MMH733 Ethics for Managers

Analyse the ethically and politically charged nature of managerial work arising from responsibilities towards diverse stakeholder groups.

Propose and evaluate managerial responses to complex ethical and sustainability issues.

Develop a knowledge and capacity to manage in a sustainable, socially responsible and ethical manner.

Your report should address the following:

1. The major challenges, relating to the implementation of SDGs, facing the company. You are expected to focus briefly on the following issues:


What are the current sustainability foci of the company?
Explain what factors are driving the company to manage sustainable development more effectively.
Are SDGs currently being used by the company (implicitly or explicitly) in planning and reporting?
What three (3) SDGs are most relevant to the company and why?
Propose and justify innovative, viable strategies for this company in order to meaningfully contribute toward the three (3) SDGs. What would be appropriate targets and/or indicators to evaluate these strategies?

Answer:

Introduction

Zara is one of the largest international fashion company in the world, it deals with the retail of fashion items in different countries Australia included, the company primarily sells, clothing, footwear and other related accessories (Tiplady, R., 2006). It has been one of the leading companies within the fashion industry with such a huge market share. The company has managed to attain its position due to is international expansion and the favorable legislative frameworks in the different countries the company has opened up. This report helps analyze the different sustainability development goals that have been integrated within the company, and the challenges the company faces while integrating these goals, it will also cover the factors that re enabling the company integrate most of these goals among other areas.

Discussion 

Major challenges relating to the implementation of the SDGs facing Zara company

Implementation of the SDGs by Zara company has not been an easy task although there are a number of SDGs that have already been implemented. It is important to address some of the challenges that made it hard for the company to integrate the goals. One of the leading challenges has been the revenue generated by the company. Implementation of some SDG goals require the company to invest a lot of finances on the goals. Zara has not had that much revenue to spend way from the company projects and development hence making it impossible for the company to set aside the revenue to carry out such projects. Some of these goals that would refer major funding include; the ensuring of inclusive and equitable quality education and promote lifelong learning opportunity for all. The venture involves educational sponsorships among other educational related community ventures but Zara has not fully engaged into such goas since the ventures require a well load of capital invested (Griggs, D et al., 2014). The company has done some minor efforts such as employee training and educative programmes to help further the employee’s knowledge although more should be done.

Other goals such as taking urgent measures to combat climate changes and its impacts, we have had companies that have gone the extra miles to sponsoring tree plantation events among other climate change events other companies have had days off the daily schedules and have joined the community in planting trees among other projects, for Zara such projects have not yet been exploited. This shows some areas the management have failed in identifying since such sectors require no capital investment such as the capital for the education programs. The company has also failed to get involved in other goals since the fall out of the company’s line of operation, this means the company has little knowledge of such areas; goals such as the ensuring the access to affordable, reliable, sustainable and modern energy for all (Griggs, D et al 2013). The company has opened up branches in different parts of the world but has not shown interest in some areas, this leads to the company’s low interest in some areas of development. In return the company fails to get connected to such goals that relate to the sectors. For a company to end up contributing to such sector. We have seen companies in the energy sector in different parts of the word significantly impact the lives of the communities they operate in by providing energy solutions. Some of these solutions have managed to turn the lives of the people around among the communities. Hence conclusively some goals are yet to be integrated in the company after knowledge sharing is exposed to different industries.

There are other goals that have not yet been integrated to the company due to lack of a well-defined sector of the company that is responsible for the integration of SDGs within the company operations. Some sectors within the company helps create a sense of value in the company that keeps reminding thee company of the need for it to integrate such SDGs. With the abscess or with the lack of a motivational factor then the goals are left un solved. Goals such as; promotion of peace and inclusiveness societies for a sustainable development, provide access to justice for all and build effectiveness, accountable ac inclusive institutions for all levels. Such goals require the inner determination of inner force to be attained. The management can play such a huge role in influencing the implementation of such goals. This shows a need for the company to put more effort I meeting the SDGs goals (Murray, C.J., 2015).

