Write an analytical business report on what ethical consumerism means for businesses.
Choose a company( ZARA)and explain and analyse how they operate ethically. this must take into account the ethics and values of the company you choose to focus on.
This assignment has discussed about the ethical consumerism. The author has taken extensive surveys of Zara for ensuring the aspect of ethical consumerism of this company. This research intends to identify the management of ethical consumerism by Zara. This research has discussed the aspect of the rules and regulations of the economic consumerism within the aspect of business management. Ethical consumerism is very effective process for the management of business within the competitive sector of the market of particular industry.
The research analyst will study in this research about the ethical consumerism. The study is all about the ZARA Company. It is an apparel retailer in the world is the largest one. In 1975, Rosalia Mera and Amancio Ortega founded it in Arteixo. The inditex group of the flagship chain store is the world largest retailer group. The research study is all about that the management of the Zara Company is following all the rules and regulations of the economic consumerism. Zara has controlling their distribution, manufacturing, and designing their product that needs to be upgrade by them for the betterment of the products and their services. Their business activities like supply chain or other activities needs to be upgraded so that they can satisfy the customer needs and desires. The company is offering the more products to their customers rather than the other companies. In all over the world the company is increasing their market so that they can reach more customers internationally. The company is offering their customers with their best products. To satisfy the customers the company should maintain the ethical consumerism so that they can receive faith from the customers. To increase the business activities in the international market it is very important for them to maintain the ethical consumerism (Zara.com, 2015).
Ethical consumerism is states that when the customers are buying some products that is not risky for them, which was ethically produced by the company in the environment and society. Some products that are producing by the company that can be risky for the people need to replace by other products. Fair trade products, electricity from renewable energy, wood products organic produce that are fall in the ethical category (Bly et al.2015).
According to the Bray et al. (2011) consumer, research association states that they should buy the local products because in the local products the risky material has in fewer portions. With the help of the ethical consumerism ratings, the company can have the negative marks due to use the risky material. The company should inform the consumers so that they can know about the materials used in the products at prior basis. This information should be reliable based on the corporate behavior. The corporate social responsibility and the sustainability ratings should convey the information to the respective people so that the people can have faith in the products they are using about for several years. It will vary business to business so that the company can increase their ratings by providing the good quality of materials to their customers.
The company should maintain their credit worthiness as a trust factor so that they can increase their customer base. The company should provide their consumer as a warranty for buying their products and services. If any customer facing any problems by using their products and services, then the company should take the responsibility to change their products so that they can satisfy their customers.( Pookulangara and Shephard,2013)
Zara is maintaining the ethical consumerism to a certain extent. They are using several materials that can be risky for the people. There was an issue in the past that by using the Zara’s products the consumer are facing some problems. As stated by, the company is changing their resources that are not ethical for them. The company should use those materials that are ethical for them to use in producing the products and the services (Carrington et al.2014). The company should produce several products that needs to satisfy the customers’ demands and needs so that they can increase their sales volume and profitability by giving the best quality of materials to their customers. It has establishes a brand value by providing the best products to their customers in all over the world (Davies et al. 2012).
In Galicia, the clothing and accessories retailer Zara has found. The apparel retailer in the world is the largest one. In 1975, Rosalia Mera and Amancio Ortega founded it in Arteixo. The inditex group of the flagship chain store is the world largest retailer group. Compared to the six-month industry average, it is asserted that they can develop their products within one week. They have conducting a trend that provided the low-cost countries transferring from fast fashion production. With the help of the company’s products, they are generating revenues. Their sales volumes are increasing day by day by their quality of products. The company is investing their revenue to open a new store Observed that they have a niche strategy that they do not advertise their products in the online media. This strategy will create the company as a ‘fashion imitator’. In all over the world it was recognize as the most pioneering brand that satisfy the customer needs and demands (Bucicet et al. 2012).
Zara has controlling their distribution, manufacturing, and designing their product that needs to be upgrade by them for the betterment of the products and their services (Chan and Wong 2012). As observed by business activities like supply chain or other activities needs to be upgraded so that they can satisfy the customer needs and desires (Axelsson and Jahan 2015). The company is offering the more products to their customers rather than the other companies. It can modify the similar products within a much-stipulated time. The managers of the company need to monitor about the business activities of the company so that they can identify their loopholes (Joy et al. 2012). The company is supplying their customers with a very basic design so that the customers can get their range of products with a very low cost price. They have launched their products in the online stores that has launched by Inditex (Yeow et al. 2014). They are extending their online services through their online portal to serve the customers in a wide range. Zara has the different brand value in the market that needs to be developing by them. Therefore, the company should change their market policy so that they can attract the more customers. Zara has entered the Australian market in the Westfield Sydney store (Zara.com, 2015). The company has the different customer’s base that needs to develop by the company. The several processes that needs to consider by them that are distribution, manufacturing etc (Ferrell and Fraedrich 2014).
