Business Ethics
Primark Case Study
Unit 3 .5.1 Business Ethics
Mrs Gutteridge
Introduction to Primark
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A fast-growing brand
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200 stores across UK, Ireland and Europe
Growth stems from meeting customer needs
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Offers high fashion at value-for-money prices
Expanding stores
Moving into new markets
Products sourced from over 600 suppliers in 16
countries
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Part of Associated British Foods (ABF)
Europe, Asia, Middle and Far East
Primark has responsibility to source ethically
Business ethics

Business ethics are:
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Rules of conduct
Patterns of behaviour in
business
‘Doing the right thing’
Involves responsibility
to:
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Suppliers
Employees
Wider community
Primark and business
principles
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Primark shares values with parent ABF
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Shape relationships with all stakeholders
Affects dealings through supply chain
Key principles
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Respect for human rights
Setting appropriate conditions of employment in
suppliers’ factories
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Over 700,000 workers in three continents
Around 95% of Primark suppliers also supply other high
street retailers
Ethical sourcing
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Key role of Ethical Trade Director
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Leads team of ethical managers in sourcing
countries
Ensures Primark goods sourced ethically
Primark is member of Ethical
Trading Initiative
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Alliance of companies, unions
and NGOs
Working to improve working conditions
Primark business model
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Business model based on
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High sales volume
Lower retail margins
Value for money stems from
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Economies of scale - buying volume
Sourcing products efficiently
Lean production
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Using simpler designs or local fabrics
Focusing on most popular sizes
Using off-peak factory time for production
Not spending heavily on advertising
Ethics in practice
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Primark Code of Conduct
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Training for suppliers and buyers to ensure
adherence to ethical practice
Tough selection process for new suppliers
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Based on International Labour Organization Code
Translated into 26 languages and published on Primark
website
Sets out full policies and is part of Terms and Conditions
Subject to independent audit before approval
Primark pays for remedial work to bring supplier up
to standard required
Benefits of an ethical
approach

Primark’s key business objectives
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To be profitable
To be sustainable
Also aims to act as responsible corporate
citizen
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Helps to build confidence in the brand
Reduces risk of poor publicity on ethical issues
Costs of ethical behaviour

Primark bears costs of
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Audits and training
Remedial actions
Employment of Ethical Trade
teams
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However, these are all seen as contributing to
sustainable business
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Improvements to a supplier mean Primark standards
improve
Transparency in business gives all stakeholders, including
customers, confidence in the brand