1. Zara and the Ethics of Sustainability in Fast Fashion
IBECC 2018

2. The Problem 13 million tons of textile waste was generated in 2013
The consumption of cheap throw away fashion made of cheap materials perpetuates this damaging cycle.
Environmentally damaging

3. Effects of fast fashion on the environment
Low cost, low quality, trend based fashion is throw away fashion
Cotton is a major source of pollution and can’t be recycled as easily leading to more and more clothing that is produced and ends up as waste
Most SHC that is donated ends up going to other countries and into their waste cycles.
Imports of SHC is slowing down
Majority of synthetic fibers or synthetic blends are not biodegradable.
52 seasons vs. 4 seasons

4. Inditex & Zara
Zara is one of the leaders in what has become known as “fast fashion.”
Runway looks to stores as fast as possible
Large amounts of waste
Low-quality clothing cannot be recycled

5. Right to Wear
“Our aim is to create beautiful, ethical, quality products that are not only right for our customers, but right for the people who work for us, right for communities and right for the environment. Our aim is to create fashion that is Right to Wear.”[1]
[1]

6. Right to Wear Closing the loop by 2020 Join life collection in 2016
TENCEL & Refibra

7. Solutions Short Term: Long Term:
Making clothing from materials such as TENCEL and Refibra
Donation of clothing at stores with incentives
Educate and inform through the use of certifications and green labels
Long Term:
Post consumer cotton waste> Refibra
Completely upcycled clothing line
Completely circular model from complete with use of post consumer “waste”

8. LEGAL

9. Zara’s commitment to sustainability
Four key words:
Beauty
Clarity
Functionality
Sustainability

10. Traceability Taking responsibility:
Because of the complex apparel industry supply chains, it is hard for companies to ensure that their practices are ethical
Zara can show their consumers and stakeholders that they are in fact ethical by the use of labelling and be the first major brand the U.S. to have a traceability aspect to their clothes
Traceability is one of Zara’s Right to Wear promises

11. Labels Fairtrade textile standards(int’l)
Transparency improves consumer willingness to buy
TENCEL and Refibra already have Fairtrade and EU ecolabel
Fairtrade textile standards(int’l)
Oeko-Tex Made in Green label (int’l)
Eu ecolabel for textiles (EU)
Environment
Minimimal harm, no GM, biodiversity
Tested for harmful substances & environmentally friendly
Sustainable fibre, durable, less polluting, strict restrictions on hazardous substances
Socioeconomic
Improve working and living conditions
Safe and responsible workplace
N/A
Accountability
Proper controls regarding claims and product traceability
Unique ID # can trace any part of production
Independently certified
Egels-Zandén, Niklas, and Niklas Hansson. “Supply Chain Transparency as a Consumer or Corporate Tool: The Case of Nudie Jeans Co.” Journal of Consumer Policy, vol. 39, no. 4, 2015, pp. 377–395., doi: /s

12. Relevant Statutes The FTC Act 15 U.S.C. § 70a U.S. Laws E.U. Laws
Part 303 Rules and Regulations under the Textile Fiber Products Identification Act
§303.2 (a) Each textile fiber product, except those exempted or excluded under section 12 of the Act, shall be labeled or invoiced in conformity with the requirements of the Act and regulations.
(b)Any advertising of textile fiber products subject to the Acts shall be in conformity with the requirements of the Act and regulations.
E.U. Laws
REGULATION (EU) No 1007/2011 OF THE EUROPEAN PARLIAMENT
Requires that textile products sold in the EU be labelled or marked to provide information about their fibre composition
The FTC Act 15 U.S.C. § 70a
Misbranding or false advertising is unlawful

13. False advertising
Nordstrom, Bed Bath & Beyond have faced monetary penalties for using false descriptive words
Avoiding false advertising-deceptive description words “organic,” “natural”
Labeling and certification by third parties can help avoid this

14. Balancing Policies Public Policies
Zara is required to label their clothing in the U.S. and EU in compliance with textile labeling rules
Zara needs to stay away from false advertising
Zara’s Policies
At Inditex, we want to close the loop and move towards a circular economy – developing a complete and efficient life cycle for our products, in which nothing goes to waste.
We want to make it as easy as possible for our customers to reuse and recycle.
Aims for a traceability aspect

15. Financial

16. Generation We
“This group is constantly connected to their digital and offline friends, they value diversity and social justice within a whole new global context and they’ve been raised to learn in teams and work for the collective.
- Mary Meehan, Forbes Magazine

17. Sustainability Pays Conscientious Consumers
66% of Consumers are willing to pay more for sustainable goods. This number is up from 55% in 2014, and 50% in 2013.
73% of Millenials and 72% of members of Generation Z are willing to pay more for sustainable goods. -talk about zara’s demographoic
*New Generation = Millenials and Generation Z

18. Tripartite Plan Designing for Sustainability
Increase Use of Sustainable Materials
Label Effectively
Upcycle Production/Consumption

19. -Ultimately profitable
-More breathable Sustainable/Scalable
-Shrinks less
-Higher rates of perspiration absorption.
-Wrinkles less
-Ultimately profitable

20. Effective Labeling
Average consumer is willing to pay 20-30% more for products with a label indicating ethical production.
This premium offsets increases in production costs, ensuring immediate return on you investment

