of the Fashion and Textiles Industry. Sustainability, 16(7), Article 2738. https://doi.org/10.3390/su16072738 DOI: https://doi.org/10.3390/su16072738
Bandhua Mukti Morcha v. Union of India, (1984) 3 SCC 161 (India).
Battery Waste Management Rules, 2022 (India).
Bueno, N., Bernaz, N., Holly, G., and Martin-Ortega, O. (2024). The EU Directive on Corporate Sustainability Due Diligence (CSDDD): The Final Political Compromise. Business and Human Rights Journal, 9(2), 294–300. https://doi.org/10.1017/bhj.2024.10 DOI: https://doi.org/10.1017/bhj.2024.10
Buhmann, K., and Feld, L. (2024). Shifting Boundaries: A Transnational Legal Perspective on the EU Corporate Sustainability Due Diligence Directive. Transnational Legal Theory, 15(3), 370–396. DOI: https://doi.org/10.1080/20414005.2024.2426961
Business of Fashion, and McKinsey & Company. (2024). The State of Fashion 2025. McKinsey & Company.
CFA Institute Research and Policy Center. (2026). The Current State of BRSR in Corporate India 2.0. CFA Institute.
Changing Markets Foundation. (2022). Licence to Greenwash: How Certification Schemes and Voluntary Initiatives Are Fuelling Fossil Fashion.
Code on Social Security, 2020 (India).
Code on Wages, 2019 (India).
Companies Act, 2013, §§ 134, 135, 166, 469 & sch. VII (India).
Constitution of India, arts. 21, 23, 39(e), 42, 43, 47, 48A & 51A(g).
Consumer Protection Act, 2019, § 18 (India).
Del Baldo, M. (2023). ISO 26000 Standard. In S. O. Idowu, R. Schmidpeter, N. Capaldi, L. Zu, M. Del Baldo, and R. Abreu (Eds.), Encyclopedia of Sustainable Management. Springer. https://doi.org/10.1007/978-3-031-25984-5_713 DOI: https://doi.org/10.1007/978-3-031-25984-5_713
Directive (EU) 2024/1760 of the European Parliament and of the Council of 13 June 2024 on Corporate Sustainability Due Diligence, 2024 O.J. (L 2024/1760).
Directive (EU) 2025/1892 of the European Parliament and of the Council Amending Directive 2008/98/EC as Regards Textiles and Food Waste, 2025 O.J. (L 2025/1892).
Directive (EU) 2026/470 of the European Parliament and of the Council of 24 February 2026 Amending Directives 2006/43/EC, 2013/34/EU, (EU) 2022/2464, and (EU) 2024/1760, 2026 O.J. (L 2026/470).
De Freitas Netto, S. V., Sobral, M. F. F., Ribeiro, A. R. B., and Soares, G. R. D. L. (2020). Concepts and Forms of Greenwashing: A Systematic Review. Environmental Sciences Europe, 32, Article 19. https://doi.org/10.1186/s12302-020-0300-3 DOI: https://doi.org/10.1186/s12302-020-0300-3
E-Waste (Management) Rules, 2022 (India).
Environment (Protection) Act, 1986, §§ 3, 5, 6 & 25 (India).
Feld, L. (2026). Leading the Way or Crossing the Line? The Extraterritorial Dimension of the EU Directive on Corporate Sustainability Due Diligence. Business and Human Rights Journal, 11(1), 23–45. https://doi.org/10.1017/bhj.2025.10038 DOI: https://doi.org/10.1017/bhj.2025.10038
Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024 (Central Consumer Protection Authority, October 15, 2024) (India).
Indian Council for Enviro-Legal Action v. Union of India, (1996) 3 SCC 212 (India).
Industrial Relations Code, 2020 (India).
International Organization for Standardization. (2010). ISO 26000:2010—Guidance on Social Responsibility.
Jastram, S. M., Otto, A. H., & Minulla, T. (2023). Diverse Organizational Adoption of Institutions in the Field of Corporate Social Responsibility. Journal of Business Ethics, 183, 1073–1088. https://doi.org/10.1007/s10551-022-05085-2 DOI: https://doi.org/10.1007/s10551-022-05085-2
LeBaron, G. (2020). Combatting Modern Slavery: Why Labour Governance Is Failing and What We Can Do About It. Polity Press.
