Primark Ethical Business Practice
Ethical business practices are concerned with the responsibilities and commitment of enterprises in society to support moral norms and conduct fair trade in the public, authorities, stakeholders, and society (Bowen, 2016, n.d.p). Ethical business practices are characterized by the virtues of honesty, integrity, fairness, respect for others, reputation, law-abiding, leadership, good reputation, concern for others, and strive for excellence and accountability (Josephson, 2012, n.d.p). In addition, every business organization has amoral and corporate social responsibility (CSR) to the environment and the immediate society. The essay evaluates Primark organization’s ethical business practices.
Primark is a United Kingdom (U.K) based retailer that specifies clothing, accessories, and footwear. It was established in Dublin, Ireland, in 1969 by the Weston family (Sabanoglu, 2020, 1). Consequently, the clothing retailer has developed into a profitable and successful company venturing into international markets. Currently, Primark is owned by the British food processing company creating employment for over sixty-five thousand workers and has expanded to 362 stores worldwide (“Jack Cohen, Founder”, n.d., 3). Growth in trade and market share has enabled Primark to generate incomes of over seven billion British pounds in 2019.
Primark growth has been partly attributed to low operational cost by establishing manufacturing plants in Bangladesh India due to enormous labor at reduced cost in remuneration. In addition, the increase in demand for fashion and trendy clothes has accelerated the growth, creating a vast market by venturing overseas, clinching a 13.5 market share (Sabanoglu, 2020,5). Primark has utilized the demand for its product by increasing supply and incorporating innovative technology to produce trendy and fashionable clothes in a less period. Primark is attractive to clothes consumers due to the low prices and quality value of the clothes.
However, Primark has been struggling to save the company’s reputation due to what the public’s terms as unethical behavior. Consumers have been raising questions on Primark’s sustainability and how the company sells clothes cheaply, arguing that the products are not ethically made. In addition, consumer concern for labor force exploitation has been rife. Significantly, the collapse of Rana Plaza in Bangladesh, India, with the tragic loss of 1,138 lives, further tainted the brand image of Primark retailer (Hendriksv, 2017, n.d.p). The collapsed building was a production facility for clothes for Primark and other major clothing retailers. Experts allude that the disaster could have been avoided if the Primark and other clothing factories headed to the safety concerns of observers who had noticed deep cracks within the building to evacuate the workers.
The tragic occurrence served as a wake-up call to Primark and other international clothes and fashion industries to relook their approach in the treatment of workers. Further, Primark realized the shortcomings in CSR duties due to the meager compensation the company offered to the victims of the tragic incident (Fashionista, 2020, n.d.p). Any company’s workforce is vital in the production stages and therefore necessitates better treatment and remuneration. One of the ethical practices in business practices is fairness and respect for others; hence it was the duty of fashion industries to respond ethically. The fashion industry’s ethical response could have been implemented by offering moral support, counseling, and dignified compensation to the victims of Rana Plaza.
Notably, Primark realized the mistake and responded to consumers’ calls to become more responsible and extend ethical practices. As a result, Primark was among the first respondents in the fashion industry to adopt and sign the Accord in fire and Building safety in India (Hendriksz, 2017, n.d.p). The Accord was to ensure that Primark factories and leading suppliers conform to building safety standards and are equipped with firefighting equipment to guarantee the safety of all workers. Also, Primark was the first respondent to the tragedy availing food and monetary aid to the families of the victims and the people tasked with evacuating those who had been trapped in ruins.
Primark pledged and continues to avail monetary Helpance to the victims’ families in partnership with non-profit organizations to ensure credibility and resources reach the beneficiaries. Data show that over eleven million pounds have since been disbursed to the victim’s families to cushion them against the adverse financial risks they suffer due to the loss of the breadwinners (“Jack Cohen, founder”, n.d., 6). Furthermore, Primark retailer initiated the Pasche Achi Project to attain that compensation beneficiaries access the monetary aid and understand labor and compensation rights privileges.
