Company Ethics


Even though the primary aim of a business enterprise business will be to improve the financial gain era, it has a social duty as section of the modern society to boost the welfare in the various fascinated stakeholders. A business organization is predicted to engage in company social duty functions to be a indication of offering back to the society which has supported its development and a very important associate (Luo, Wang, Raithel, & Zheng, 2015, p. 15). The company ethics in the contemporary environment has become influential in influencing the competitiveness and survival of your enterprise organizations due to the reactions it attracts from the market. Accordingly, the three ethical issues namely child labor, working condition, and low wages that Primark Company is facing contains a significant impact before and after it has resolved. An intensive analysis of your impacts the company stands to experience before and after it has implemented the enterprise code of ethics in resolving the issues has been conducted.

Before Business enterprise Ethics Code

The accusation leveled against the Primark Company of employing child labor in its operation process hurts its capability of penetrating some foreign markets at the international level. The labor laws in European countries and America that are lucrative markets for companies engaging in global trading bans entry of goods for companies accused of employing child labor (Luo, Wang, Raithel, & Zheng, 2015, p. 124). Consequently, the capability from the company to maximise revenue era by entering these markets will be frustrated before it resolves the child labor ethical issue. Equally, the revenue era ability from the Primark Company will be affected negatively by the local market due to your reactions it will receive from the non-governmental organizations. The civil modern society carries a significant influence in determining the decisions in the populace since they are perceived as the real defender of your public interests (Nica, 2013, p. 12). Thus, the mobilization by the non-governmental organizations against the consumption of your Primark Company’s products due to its child labor violation will see a considerable drop in its sales revenue.

Equally, the poor working condition and low wages the firm is facing includes a detrimental effect on its sales revenue, profitability, and competitiveness. The negative reputation the company is earning in the labor market has the effect of hindering its capability of attracting the best employees. In addition, the rate of employees’ turnover will be high that disrupts smooth operations in an business (Boylan, 2013, p. 67). Thus, the production efficiency of your company that is highly determined by employees’ productivity is constrained. This has the result of hindering the company to minimize on production cost that leads to low profits. Moreover, the possibility of your firm to face frequent trade disputes disrupting operations is quite high. These occasions will lead towards the destruction of properties and undue litigations that hamper the profit maximization objective. Additionally, the public perception on the company of treating its employees unfairly distorts its brand image in the market that lowers its capability to sell (Luo, Wang, Raithel, & Zheng, 2015, p. 19). Consequently, the firm stands to lose due into the unethical child labor and unfair employment practices.

After Implementation of Company Ethics Code

In contrast, the decision the by the management from the firm to rectify the current position by implementing a business code of ethics will have a positive impact on its revenue generation, profitability, and market competitiveness (Boylan, 2013, p. 72). The implementation with the company code of ethics prohibiting child labor, unfair wages, and promoting a safe and healthy working environment will instill the feeling of a caring and responsible company internally and externally (Nica, 2013, p. 13). The elimination from the child labor will enrich the potential on the company to enter lucrative international markets. Thus, the sales volume that are essential in driving the revenue amounts will increase. Similarly, the firm will win the support of your civil culture like a caring company in the modern society, which is essential brand building. This development will enhance the ability in the company’s brand to penetrate the market due towards the positive public reception leading to high sales volume. Likewise, the introduction of fair compensation and working condition by the management on the Primark Company will boost the morale and loyalty of the employees due to the feeling of being recognized and appreciated as critical assets in the organization (Boylan, 2013, p. 64). Thus, the possibility of trade disputes will be reduced significantly.

The smooth operations brought by reduced employment disputes will be instrumental in promoting productivity, which will enrich profitability. Similarly, the reputation of the company as a caring corporation to its workforce will increase its competitiveness in attracting the best talented and skilled employees in the market. The reputation in the work environment is critical in determining the quality from the workforce an group can attract (Boylan, 2013, p. 64). Thus, the capability with the firm to attract productive employees will see its production costs slowing and the quality with the products it supplies towards the market improving. This means the revenue and income generation in the Primark Company will be improved. Consequently, the sales revenue and net profit of your Primark Corporation will be higher after the implementation of your enterprise code of ethics compared towards the prior position.


Boylan, M. (2013). Small business Ethics. Hoboken: Wiley. Luo, X., Wang, H., Raithel, S., & Zheng, Q. (2015). Corporate social performance, analyst stock recommendations, and firm future returns. Strategic Management Journal , 36 (1), 123-136. Nica, E. (2013). Social Responsibility, Corporate Welfare, and Organization Ethics. Psychosociological Issues in Human Resource Management , 1 (1), 9-14.