Examining Corporate Social Responsibility Impact on Zara's Performance

This report delves into the impact of Corporate Social Responsibility (CSR) on Zara's organizational performance. It begins with an introduction to CSR, defining it as a form of self-regulation aimed at contributing to societal objectives through ethical practices. The report then explores the literature review, examining the benefits of CSR to businesses, including enhanced brand reputation, consumer engagement, employee engagement, and improved relationships with consumers. The analysis includes an examination of Zara's CSR initiatives, such as energy consumption reduction and sustainable material usage. The report also identifies the challenges faced by businesses in implementing CSR activities, such as cost considerations and quality control issues. The research aims to examine the impact of CSR on Zara's performance, with objectives to determine the benefits, analyze the impact, and identify challenges. The study includes research questions to guide the investigation. The report provides a comprehensive overview of Zara's CSR efforts, performance impacts, and the challenges faced by the company in its sustainability initiatives.

BUSINESS
RESEARCH PLAN

Table of Contents
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW ...............................................................................................................5
RESEARCH AIMS/OBJECTIVES.................................................................................................8
RESEARCH METHODOLOGY.....................................................................................................8
SAMPLING ..................................................................................................................................10
ACCESSIBILITY .........................................................................................................................10
ETHICAL ISSUES........................................................................................................................11
SIGNIFICANCE ...........................................................................................................................11
DELIVERABLES..........................................................................................................................11
REQUIRED RESOURCES ..........................................................................................................12
IMPLEMENTATION TIME TABLE ..........................................................................................12
BUSINESS RESEARCH PLAN EVALUATION .......................................................................15
REFERENCES..............................................................................................................................17

Title: To examine impact of Corporate Social Responsibility on organisational
performance. A study on Zara.
INTRODUCTION
Corporate social responsibility is type of the international private business of self
regulation which aim is to contribution to the societal objectives of activist and philanthropic
through ethically-oriented practices. Considered at organisational level, Corporate social
responsibility is understood as strategic initiative which contributes to reputation of brand. The
initiatives of the social responsibility should coherently connect with and integrated into business
model to successful. In context to this, the firms many engage in the Corporate social
responsibility for the ethical or strategic purpose (Casey and Grenier, 2015). Corporate social
responsibility can be contribute to profit of company if brand voluntarily self-report both
negative and positive outcomes of endeavours. The main benefit of Corporate social
responsibility is to do the better things for the people of society and also enhance the reputation
of business. It is helpful to mission of company and serve as guide to what firm represents for its
customers. On the other hand, business ethics is part of the applied ethics which analyse the
ethical issues arise in business environment. Corporate social responsibility has attracted the
attention from businesses as well as stakeholders range.
Zara is Spanish apparel retailer based in Galicia. This firm is specialise in the fast fashion
goods consist accessories, swimwear, beauty, clothing and the perfumes. It was founded in year
1974 by Amancio Ortega, Rosalía Mera. The stores of Zara have women and men clothing along
with the children clothing. The products of Zara are mainly supplied on the basis of customer
trends. The responsive supply chain of Zara ships the new goods to the stored twice a week.
Initiatives of Zara consist an effort to reduce consumption of energy by 20% in all its stores,
automated recycling hanger system that pick up the plastic as well as processes elements from
stores, use of the organic cotton and ecological fabrics in products (Kim And et. al., 2017). In
regards to this, sustainable fashion is developing and also provided the trends to customers that
will keep developing more and also stay. The competitors of Zara fashion like H&M continue to
be come out with the same commitments. When the new fashion firms like Reformation and
Everlane have been developed from ground up with proper sustainability will be come forwards
and the big brand will face the main complexities. On the other hand, recycling of the security
tags and hangers are gathered in stores and also processed to transformed in plastic items. Use of

the paper bags, Zara provides out to the consumers are made of the paper. Plastic bags are
mainly used in minority of the case at certain times like sales campaign. All plastic bags they
mainly use biodegradable which can decompose by natural biodegradable process that prevents
environmental pollution caused through the traditional plastic.

