Compliance
The Inditex Group places importance not only on achieving its objectives, but also on the way in which they are achieved. This idea is the guiding thread of the Group’s corporate ethical culture and its reflected in ‘The How Matters’.
‘The How Matters’
The principles of action set out in our Codes of Conduct (the Code of Conduct and the Code of Conduct for Manufacturers and Suppliers), are based on respect for human and labour rights in all our operations and relationships with our Stakeholders.
In 2023, the Board of Directors approved the Inditex Group’s Policy on Internal Reporting Channels and the Regulations of the Cybersecurity Advisory Committee, and it amended the Global Anti-Harassment Policy (to extend the scope of the previous Global Sexual Harassment and Sex or Gender Identity-Based Harassment at the Workplace Prevention Policy, approved in 2022, to include the prevention of all types of harassment), the Community Investment Policy, the Ethics Line Procedure and the Regulations of the Ethics Committee. In 2023, a total of 3 policies, 4 procedures, 5 regulations, one charter and other internal corporate regulations of a lower rank or local scope were approved and/or amended.
Training and awareness initiatives
We prioritised training and awareness, which materialised in our Compliance Training Plan, targeted at both professionals from Inditex and third parties. That holistic plan encompasses the following topics: Code of Conduct; Code of Conduct for Manufacturers and Suppliers; Ethics Line; anti-corruption and integrity (Integrity Policies and Conflicts of Interest Policy); criminal risk prevention; due diligence; prevention of market abuse and protection of inside and/or confidential information.
Information security and privacy
Information security is a crucial aspect of Inditex’s cybersecurity strategy.
The digital transformation has resulted in a highly competitive environment in which it is necessary to adapt to the changing demands of consumers, who expect a modern experience that matches their expectations.
In 2023 we have launched the creation of a Cybersecurity Advisory Committee. This permanent, advisory and consultative body is made up of independent experts in information security and aims to strengthen the decision-making process related to cybersecurity and promote the Company's strategy in this area.
During the year, we conducted various external assessments, both mandatory and voluntary, to analyse our security model from both a compliance perspective, and a technical standpoint. These evaluations show that Inditex’s Information Security Management is consistent with best practices and standards in cybersecurity at both the local and international levels. As a result, we have successfully renewed all major information security certifications.
We have also carried out numerous internal audits and reviews, both by third parties and by the Oversight Area within the Information Security Department, which ensures compliance and proper application of the policies and procedures defined.
Supplier
relations
Our business model is based on an agile and flexible supply chain. In total, in 2023 we had 1,733 direct suppliers in 45 markets who created our products in 8,123 factories, and generated more than three million jobs.
In 2023, 12,761 audits were carried out at our suppliers and manufacturers, by our teams and by 1,128 external auditors71, specialised by sphere of auditing. They carried out pre-assessments, preliminary environmental assessments, social and environmental assessments. In total, 837 external auditors were trained for this purpose over the course of the year. Where non-compliances were detected, we supported the improvement process of our suppliers and manufacturers through Corrective Action Plans.
Pre-assessment audits
Before embarking on a business relationship, we ensure that our suppliers comply with our social and environmental standards by means of pre-assessment audits. In 2023, we conducted 2,111 pre-assessments.
Environmental preliminary assessment
Once the new supplier passes the pre-assessment audit, a preliminary environmental assessment is conducted, 301 of which were performed in 2023.
Social audits
Our social audits - 6,892 in 2023 - can be carried out following Inditex’s proprietary methodology or the method of the Social & Labor Convergence Program (SLCP) initiative, of which we have been a member since its inception. SLCP’s aim is to improve labour conditions for workers while eliminating audit fatigue in global supply chains. Accordingly, the factory itself carries out a self-assessment, which is then verified by a third party authorised by SLCP and shared with stakeholders.
Environmental audits
The environmental audits, which are carried out by external auditors, check compliance with our Green to Wear standard, targeting at facilities that mainly carry out wet processing. In 2023, 1,868 environmental audits were conducted.
Tax responsibility and transparency
For Inditex, strict compliance with tax obligations in all the markets in which it operates is a core principle of its tax policy.
Our principles
We see the application of good tax practices as an extension of our commitment to sustainability and corporate social responsibility. It is also consistent with our philosophy of value creation and our determination to bring about positive social transformation wherever we are present. Inditex’s dealings with the tax authorities are governed by the principles of collaboration, mutual trust and good faith. Framed by that approach, we are part of the so-called Large Companies Forum in Spain, whose primary objective is to promote greater collaboration among large companies and the State Taxation Administration, and we are also comply with the Code of Good Tax Practices promoted in the Forum.
Tax contribution
