Introduction with which we interacts”. Strategies are also

Introduction

Zara has maintained its position to
be among the largest fashion retailers in the world. It is estimated that they
have more than 7200 stores and 41 online markets. The
company was founded by Amancio Ortega Gaona in the year 1975 (Ruddick, 2017). It has more than 162000
working members from more than 99 countries who work to make the innovation,
changes and helping hand by being friend with the environment and society.
Mission statement of Zara states that “Through Zara’s
business model, we aim to contribute to the sustainable development of society
and that of the environment with which we interacts”. Strategies are also meant
for distribution process (Inditex.com,
2017).

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Zara sell affordable clothes with
high quality materials producing continuously with the changing fashion around
the world. They manufacture 1000 new styles in one month.They focus one 3
different business model which are customer relation management, infrastructure
management and product innovation business(Anwar,
2017).

Sustainability
Report

Zara has focus on environment issues
when manufacturing its highly quality garments. Zara always wants to maintain
its strong sustainable relation with society and environment. Under the
corporate social responsibility (CSR) policy, developing the environment has
always been the part of it. Zara uses framework released by Global Reporting
Initiative (GRI) for making its sustainability report (Caro and Gallen, 2010). It is their marketing strategy with
sustainability rather than maximising profit.

Sustainable
Development Goals (Di Benedetto 2017)

·        
Ensure healthy lives and promote well-being for all at all
ages.

·        
Ensure inclusive and quality education for all.

·        
Achieve gender equality and empower all women and girls.

·        
Promote inclusive and sustainable economic growth, employment
and decent work for all.

Relationship
with Stakeholders

Zara maintains its relationship with
the stakeholders by being transparent and more communicable(Caro et al., 2010). This relationship helps them to tackle with
the problems and gain the opportunities from the day to day work which creates
the sustainable value. Zara continuously take reviews from its stakeholders
along with advisor called Social Advisory Board which helps them to face the
sustainability issues. Zara do the promotion of human rights by maintaining
conversation with its stakeholders.

 

 

Social

So in the social sector unlike other
industries that are very advanced in high tech work, Zara throughout history
has been very intensive in the human capital and labour that is required from
it that is invested in constructing the garments. Zara has meant to be a very
transparent company in terms of sustainability. Sustainable Apparel Coalition
(SAC) is the leading alliance of sustainable production which is working to
minimize the environmental and social impacts of the fashion world. The
commitment of Zara with SAC includes goals to bring down the consumption of
energy in their production processes and in stores. Tokatil (2008) says that Zara has committed to boycott Uzbek
cotton. Zara has also joined hands with the Better Cotton Initiative (BCI) to
encourage sustainability and better application for workers and environment in
the cotton industry. In 2016, Zara market 36.7 million 100% organic cotton and
318% more organic cotton by weight. It also claims that there TENCEL Lyocell
recycle almost every chemical and water bacteria. In 2015, Zara was charged
with Racial Profiling. Black Customers in the New York stores have been
identified as latent shoplifters by Zara employees. This made a big loss in
business for Zara in America and big criticism was faced by the company. Another
incident takes place in 2015 when “lawyers of Ian Jack Miller, the first and
only corporate attorney of Zara’s US and Canada business, filed a $40 million discrimination
suit in New York Supreme Court alleging he was fired because he’s Jewish,
American and gay.” (O’Connor, 2015)

Environmental

Today consumers are buying products
with their impact on the environment. Companies are changing their practices to
feel customers more eco-friendly. Zara claims to be the single company with a
green web page that has done sustainability efforts. Sustainability goals were
published by Zara which includes reduction of greenhouse gas effusion by 20% of
2005 levels by 2020. “In 2011, Green peace’s Toxic Threads investigation found
that 6/10 Zara samples tested positive for NPE’s and 2 tested positive for
cancer-causing amines released by azo dyes” (Elrod, 2017) Care for the environment is another constant concern
guiding the interrex way of doing business and the company makes great efforts
to ensure that all of its operations are sustainable. The main line that Zara
follows  is the incorporation of the
environmental variable into all of Inditex business strategies, from design
down to retailing. Inditex has rolled out a sustainable store model through
which every last detail of its stores is analyzed to minimize water and energy consumption
and ensure that the materials used are environmentally friendly.

Financial

Zara has well oiled fast fashion giant.
How they are able to keep costs down is to hire cheap labour. In 2011, Zara was
embroiled in a scandal in Brazil where one of their contractors was using
modern ways to reduce their clothing and their employers were getting paid the
minimum wage. INDITEX even accept the responsibility officially which is
problematic because now it seems that they are capitalizing on the sustainability
break even on the main stream.  In fact a
year later Brazilian government found that Zara was still using contractors who
in return utilize modern plants to meet demand and production deadlines. In
2017, Zara employers found unusual notes in their clothes from the workers
stating that they are not getting paid of their work.

 

Climate
Related Issues

Zara makes sure that they manufacture
the environment friendly products which offers customer safe and healthy
products which are made passing the policies related to management of
sustainability.

Stores are eco-efficient which saves
energy and reduces the emission of CO2 gas which helps to lower global warming
resulting in no climate change.They have an automatic sensor which dims the
lights by 80% when there is no one at the store. They also have controlled
escalator which automatically slow down when no one is on it reducing the
consumption of energy. They have a target to reach the 100% of all stores to be
eco-efficient by 2020(Sull and Turconi,
2008). Moreover, they use recycled raw materials which saves the available
resources. Zara falls on the A lists of the CDP climate change and CDP forest.

They follow the environmental
strategy by maintaining commitment to NGOs. According to the strategy, Zara
respect the environment while manufacturing their product, it protects the
biodiversity and maintain sustainable management of natural resource.

 

Critical
Analysis of Sustainability Report

Based on their value chain, Zara
makes sure that it is committed to human rights protection and sustainability. They
have their own indicator of quality and quantity which measures the requirement
of sustainable development goals (SDGs). These indicators are coordinated by Un
global compact resulting in sustainable development.

Zara promotes recycled nylon and
recycled polyester which reduces the excess use of available resources
including water, energy and so on. They encourage their supplier to offer them
sustainably managed woods which are used to make the high-quality garments. Zara
also uses organic cotton which is cultivated with 90% less water and 60% less
energy. In addition, it uses recycled cotton which uses 80% less water than any
normal (Annual report, 2016).

Zara have their own animal welfare
policy which deals with ethical use of animal-related products. It ensures that
animals through which the animal-related products are made should be treated
responsibly and ethically. It never tests its products on animals. Thus, Zara
works treating the society and environment in ethical way.

Conclusion:

Businesses cannot be run on single
strategies as they are made to be changed with good or bad circumstances and situations
faced during the time. Therefore the management have to take certain decisions
to boost up Zara’s sustainability and progress and to lead the fashion world by
example. Assessment needs to be made by the management team before taking any further
steps in future. Without planning nothing can be
achieved. Before taking any steps forward the management need to plan well in
advance. Proper planning is also required in logistics (Banarjee, 2013)