EVALUATING BURBERRY GROUP PLC AS A CORPORATE SUSTAINABILITY LEADER: A CARROLL'S CSR PYRAMID ANALYSIS

Module: Sustainable Business in the Contemporary Environment (MOD009208)
Student ID: [Your Student ID]
Trimester: 1, 2025/2026
Date of Submission: [Submission Date]
Word Count: 2,800

EXECUTIVE SUMMARY

This report is a critical evaluation of whether the Burberry Group PLC can be declared a leader in corporate sustainability or not, and makes use of Carroll's Pyramid of Corporate Social Responsibility as the analytical tool to determine whether it can be said to be involved in corporate sustainability or not. Although Burberry is considered one of the most responsible companies in the European region and the title of a Climate Leader by Financial Times (2025), this analysis evaluates sustainability in terms of four assets of responsibility, including economic, legal, ethical, and philanthropic.
The result demonstrates the intricate image of the sustainability performance of Burberry. The company is experiencing serious problems with revenues reducing by a rate of 17% to 2461 million pounds in the FY 2024/25, and operating losses and strategic restructuring as part of the Burberry Forward initiative. Burberry exhibits good legal compliance by having well-established policies on the environment, using 100% FSC-certified consumer packaging, and its strict social compliance audit of 71% of final goods suppliers. However, the company has notable positive results on the ethical level with 84% of key raw materials being certified or responsibly sourced, a decrease of 51.2 percent in the Scope 3 emissions since 2018/19, and comprehensive worker wellbeing programmes engaging 11,650 supply chain workers. Burberry made a positive contribution to the lives of 273,435 individuals in FY 2024/25, which surpassed the expectations of the same year through The Burberry Foundation and community activities, philanthropically.
The report finds, based on its results, that although Burberry shows leadership in its environmental practices and a lot of dedication to its ethics, the company has economic weaknesses and gaps in its implementation, which make it impossible to categorically label the company as an overall corporate sustainability leader. It suggests three strategic ideas, namely, the use of circular economy revenue streamlines to align economic and environmental goals, transparency in supply chains on a leading industry level with the help of blockchain technology, and the acquisition of measurable social impact measures that would help in incorporating sustainability performance into executive compensation beyond existing frameworks.

1. INTRODUCTION

The issue of corporate sustainability has ceased to be a fringe issue to be considered; it has become a strategic focus of business operating in the twenty-first century. The Pyramid of Corporate Social Responsibility (CSR) by Carroll offers a broad platform on which the sustainability of an organization can be assessed by classifying the responsibilities into four levels of hierarchy: Economic, Legal, Ethical, and Philanthropic (Carroll, 1991). This is a multidimensional concept that acknowledges the fact that sustainable businesses should be able to make profits and, at the same time, comply with legislation, conduct their business ethically, and act in ways that advance the well-being of society (Carroll and Shabana, 2010). In the luxury fashion industry, sustainability is a special issue because of the large environmental footprint of the industry, the complicated global supply chains, and resource-intensive usage trends (Pedersen et al., 2018).
The Burberry Group PLC is a British luxury fashion house established in 1856, and it has positioned itself as a sustainability pioneer in the fashion industry. The Financial Times (2025) has already confirmed that the company is one of the European climate leaders, which is seen as part of environmental responsibilities, as part of the Burberry Beyond strategy introduced in 2020. Nonetheless, the business model of Burberry can be questioned because of its recent financial results. During FY 2024/25, the firm registered a revenue of 2,461 million, which is a 17 percent decrease on the preceding year and an operating loss of 3 million (Burberry Group plc, 2024). These financial problems occurred along with the change of CEO and the launch of the initiative named Burberry Forward, which means a strategic change oriented on rejuvenating the brand interest and enhancing results (Burberry Group plc, 2024).
Corporate sustainability leadership can only be measured through an evaluation that is not limited to just environmental metrics. Morrison (2023) defines corporate sustainability as the concept that includes environmental stewardship, social responsibility as well and economic viability, the triple bottom line model. Likewise, D'Amato et al. (2022) highlight that successful sustainability leadership requires the combination of environmental and social goals into a business strategy and not a type of external corporate social responsibility. More specifically, in the luxury brands, Needle and Burns (2023) assert that sustainability credentials have gained significant power on brand equity and buyer purchasing behavior, especially among the younger generations of people who are more focused on ethical consumption.
This report seeks to critically determine whether Burberry qualifies as a corporate sustainability leader by critically applying the Pyramid of CSR by Carroll to determine the performance of the company on the economic, legal, ethical, and philanthropic fronts. Evidence-based evaluation is based on the analysis and relies on the Annual Report 2024/25, Sustainability Basis of Reporting, and the independent industry evaluation by Burberry. Through the hierarchy framework of Carroll, the report would determine the strengths, weaknesses, and opportunities of increased sustainability performance, representing the Burberry sustainability initiatives.

