Zara unveils initiatives for supply chain controls

16 Sep '11

5 min read

"We would like to thank all the parties involved in this process for their efforts to safeguard appropriate working conditions. The commitment of all parties and their collective responsibility is the best way to achieve this objective”, said the president of Zara Brazil, Enrique Huerta.

Social responsibility policy at Zara
All of these measures fall under the umbrella of the social responsibility strategy deployed by Zara throughout its global supply chain. As evidence of its CSR pledge, Zara communicated to the Human Rights Committee how the initiatives undertaken in several countries where it cooperates with entities such as the ITGLWF, with which it has a global agreement, have enabled the firm to contribute to upholding workers' rights.

The presentation also drew attention to Inditex's membership of international platforms such as the UN's Global Compact, which dates back to 2001, making it the first Spanish company to have joined the Compact. Inditex has also been a member of the Ethical Trading Initiative since 2005. This organisation brings together unions, NGOs and international companies from all over the world and its Code, the most stringent in the sector, was incorporated into Inditex's Code of Conduct in July 2007.

Further proof of the solidity of its social responsibility policy is Inditex's inclusion in the Dow Jones Sustainability Index for the first time in 2001 and in the FTSE4Good Index two years later. The company's shares have been included in both indexes every year since then during which time Inditex' scores on labour practices and supplier relationships have been increasing.

Lastly, Zara informed the Committee of Inditex's participation in the ILO's Better Work Program for the implementation of minimum labour standards in developing nations, and in the Better Cotton Initiative, designed to promote decent working conditions in cotton growing regions.

Zara's presence in Brazil dates back to 1999, when it opened its first store in São Paulo in the Morumbi shopping centre. Since then, the company has been steadily increasing its presence in the country and today has 31 stores in shopping centres across a number of states (São Paulo, Rio de Janeiro, Paraná, Minas Gerais, Rio Grande do Sul, Pernambuco, Bahia, Santa Catarina, Espírito Santo, Goiás and in the Federal District). Zara employs close to 2,000 workers in Brazil. In addition to its store network, Zara has a warehouse in Brazil from which it serves its stores in Brazil, other countries in the Americas and, since this year, Australia and South Africa.

Today, Brazil is Inditex's third most important market in the Americas, after Mexico and the US. Last year, Zara bought nearly five million garments made in Brazil, equivalent to 40% of Brazilian store sales volumes. In all, Zara's Brazilian supplier base provides work for over 7,000 people.

Inditex, which owns Zara as well as seven other fashion concepts, is one of the world's largest fashion distribution groups with over 5,200 stores in 78 countries.

Inditex Group

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