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. 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.

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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.

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.

 

 

 

 

 

 

 

 

REFERENCES

Anwar,
S., 2017. Zara vs. Uniqlo: Leadership strategies in the competitive textile and
apparel industry. Global Business and Organizational Excellence, 36(5),
pp.26-35.

Caro,
F. and Gallien, J., 2010. Inventory Management of a Fast-Fashion Retail
Network. Operations Research,
58(2), pp.257-273.

Caro,
F., Gallien, J., Díaz, M., García, J., Corredoira, J., Montes, M., Ramos, J.
and Correa, J., 2010. Zara Uses Operations Research to Reengineer Its Global
Distribution Process. Interfaces,
40(1), pp.71-84.

Di
Benedetto, C., 2017. Corporate social responsibility as an emerging business
model in fashion marketing. Journal of Global Fashion Marketing, 8(4),
pp.251-265.

Sull,
D. and Turconi, S., 2008. Fast fashion lessons. Business Strategy Review, 19(2), pp.4-11.

Zara,
2016. Annual report 2016, online Available at: https://www.inditex.com/documents/10279/319575/Inditex+Annual+Report+2016/6f8a6f55-ed5b-41f4-b043-6c104a305035 Accessed 4 Jan 2018