Company Ethics

Company Ethics


Despite the fact that the primary objective of a small business group will be to increase the revenue technology, it has a social duty as portion of the culture to improve the welfare from the numerous fascinated stakeholders. A business organization is expected to have interaction in corporate social duty pursuits for a indication of providing back into the modern society that has supported its advancement and a very important associate (Luo, Wang, Raithel, & Zheng, 2015, p. 15). The small business ethics in the contemporary environment has become influential in influencing the competitiveness and survival on the small business organizations due on 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 got resolved. An intensive analysis of your impacts the company stands to experience before and after it has implemented the small business code of ethics in resolving the issues has been conducted.

Before Small business 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 of the company to optimize revenue technology by entering these markets will be frustrated before it resolves the child labor ethical issue. Equally, the revenue technology ability in the Primark Company will be affected negatively by the local market due into the reactions it will receive from the non-governmental organizations. The civil society carries a significant influence in determining the decisions in the populace since they are perceived as the real defender on the 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 features 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 organization (Boylan, 2013, p. 67). Thus, the production efficiency in the business enterprise 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 from 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 profit maximization goal. Additionally, the public perception from 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 Business Ethics Code

In contrast, the decision the by the management on 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 on the enterprise code of ethics prohibiting child labor, unfair wages, and promoting a safe and healthy working environment will instill the feeling of the caring and responsible company internally and externally (Nica, 2013, p. 13). The elimination with the child labor will improve the potential from 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 from the civil modern society like a caring company in the society, which is essential brand building. This development will increase the ability of your 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 from the Primark Company will boost the morale and loyalty of your employees due on the feeling of being recognized and appreciated as vital 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 improve 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 from the work environment is critical in determining the quality in the workforce an group can attract (Boylan, 2013, p. 64). Thus, the capability from the firm to attract productive employees will see its production costs slowing and the quality of your products it supplies to the market improving. This means the revenue and revenue era from the Primark Company will be improved. Consequently, the sales revenue and net income on the Primark Corporation will be higher after the implementation of the enterprise code of ethics compared towards the prior position.


Boylan, M. (2013). Company 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. Launchpad you can now search in launchpad. Nica, E. (2013). Social Obligation, Company Welfare, and Small business Ethics. Psychosociological Issues in Human Resource Management , 1 (1), 9-14.