21. Investing in Tencel However, -Costs 50-100% more
Brands with an especially ethically conscientious customer base can charge even more.
Lyocell is trending!
51% of US consumers are loyal to brands that consistently offer the latest products and services
Material comprises only 20% of retail price of garment.
Final retail price only 10-20% more
Competitive pricing premiums offset increased production costs

22. Circular Economy
Linear Model
Circular Model

23. Upcycling Production External Audit Upmade
-52% Waste reduction, 88% Energy Reduction, 75%water reduction, 10% volume increase
Internal Upcycling Initiative
Ex. Mud jeans
-Mud Jeans before and after upcycling

24. Diversify Services to Upcycle Consumption

25. Ethical

26. Zara’s ethical responsibility
“Our aim is to create beautiful, ethical, quality products that are not only right for our customers, but right for the people who work for us, right for communities and right for the environment. Our aim is to create fashion that is Right to Wear.” -Inditex

27. Why should Zara care more about the environment?
To preserve Zara’s strong character.
To avoid moral outrage.
To preserve our communities.

28. Zara’s character
How Zara portrays themselves and what they stand for says a lot about the company’s character.
“The pressures on our planet’s limited natural resources and the challenge of climate change require prompt and concerted action from us all. We take wide-ranging measures to protect biodiversity, reduce our consumption of water, energy and other resources, avoid waste, and combat climate change.” -Inditex
How does this translate into a strong character that consumers can see?
Consumer are willing to pay more for sustainable clothing.
Consumer are more loyal when they have trust in a brand.

29. Zara’s character
Consumers care about a company’s character, because they want a company with moral standards and integrity.
Consumers will boycott companies that go against their moral standards.
Keep your moral standards high in order to keep business successful and profitable.
You build good character by doing
Good actions.

30. Why should Zara care more about the environment?
To preserve Zara’s strong character.
To avoid moral outrage.
To preserve our communities.

31. Moral outrage
Anger created by a threat to personal justice, fairness, and not doing harm.
Younger generations awareness about global warming can cause moral outrage when a corporation does not abide by the moral standard of justice it has presented.
Therefore, Zara’s ethical standards must continue to protect the environment and communities.

32. Capital Financial Social Buying power Social power Baby Boomers
Millenials and Gen. Z

33. Loyalty Apple and Snapchat Apple and consumer loyalty
Snapchat is a social media site where users can send photos, videos, message one another, and view current news and pop culture.
Snapchat recently changed their format to show loyalty to advertisers.
Social power against this format change:
Resulted in $1.3 billion lose in stocks

34. Why should Zara care more about the environment?
To preserve Zara’s strong character.
To avoid moral outrage.
To preserve our communities.

35. Our communities
Communities are more than just people.
What encompasses a community rely on each other to thrive.
The environment is part of our communities.
Therefore, we have an indirect duty to preserve our communities & environment.
This might be our duty as humans, but how does this relate to corporations?

36. Corporation’s place in our communities
A corporation is a guest in our society.
Like human citizens, corporate citizens have rights as well as obligations.
Citizen’s have an obligation to preserve our communities.
Therefore, just like human citizens corporate citizens also have an obligation to preserve our communities.
Corporations are not exempt from protecting and preserving the environment.

37. One planet. Our planet.

38. Resources
Aristotle. “Nicomachean Ethics.” In Introductory Readings in Ancient Greek and Roman Philosophy, 2nd edition, edited by C.D.C Reeve and Patrick Lee Miller, , Indianapolis: Hackett Publishing Company, Inc, 2015.
Gambrel, J.C. & Cafaro, P. J Agric Environ Ethics (2010) 23: 85.
Hill Jr, Thomas E. (1983). Ideals of human excellence and preserving natural environments. Environmental Ethics 5 (3):
Batson, C. Daniel (2015). What's Wrong with Morality?: A Social-Psychological Perspective. Oxford University Press USA.
Pew Research Center, March, 2018, “The Generation Gap in American Politics.”
Baxter, William F. (2009). People or penguins : the case for optimal pollution. In Steven M. Cahn (ed.), Exploring Ethics: An Introductory Anthology. Oxford University Press.
Leopold, Aldo (forthcoming). The land ethic. Environmental Ethics.
“Kylie Jenner 'Sooo over' Snapchat - and Shares Tumble.” BBC News, BBC, 23 Feb. 2018,
“H&M Apologises over 'Racist' Image of Black Boy in Hoodie - BBC Newsbeat.” BBC News, BBC, 8 Jan. 2018, apologises-over-racist-image-of-black-boy-in-hoodie.

39. Resources
McCaskill, Andrew. “Consumer-Goods' Brands That Demonstrate Commitment to Sustainability Outperform Those That Don't.” What People Watch, Listen To and Buy, 10 Dec. 2015,
McCarthy, Niall, and Felix Richter. “Infographic: IPhone Users Are a Loyal Bunch.” Statista Infographics, 16 Mar. 2014, smartphone-manufacturers/.
Armstrong, Martin, and Felix Richter. “Infographic: Most IPhone Users Never Look Back.” Statista Infographics, 22 May 2017, users-never-look-back/
“What Is Snapchat?” What Is Snapchat?, whatis.snapchat.com/.