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Zara Retails Corporate Social Responsibility

VB

Vareia Boxill

Transcript

ZARA

Corporate Social Responsibility

Developing Sustainable High Fashion

Conclusion

Social Programs

For&From Programme

Every Mother Counts Programme

Salta Programme for Vulnerable People

Social Programs

Image credit: Zara

Water.org

Programme

Medicus Mundi Programme

It's all in the Details

Salta Programme for Vulnerable People

Every Mother Counts Programme

Fashionable Altruism

  • Social Challenge - 303,000 women and children die every year due to pregnancy and childbirth related causes

  • Program Objective - to facilitate easier access for pregnant women in Bangladesh and the United States to prenatal care

  • Outcomes - Stop preventable maternal deaths and injuries, strenghten health workforce and systems, and reduce premature births and low birthweight.

  • Social Impact - More than 55,000 women have recieved prenatal care since May 2015 and projected to aid 30,000 from now to 2019.

  • Social Challenge - Individuals identifying with vulnerable demographics (ex. people with special needs or in a vulnerable situation) have difficulty finding employment

  • Program Objectives - to provide employment opportunities for vulnerable people struggling with social exclusion in the Inditex organization

  • Outcomes - Provide job opportunities in their stores, factories and logistic centers as well as training and mentorship since launch in 2008 in France

  • Social Impact - Program is delivered in 11 countries, 924

people have been trained and joined the organization

in collaboration with 40 foundations and NGO's.

Setting Trends in Enivronmental Sustainability

Environmental Trendsetters

Zara has set environmental standards in accordance with

the following United Nations Sustainable Development Goals:

  • Goal 6 Clean Water and Sanitation - The company aims to release zero emission of hazardous chemicals from their manufacturing processes

  • Goal 7 Affordable and Clean Energy - They aim to promote and utilize sustainable and efficient energy sources within their own facilities and within collaboration between garment suppliers

  • Goal 13 Climate Action - Aim to minimize company impact on climate change ensuring that 45% of energy consumption throughout all facilities and stores is renewable energy.

  • Goal 14 Life Below Water - Aim to avoid harming underwater life by not releasing hazardous materials into the environment.

  • Goal 15 Life on Land - Protect biodiversity by employing production efficiency practices and utilizing sustainable raw materials.

Water.org Program

  • Social Challenge - Address the issue of clean water accessibility in developing nations.

  • Program Objective - In collaboration with Water.org, this partnership program aims to develop sanitation systems to bring clean water to communities in Bangladesh and Cambodia through the Water Credit Program.

  • Water Credit Program - Aims to provide affordable loans for local communities to build water systems and toilets

  • Social Impact - Initiative is expected to improve water accessibility for more than 160,000 people in both nations and 33,000 small loans are available to access.

Green Websites

  • The company is working to make Zara.com an eco-friendly website

  • This will reduce website energy consumption and utilize 100% renewable energy

  • Zara Technological Center in Spain consumes 100% clean energy

  • Zara is certified as a Platinum LEED by the American organization Green Building Council

Where Socially Responsible Fashion Meets Labor Well-being

Employee Programs International

  • Programme with Medicus Mundi - a NGO collaboration which aims to improve the social and healthcare of Moroccan workers

  • Sahki Health Project - aims to train South Asian workers in India regarding addressing women's health issues and gender equity.

  • Sowbhagyam Project - aims to raise awareness and educate India's Tamil Nadu communities, job agencies and other stakeholders regarding labor rights and abusive employment practices against women.

Fashion with Benefits

Zara wants the best for their employees; they have created support systems for their employees based on the following United Nations sustainable development goals:

  • Goal 3 Good Health and Well-being - Zara is committed to ensuring on providing their employees with a safe and health work environment reflected in their code of conduct for Manufacturers and Suppliers.

  • Goal 5 Gender Equality - Women compose a greater percentage of their textile supply chain workforce, hence Zara enacts the Women empowerment strategy in the Supply Chain initiative focused on health,, protection and empowerment.

  • Goal 8 Decent Work and Economic Growth - Zara aims to provide all employees with a decent work environment.

Health and Wellness Programs

Health and Wellness

Zara employee healthcare benefits include:

  • Flu vaccination campaigns

  • Heart campaign, in collaboration with Fundacion Pro CNIC, aims to monitor risk of heart attack in employees

  • Healthcare initiative for prevention and treatment of musculoskeletal disorders across all logistic centers by reducing physical load on employees

  • Program targeted for for logistic center employees over 55 years of age as part of their wholistic active-aging plan

Sustainable Development Programs

Zara provides the following employee social benefit programs and initiatives including ...

  • Social Sustainability of Supply Chain Strategy in which suppliers and production chain practices aim to respect workers labor conditions, product safety levels and the environment

  • Workers at the Centre Strategy aims to support priority areas in production and develop a sustainable production environment

  • Women Empowerment Strategy aspires to provide Zara's women workforce with the resources to actively participate in their work environment and improve their quality of life.

Workforce Support

Zara's Business Profile

Getting Down to Business

  • +9% net sales
  • 41% online sales growth
  • 171,000 employees
  • 97 nationalities
  • 57% textile suppliers in proximity
  • 80% eco stores
  • 1.8 billion investment in the integrated model
  • 73 million join life garments
  • 5.9 billion in taxes
  • 1.5 million (beneficial funds) from social projects

Financial & Business Reports

Reports

  • 2017 Inditex Annual Report
  • Sustainability Balance Sheet
  • Economic and Financial reports
  • Tax Contribution 2016
  • Consolidated Directors Report
  • Investor and Stock Market Indexes

Social & Shareholder Reports

  • LEED Certification Audit

  • External Auditors Report 2017 (Deloitte)

Audits

Zara in the News

  • Zara factory workers in Turkey hid notes in clothes stating they were not paid

  • Brings up the issue as to priority of addressing problems associated with Fast Fashion industry because the problem may impact women more than men.

  • Buchanan's Suggestions: Initiating global minimum - wage and safety standards for all workers throughout the industry.

Zara in the News

1) Buchanan, Daisy. The Zara Workers' protest shows why fast fashion should worry us all. The Guardian, 8 Nov. 2017. https://www.theguardian.com/commentisfree/2017/nov/08/zara-workers-protest-fast-fashion-worry-all-of-us

2) Kaye, Leon. Zara Launches Sustainable Fashion Line for Fall. Triple Pundit, 28 Sept. 2016. https://www.triplepundit.com/2016/09/zara-launches-sustainable-fashion-line-fall/

  • The fast fashion has had an adverse effect on people and the environment.

  • Zara's Join Life line is a sustainable fashion line that attempts to address this issue. Produced through their sustainable supply chain initiative.

  • It is the next step in their holistic approach and commitment to the environment and social sustainability