Introduction to Supply chain in Zara-An supply chain concerntrates on

need for Corporate Social Responsiblity,working towards production of

products and services ethically,and whether it treats its workers and the
surrounding environment ethically.It revolves around three key elements
namely-

-Economic responsiblity

-Environment responsiblity

-Social responsiblity

Ethical supply chain focusses on -

-Liberty of employment and association

-Exclusion of child labor and slave labor

-Maintaining working conditions that are safe and hygienic for the well being of
employees.

-Working hours and pay should be appropriate.

-Anti bribery and anti corruption

-Awareness regarding environment in which business is operating.

Commitment towards Economic,Environment and Corporate Social

Responsiblity-

Zara's highly responsive supply chain is responsible for its huge success
across the globe.With the help of its bussiness model ZARA intends to
achieve sustainable development of the societyand the environment in which
it operates.This commitment to the environment is the part of corporate social
responsiblity.Some of the actions and objectives in order to fulfill this
commitment are mentioned below-

A. In an attempt to save energy,ZARA is focussing on coming up with the eco-

efficient stores aimed at minimising ecological harm .They are creating special
environmentally responsible management models for their stores.This model
is intended to be applied to all the processess,from the desgn of the
stores,lightning,heating or cooling ystem,to the recycling of furniture and
decorations.
B. It also encourages recycling of hangers and security tags which are
gathered in the stores and are processed to be converted in to some other
plastic item.This measure ensures waste management.

C. ZARA is focussing on oraganising in house commnunication campaigns

and specific multimedia training plans to increase employee's awareness of
the need for sustainable practices such as cutting down energy
consumption,using sustainable transport or modifying behavioral habits.

D. A large number of bags that ZARA offers to its customers are made of
paper.Use of plastic bags is negligible,however it it happens,such plastic bags
are biodegradable which prevents environmental pollution caused by plastic
items.

E. ZARA uses 100% cotton which is completely free of pesticides,chemical

agents and bleaches thereby,promoting environment-friendly agriculuture.

D. Non-toxic materials are used in the manufacturing of footwear.

F. ZARA has taken several measures to reduce emmission of Carbon Dioxide

into the atmosphere by introducing their lorries which runs on bio-diesel
fuel.Thereby, promoting environment friendly policy in the transport.

G. ZARA'S commitment to CSR is reflected by it's animal welafare policy.All

the products that are manufactured using fur and leather are solely from
animal reared in livestock form and not form the animal who are killed for skin
sale.

F. ZARA gives credit of it's success to the motivation,innovation along with the
teamwork and humbleness practiced by its workers.Code of behavior and
responsible practices set out the values and principles that direct their action
and realtionship with customers,shareholders,partners,suppliers and
communities.ZARA promote conducive environment where people from all the
nationalities are promoted without being judged on the basis of race,gender,or
any ethinicty.Apart from giving employemnt opportunities,company ensures
healthy and safe working conditions for its employees.Sufficient training
programs are conducted so as to promote overall development of
employees.All the payment format linked variable pay to the company's
results, so as to recognise the contribution made by each employee.

SUMMARY-Thus,Supply chain ethics revolves aroun the concept of

knowing the supplier,business must ensure that suppliers are adhering
to the standards set in supply chain and they are not violating the
ethical code.Companies must ensure that they are providing right
information to the customers and are being open about their supply
chains.Suppliers must be verified so as to ensure that they are operating
in complaince with the regulations.Consumers today,apart form
shopping are keen to know that how the products are produced,and they
are not willing to be associated with such brands who are exploiting or
abusing those who are involved in production of goods.Customers
believe that they will only invest in those products which are produced
in ethical way.Companies can ensure Supply chain ethics by ensuring
Transparency throughout a supply chain and companies must know
who their suppliers are.