Understanding the effect of ethical actions on the economic performance of a company: The case study of Inditex

Elisa Prin () and Emmanuelle Reynaud ()
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Elisa Prin: CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon
Emmanuelle Reynaud: CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon

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Abstract: Fast fashion, criticised for its disastrous impact on the environment and its exploitation of cheap labour around the world, is being forced to rethink its business model to incorporate an ethical dimension. However, the implementation of a CSR strategy seems highly compromised, as competitive advantage is mainly driven by low prices. The aim of this research is to identify the CSR actions that fast-fashion companies can adopt without compromising their economic performance and competitive advantage, based on the case of one of the sector's leaders: Inditex. Based on the global performance model (Reynaud, 2003), we have identified several environmental and social actions that can have a positive impact on the economic performance of a fast-fashion company. The originality of our results lies in the extension of the scope of actions considered beneficial for the company in Reynaud's (2003) global performance model, by including the supply chain.

Keywords: Fast fashion; Global performance; CSR (search for similar items in EconPapers)
Date: 2023-10-26
New Economics Papers: this item is included in nep-env
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Published in International Vincentian Business Etchics Conference, Oct 2023, Dublin, Ireland

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