LeBaron, G., Lister, J., and Dauvergne, P. (2017). Governing Global Supply Chain Sustainability Through the Ethical Audit Regime. Globalizations, 14(6), 958–975. https://doi.org/10.1080/14747731.2017.1304008 DOI: https://doi.org/10.1080/14747731.2017.1304008
LeBaron, G., and Lister, J. (2015). Benchmarking Global Supply Chains: The Power of the 'Ethical Audit' Regime. Review of International Studies, 41(5), 905–924. DOI: https://doi.org/10.1017/S0260210515000388
Li, M., Cavender, R., and Lee, M.-Y. (2025). Consumer Awareness of Fashion Greenwashing: Insights From Social Media Discussions. Sustainability, 17(7), Article 2982. https://doi.org/10.3390/su17072982 DOI: https://doi.org/10.3390/su17072982
M.C. Mehta v. Union of India, (1987) 1 SCC 395 (India).
Mezzadri, A. (2017). The Sweatshop Regime: Labouring Bodies, Exploitation, and Garments Made in India. Cambridge University Press. DOI: https://doi.org/10.1017/9781316337912
Ministry of Corporate Affairs. (2019). National Guidelines on Responsible Business Conduct. Government of India.
Ministry of Textiles. (2026). Mapping of Textile Waste Value Chain in India. Government of India.
Moratis, L. (2018). Signalling Responsibility? Applying Signalling Theory to the ISO 26000 Standard for Social Responsibility. Sustainability, 10(11), Article 4172. https://doi.org/10.3390/su10114172 DOI: https://doi.org/10.3390/su10114172
Moratis, L., and Cochius, T. (2011). ISO 26000: The Business Guide to the New Standard on Social Responsibility. Greenleaf Publishing.
Nemes, N., Scanlan, S. J., Smith, P., Smith, T., Aronczyk, M., Hill, S., Lewis, S. L., Montgomery, A. W., Tubiello, F. N., and Stabinsky, D. (2022). An Integrated Framework to Assess Greenwashing. Sustainability, 14(8), Article 4431. https://doi.org/10.3390/su14084431 DOI: https://doi.org/10.3390/su14084431
Occupational Safety, Health and Working Conditions Code, 2020 (India).
Organisation for Economic Co-operation and Development. (2018). OECD Due Diligence Guidance for Responsible Business Conduct. OECD Publishing.
People's Union for Democratic Rights v. Union of India, (1982) 3 SCC 235 (India).
Plastic Waste Management Rules, 2016, as amended (India).
Regulation (EU) 2024/1781 of the European Parliament and of the Council of 13 June 2024 Establishing a Framework for the Setting of Ecodesign Requirements for Sustainable Products, 2024 O.J. (L 2024/1781).
Schiaroli, V., Dangelico, R. M., and Fraccascia, L. (2025). Mapping Sustainable Options in the Fashion Industry: A Systematic Literature Review and a Future Research Agenda. Sustainable Development, 33(1), 431–464. https://doi.org/10.1002/sd.3129 DOI: https://doi.org/10.1002/sd.3129
Schwartz, B., and Tilling, K. (2009). 'ISO-lating' Corporate Social Responsibility in the Organizational Context: A Dissenting Interpretation of ISO 26000. Corporate Social Responsibility and Environmental Management, 16(5), 289–299 DOI: https://doi.org/10.1002/csr.211
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, reg. 34(2)(f) (India).
Securities and Exchange Board of India. (2021, May 10). Circular Concerning Business Responsibility and Sustainability Reporting.
Securities and Exchange Board of India. (2023, July 12). Circular Concerning Business Responsibility and Sustainability Reporting.
Securities and Exchange Board of India. (2024, December 20). Circular Concerning Business Responsibility and Sustainability Reporting.
Securities and Exchange Board of India. (2025, March 28). Circular Concerning Business Responsibility and Sustainability Reporting.
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, §§ 4 & 6 (India).
Subhash Kumar v. State of Bihar, (1991) 1 SCC 598 (India).
Tirupur Dyeing Factory Owners Association v. Noyyal River Ayacutdars Protection Association, (2009) 9 SCC 737 (India).
United Nations. (2011). Guiding Principles on Business and Human Rights: Implementing the United Nations 'Protect, Respect and Remedy' Framework. Office of the High Commissioner for Human Rights.
Vellore Citizens' Welfare Forum v. Union of India, (1996) 5 SCC 647 (India).
Water (Prevention and Control of Pollution) Act, 1974 (India).
Wilhelm, M., Bhakoo, V., Soundararajan, V., Crane, A., & Kadfak, A. (2025). Beyond Compliance-Based Governance: The Role of Social Intermediaries in Mitigating Forced Labour in Global Supply Chains. Production and Operations Management. https://doi.org/10.1177/10591478231224922 DOI: https://doi.org/10.1177/10591478231224922
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Nandita S. Jha (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
