Changing Business Practices + Ethics and Sustainability 10 Mark Question

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Ethics and Sustainability 10 Mark Question

Primark makes and sells low priced clothing and accessories. They must be seen to operate in an ethical way. This means treating stakeholders holders in a fair and honest way and complying to all relevant legislation.

Consumers want to buy from companies who operate in an ethical way. They will not want to buy products that have been made using child labour.

Primark must ensure that the workers in it’s factories in developing countries are paid a fair wage, not be forced to work overtime and are old enough to be at work.

They must also ensure that the factories are safe and do not endanger the health of employees
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If Primark are found to be operating unethically then their reputation will fall which will stop existing customers from buying form them and discourage new customers. This will lower their sales revenue.

They may also be fined for breaching employment legislation in that country which will increases their costs and lower their profit.

Suppliers may also not want to trade with Primark as they may be impacted by their bad reputation to. This will mean they may not get the raw materials to make their clothes.

The biggest consequence of not trading ethically for Primark ...

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