LITERATURE REVIEW
Literature review is comprehensive summary of the previous investigation to specific
subject area. It surveys books, scholar articles, magazines, journals and some other sources to
particular research area. The main purpose of literature review is to provide the knowledge
foundation on topic. This helps in determine areas of the prior scholarship in order to prevent the
duplication and provide the credit to investigators. There has been analyse the opinion or
viewpoints of authors on the impact of Corporate Social Responsibility on organisational
performance (Kim, 2019).
Benefits of Corporate Social Responsibility to business
According to Ellie Collier (2019) Corporate social responsibility is regarding to an
organisation that is mainly responsible for impact of operations and decisions on all the society
aspects and environment. Corporate social responsibility is more than donating the money and
also contributes to well being or health of community. It is when an organisation mainly operated
in sustainable and ethical manner and also deals with environment. It means careful
consideration of the human rights, environment, society and community under which this
operates. In regards to this, customers are aware of significance of the social responsibility and
seek the goods from businesses which ethically operate. Corporate social responsibility
demonstrate that business takes interest in social issues than just to those which impact the profit
margin. On the other hand, firms are ramping up focus on the social responsibility which can be
related to rights of women, protecting environment attempting to be obliterate poverty on
national and global level. Mainly the social responsible firms project attractive more to
shareholders and customers both. There are some advantages of Corporate Social Responsibility
to business mention below:
Developing better business profile- Showing that business is ready to do the better things
to community is one of the better way to develop the favourable brand relations. In this,
contributing to well- organised and successful volunteer program is one of the effective way to
enhance profile, make improvement in reputation of company and maintain image in adversity
face through demonstrating commitment to the worthy causes. Taking the part in to corporate
volunteerism can enhance the local media coverage of activities, aids in develop brand awareness
and develop good perception of business.

Enhance consumer engagement- If company is using the sustainable system they it may
shout from rooftops. Company can post on different channels of social media and develop story
of efforts. Company should show efforts to the outlets of local media in hope they will provide
some coverage. The consumers will follow it and also engage brand as well as operations (de
Jong and van der Meer, 2017).
High employee engagement- Same as customer engagement, company requires to assure
that the staff members are aware about the Corporate social responsibility strategies. This is
proven that staff members enjoy to be working more for an organisation which has better public
reputation. Through showing that company is committed to the things such as human right then
this helps in attract as well as sustain top candidates.
Promote the personal and professional growth- Giving the staff members opportunity to
be engage in socially responsible activities of company that many advantage from teaching the
staff members new skills which can used in workplace. Through taking the actions outside of
continuous work responsibilities, staff members have better opportunity to contribute to work,
feel passionate and helps yo enrich perspectives. Through supporting the activities, firm promote
the development as well as support of staff members (Xia and et. al., 2018).
Increase better relationship with consumers- Robust framework of Corporate social
responsibility is necessary for developing as well as maintaining the trust among firm and
consumers. This can strengths the relationship from the alliances and also develop the strong
relationship with new and existing consumers. The main way to attain it through providing the
same or pro-bono services where an organisation can partner with the non- profit firm in order to
support public value outcomes that have less or no resources.
Impact of the Corporate Social Responsibility on performance of Zara
As per opinion of Tony Latter (2019) Businesses with better Corporate Social
Responsibility can be drive performance and enhance the retention rates. This is all about
business is being accountable for practices and activities which impact on environment,
community and also society in general. Besides potential loss of the socially conscious
customers, Corporate Social Responsibility impacts the ability of business in order to attract the
top talent and impact on job satisfaction level as well as retention rates. Next generation of the
workers entering workforce that seek out managers with clear as well as effective strategy of
Corporate Social Responsibility. Zara conducted Corporate Social Responsibility in order to

attract the customers and also develop the positive brand reputation. Mainly the Corporate Social
Responsibility develops positive impact on performance of Zara business as people have the
positive outlook towards way that operate as well as align methods, far likely to be engaged in
work and also dedicated to helping business attain objectives. On the other hand, to be embed
successfully CSR program into culture of company then it is necessary to make this central to
communication and also continuous action plan. Corporate Social Responsibility is attained
when business mainly adapts all practices in order to assure that this operated in a way that meets
ethical, commercial and legal expectations which society has business. There are many initiatives
through the policy makers and also different representatives to spread idea of the socially
responsible behaviour. On other other hand, strong Corporate Social Responsibility initiatives is
main component to make improvement in reputation of firm and assist position as responsible
and ethical alternative to competitors. This serves to develop as well as retain trust among firm
and consumers. This helps in attracting the new business, enhancing market share and
reinforcing the existing relationship. Other than this, company develops the engagement culture.
Each employee wants to be feel proud of company for which they work. If people have the
positive outlook towards way they operate and also align with methods they are likely to
engaged in work and also dedicates to assisting business for attaining objectives. Perceptions of
Corporate Social Responsibility programs stated that the 86% satisfied with CSR commitment of
employer has the high engagement level. In regards to this, engaged workforce is necessary
component for making the business successful (Kim, Woo Uysal and Kwon, 2018).
Challenges faced by business in implementing CSR activities
As per opinion of Laura Gimenez (2020) Zara is fast fashion Spanish organisation and it
has become milestone after revolutionizing sector and also have successes few brands that stands
between best in class. This organisation uses the resources which are use fully labour in regards
to process making that contains the harmful substances in production of products. Stakeholder
has power to be stop unethical incidents consisting making event for prevention of the harm
towards consumers. CSR covers wider spectrum of the problems which should be taken in
account in conducting business. In regards to this, company mainly concerns regarding the cost
saving and also efficiency to make in Taiwan that cause harm which endanger wearer as well as
the unethical problems. The consumers are mainly warned to attentive to country of the origin
and also material tags at the time of shopping. Items are minimum costly in order to fir to

