One of my favorite stores is Zara. This store is a clothing and accessories retailer that managed its projects to spread its products globally. ZARA, a brand of the Inditex Group, is a vertically integrated retailer, which means that they control the design, manufacturing, and distribution of all its products worldwide. Their market targets women, men, and children of almost every age. The firm, being a fast fashion industry, sets its objectives to protect society and environment by introducing eco-stores, recycling processes, and energy saving appliances. In fact, their core values support their contribution to the sustainable development of society and the environment in which we interact. However, the company was pointed out by several ethical issues.
In order to be a sustainable company, sustaining activities without adding problems to the environment, Zara created a program called “closing the loop”. This program consists of creating a life cycle for their products where resources are used so efficiently that no waste is created. In other words, it is to make sure that no textile items get dumped into landfill, which causes pollution and is bad for the environment. The process consists in collecting, reusing, and recycling old garments. This is when their customers drop off their pieces of old clothing or accessories to their stores and the company sends them to the recycling factories. The garments usually undergo a process called ‘repair, resale or recycle’. In addition, to show the public that its social responsibility is essential, and how dedicated they were to this program, ZARA collaborates with non-profit organizations, recycling companies, textile manufacturers and recycling technologists.
An organization being socially responsible, and sustainable leads to success, but at the same time ethical issues can lead to negative consequences. Zara, according to some websites’ evaluation, is acting unethically in many fields. For instance, their Code of Conduct for Manufacturers and Suppliers states that they follow the strict laws of “working hours are not extensive” and “wages are paid”. However, in 2017 some news was spread that young workers in Istanbul were being forced to work extensive hours without being paid their wages or compensated. Another ethical issue arose when a report by the Clean Clothes Campaign stated that ZARA sourced products from Chinese factories that sandblasted jeans, even though ZARA promised to end the practice. Also, Zara’s Animal Welfare Policy bans fur, and angora in their clothing products, but the company still uses wool, leather, and exotic animal hair. This caused ZARA to be questioned for their policies which also caused the change of the brand image in customers eyes. In fact, many people stopped buying their products as they felt deceived.
A company the more transparent it is the more successful, trusted and loved it is. Based on some research, I would recommend, in order to avoid unfavorable situations and critics, that the firm, Zara, should avoid ethical issues such as misleading customers, and be more socially responsible. Since the company’s products are highly demanded by its customers, they should introduce 100% eco fabrics components in their clothing and abandon polyester, cotton, and linen in order to reduce pollution. They definitely should act ethically and avoid violating the Code of Conduct by introducing new key management initiatives in order to not only succeed at any cost but to make employees feel comfortable and happy at the workplace. Rewarding employees based on their productivity could be beneficial for both the company and employees.
In conclusion, Zara being a very expanded organization reached major countries with its products. Ethical issues were recognized in the past years during the company’s operation. Unethical actions come to the surface having a negative impact on the firm. However, Zara created a program to protect the environment showing social responsibility. Is very hard to deal with so many things being a big company such as Zara, but it is very important to not ignore rules in order to succeed.