Enterprise Ethics

Enterprise Ethics


Despite the fact that the principal goal of a enterprise firm would be to optimize the gain era, it has a social responsibility as portion of the modern society to reinforce the welfare on the various interested stakeholders. A business firm is predicted to engage in corporate social accountability things to do for a indicator of offering back again on the modern society that has supported its progress and a significant partner (Luo, Wang, Raithel, & Zheng, 2015, p. 15). The company ethics in the contemporary environment has become influential in influencing the competitiveness and survival in the business organizations due to your reactions it attracts from the market. Accordingly, the three ethical issues namely child labor, working condition, and low wages that Primark Company is facing features a significant impact before and after it’s got resolved. An intensive analysis in the impacts the company stands to experience before and after it’s got implemented the organization code of ethics in resolving the issues has been conducted.

Before Company 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. trackingapps.org. 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 maximize revenue generation by entering these markets will be frustrated before it resolves the child labor ethical issue. Equally, the revenue generation ability of 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 in the populace since they are perceived as the real defender of the public interests (Nica, 2013, p. 12). Thus, the mobilization by the non-governmental organizations against the consumption with 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 contains 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 of the organization 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 for the destruction of properties and undue litigations that hamper the gain 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 to the unethical child labor and unfair employment practices.

After Implementation of Business enterprise Ethics Code

In contrast, the decision the by the management with the firm to rectify the current position by implementing a business code of ethics will have a positive impact on its revenue era, profitability, and market competitiveness (Boylan, 2013, p. 72). The implementation of your small business 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 on the child labor will increase the potential in 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 in the civil culture for a caring company in the culture, which is essential brand building. This development will increase the ability with the company’s brand to penetrate the market due to your 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 on the employees due on the feeling of being recognized and appreciated as vital 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 boost profitability. Similarly, the reputation in the company as being a caring business to its workforce will increase its competitiveness in attracting the best talented and skilled employees in the market. The reputation with the work environment is critical in determining the quality of the workforce an firm can attract (Boylan, 2013, p. 64). Thus, the capability on the firm to attract productive employees will see its production costs slowing and the quality with the products it supplies to the market improving. This means the revenue and financial gain technology in the Primark Company will be improved. Consequently, the sales revenue and net financial gain with the Primark Corporation will be higher after the implementation of your business enterprise code of ethics compared to the prior position.


Boylan, M. (2013). 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 Duty, Corporate Welfare, and Company Ethics. Psychosociological Issues in Human Resource Management , 1 (1), 9-14.