demand of market as it did not estimate the unextended incidents from happening like risk of
having the skin issues, anxiety and others. On the other hand, Zara company was detected with
63% of 141 sample contains and the plasticisers, cancer materials in the clothing as there is not
regulations against the NPE use. There is appeal not to use chemicals firm takes long to be
promise for elimination of hazardous materials (Majeed, Aziz and Saleem, 2015). Zara has the
ineffective quality control and minimum corporate social responsibility as comparison to other
brads for an instance Adidas which has no discharge of the hazardous materials. Cost consist to
switch to the high quality materials along with the eco- friendly disposal process with advantages
consists staying ahead in the healthcare reform and also educating the members on impact of
legislation because of environment policy. Other than this, hazardous materials contributes to the
water pollutants and human heath where garments are produced. This kind of detection will
develop doubt and also wariness for consumers to ban this brand or they have the choice to
search alternatives. Market shareholders which engage in the economic transaction are mainly
responsible in environment that concern to give society safe and also durable services or
products.
RESEARCH AIMS/OBJECTIVES
Aim
To examine impact of Corporate Social Responsibility on organisational performance. A
study on Zara.
Objectives
 To determine benefits of Corporate Social Responsibility to business.
 To analyse the impact of the Corporate Social Responsibility on performance of Zara.
 To identify challenges faced by business in implementing CSR activities.
Questions
 What are the advantages of Corporate Social Responsibility to business?
 What is the impact of Corporate Social Responsibility on performance of Zara?
 Which challenges faced through the business in implementing CSR related activities?
RESEARCH METHODOLOGY
Research methodology introduces to the important process of data collection and data
analysis. This process is useful for researcher in gathering of qualitative or quantitative

information regarding specific field of study. This section of research project includes different
aspects which will be essential and beneficial for investigator in accomplishment of research aim
and objectives. There are some aspects which will be described as below:
Research philosophy: This refers to the process of collecting and analysing appropriate
information regarding the topic. This section of research methodology divided into two
significant types which are positivism and interpretivisim. Both types are essential but for
conducting present investigation, positivism philosophy is more useful and valuable. This
philosophy helps investigator in conducting of quantitative study within minimum time period.
Interpretivisim is another type that will be not useful for doing this study because it requires data
in form of qualitative that results in maximum time as well as resources (Cha, Yi and Bagozzi,
2016).
Research approach: This is an essential process of data analysis that have two types are
known as inductive and deductive. Inductive approach of the research is use for analysing
qualitative information, whereas deductive approach is useful in analysing of quantitative
information. Therefore, both approaches of research are essential but for presenting current
investigation, deductive approach is suitable. Main reason behind selecting deductive approach is
it helps researcher in analysing of quantitative or numerical information in less time. Inductive
approach is not useful for conducting this study because it is completely based of qualitative data
that takes more resources as well as time (Chen, Srinidhi, Tsang and Yu, 2016).
Research strategy: This refers to the process of collecting primary and secondary
information through different strategies. There are different strategies of data collection such as
experimental research, case study research, action research, survey, interview or systematic
literature review. All these are consider important strategies of data collection but for gathering
data about the impact of Corporate Social Responsibility on organisational performance, survey
and systematic literature review are useful. Survey will be used for collecting primary
information and systematic literature review is using for gathering secondary information.
Therefore, both strategies are useful for conducting current study in systematic and effective
manner.
Research choice: There are basically three choice of study available for researcher such
as mono method, mixed method and multi choice. These are effective choice but for conducting
study over the impact of Corporate Social Responsibility on organisational performance, mono

