Case study: How Inditex creates economic value for its stakeholders
Inditex, the biggest fast fashion group in the world, operates 6,477 stores in 215 markets worldwide. Through transparency and constant dialogue with its stakeholders, Inditex works to promote human rights, the Sustainable Development Goals and create shared value, generating a positive impact on society.
This case study is based on the 2021 Statement on Non-Financial Information by Inditex, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Inditex is committed to generating sustainable value for all its stakeholders Tweet This!, with the ultimate goal of helping to create a positive impact for society and the planet. In order to create economic value for its stakeholders Inditex took action to:
- create economic value for employees
- create economic value for the state
- create economic value for shareholders
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Inditex has identified;
- How Inditex proceeded with stakeholder engagement, and
- What actions were taken by Inditex to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Statement on Non-Financial Information Inditex identified a range of material issues, such as ethical behaviour and governance, climate change, human rights, product sustainability, environmental footprint minimisation. Among these, creating economic value for its stakeholders stands out as a key material issue for Inditex.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process s of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Inditex engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Ethics Committee · UNI Global Union Agreement · Training and internal promotion · Internal communications · Volunteer programmes · Information Security and Data Protection and Privacy Departments |
| Customers
| · Specialised customer service teams · Physical and online stores · Social media · Information Security and Data Protection and Privacy Departments |
| Suppliers
| · Supplier clusters · Ethics Committee · Buying and sustainability teams · Global Framework Agreement with IndustriALL Global Union · Data Protection and Privacy Department |
| Community
| · Social Advisory Board · Cooperation with NGOs · Sponsorships and Patronage Committee |
| Environment
| · Social Advisory Board · Commitments with NGOs · Environmental sustainability teams |
| Shareholders
| · Annual General Meeting · Sustainability indexes · Investor relations |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Inditex engaged with its stakeholders through online surveys.
What actions were taken by Inditex to create economic value for its stakeholders?
In its 2021 Statement on Non-Financial Information Inditex reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Inditex paid 4,179 million euros in personnel expenses.
- Creating economic value for the state
- In 2021, Inditex paid 734 million euros in taxes on profits.
- Creating economic value for shareholders
- In 2021, Inditex paid 2,180 million euros in dividends to shareholders.
- Creating economic value for communities
- In 2021, Inditex paid 63.5 million euros in community investments.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by Inditex, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
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