Reasons why ZARA is considered ethical

Zara is a Spanish retailer which
is generally based on Arteixo, Spain.
The organization involves specialization
in the latest fashion as well as the
products including the accessories,
shoes, beauty, clothing and many more.
Zara is the largest organization in the
inditex group across world. This
organization is being founded in the
early 1975 by Amanico Ortega and
Rosalia Mera. It is a high fashionable
concept store which offers the things for
women, men and kids from the new
born up-to adult age. It usually manages
so as to create the new designs much
faster than its competitors and most of
its products are almost freshly designed.
In this report, it covers the ethical
concepts of the organization (ZARA)
and also the ethical philosophy which it
follows to maintain its value. There is a
discussion about the challenges which
was faced by the organization in the past
as well as the key components which
were faced by Zara. This report will also
cover the challenges which make impact
on organization with its latest trends.
The stakeholders play a key role in
every organization and here in this
report it also includes the stakeholders
and its role in maintaining the
organization's standards (Bhutta and et.
al., 2021).
Reasons why ZARA is considered ethical
ZARA is a fast fashion retailer with around 2,270 store deals in clothing, accessories,
beauty products etc. I consider Zara as an ethical company because of various
reasons which are as follows: - Firstly, They are aiming to contribute more towards
society in ethical terms and keeping environment sustainable. It has a program
named “closing the loop” which let them create life cycle for their products so that
they can use resources more efficiently without wasting much of it. It basically
means that they use old garments which their customers drop at their store to get
exchange discount on new ones, and then they recycle those old products to produce
new ones. They also try to make sure that no textile product gets dumped in land
which thereby create pollution. Secondly, Zara follows a strategy named “global
water management strategy” through which they make sure that they reduce water
wastage in their production process and they also try to emit zero harmful chemicals
in water bodies which helps them to achieve their sustainable environment goals.
Thirdly, they are also affirming to use ecological fabric and organic cotton in their
production as these materials in general are considered as ethical and they also
reduce waste products (Gordon, 2018).
Fourthly, as Zara also manufacture foot-wears they
make sure that they use no leather as it harms
animals, moreover they are committed to use
Polyvinyl chloride free materials to manufacture it.
Even Zara is much concerned towards animals so
they follow animal welfare policies through which
they make sure that if they are using any animal
product such as fur, wools etc.
The company is further looking towards achieving sustainable goals in a positive
way by planting more and more trees and recycling plastics more than they use
which will make them environmental positive company. Other than these social
ethics company also make sure that they remain equally ethical towards their
employees by giving them job security, equal pay for equal work by keeping
working environment discrimination free, working hours not exceeding a particular
limit etc. Zara also consider that production process may effect health of their
workers, so to compensate this they give workers health insurance. Companies by
doing constant ethical work improves their goodwill which helps them in creating
brand loyalty which is very difficult to create now a day (Holt, 2018).
Ethical philosophy which Zara follow
Zara is one of the most successful fashion retailer brand
across world. Zara's core values are generally founded in
the four simple terms such as beauty, clarity, its
functionality as well as sustainability. The top secret of
Zara's success has become largely being driven by its
capability to maintain with the rapid modifications in
fashion brands as well as showcase in its real collections
with a very little delay. Zara is nurturing a highly intimate
relationship with this customers, its designer responds
instinctively to their altering requirements, reacting to the
most updated trends as well as consent the feedback that is
generally received among its customers such as kids,
women, men's collection. It is because Zara delivers its
new concepts in the right place and at the right time.

From the very beginning, the
organization found a particular gap in the
market which a few clothing brands had
significantly addressed. As it was to maintain
the pace with its latest fashion trends and offers
the clothing collection which are basically a
combination of the high quality as well as are
very much affordable. Zara keeps a close watch
on how the trends of style is altering as well as
evolving on daily basis across nation. Fashions
which are based on the latest trends and styles
will create a new design and put them into
stores in an early week. Zara is further
increasing its quality of the services which they
are furnishing to their customers. It also
involves the radio frequency identification
technology which generally uses the keen edge
systems so as to track the garment locations
instantly as well as making those the most in
demand which are easy for its customers. Such
technology has make the organization to
complete the implementation of its coordinated
management system in the market in which it
can direct its incorporate store as well as an
online platform (Hughes, 2019).
Ethical challenges faced by Zara.
The challenges which were faced by Zara as the variety of
stakeholders will affect the outcomes of organization. It includes the
workers, customers, suppliers, the government organizations as well as the
investors. The ethical challenges which are faced by organization includes
the use of wool, leather, an exotic hairs of animals. The animal welfare
policy bans the fur, angora as well as animal testing in their clothes products.
Finally, the organization gives no pieces of evidences as it traces any animal
product to the first stage of production. The another challenges which were
faced by the brand is rivalry, sustainability as well as e-commerce. And, to
continue its global expansion, the brand has made a step towards the digital
increase even before the pandemic hit and it paid off.
So far in 2020, the brand reported about 74% increase in the online
sale alone. The brand can tally on an artificial intelligence so as to make a
divergence by exploring the trends of the bestselling products to support its
e-commerce sales. Moreover, the brand includes a unique approach to
handle the altering demands which enables the organization to become
broadly flourishing as well as leading business enterprises in fashion retail
organization. In this, most of the organizations are still troubled to deal with
the fast altering surroundings, procedures as well as inventory costs. The
arrivals of new style trends make forces the retailers to adapt the new
collections. In addition to this, one of the biggest challenges which are faced
by brand is the elevated costs in its chain distribution that is linked with the
broadening operations outside the Spain (Leung, and Barnes, 2020).
key stakeholders of ZARA and their role in maintaining business
standards of the organization
The key stakeholders which are involved in the organization are the two types such as internal and the external stakeholders. The
key stakeholders are as mentioned below:
Internal Stakeholders: They are basically the part of the Zara organization and contains a voting power. The internal
are the major investors of the organization as well as a part of board of director, as they can modify or change the direction of the
organization. It can involve such as workers, managers, suppliers (Karajovic, Kim and Laskowski, 2019).
External Stakeholders: It involves role in investment and disinvestment. They do not take part in any of the internal
process of the organization. It involves the stakeholders such as, customers, the funding government, an investor. As these plays
an important part in a particular business. Without them, the organization will not be as successful as it becomes right now.
The first stakeholders of the Zara organization are its owner as it plays an essential role in it. In addition to this, an owner
is the only one who has started the organization as well as the involves the people behind its success of the business. They are the
basic planners and the strategists. As they are the only one who can understand its business well.