In the distribution process, the company should identify their respective distributors so that in future, they can upgrade their process through the existing customer base. In the distribution process, the company is mainly focusing on their products and services and their channels of distributions so that they can increase their sales volume and their profitability (Bianchi, C., and Birtwistle, G. 2012). In the retail industry there are several new entrants are coming up in the market, to cope up with the market the company should develop new strategies to cope up with the other competitors in the market. Their cost structure is also different compared to the other brands (Gopaldas, A. 2014). The company is preparing their cost structure in a different way so that they can increase their brand value in the market and all type of customers can by their products and services (Singh et al.2012).
Earlier when they have opened their store, then they were aspects low-cost products so that they can maintain the high quality of products with the low cost material and at the same time can have the increasing customer base. This step proved successful for the company. With the help of this strategy, the company is generating revenues (Erwin, 2011). They are providing their customers high quality of products and services to achieve the customer’s loyalty that is very important for the company (Gruber and Schlegelmilch, 2014).
The survey is done on the company that whether the management of the ZARA Company is following all the rules and regulations of ethical consumerism. The research analyst of this research study has made some questionnaire for the customers of ZARA Company to understand and to make the survey successful. The survey is based on the answer given by the customers of the ZARA Company. The questionnaire is done to understand that whether the management of the organization is following the ethical consumerism in the market while selling their products in the market or not. The questions made by the research analyst are given in the following points:
a) Do you think that the management of the ZARA Company is following the rules of ethical consumerism in the market while serving their customers?
|
Options |
No of respondents |
Total respondents |
Response % |
|
Strongly agree |
9 |
50 |
18% |
|
Agree |
17 |
50 |
34% |
|
Neutral |
10 |
50 |
20% |
|
Disagree |
8 |
50 |
16% |
|
Strongly Disagree |
6 |
50 |
12% |
From the above table it has been observed that around 18% of the customers of ZARA Company strongly agree that the management of the company is following all the rules and the regulations of ethical consumerism and around 34 % of the customers believe that the management of the company is following all the rules and regulations of ethical consumerism. Few of the customers believe that the management of the company does not follow the rules and regulations of economic consumerism.
b) What are the impacts of ethical consumerism in the ZARA Company?
|
Options |
No of respondents |
Total respondents |
Response % |
|
Strongly Successful |
9 |
50 |
18% |
|
Successful |
15 |
50 |
30% |
|
No Effect |
12 |
50 |
24% |
|
Unsuccessful |
9 |
50 |
18% |
|
Strongly Unsuccessful |
5 |
50 |
10% |
From the above table, it has been observed that around 18 % of the customers strongly believe that the ethical consumerism brings a positive impact on the company and around 30 % of the customers strongly believe that the ethical consumerism brings a positive impact on the company.
c) How ethical consumerism helps the management of the company to do their business?
|
Options |
No of respondents |
Total respondents |
Response % |
|
Strongly agree |
10 |
50 |
20% |
|
Agree |
15 |
50 |
30% |
|
Neutral |
10 |
50 |
20% |
|
Disagree |
8 |
50 |
16% |
|
Strongly Disagree |
7 |
50 |
14% |
From the above table, it has been observed that around 20 % of the customers strongly agree that the ethical consumerism helps the management of the company to do better business in the market and around 30 % of the customers strongly agree that the ethical consumerism helps the management of the company to do better business in the market.
d) Do you believe that ethical consumerism helps the management to attract more customers towards the company?
|
Options |
No of respondents |
Total respondents |
Response % |
|
Strongly agree |
12 |
50 |
24% |
|
Agree |
10 |
50 |
20% |
|
Neutral |
13 |
50 |
26% |
|
Disagree |
8 |
50 |
16% |
|
Strongly Disagree |
7 |
50 |
14% |
From the above table, it has been found that around 24 % of the customers strongly agrees that the ethical consumerism helps the management of the company to attract more customers towards the company and around 20 %of the customers agrees that the ethical consumerism helps the management of the company to attract more customers towards the company.
Conclusion:
This research study has concluded that, Zara has maintained all the activities of ethical consumerism. From the effective surveys of the company, it can be concluded that Zara operates its effective business with ethical consumerism. The product of Zara does not risky for any individual customers. Zara has maintained the rules as well as regulations of ethical consumerism while maintaining the competitive advantage within the competitive sector of the market. As per the above discussion, we can say that, ethical consumerism should maintain by every company to increase their brand value in the market. The company Zara maintaining their ethical consumerism that has created a faith in the mind of the customers. They have conducted a survey to check what customers are thinking about their products or what they are using to produce their products. After the survey, we can see that, customers are responding and have given a good feedback about their products. That is why; in the UK market, they are increasing their business activities. The company is developing new products to increase their brand value in the market. Zara is maintaining their business activities with ethical consumerism to receive the faith from their customers so that they can increase their market value.
