When it comes to “Fast Fashion”, Amancio Ortega, Spanish typhoon and owner of the clothing brand Zara, knows what it takes to be a success in the fashion world. Surprising, it isn’t the advertising, outscoring, or the use of famous faces that brings this company success. It all has to do with their ability to observe popular trends in fashion and quickly produce new styles that change as fast as their consumer’s minds.

One of the main reasons why the production behind Zara is so effective is because management allows every employee to have a key role in the production of their clothing. In “Organizational Behaviors”, I learned about the correlation between worker satisfaction and increase in profits. By giving every employee a vital task and offering constant constructive feedback, employees are satisfied with their work and more inclined to be efficient on the job. Store managers are given the task of compiling data of what sells the best while designers prepare the next fashion statement. Their quick production line and shared situation awareness takes this company to a whole new level and is the reason why they have become such an enormous success in fast fashion.

Consumers have been skeptical of Walmart’s low prices for years now. The companies policies and foreign product sourcing have been scrutinized for there unethical aspects. In 2004, The New York Times reported that Walmart used child labor and violated laws that require time for breaks and meals. They also ignore social responsibilities to their employees. Walmart spends 27% less on health care compared to the rest of the retail-industry. However, the biggest speculation of Walmarts unethical conduct is the assumption that they use sweatshops and prison labor in foreign countries. Since they never release their audits or factory names, customers are not fully aware of where their products are coming from.

Walmart is the largest retail industry in the world. Therefore, they should have a social responsibility to follow ethical standards. With all the scandals in Walmart’s history, it is no surprise that one of their executives, Tom Coughlin, was charged with embezzlement in 2005. When the executives in charge of running a company are morally irresponsible, you know the company is going to have some major problems.

For further reading on Walmart’s scandals! Check out these articles: http://blog.cleveland.com/business/2008/02/_a_federal_judge_in.html
http://www.businessweek.com/bwdaily/dnflash/content/oct2008/db2008109_219930.htm
http://www.businessweek.com/magazine/content/06_07/b3971115.htm