Key Terms Definitions:

? Corporate Sustainability: How the elements of environment, social, and economic are combined into business strategy and operations to develop the long-lasting value of stakeholders and to reduce the adverse effects (Morrison, 2023).
? Business Activities: The business actions, processes, and dealings through which an organization engages and produces goods or services, earns income, and achieves its strategic goals (Needle and Burns, 2023).
? Corporate Social Responsibility (CSR): This is the dedication of an organization to act in a morally responsible manner and help it grow economically and enhance the living standards of the employees, communities, and society in general (Carroll and Shabana, 2010).

2. FINDINGS

2.1 Economic Responsibilities

According to the Pyramid developed by Carroll, the economic responsibility is the central level, as the business should be profitable and financially sustainable to execute the responsibilities with the higher levels (Carroll, 1991). Table 1 below is the financial performance of Burberry in FY 2023/ 24 and FY 2024/ 25.
Table 1: Burberry Financial Performance Comparison
Financial Metric FY 2024/25 FY 2023/24 Change (%)
Total Revenue 2,461m 2,968m -17%
Adjusted Operating Profit 26m 418m -94%
Operating Profit/(Loss) (3)m 418m -101%
Adjusted Diluted EPS (14.8)p 73.9p -120%
Source: Burberry Group plc (2024)
As can be seen in Table 1, Burberry was severely financially deteriorating with a decline of 17% in turnover and close to zero profits. The performance in Asia Pacific (1,286m to 1,043m), EMEIA (1,017m to 842m), and Americas (603m to 510m) experienced a downturn (Burberry Group plc, 2024). The strategy called Burberry Forward provides an answer to these issues and will be released in November 2024, based on four pillars: reconnecting with British heritage, leading with outerwear, aligning distribution, and reigniting organizational culture (Burberry Group plc, 2024).
Although the brand faced economic challenges, such as 84?rtified raw materials and 51.2% Scope 3 emissions reduction (Burberry Group plc, 2024). According to Morrison (2023), financial feasibility is a means to invest in the environment over the long term, but this dilemma of profitability and profitability creates doubt about whether resources can be distributed over time during transformation.

2.2 Legal Responsibilities

Regulatory compliance is a legal obligation in the operations (Carroll, 1991). Burberry adopts thorough-going compliance by putting down systematic frameworks. The Global Environmental Policy applies environment-related standards throughout supply chains so that it complies with the EU CSRD, UK ESOS, and EED policies (Burberry Group plc, 2024). The achievements related to the environment are 96% packaging, 100% consumer plastic will be eliminated by FY 2025/26, which is more than the requirements.
The description of climate is based on the Greenhouse Gas Protocol under Ernst and Young LLP external verification. Burberry has 95% Scope 1 and 2 reduction within FY 2026/27 and 90% Scope 3 reduction within FY 2039/40, which have been validated by SBTi (Burberry Group plc, 2024). The rigor of labor compliance is evident in 495 onsite social audits and 100 desktop evaluations in FY 2023/24 to cover 71% of the suppliers of finished goods, above the UK Modern Slavery Act 2015 requirement (Burberry Group plc, 2024). Through the Responsible Business Principles, which is a contractual agreement with suppliers, forced labour, child labour, and discrimination are also not allowed in line with the policies of the ILO conventions. About 80 percent of the manufacturing facilities function under a collective bargaining agreement (Burberry Group plc, 2024). Governance: The CEO-led Sustainability Committee is Board reporting, and the Ethics Committee is concerned with human rights, which guarantee systematic legal accountability.

