Wednesday, April 17, 2013

Ethical and Compliance Issues

According to Zara's Mission Statement, they are complaint with environmental and social protocols in order to conduct an ethical business. Their commitment not only extends to their own staff, but also to their outsourced factories in using ecological fabrics and sustainable transport.


Zara is aware of what is going on with the world, such as giving 2 Million Euros to the victims of the Haiti Earthquake in cash, not clothes. Clothing is always essential, yet Zara, or its parent company Inditex, understands that complete reconstruction requires money and not products. Zara has stood behind their ethical issues by giving money because they care, and not because they just want to get their name out there.

Zara's overall Code of Conduct, from its parent Company Inditex is as follows (taken from the Inditex website):

All Inditex's operations are developed under an ethical and responsible perspective.
All individuals or entities, who maintain, directly or indirectly, any kind of employment, economic, social and/or industrial relationship with Inditex, are treated fairly and with dignity.
All Inditex's activities are carried out in a manner that most respects the environment.
All manufacturers and suppliers (production centres that are not property of Inditex) fully adhere to these commitments and undertake to ensure that the standards which are set forth in the Code are met.

1. No Forced Labour
2. No Child Labour
3. No Discrimination
4. Respect for freedom of association and collective bargaining
5. No harsh or inhumane treatment
6. Safe and hygienic working conditions
7. Wages are paid
8. Working hours are not excessive
9. Regular employment
10. Traceability of production
11. Health and Safety of Products
12. Environmental Awareness
13. Confidentiality of information

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