Inditex (Zara) — Ethics Grade C

Inditex (Zara) receives an overall ethics grade of C (48/100) on CancelCo's corporate accountability database. Sector: Fashion & Apparel. Market cap: Large Cap.

Category scores

• labor: 35
• privacy: 80
• consumer: 70
• environment: 42
• humanRights: 20

Documented incidents (3)

• Uyghur forced labor allegations (high, 2021) — French prosecutors opened an investigation into Inditex and other retailers for allegedly concealing 'crimes against humanity' regarding the use of forced labor from the Uyghur minority in China. The company has denied direct links to these specific factories.
• Modern slavery investigation in Brazil (high, 2017) — The company was fined by Brazilian authorities after inspectors found workers in sweatshop conditions producing Zara garments. The workers were reportedly subjected to excessive hours and debt bondage in unlicensed workshops.
• Textile waste controversy (medium, 2022) — As the pioneer of fast fashion, Inditex has been criticized for driving a consumption model that leads to massive textile waste. Environmental groups highlight the millions of garments discarded annually as a result of quick production cycles.

Documented good deeds

• Join Life initiative expansion — The company expanded its 'Join Life' label, ensuring that over half of its garments are now made from sustainably sourced fibers like organic cotton and recycled polyester.

Ethical alternatives

• Patagonia — Utilizes a non-profit ownership model to fund environmental protection.