2.3 Ethical Responsibilities

Ethical duties also include societal expectations, but not necessarily mandatory by law (Carroll, 1991). The results of Burberry's climate performance are based on its set targets and are given in Table 2 below.
Table 2: Burberry Climate Performance Metrics FY 2024/25
Climate Metric Target Achievement Status
Scope 1 & 2 Reduction (from FY 2016/17) 95% by FY 2026/27 93% On track
Scope 3 Reduction (from FY 2018/19) 46% by FY 2029/30 51.2% Exceeded
Renewable Electricity 1000?hieved
Certified/Responsibly Sourced Raw Materials 100% by FY 2029/30 84% Progressing
Source: Burberry Group plc (2024)
Ethical innovation is apparent in the introduction of circular economy-related initiatives; the company has 383 stores providing aftercare services and made 43,000 repairs during FY 2023/24 (Burberry Group plc, 2024). Collaborations with My Wardrobe HQ (rental), Vestiaire Collective (resale), and cashmere upcycling offer a way to increase product lifecycles, disrupting the concept of the fast-fashion paradigm (D'Amato et al., 2022).

Figure 1: Raw Materials Certification Progress by Category
Mixed performance is uncovered by social ethics. The Worker Wellbeing Programme has covered 11,650 supply chain workers in nine suppliers, and 100 percent have received a Good rating (Burberry Group plc, 2024). Supply chains' welfare initiatives are summarized in Table 3 below.
Table 3: Supply Chain Social Performance FY 2023/24
Initiative Coverage/Impact Performance
Worker Wellbeing Programme 11,650 workers, 9 suppliers 100% Good ratings
Confidential Hotlines 33,350 workers (22% increase) 473 calls, 77% resolved
Vendor Ownership Programme 24 vendors, 20,500 workers 52% EMEIA coverage
Social Compliance Audits 495 onsite, 100 desktop 71% supplier coverage
Health Programme Training 830+ workers 3 hours per participant
Source: Burberry Group plc (2024)
Nevertheless, there are still missing links in implementation. The rate of suppliers that have been audited within the past six months is only 71 out of the total 100 suppliers, with 29 having not been reviewed in the recent past (Burberry Group plc, 2024). Health/safety and working hours are among the areas of non-conformity. Targets on diversity indicate inequalities: ethnic minority recruitment was high in the UK (31% compared to the 25% target), and in the US Black/African-American recruitment rate is only 10 percent relative to the 25 percent target (Burberry Group plc, 2024).

