Inditex (Industria de Diseño Textil, S.A.) is one of the most important Spanish company and the world's largest fashion group (formed by different brands: Zara, Massimo Dutti, Bershka, Oysho, Pull and Bear, Stradivarius, Zara Home, Tempe and Uterqüe). The headquarter of the firm is located in Arteixo (A Coruña, Spain) that was also the location of the first Zara´s shop In 1975. Since that day the company began its incredible growth, and today has more than 5.400 shops in 78 different countries worldwide.
During the last days I have been investigating, about the Corporate social responsibility strategy of the firm, its reputational risks, and the scandals that had to face during the last ...view middle of the document...
More than 30 plants were closed in Brazil, and investigations are still continuing.
* In the past years there have been also rumors about the existence of a ship surfing in international waters where workers were manufacturing clothes for Zara (personally I think it is only imagination)
After having read this news my first question was: Is the CSR strategy really applied or it is only a theory? Is the aim of the CSR strategy a mean to prevent this kind of problems or an excuse to transfer them to supplier?
It is not easy to answer to these questions, but if we analyze the environment, the different social situations, and the needs of the business we can understand that it is very difficult for Inditex to eliminate this kind of troubles. The business model require low costs of production, and very short cycle of manufacturing and the best way to achieve these goals is to outsource the production and find suppliers located in countries where the labor cost is low. Very often these supplier (that have been previous evaluated by Inditex) sub contract other company in order to respect the delivery time, how can Inditex have a control on this third part? I understand that this is almost impossible, I think the company should try to find a solution in order to have a total control, but at the same time I admit that in many case the real problem is not the process or the structure of the supply chain, is a deeper problem regarding the culture of some country and it is not easy to change.
Changing topic, I...