method is a best choice. This method helps researcher in gathering of only one type of data,
either qualitative or quantitative. Within an investigation, quantitative information will be used
because it not requires maximum time and also facilitate in gathering of numerical data.
Qualitative data is not valuable for conducting this investigation because it requires additional
time and resources. Thus, quantitative information under mono method is best choice for
researcher in attainment of aim and objectives of the study (Sanclemente-Téllez, 2017).
Research instruments: There are various instruments that assist investigator in gathering
of primary information. These instruments are questionnaire, interview, observation, focus
group, experiments etc. All these are consider effective and useful research instruments that will
be essential in gathering of appropriate information about the specific field of study. In order to
gather primary information regarding the impact of Corporate Social Responsibility on
organisational performance, questionnaire will be used by researcher. This is an effective
instrument and helps investigator in gathering of reliable and valid data within less time
(Manchiraju and Rajgopal, 2017).
SAMPLING
Sampling introduces to the systematic process of selecting sample out of total population.
There are two essential techniques of sample selection such as probability sampling and non-
probability sampling. In order to select sample according to the current study, probability
sampling is useful because it helps in selection of larger sample in minimum period of time. By
using probability sampling, 40 employees of Zara will be selected randomly. Main reason behind
using simple random sampling method under probability sampling is it facilitate in selection of
large base of sample within less period of time (Rim and Kim, 2016). On the other hand, non-
probability sampling is not useful within an investigation because it require more time and not
helps in selection of larger number of sample.
ACCESSIBILITY
This is important for researcher to take permission for collecting information about the
research topic to the research participants (Morsing and Spence, 2019). According to the current
investigation, it is necessary for researcher to take access from the Zara in collecting of data
about the impact of CSR on organisational performance to their employees. Thus, it is important
for researcher in completing of full project systematically and effectively.

ETHICAL ISSUES
This is also consider essential part of the business research because it helps investigator
in completion of full project ethically. There are number of research ethics principles that must
be use by researcher for conducting this investigation. These principles are; minimising the risk
of harm, avoiding deceptive practices, providing the right to withdraw, obtaining informed
consent, protecting anonymity and confidentiality. All these are consider useful principles of
research ethics and helps researcher in completion of each and every activity systematically and
ethically (Supanti and Butcher, 2019)
SIGNIFICANCE
Corporate social responsibility is important for organisational performance and success of
company. There are different advantages of using CSR within an organisation. These advantages
are improved public image, increased brand awareness and recognition, cost saving, an
advantage over competitors, increased customer engagement, more benefits for employees etc.
All these are consider biggest advantages for Zara while using corporate social responsibility.
Along with this, current investigation is significant at personal and also academic level. At
personal level, this study support researcher by improving their research skills such as literature
review, data collection, data analysis, time management and many other (Rim, Yang and Lee,
2016). All these are essential skills for researcher in completion of full project timely and
systematically.
DELIVERABLES
This is an important part of doing business research in systematic manner. For this
section, work break down structure will be used because it helps investigator by dividing entire
work in small group. It is mainly classifying the work within the hierarchical form so that the
researcher or project team can manage all activities easily. Through this, management team of
the project is able to identify information about the all section which can assist them in
accomplishment of task effectively. This is mainly the outline structure which helps the project
management team to look the further division within the business research. There are major
deliverable, that are further classified into sub deliverables and this is further allotted to the
individual who will be involved in this project. This is essential for organisation or researcher
effectively allocated the budget to the each activity and via this, the proper budget can be

identified by the researcher. Thus, work break down structure is essential for investigator in
completing full project successfully (Wang and Sarkis, 2017).
REQUIRED RESOURCES
In order to conduct research, there will be requirement for using different resources such
as books, magazines, publication study etc. All these are essential resources for researcher in
conducting of this study successfully. Along with this, there are also some resources that will be
require by researcher for doing this investigation, these resources are capital, communication,
time etc. These are useful and valuable resources for investigator in completion of full project
systematically (Joseph and et. al., 2016).
IMPLEMENTATION TIME TABLE
Time is important for completing each activity of research in systematic manner. For this,
Gantt chart will be used by investigator for identifying starting and ending time of research
completion. Gantt chart is a time management tool that facilitate investigator in completion of
each activity of study within allotted time period. In this tool, different activities has been
included that helps researcher in completion of full business research plan systematically and
effectively (Hildebrand and et. al., 2017).