RBM

ASSIGNMENT
CSR

ALEN JOSE THOMAS

BD/14/930
FC-V
 TOMS
SHOES
Toms is a for-profit company based in Playa Del Rey,
California. The company was founded in 2006 by
Blake Mycoskie, an entrepreneur from Arlington,
Texas. The company designs and sells shoes based
on the Argentine alpargata design as well as eyewear.
When Toms sells a pair of shoes, a new pair of shoes
is given to an impoverished child, and when Toms
sells a pair of eyewear, part of the profit is used to
save or restore the eyesight for people in developing
countries. Similarly, the company launched TOMS
Roasting Co. in 2014. With each purchase of TOMS
Roasting Co. coffee, the company works with other
organizations that they refer to as giving partners to
provide 140 liters of safe water (a one-week supply)
to a person in need. In 2015, TOMS Bag Collection
was launched to help address the need for advance-
ments in maternal health. Purchases of TOMS Bags
help provide training for skilled birth attendants
and distribute birth kits containing items that help a
woman safely deliver her baby.
US-based TOMS Shoes created an out-of-the-box
solution to its objective of helping people even while
running a for-profit business. The company founded
on the principle that it would give away one shoe to a
poor child for free, for every shoe it sold.
Blake Mycoskie created what can arguably be called a
unique business model that combines both for-profit
and not-for-profit philosophies. A native of Texas
in the US and a serial entrepreneur, Mycoskie was
travelling in Argentina in 2006, when he noticed
poor children having to grow up without shoes, and
facing a lot of hardship in the process. Deeply moved,
Mycoskie returned home and founded TOMS Shoes,
a company that made and sold, um, shoes of course.
But with a twist.
One for One
For every pair of TOMS shoes sold, the company
would donate one pair to a child in need. This rev-
olutionary concept was called One for One, and
Mycoskie ensured poor children in different parts of
the world got the benefit of its business. What made
it work even better is the fact that a buyer, typical-
ly a young adult looking for an affordable yet cool
pair of shoes, would feel good in the knowledge that
his purchase has actually helped a poor child get
a much-needed shoe for free. The business model
worked perfectly, because the cost of the free shoe
was built into the price of the one that is sold, mak-
ing a seemingly charitable effort also contribute to its
profitability.
So far, the companys website states that it has pro-
vided more than 35 million pairs of shoes to children
in 70 countries across the world, and this includes
India as well. As long as people continue to purchase
TOMS shoes, children in need will receive a pair in
return. The shoes that the company designs and sells
are based on the Argentine alpargata design.
Eyecare Camps
In later years, Mycoskie expanded the One for One
model to other products as well. In 2011, the compa-
ny introduced eyewear. It followed a similar principle
for eyewear as its shoes, but again with a twist. In-
stead of donating a pair of glasses for every pair sold,
TOMS would use part of the profit from that sale
to save or restore the eyesight of a person in devel-
oping countries. So far, the company website states,
TOMS Eyewear has helped restore sight to more than
275,000 people. Further on, the concept was extend-
ed to other product categories as well.
Safe Birth
Infection is a leading cause of death for mothers and
newborns worldwide. By providing clean birth con-
ditions and skilled attendants, nearly half a million
of lives can be saved. TOMS Bags purchases support
our Giving Partners in delivering the vital materials
and training needed to help provide a safer birth,
regardless of the facility. TOMS has supported
SAFE BIRTH SERVICES for over 25,000 MOTHERS.
In 2015, TOMS Bag Collection launched in 4 coun-
tries with 3 Giving Partners to help address the need
for advancements in maternal health. Infection is a
leading cause of death for mothers and newborns
worldwide. By providing clean birth conditions and
skilled attendants, nearly half a million of lives can be
saved. Purchases of TOMS Bags help TOMS provide
training for skilled birth attendants and distribute
birth kits containing items that help a woman safely
deliver her baby.
Safe Drinking Water
Each bag of TOMS Roasting Co. Coffee provides 140
Liters of safe water, a weeks supply, to a person in
need. TOMS Roasting Co. launched in 2014, and has
helped provide over 67,000 weeks of safe water in 6
countries.
Preventing Bullying
TOMS High Road Backpack purchases help provide
the training of school staff and crisis counselors to
help prevent and respond to instances of bullying.
Our partner is focused on training entire school
communities teachers, students and parents to
create bully-free campuses where all students are
included. Bullying response programs make it as
easy as possible for students to report bullying and to
get the help they need. Text lines provide emotional
support to people in crisis, including youth who have
suffered from bullying. School staff are also trained
in interventions to resolve incidents of bullying and
to get students who are stuck in the role of bully or
victim the help they need.
 INDITEX
Inditex is a Spanish multinational clothing compa-
ny headquartered in Arteixo, Galicia. Inditex, the
biggest fashion group in the world, operates over
7,000 stores in 91 markets worldwide.The companys
flagship store is Zara, but it also owns the chains
Zara Home, Massimo Dutti, Bershka, Oysho, Pull
and Bear, Stradivarius and Uterqe. The majority
of its stores are corporate-owned, while franchises
are mainly conceded in countries where corporate
properties can not be foreign-owned. The company
operates a unique business model: instead of com-
mitting a large percentage of production for the
next fashion season, the company commits a small
amount and uses customer feedback and an efficient
production network to replenish stores with new and
different products weekly. In Zara stores, it can take
a new garment as little as 15 days to go from design
