CASE STUDY : Multinational Outsourcing and CSR. Inditex: The worldwide outsourcing garment industry and social community development in Morocco “Intermón claims that pressures on foreign clothing suppliers are smothering employees. […] In Morocco, where Cortefiel, Inditex (Zara), Mango and Induyco (El Corte Inglés) manufacture their products, a Tangier based textile factory sold a pair of slacks to large Spanish retailers for 3.3 euros three years ago; today, the same item sells for 2 euros. Female factory workers work 12 to 16 hours a day during the high season, because orders from Spain demand six ‐ day delivery terms in order to suit shop window change schedules.” (El País Newspaper, “Mujeres en…show more content… By the end of the 1970s, there were half a dozen Zara stores in Galicia, Spain. In 1985, Inditex S.A. was established as a holding company atop Zara. Since then, its expansion gathered momentum: the first store outside Spain was opened in 1988 (in Portugal), and, between 1989 and 1998, the company expanded to 18 additional countries, developing or acquiring other fashion brands, such as Pull and Bear and Massimo Dutti. Throughout this process, the Group underwent deep structural changes and went from being an exclusively Spain ‐ based producing chain in 1980 to deploying, by 2005, company audited and certified production centers and providers in the Americas, Africa, Europe and Asia. This new scheme posed new challenges for Inditex, especially in terms of labor, social and economic concerns regarding its employees, its suppliers and outsourcing shops, as the company struggled to uphold the values and principles inspiring the Group’s CSR strategies. Zara was a successful store, and success brings visibility. For several, reasons, both the media and the NGO community had their eyes set on Zara, a fact the company could not ignore.
culture based on ethics and respect and translate into more than just aesthetic moves. So, is Inditex really and globally committed to CSR?