The Current Sustainability Foci of Zara Company

On the other hand, there are a number of goals that the company has really managed to integrate in its operations. These goals have had major motivational factor that has led to there implementation.  Ending poverty as the first goal Zara company has perfectly implemented. The company has played a huge role of ending poverty of all types and levels. The company has managed to provide employment for so many people all over the world. The company having different branches internationally, it has provided employment to a huge number of people that work in different sections of the company. It manages to offer all kinds of job opportunities ranging from pert time employment to full time employment, the company outsources to other companies such as modeling companies still providing more job opportunity for the people in the community. This results to employment where the employed team is put in a salary plan by the company that ends up generating revenue for all the employees. This helps in fighting poverty and as the company grows opening more branches, the more the company will provide more job opportunities and, in the meantime, significantly help the fight against poverty. The company through this platform has also heled in meeting another SDG, the company has managed to fight hunger via the provision of the job opportunities. The employees are able to feed properly and at the same time feed their families. This is evident due to a number of researches conducted on Zara operations, a report by (Lu, Y., Nakicenovic, N., Visbeck, M. and Stevance, A.S., 2015) explains that most of Zara’s employees scored a high score in job satisfaction when compared to other companies. The participants were required to respond in relation to better salary payment, allowances among other benefits. This significantly shows the fact that the company pays a fair price for the work done by the employees. Among other benefits. The company has managed to fight hunger in an indirect approach but an effective way.

The company has also managed to integrate other goals such s the achieving of gender equality and empowering all women and girls. The company has managed to include all genders in its team and managed to promote the female gender so as to empower the girl child in the community. This has been seen from the company’s hiring gender equality approach. Being a fashion company achieving gender equality has been a goal that clearly aligns with the women empowerment approach. The company has managed to sponsor different models who have been directly upholding the SDG which entail the empowering of the woman. The company has significantly campaigned for the recognition of the girl child through their business. From a simple review of the company’s website, it is evident that the company has managed to incorporate gender equality aspect to the products that they deliver to the public. This shows the stand Zara company has on the view towards gender equality and the promotion of the girl child as well as women empowerment (Hajer, M et al., 2015). In some parts of the world such as the African continent the company has gotten involved in projects such as the sanitary pads for the ladies where they have gone to different communities and given the women and the girls in the community the sanitary ads as a health campaign for the girl child.

Zara has also gone an extra mile in the and implemented other goals such as improving a and ensuring a healthy lifestyle and also the promotion of the well being of all ages. The company has been on the front line in the promotion of a healthy life by participating in different health campaigns such as the breast cancer campaigns. The company has been a leading campaigner for such activities and events. During these campaigns the company has played a huge role in identifying in a fashion which is designed in line with the health campaign such a cancer by identifying their fashion in pick for such occasions. This shows the company’s effort in integrating the SDGs for a better future. These campaigns ae highly educative and help in the growth of a healthy community. The company has also been involved in other health related campaigns that are with the mission and vison of helping the community. This shows and effectively integrated SDG by Zara company. The company has also Promoted sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. This has been achieved by the increase in the number of people thee company has employed. With the company’s international expansion, this has helped in positively impact the different countries economies that they have ventured in. the company has managed grow the economy of Australia by generating revenue that circulates in the country’s economy (Le Blanc, D., 2015). This has not bee only identified in the country but has been evident for the other countries the company as established. An improved economy means a better life for all the residents of the country. Th company also has offered legal job opportunities for the residents to manage to meet their basic needs which in return help them elevate their situations from chances of falling into poverty. The company has also Strengthened the means of implementation and revitalize the global partnership for sustainable development. Through the expansion into other countries, the company has managed to form many international partnerships with other countries and other businesses all over the world. This has helped the company improve the performance of these companies due to its well-established client base. In the process Zara manages to help these other companies build their image and help them secure a market position in the industry. This shows the level of advanced SDG implementation within the company and their wider effective perspective. The growth of the company is guarantied to elevate the success of this particular SDG to be implemented.

Factors driving the company to manage sustainable development more effectively and how they are implemented (implicitly or explicitly).

There are different factors that has led to the well integration and sustenance of the SDGs by Zara company, one of the main things is the company’s focus on those SDGs in line with their line of operation. As identified earlier some of the goals. The company has managed to achieve some of the goals through its daily operations such as the fight against poverty. The company through its focus on its growth has managed to integrate the aspect of eradicating poverty by the provision of employment. Such a goal is possible to be sustained since the company is continuously growing due to an increase of customer demands. This has set the company in a position of sustaining many employees and at the same time making profits hence it becomes possible for the company to effectively and efficiently support the goal (Hák, T., Janoušková, S. and Moldan, B., 2016). The company has also company laws that protects the employees, these laws have given the employees security of there work and are guaranteed a source of income hence making it possible for them to fight challenges such as hunger. The company policies are inclusive of allowances and other programs which see the success of the company in implementing the SDGs.