and production to store shelves.
Inditexs Corporate Social Responsibility
Inditex group plan is divided into three dimensions:
the social dimension, the environmental dimension
and the economic dimension. In this assignment we
will focus on the first two.
Social Dimension
It refers to the code which governs the relations with
the External Manufacturers and Workshops and the
relations between the employees of the firm.
Inditex code of conduct for external manufacturers
and suppliers: this section is divided in two parts.
The first is an introduction of the code where it is
indicated the regulatory framework on which the
new Code is articulated: The agreements of the ILO,
The Universal Declaration of Human Rights of the
United Nations, The Principles of the Global Com-
pact of the United Nations, The Directives of the
OECD for multinational companies, The Base Code
of ETI, The locally applicable employment legislation
and The local legislation in environmental matters
and, in the absence there of, the international legisla-
tion that is in force.
The second part of the code refers to the 11 points
which are regulated by Inditex and explains what
they consist about.
1. No forced labor: Inditex does not allow any kind
of force work and do not allow their suppliers to ask
for any deposit to her employees and make them to
recognize the right of the employee to leave the job if
he has advice with reasonable time.
2. No child labor: Inditex define like underage to
any people under sixteen. But if the countrys legis-
lation asks for a higher age, then this limit will have
to be respect. It also says that people under eighteen
should not work at night or in dangerous situations
as is define in the Recommendation 190 of the Inter-
national Labour Organization.
3. No discrimination: Not any discrimination should
be allow based on race, caste, creed, nationality,
religion, age, physical or mental disability, gender,
marital status, sexual orientation and/or union mem-
bership or political affiliation.
4. Respect for freedom of association and collective
bargaining: It shall be ensure that the employees,
without distinction, have the right of association,
union membership and collective bargaining. No
discrimination could arise from the exercise of this
right.
5. No harsh or inhumane treatment: Inditex require
that all employees should be treated with dignity and
respect.
6. Safe and hygienic working conditions: a safe and
healthy work place should be provided to the work-
ers, as well as minimum conditions of light, ventila-
tion, hygienic environment, fire protection, security
measures and access to potable water. Moreover,
externals manufacturers and suppliers should adopt
every necessary measure to ensure security and safe
conditions at the work place.
7. Wages are paid: Inditex require that the employees
salary should be at least the minimum established by
law or higher. Moreover it should be enough to cover
the basic and reasonable necessities of the employees.
8. Working hours are not excessive: Is not allowed
to work more than 48 hours a week and it should
be recognize at least one free day for every 7 natural
days.
9. Environmental awareness: External manufactur-
ers, suppliers and their subcontractors shall be duly
committed at all times to protect the environment
and shall comply, at least, with the standards and re-
quirements of the applicable Local and International
Laws and Regulations.(Inditex Source)
10. Regular employment
11. Code implementation: In this point it is explain
how some aspects should be regulated on the Inditex
structure. Topics as the requisites for subcontract-
ing or for the publication of the code as well as the
necessity of providing the employees with a copy of
the code translate to the local language are discussed
here.
Environmental dimension
It refers to the necessity that Inditex believe it has
while realizing its activity according to the environ-
ment. They firmly believe that their business activity
should be follow sustainable development standards
which guarantee the environmental protection.
These part of the corporate responsibility plan also
has different point. We will discuss two of them:
a. The first part refers to the principles that are follow
in the environmental policy which are 4:
1. Inditex will consider the environmental variable
while their planning and develop of their activities,
as well as their company partners. It will also pro-
mote the environmental awareness.
2. Inditex will met the environmental law which will
legislate it activities as the same time that it will work
hard to minimize and avoid the contamination and
the environmental impact that it activities could
cause.
3. It will develop their management in order to
improve their efficiency and to reduce the resource
consumption.
4. They guarantee that their employees will know the
companys policy
b. The second part that we will discuss refers to
stragecial environmental plan of Inditex for the fol-
lowing years:
As it has been said above, Inditex make a big effort to
make the suitable development art of its policy. Con-
sequently they try to improve their efficiency, reason
why they analyze its business trying to find where
they can apply that principle and where it is possible
to improve.
The currently strategic plan refers to the years 2007
to 2010 and its main objectives are:
To reduce greenhouse gas emissions.
To encourage the spread of renewable energies.
To maximize efficient use of energy in manufactur-
ing.
To raise employee awareness and enhance staff
training.
Moreover it is focus on five points to develop:
1. Sustainable Store (Store Sustainability System)
2. Inditexs Pro-Kyoto
3. ProjectEnergy and Environmental Integration
Project (IEMA):The goal of this project is to install
sources of renewable energy, such as wind energy,
solar photo thermal and photovoltaic solar energy, at
the companys distribution hubs and reduce energy
use to a minimum.
4. The Carbon Footprint Project. Analysis of the
Textile Life Cycle: The term carbon footprint refers to
the environmental impact of a given activity.
5. The Terra Project, the End of the Cycle