2.4 Philanthropic Responsibilities

Philanthropic obligations are voluntary contributions to society (Carroll, 1991). Burberry performs exceedingly well, and its impact over the FY 2024/25 includes 273,435 individuals- exceeding the 500,000 target by 31% prematurely (Burberry Group plc, 2024). The firm has a 1?fore-tax committed charitable donation.
Table 4: Burberry Philanthropic Impact FY 2024/25
Programme Area Impact Metric Achievement
Total People Impacted Annual 273,435
Cumulative Impact (FY 2022/23-2024/25) Total 653,597
Target Achievement % of 500,000 goal 131%
Fabric Donations Metres 360,000+
Finished Goods Donations Items 4,650+
Colleague Volunteering Projects supported 139
Source: Burberry Group plc (2024)
Its main program is the Burberry Inspire programme, and it has 17 partner organisations in nine regions across the world, such as The International Youth Foundation, OnSide UK, Save the Children Poland, and Girls Inc. New York (Burberry Group plc, 2024). The Creative Youth Development model helps the age group of 10-24 with the help of arts and STEM as well as entrepreneurship programmes, which help develop self-confidence, mental health, and career aspirations.
There is a strategic impact through strategic partnerships. Burberry Stepping Stones Bursary Prize is offered through the BRIT School collaboration to provide fashion education to various students (Burberry Group plc, 2024). Royal College of Art scholarship programme, which was extended to Parsons School of Design, Institut Franais de la Mode, and Central Saint Martins, helps absolve 50 + students in the period 2020-2025. Kimono donations were 360,000 or more metres plus 28,500 metres to the Student Fabric Initiative of the British Fashion Council. Manufactured products were delivered to Smart Works (2,650 business clothes) and Good360 (2,000+ items) (Burberry Group plc, 2024).
Humanitarian response is agile. After the events of the September 2023 Morocco earthquake and the floods in Libya, Burberry has joined matched donations to British Red Cross appeals through its colleague donations (Burberry Group plc, 2024). Life Chances is a program (initially launched in October 2023, in collaboration with Save the Children) that enables Ukrainian refugees and Polish young people (14-18) to receive education, job opportunities, and wellbeing services.
Engagement by employees exposes issues. The percentage of colleagues who volunteered in FY 2023/24 was only 8, which is quite low in comparison with the FY 2025/26 objective of 25% (Burberry Group plc, 2024). Nevertheless, 115 Community Champions enabled 139 projects such as Women in Technology with 200 or more youth in Yorkshire, to secondary-aged and Outward-Bound Trust taking students to the countryside in London, Leeds, Castleford, and Keighley.

3. CONCLUSION

The analysis of the Burberry Group PLC using the Pyramid of CSR developed by Carroll presents a subtle view of the sustainability management with environmental superiority and philanthropic success (Figure 2), and disadvantageous integration and economic difficulties, and gaps in ethical action. Economically, the growth of Burberry has a significant amount of headwind, as 17% revenue growth showed a decline and almost zero operating profits in FY 2024/25, and it is uncertain whether current business models can remain sustainable even with continued environmental spending. The company also exhibits outstanding legal adherence in the aspects of environmental, labor, and governance, surpassing the minimum requirements by a broad range of policies and systematic audit, as well as open reporting in line with the new regulations such as the CSRD.
In terms of ethics, Burberry presents an excellent environmental performance, which is supported by its Climate Leader designation, in which 51.2% of Scope 3 emissions reduction is more than the 2030 interim targets, and 84% key raw materials are certified or responsibly sourced. The supply chain welfare programmes are vehement in extending beyond compliance with over 11,650 workers (ourised by wellbeing programmes) and 33,350 workers (ourised by grievance mechanisms). Nevertheless, the gaps in the coverage of audits (29% of suppliers not assessed in the current year), chronic failure on health and safety, and diversity targets (specifically 10% vs. 25% of Black/African-American hiring in the USA) suggest implementation issues. In terms of philanthropy, through The Burberry Foundation, Burberry has been able to exceed the target of its 500,000 impact; it has doubled by 31 per cent and has not only met its strategic goals but also feels strategic alignment in terms of philanthropic goals and youth empowerment via the Burberry Inspire programme.

Figure 2: Carroll's Pyramid of Corporate Social Responsibility.

