Transition to the Circular Economy in the Fashion Industry: The Case of the Inditex Family Business

Karina Nicolle Esbeih,Bruna Silva-Santos,Valentín Molina-Moreno,Pedro Núñez-Cacho

doi:10.3390/su131810202

Karina Nicolle Esbeih, Bruna Silva-Santos + Show 2 more

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https://doi.org/10.3390/su131810202

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Journal: Sustainability	Publication Date: Sep 13, 2021
Citations: 12	License type: CC BY 4.0

Affiliation: University of Granada, University of Jaén

Abstract

Society is increasingly concerned about aspects of work related to sustainability. This leads organizations to reflect on the economic, environmental, and social problems that affect both current and future generations. When companies identify an environmental problem, they try to respond to it through changes in their environmental policies, aiming at the transition towards sustainability. In this context, the circular economy appears as a regenerative industrial system that replaces the concept of “end of life” with that of “restoration”. It is oriented to the use of renewable energies, eliminating the use of toxic chemicals, which are harmful to reuse. The theory of socio-emotional wealth describes the behavior patterns of family businesses in response to the environmental changes that occur and the reasons derived from the family character that make them move towards the circular economy model. This article studies the case of the Spanish textile manufacturing and distribution multinational Inditex, analyzing the information collected in its environmental balances in the period 2013–2018. The analysis allows us to observe the speed of Inditex’s transition to the circular economy. For this, transition speed indicators were formed in each of the dimensions of the circular economy model. The results of the study indicate areas in which the company is moving faster and those in which more effort is needed. Finally, a collection of good practices related to the CE used by Inditex is provided.

Highlights

IntroductionGovernments of different countries [4] are adopting economic actions to push European companies and consumers to make the transition towards a stronger and greater circular economy (CE), in which resources are used in a more sustainable way
We aimed to investigate the treatment that the company offers for recycling, negative externalities, its waste, and its materials, determining the importance of the transition to the circular economy (CE)
The circular economy is a new paradigm of production and consumption that is characterized by its open system, that is, one that includes the entire value chain of production, and as participants all, [65] from political leaders, business leaders, among others, including consumers, as well as the interrelation and participation of society in general, including family businesses [66], which are an important economic force in the United States and the world [67]

Summary

Introduction

Governments of different countries [4] are adopting economic actions to push European companies and consumers to make the transition towards a stronger and greater circular economy (CE), in which resources are used in a more sustainable way. This system aims to eliminate waste through the design of materials, products, and systems and, through this, obtain business models [5]. The European Union (EU), seeking a more competitive and sustainable economy, is developing different legal provisions to reduce the use of resources and the generation of waste, promoting sustainable consumption and production. Those used in this research are: Science Direct, Web of Science, ResearchGate, Scopus, and Google

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