Company Ethics

Company Ethics


Regardless that the principal goal of the organization business is always to increase the revenue generation, it’s a social obligation as part of the modern society to enhance the welfare of the numerous intrigued stakeholders. A company business is expected to have interaction in company social obligation functions for a signal of supplying again to your modern society which includes supported its progress and a significant lover (Luo, Wang, Raithel, & Zheng, 2015, p. 15). The business ethics in the contemporary environment has become influential in influencing the competitiveness and survival from the business organizations due for 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 provides a significant impact before and after it’s resolved. An intensive analysis of your impacts the company stands to experience before and after it has implemented the business enterprise code of ethics in resolving the issues has been conducted.

Before Organization 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. Audio, on the other hand, is a bit of an issue, as the iphone’s built-in earpiece, microphone, and speaker are all completely spy gps cell phone tracker covered. 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 of the company to maximise revenue technology by entering these markets will be frustrated before it resolves the child labor ethical issue. Equally, the revenue generation ability with the Primark Company will be affected negatively by the local market due on the reactions it will receive from the non-governmental organizations. The civil society carries a significant influence in determining the decisions on 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 on the 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 has 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 group (Boylan, 2013, p. 67). Thus, the production efficiency in the small business 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 in the firm to face frequent trade disputes disrupting operations is quite high. These occasions will lead into the destruction of properties and undue litigations that hamper the gain 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 towards the unethical child labor and unfair employment practices.

After Implementation of Business enterprise Ethics Code

In contrast, the decision the by the management in the firm to rectify the current position by implementing a company code of ethics will have a positive impact on its revenue generation, profitability, and market competitiveness (Boylan, 2013, p. 72). The implementation from the enterprise 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 on the child labor will enhance the potential with 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 modern society being a caring company in the culture, which is essential brand building. This development will improve the ability of the company’s brand to penetrate the market due into the positive public reception leading to high sales volume. Likewise, the introduction of fair compensation and working condition by the management in the Primark Company will boost the morale and loyalty of the employees due towards the feeling of being recognized and appreciated as important assets in the corporation (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 greatly enhance profitability. Similarly, the reputation in the company as being a caring group to its workforce will greatly enhance its competitiveness in attracting the best talented and skilled employees in the market. The reputation of your work environment is critical in determining the quality of your workforce an corporation 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 to your market improving. This means the revenue and gain technology with the Primark Company will be improved. Consequently, the sales revenue and net financial gain in the Primark Corporation will be higher after the implementation on the small business code of ethics compared to your prior position.


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