Overall Assessment: Burberry can be described as an emerging sustainability leader with strong environmental and philanthropic factors, as opposed to a complete corporate sustainability leader. The environmental performance of the company is solid and has the industry-leading features with science-based targets, systematic decarbonization, and circular economy innovation. Philanthropic performance goes beyond what is expected and shows a form of strategic integration and not voluntary corporate giving. But economic turmoil poses a threat to the long-term durability of the investments, and the lack of ethical coverage in the supply chain portfolio and diversity goals prohibits the unquestionable best status of leadership.
Moving forward, the path of Burberry will be based on the successful implementation of the Burberry Forward transformation. In case the strategy ensures the process of economic stabilization by retaining the environmental and social commitments, there is the potential of the company shifting to the status of emerging as an established sustainability leader. On the other hand, extended financial hardship might have the effect of reducing discretionary sustainability programs even when one is already doing so. The shift of the luxury fashion industry towards a sustainability-driven brand equity (Needle and Burns, 2023) indicates that Barrberry's environmental leadership might be a competitive advantage, in case economic performance is improved, and the ethical implementation debate is eliminated in a systematic manner.

4. RECOMMENDATIONS

4.1 Develop Circular Economy Revenue Streams to Align Economic and Environmental Objectives

To address the economic-environmental conflict revealed in Section 2.1, Burberry needs to transform its efforts towards the circular economy rental, resale, repair, and remanufacturing into a specific profit-generating business line. As demonstrated in the Findings, although Burberry maintains its rapport with rental (My Wardrobe HQ) and resale (Vestiaire Collective) applications and aftercare (383 stores) promotions, these are handled as brand-building efforts, as opposed to strategic income divisions (Section 2.3). According to research by DAmato et al. (2022), the model of the circular economy business has been found to create a competitive advantage due to the aspect of diversifying revenues and improving materials, whereas Morrison (2023) claims that to be able to achieve economic sustainability requires the business model to be innovated instead of presupposing its opposition to the environmental objectives. A single business unit, business model, balanced around the three customer segments, specific business, premium certified pre-owned products, and access to wardrobes with subscriptions, will create recurrent revenue and assist Burberry in extending product life cycles and meeting its Scope 3 emissions cut goals.

4.2 Implement Blockchain-Enabled Supply Chain Transparency to Address Ethical Implementation Gaps

In order to limit the supplier audit gap reported as 29% in Findings (Section 2.3), Burberry should integrate blockchain technology in order to provide complete transparency among Tier 1 and Tier 2 suppliers. Even though Burberry has its Vendor Ownership Programme that extends up to 20,500 workers, it has a Hotline where workers can report (although discretely) with more than 33,350 workers; there are loopholes in social auditing, which points to the poor ethical enforcement on the ground. As highlighted by Morrison (2023), transparency is the key to avoiding greenwashing, and according to Needle and Burns (2023), blockchain makes the records of labour and environmental data immutable and regularly updated in real-time. Collaboration with luxury-centered blockchain platforms (e.g., Aura Consortium) and the incorporation of blockchain metrics into the current audit system at Burberry would allow regulating the working hours, wage adherence, safety-related accidents, and environmental utilization internally. This would increase compliance with the law, improve ethical obligations, and make Burberry a leader in supply chain integrity in the industry.

4.3 Integrate Comprehensive Social Impact Metrics Linking Executive Compensation to Holistic Sustainability Performance

Burberry needs to reshape its executive pay system to integrate relevant social impact measures as well as environmental objectives. Findings indicate that the existing incentives lay much emphasis on environmental measures, which leads to the lack of diversity (10% vs. 25% targets) and low volunteering (8% vs. 25% targets) (Sections 2.32.4). Carroll and Shabana (2010) purport that real CSR demands leadership responsibility in the areas of economic, legal, ethical, and philanthropic roles. Morrison (2023) adds onwards by stating that the remuneration of the executive affects organisational priorities and outcomes of long-term sustainability. Governance gaps would be resolved by increasing the sustainability weighting to 40% of bonuses, social and community metrics, the use of Social Impact Scorecards, and the introduction of LTIP sustainability gateways, which will help to ensure consistent performance in the areas of diversity, workers' welfare, and community involvement.

References

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