The company should use those resources that are ethical for the company so that they can produce good products to their customers.
They should develop new strategies to cover up the left over customers.
The company should maintain ethical consumerism so that they can improve their business activities in the market.
The company should improve their supply chain management activities and the distribution channel so that they can improve their sales volume and productivity.
The company should increase their stores location so that everyone can avail their products and services.
The company should increase their product quality so that they can increase their customer all over the world through online processes.
References
Singh, J. J., Iglesias, O., and Batista-Foguet, J. M. (2012). Does having an ethical brand matter? The influence of consumer perceived ethicality on trust, affect and loyalty. Journal of Business Ethics, 111(4), 541-549.
Bray, J., Johns, N., and Kilburn, D. (2011). An exploratory study into the factors impeding ethical consumption. Journal of business ethics, 98(4), 597-608.
Carrington, M. J., Neville, B. A., and Whitwell, G. J. (2014). Lost in translation: Exploring the ethical consumer intention–behavior gap. Journal of Business Research, 67(1), 2759-2767.
Davies, I. A., Lee, Z., and Ahonkhai, I. (2012). Do consumers care about ethical-luxury?. Journal of Business Ethics, 106(1), 37-51.
Bucic, T., Harris, J., and Arli, D. (2012). Ethical consumers among the millennials: A cross-national study. Journal of Business Ethics, 110(1), 113-131.
Joy, A., Sherry Jr, J. F., Venkatesh, A., Wang, J., and Chan, R. (2012). Fast fashion, sustainability, and the ethical appeal of luxury brands. Fashion Theory,16(3), 273-295.
Pookulangara, S., and Shephard, A. (2013). Slow fashion movement: Understanding consumer perceptions—An exploratory study. Journal of retailing and consumer services, 20(2), 200-206.
Bianchi, C., and Birtwistle, G. (2012). Consumer clothing disposal behaviour: a comparative study. International journal of consumer studies, 36(3), 335-341.
Erwin, P. M. (2011). Corporate codes of conduct: The effects of code content and quality on ethical performance. Journal of Business Ethics, 99(4), 535-548.
Chan, T. Y., and Wong, C. W. (2012). The consumption side of sustainable fashion supply chain: Understanding fashion consumer eco-fashion consumption decision. Journal of Fashion Marketing and Management: An International Journal, 16(2), 193-215.
Yeow, P., Dean, A., and Tucker, D. (2014). Bags for life: The embedding of ethical consumerism. Journal of Business Ethics, 125(1), 87-99.
Ferrell, O. C., and Fraedrich, J. (2014). Business ethics: Ethical decision making and cases. Cengage learning.
Gopaldas, A. (2014). Marketplace Sentiments. Journal of Consumer Research,41(4), 995-1014.
Gruber, V., and Schlegelmilch, B. B. (2014). How techniques of neutralization legitimize norm-and attitude-inconsistent consumer behavior. Journal of business ethics, 121(1), 29-45.
Axelsson, E., and Jahan, N. (2015). Consumer attitude towards Corporate Social Responsibility within the fast fashion industry.
Bly, S., Gwozdz, W., and Reisch, L. A. (2015). Exit from the high street: an exploratory study of sustainable fashion consumption pioneers. International Journal of Consumer Studies, 39(2), 125-135.
a) Do you think that the management of the ZARA Company is following the rules of ethical consumerism in the market while serving their customers?
|
Options |
No of respondents |
Total respondents |
Response % |
|
Strongly agree |
9 |
50 |
18% |
|
Agree |
17 |
50 |
34% |
|
Neutral |
10 |
50 |
20% |
|
Disagree |
8 |
50 |
16% |
|
Strongly Disagree |
6 |
50 |
12% |
b) What are the impacts of ethical consumerism in the ZARA Company?
|
Options |
No of respondents |
Total respondents |
Response % |
|
Strongly Successful |
9 |
50 |
18% |
|
Successful |
15 |
50 |
30% |
|
No Effect |
12 |
50 |
24% |
|
Unsuccessful |
9 |
50 |
18% |
|
Strongly Unsuccessful |
5 |
50 |
10% |
c) How ethical consumerism helps the management of the company to do their business?
|
Options |
No of respondents |
Total respondents |
Response % |
|
Strongly agree |
10 |
50 |
20% |
|
Agree |
15 |
50 |
30% |
|
Neutral |
10 |
50 |
20% |
|
Disagree |
8 |
50 |
16% |
|
Strongly Disagree |
7 |
50 |
14% |
d) Do you believe that ethical consumerism helps the management to attract more customers towards the company?
|
Options |
No of respondents |
Total respondents |
Response % |
|
Strongly agree |
12 |
50 |
24% |
|
Agree |
10 |
50 |
20% |
|
Neutral |
13 |
50 |
26% |
|
Disagree |
8 |
50 |
16% |
|
Strongly Disagree |
7 |
50 |
14% |
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