Zara's CSR 2.0: A Detailed Case Study on Sustainable Practices

This case study examines Zara's journey towards sustainability and ethical business practices. It begins by introducing Zara's history and its unique selling points, highlighting its fast fashion concept, just-in-time production, and strong visual merchandising. The study then delves into the factors contributing to Zara's success, including shorter lead times, customer co-creation, efficient supply chain management, and a strong organizational culture. It further explores Zara's business principles, focusing on optimizing ordering, fulfillment, design, and manufacturing processes. The case study emphasizes Zara's commitment to business sustainability through environmental initiatives, waste reduction, and the promotion of eco-friendly practices. It also discusses Zara's sustainability leadership, ethical achievements, and future initiatives, such as the 'Closing the Loop' program and the adoption of green cloth selling. The analysis concludes by highlighting Zara's high ethical ratings, its ban on child labor and forced labor, and its commitment to maintaining standard living wages and transparency in its supply chain. Students can find similar case studies and solved assignments on Desklib to aid their understanding.

Introducing ZARA

History of journey for ZARA
• Started journey as Fashion brand of Inditex Group.
• Established their first store in Spain as Spanish fashion store during the
1975.
• In 1985, Amancio Ortega integrated Zara in a new holding company,
Industria de Diseño Textil, INDITEX S.A.
• The Zara fashion concept came in during later on 1976.
• During 1981-1988 Zara multiplied their stores into different cities of
Spain.
• In late 1988 Zara expanded their business into different countries.
• During 2003 the company entered into the home furnishing market and
opened a home fashion store.
• Currently present in 73 countries.
• Worker of more than 1540 stores.
• Identically in major cities world wide.

Identifying Unique selling point
• Create or imitate the latest trend with in a short span of time.
• The new style are available on sales floor of Zara for no longer than 4
weeks.
• Policy of zero advertising policy.
• Just in time production.
• Catwalik trend fast translator.
• Strong VM window display as public tool.
• Luxury store experience.

• Shorter lead time and fashionable products.
• Lower quantities through source supply.
• More styles product.
• Customer co-creation.
• Super efficient supply chain management process.
• Sustainability at the core of Zara’s operation.
• Strong organizational culture through promoting approximately 90 5
of their store manager from internal and generally experiences low
turn over.
• Strong marketing strategy with the spending of 0.3 percent of sales
on advertising compares to 3.5 % by the competitors.
• Following zero future brand and business challenges.
• Service through listening their customer.
Zara’s success

Zara business principles
• Business principles to
optimize their business
operation mainly in three
cyclical process
• Ordering process
optimization
• Fulfilling of order
• Design and manufacturing
optimization.
• Keeping up with fashion.
• Short lead time and quick
response to the market.
• Reducing risk through reducing
the quantity of manufactured.
• Ownership control production.

Business sustainability
• Business sustainability through the development of the sustainability
community.
• Inclusion of the environmental community.
• Developing eco efficient store for the energy saves.
• Zara reduces the production of wastage and encourages recycling.
• Increasing sustainable awareness among the team member.

Sustainability leadership
• Environmental practice at customer service.
• Environmental policies with thee product.
• Adoption of the environmental policy in the transport.
• Adoption of animal welfare policy.
• Adoption of the unbiased internal auditing into the operational
activities.
• Opportunity of achieving net zero emission through targeting a
reduction of 15% emission of Co2 from their business process by
2020.
• Developing textile products with eco friendly fabric and particularly
organic cotton.

Further initiatives
• Repair and reuse program called Closing the Loop.
• Green gas protocol plan.
• Master action plan for reducing the water footprint.
• New initiative by the adoption of the green cloth selling
from 2016.
• Eco-level join life initiative.

Ethical achievement
• Depending on the ethical fashion report the company grades at A+.
• Maintain standard living wages.
• Transparency and worker empowerment initiatives.
• A+ in company policies or corporate governance, auditing and supply
relation.
• Scored A for the supply chain management strategy. And maintain
ethical value into the operation.
• Ban on child labour, forbidding any employees under the age of 16 to
work in their factories.
• Ban on forced labor and discrimination in the workplace.

Reference list
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