Primark Ethical Issues

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low costs than the peak period of production of goods. This enables the firm competitive with other firms in the market (Siegle, 2013, p. 2). Economies of scale is good for Primark because it helps it to have a competing power in the market. But this also affects the factory workers in that they get to do work and paid when they might not be needed in the production process. Although the producers maybe producing for other companies too, Primark ensures that its products are efficiently produced and ethical at the same time. All the company’s products are branded in order to distinguish it from other products and to ensure that they are specifically belonging to Primark (primark, 2013, p. 3). Implication of business ethics for Primark Company and its stakeholders Production, manufacturing and packaging have an impact…show more content…
This caused Primark to join Ethical Trading Initiative in 2006. This caused to the reduction of the customer base and affected the equilibrium price and quantity of the firm. Primark employed an ethical trading director in order to deal ethical issues. The government came in hand with the employers in order to improve the working conditions of the workers in the production companies. Later in 2008, an undercover BBC investigator reported unethical and illegal working conditions in India. The unethical practices involved use of child labor which is the worst of all crimes. In reaction to this allegation Primark denied the allegations to its suppliers and in turn ended contracts with the three Indian companies. This caused a reduction in the number of customers which led to low revenues in Primark. In reaction to the ending contracts with the Indian companies, Primark faced many protests and mass boycotts by the workers (Checkout, 2008, p.
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