Managing for Sustainability

Running head: MANAGING FOR SUSTAINABILITY
MANAGING FOR SUSTAINABILITY
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1MANAGING FOR SUSTAINABILITY
Introduction
Stakeholder theory puts forward that the primary aim of a business is to create substantial
degree of value for stakeholders. In order to expand and gain sustainability over time, businesses
must uphold the interests and welfare of its employees, customers, suppliers, communities
properly aligned and focussed on same direction (Qrunfleh & Tarafdar, 2014). The paper has
identified two of its primary stakeholders of Zara, one of the leading fast fashion retailers,
namely employees and suppliers who have been distinguished as neglected group and requires to
get engaged to the organization.
Source: Created by Author
Stakeholders Role Power
Owner Decision Making Internal Primary
Manager Decision Making Primary Internal
Employees ( Primary Internal ) Services Primary Internal
Customers (Primary External) Consumption Primary Internal
Suppliers ( External Primary ) Supply and Distribution External Primary
Government Funding External Primary

2MANAGING FOR SUSTAINABILITY
Body
Recommendations for Zara to improve Employee Engagement
 Zara must invest in digital technologies in order to improve its level of employee
engagement. Reports of authors have been revealing cases of Zara’s weakened employee
engagement which has declined its competitive advantage in the industry (Qrunfleh &
Tarafdar, 2014).
 The company must distribute technologically advanced gadgets along with personal and
rapid communication with store managers.
 Furthermore, Zara can focus on internal promoting as one of the vital ways by which the
company can successfully fill the position by choosing an employee from within the
company. Chan et al. (2014) have generalized these characteristics as firm-specific
knowledge in which employees gain the competence to obtain knowledge, ideas and have
embedded within them the principles and standards of the organization.
 Furthermore, divergences in local context can be viewed through a lot of factors namely,
employee training, employment and turnover. Holweg and Helo (2014) have noted that
people management tends to adhere towards the norms and standards of the parent
company. Zara at this juncture should attract as well as develop competent local talent in
order to achieve successful localization. Chan et al. (2014) have emphasized on three
important steps which are proposed to accomplish this that related to the observable
presence in the local labour market, regulate selection criteria as per environment
analysis and sell careers rather than simply focusing on jobs.