Additionally, Primark has dedicated resources to educate and equip over eighty experts tasked with ensuring long-term sustainability, ethical fashion, and labor force training. The Primark Ethical Trade Team is spread in countries that Primark operates or sources the raw materials. The officials ensure that they observe and report what goes on the ground. The ethical trade team regularly visits factories and inspects the preparedness, treatment of staff and evaluates the environmental impact of the factories and the major suppliers (Dach & Allmendinger, 2014, 164). The aim is to address any shortcomings in safety and record concerns that the society may have and propose a resolving mechanism in consultation with the management.
George Weston, the CEO of Associated British food company, annotates that the management has established an internal mechanism to assess the difference and impact Primark has on society as part of the CSR (Hendriksv, 2017, n.d.p). Weston alludes that it is the company’s policy to avail credible and tangible evidence of the impact they make in society. Primark has developed a set of rules that govern the code conduct that current and prospective supplies need to adhere to. Primark ensured conformity to the code of conduct by partnering with local experts and ethical trade teams to enlighten workers on their rights. For, instance Primark adopted cartoon designs to visually communicate with workers and the public that may be illiterate.
Furthermore, Primark has shifted from non-communicative strategies and embraced dialogue. Currently, Primark has a function public relations department to address the general public and the media in unforeseen occurrences. The progressive approach ensures that accurate data is disseminated rather than keeping silent and leaving room for speculation. To ensure transparency Primark has transformed the auditing procedure of supplier’s factories. The auditing procedures allow for private interviews of workers to get first-hand information of the challenges. Besides, the company’s mobilization to create unions is allowed to address the challenges in a unified approach. Primark has initiated numerous strategies to protect and equip the workers in the production and factory environment. For instance, providing gloves, helmets, and protective gear.
In contrast, the recent occurrence of Primark and other major fashion retailer’s failure to repay for preordered products is disheartening. The mistakes show that the reforms were mere public relations campaigns. Still, understanding that the pandemic affected numerous business operations worldwide (He & Harris, 2020, 178). Failure to pay and partial compensation to workers, suppliers, and factories is unfair. Primark should have engaged the best way through dialogues to see what could have been done. Failing to communicate leading workers to demonstrate on the street further endangering the lives is uncalled for. Moreover, due to the emergence of the coronavirus, the situation required collective responsibility by corporate who could have advanced loans to the families to ensure stable survival during the lockdown measures. Primark and fashion industries act therefore qualify as unethical.
Furthermore, refusing to pay and failing to communicate the strategy means that the suppliers and manufacturers are out of business. Often, business activities are interdependent; hence, even the farmers of the raw materials, for instance, cotton, will fail to be paid, creating poverty and suffering among the most vulnerable society members. Further, the unfair act means that the clothing factories may never recover due to the massive losses.
Experts suggest that company’s react contrarily in a group setting compared to when faced with a crisis individually (Comyns & Johnson, 2018, 1). Studies portray that enterprises with a similar crisis in the past are likely to adopt a defensive approach and address the issue in future communications when the crisis has cooled down. The company will later extend public relations measures and accommodative measures to change the negative brand reputation (Ip et al., 2018, 8). Primark adopted the strategy to resolve negative media and consumer publicity and successfully regained consumer confidence and trust.
I think Primark’s strategies are unethical. It did not have to take a tragedy to realize what the company should have been implementing. It is notable to note that the kneejerk reactions are unethical. Instead, Primark should establish long terms strategies that are viable and effective. Ensuring that the labor forces work in a safe and habitable environment is rewarding and motivating (Folligne, 2020, n.d.p). Primark’s long-term objectives should ensure better remuneration, especially during the turbulent Covid 19 pandemic that the workers need them more. The Covid 19 impact has affected every industry, and hence that should not be the reason to avoid meeting t their ethical obligations.
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