Inditex Case Study

6909 Words 28 Pages
Register to read the introduction… So, is Inditex really and globally committed to CSR? (Press release by SETEM NGO, June 15, 2004) In 1992, Levi’s, a U.S. apparel company, was accused of selling jeans manufactured by Chinese immigrants working in slavery ‐ like conditions. In 1994, Kukdong, a Nike and Reebok supplier, was charged for violating labor standards by hiring minors to work up to 10 hours a day and allowing verbal and physical employee abuses. In 1998, charges were brought against Adidas for forcing prison inmates in China to work in despicable conditions. These precedents had driven large textile companies all over the world to adopt socially responsible strategies and policies. Industry leaders, like Nike, H&M, Benetton and Gap, had developed and published codes of conduct that included their commitment to observe and enforce legal labor practices and the principles contained in the Universal Declaration of Human Rights both at their own production plants as well as their suppliers’. This implied the adoption of specific practices, such as inspection, audit and evaluation mechanisms for outsourcing shops. However, many NGOs were still quite skeptical when it came to textile industry practices. Especially noteworthy in this regard was the Clean Clothes Campaign,1 an organization that originated in Holland …show more content…
Soon, he realized that this was a recurrent, time ‐ consuming task involving a constant risk: some shop, anywhere in the world, at any time, could be working for Inditex in severe violation of human rights. Thus, he decided to formulate a CSR strategy that would provide a framework for the group’s production chain. “No large company, public or otherwise, will survive in the future without an ambitious social responsibility plan,” stated Amancio Ortega en 2003. Accordingly, Inditex, under the guidance of Javier Chércoles and with the approval of its Board, had developed a CSR strategy based on its relationship with its stakeholders, which should rely on three core principles: goodwill, dialog and transparency. According to these tenets, Inditex formulated its CSR policies, including: • A code of conduct ; • A social audit program for outsourcing factories and providers ; • Community development programs ; • Production chain strengthening, awareness, sponsorship and patronage initiatives ; • Active involvement in local and international CSR networks and stakeholder engagement venues ; • A first pilot program designed to address the needs of supply chain workers in Morocco. • The CSR department felt that the company’s current purchasing practice ‐

Related Documents