Small business Ethics


Small business Ethics

Introduction

Although the first goal of a business corporation is always to improve the gain era, it has a social accountability as portion of the society to boost the welfare with the assorted intrigued stakeholders. A business organization is expected to interact in corporate social obligation activities as a sign of providing again to your culture that has supported its advancement and an essential husband or wife (Luo, Wang, Raithel, & Zheng, 2015, p. 15). The business enterprise ethics in the contemporary environment has become influential in influencing the competitiveness and survival with the business enterprise organizations due towards 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 has a significant impact before and after it’s resolved. An intensive analysis of the impacts the company stands to experience before and after it’s implemented the business enterprise 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 with the company to maximise revenue generation by entering these markets will be frustrated before it resolves the child labor ethical issue. Equally, the revenue era ability in the Primark Company will be affected negatively by the local market due for the reactions it will receive from the non-governmental organizations. The civil modern society carries a significant influence in determining the decisions of your populace since they are perceived as the real defender with the public interests (Nica, 2013, p. 12). Thus, the mobilization by the non-governmental organizations against the consumption in 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 provides 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 corporation (Boylan, 2013, p. 67). Thus, the production efficiency of the 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 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 financial gain maximization goal. Cindy is happy to work with you on your writemyessay4me.org/ goals essay as well as the rest of your mba application. Additionally, the public perception of your 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 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 era, profitability, and market competitiveness (Boylan, 2013, p. 72). The implementation with the business 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 of the child labor will greatly enhance the potential of your 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 the civil society as a caring company in the society, which is essential brand building. This development will enhance the ability on 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 with the Primark Company will boost the morale and loyalty on the employees due towards the feeling of being recognized and appreciated as essential assets in the group (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 enhance profitability. Similarly, the reputation in the company like a caring firm to its workforce will boost its competitiveness in attracting the best talented and skilled employees in the market. The reputation on the work environment is critical in determining the quality of the workforce an organization 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 of your products it supplies towards the market improving. This means the revenue and earnings technology of the Primark Company will be improved. Consequently, the sales revenue and net profit on the Primark Corporation will be higher after the implementation in the organization code of ethics compared to the prior position.

References

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

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