The other main reason that has helped the company sustain these goals such as equality of gender and the empowering the women and the girl child. Being in the fashion industry the company has managed to have a major impact to the female gender as well the girl child (Gladwin, T.N., Kennelly, J.J. and Krause, T.S., 1995). The fashion is an industry that has been greatly dominated by the female gender. Taking advantage of the market perception, the company has managed to influence this goal to the society and managed to rally the community in growing the women equality and empowerment campaign. Zara has managed to get its customers promote the goal and advance its agender to the society. Zara has also managed to generate a level revenue that has been set aside for the company’s CSR program which is based on empowering the girl child. the implementation of the CSR program in different branches of the company has helped the company forge stronger relationships with the community hence delivering on the SDGs becomes more possible (Elkington, J., 1994.). The company’s management has also played a huge role in ensuring that the company meets some of these goals. For instance, the educational goals that aims at establishing and educated community, the management has been on the frontline advocating for the employees’ education programs which advances there educational and literacy levels. The management has played such a huge role in ensuring that the company upholds such policies. With such involvement from the management, the other level of employees in the company are significantly motivated to venture in t the education programs hence upholding the SDG goal on educating the community. As the employees continue progressing with the educative classes their level of education tends to rise which in return impacts the community knowledge exposure.

Three (3) SDGs Most Relevant to the Zara company

Among all the listed SDGs Zara company has a number of goals which are more relevant for the company. There are different reasons that make these SDGs more relevant for the company such as their relation to the company’s line of operation and industry among other reasons. The first SDG is Achieve gender equality and empower all women and girls. The company being based in the fashion industry which is dominated by the female gender makes it relevant for the company to integrate the SDG goal on promoting equality among the different genders, empowering the women and the girl child. The company has already made it their main objective and ensured that the goal has been achieved. The main reason as to why this goal is very important for the company is the fact that the company operating on a female dominated industry, pushing or gender equality is easily achievable du to its influence on its customers ( World Health Organization, 2016. ). The larger the customer base the stronger the influence rate. For any company to achieve these goals the key goals are likely to be those goals hat align with the company’s industry of operation this give the company a stepping stone in achieving SDG implementation in the company.

The other SDG very relevant for the company is the goal to make cities and human settlements inclusive, safe, resilient and sustainable. This is helping the communities attain more safety among other features. With the increase in safety the company can manage to increase its revenue in different parts of the globe. Safety has been one of the major concerns in different parts of the country and the world that different companies should consider and help the government in the provision of safety for the people. This is a relevant SDG that Zara company should significantly consider (Sachs, J.D. and Reid, W.V., 2006).

The third relevant SDG is to Ensure availability and sustainable management of water and sanitation for all (Elliott, J.A., 2012). Water is another significant component that supports human life, many people in the world from different sections of the world are dying due to lack of clean water or clean sanitary. This is such a crucial goal that the company needs to identify and try to achieve. Helping the different communities get such amenities will help save so many lives from dying due to shortage of water.

Right Strategies on how the to Contribute Towards Them

For the company to achieve these goals different measures and strategies are to be employed by the company. One of the main strategy or approached in achieving the identified goals is by making changes within the company management sector. The management is responsible for pointing out the direction the company is to follow. With the right motivation getting the company management body to support the goals can be the first step in achieving those goals. First show the management the relevance of the goals to the community this will make it possible for the company to direct its resources to the program. With its focus shifted in line with the three goals the company will find it easy to integrate these goals to its operations.

Conclusion

The company has played a huge role in integrating a number of SDGs in its operation but it is evident that more can be done, the company needs to revise some of its managemental goals and incorporate the SDGs that are relevant and directly connected to its operations. This will make it easy for the company to achieve them. On the other hand, it is important to acknowledge the fact that the company has integrated some other goals and delivered on them effectively, these goals have been fighting poverty as well as providing the people and the community a better well-being. The company has also played a huge role in the empowerment of the female gender. Conclusively, Zara company has met a number of the SDGs but can do more with the application of the right strategies.

References

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Le Blanc, D., 2015. Towards integration at last? The sustainable development goals as a network of targets. Sustainable Development, 23(3), pp.176-187.

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