...In: Business and Management M&S and Primark Csr Arianne Dyball MAIN Issue I Will be looking into Exploitation of workers. Wages and Hours? Child Labour? How are employees treated? Safety and exposure to toxins and lack of trade unions and equal rights for disabled e.t.c.? Global issues, how is waste disposed? Are any resources being polluted? Carbon footprints? Primark Evidence found underpaying workers and not paying overtime. Evidence found child labour being used. Evidence found of lack of regard for workers’ rights and lack of safety. Marks and Spencer's Evidence found fair pay for workers. Evidence found of use of child labour early on. Evidence found helping to assist workers to be shown how to how to do job properly. Evidence found changing to more eco-friendly recycled bags. Evidence found helping environment with ‘Plan A’. Evidence of Social Responsibility for Primark. This shows that Primark takes into account all social issues relating to the customers and stake holders.Evidence 1. This is an opinion of a stake holder (Primark’s owner). Primark's code of Conduct Primark’s code of Conduct: • Employment is freely chosen collective bargaining are respected • Working conditions are safe and hygienic • Child labour shall not be used • Living wages are paid • Working hours are not excessive • No discrimination is practised • Regular employment is provided • No harsh or inhumane treatment is allowed. • Freedom of association and the right to A limitation is that...
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... 4 3. The international and UK policies to sustainable development since Earth Summit of 1992 ................................................................................................................................ 4 4. Triple bottom line........................................................................................................ 5 II. The commercial case for considering social and environmental matters in business management .......................................................................................................................... 6 1. 2. 3. Stakeholders and how they impact on business policies ........................................... 6 Is adopting CSR policies cost-saving? .......................................................................... 7 Primark Ethical Trading ............................................................................................... 7 III. Balance between expectations of stakeholders and the social and environmental issues 9 1. Would you pay extra for ethical products?................................................................. 9 2. Would shareholders sacrifice short-term dividends for longer-term social and environmental benefits?...
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...Ethics and Corporate Social Responsibility (CSR) using Anglo-American and Primark case studies as examples. First, I will discuss what is meant by ethical business behavior. Second, I will discuss how Anglo-American and Primark apply ethics into their business practices. Third, I will discuss what the costs and benefits are to an organization when they behave ethically. Finally, I will choose one component from Svennson & Woods’ model from “A Model of Business Ethics”, and discuss how it is relevant for Anglo-American. Ethical Business Behavior Ethical business behavior refers to an organizations actions and policies that are synergetic with "doing the right thing" (Sethi, 2003). Similar to the inherent laws of society that man has established that promote specific behaviors and actions that are deemed appropriate to build trust and relationships that last, it is similar in corporations. In order to operate ethically, organizations must also establish a clearly defined set of principles and a culture of ethical compliance that builds trust and confidence with their employees and their customers (Paine, 1994). Ethical business behavior is a combination of values and normative ethics, which drive an organization. Additionally, ethical business behavior is expected by society as a whole. Svennson & Woods write, “Society does have expectations of business and of its business leaders” (Svennson & Woods, 2008). Anglo-American and Primark are two companies that provide great strategies...
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...Relating to Outsourcing Page 4 and 5 2.2 Child Labour Page 5 and 6 2.3 The Use of Animal Fur and Environmental Issues Page 6 and 7 3.0 Best Practice Within the Sector Page 7 3.1 Primark, Compensation and Utilitarianism Page 7 and 8 3.2 H&M, Child Labour and Deontology Page 8 3.3 M&S and Virtue Theory Page 8 and 9 4.0 Recommendations Page 9 4.1 Responsibility Auditing Page 9 4.2 Education Page 9 and 10 4.3 Making a Stand Against Animal Fur Page 10 5.0 Conclusion Page 10 6.0 References Page 11 and 12 7.0 Appendices Page 13, 14, 15 and 16 2 1.0 What is Corporate Responsibility? Corporate social responsibility (CSR) is “about businesses and other organizations going beyond the legal obligations to manage the impact they have on the environment and society.” (Lea, 2002) In recent years, the fashion retailing sector in Europe has gained a lot of media interest over its irresponsibility to society and its employees. Some companies which have been under scrutiny around this issue include: Primark, Zara and H&M as well as many other brands which are increasingly popular on the high street today. 2.0 Key Issues of Corporate Responsibility Responsibility in business terms can be defined as how a business‟s “operating activities impact on society, the environment and the economy.” In order to be responsible, companies “look at their stakeholders and attempt to maximise the positive impact of their...
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...Primark and Ethical Business Introduction Primark the leading clothing retailer Rapid changes in media, transport and communications technology have made the world economy more interconnected now than in any previous period of history. Nowhere is this more evident than in the world of textile manufacture and clothing distribution. Consumers want fashionable clothes at affordable prices. Much of high street fashion is produced in various countries across the world. Businesses source clothes from countries like India, China, Bangladesh and Turkey because of lower material and labour costs in these countries. In order to meet consumer demand, Primark works with manufacturers around the world. Primark is part of Associated British Foods (ABF), a diversified international food, ingredients and retail group. Primark has almost 200 stores across Ireland, the UK, Spain, Netherlands, Germany, Belgium and Portugal. Primark’s annual turnover accounts for a significant proportion of ABF”s revenues and profit. Primark’s target customer is fashion-conscious and wants value for money. Primark can offer value for money by: • Sourcing products efficiently • Making clothes with simpler designs • Using local fabrics and trims • Focusing on the most popular sizes • Buying in volume • Not spending heavily on advertising. The largest Primark store is located on Market Street, Manchester, England. Some 100,000 sq ft (9,300 m2) of retail space is spread across its three floors. It took...
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...1. What were the main issues that were faced by M&S CEO Marc Bolland in 2013? * He was effectively given an ultimatum by one of the group's biggest shareholders on Monday to achieve an improvement in clothing sales by September or face calls for him to go. David Cumming, head of equities at Standard Life Investments told Radio 4's Today program: "He has to get his autumn range right, that's when the management changes that he's made will have an impact. I think the market will wait to see how that range, which doesn't really come through until six to nine months, is going to work. If that is poor then he'll be under a lot of pressure." A number of other leading investors are supporting the Cummings line but some want to see an earlier improvement in both leadership and sales. Analysts are also anticipating swifter action but Mr. Cummings, who has responsibility for Standard's 1.6pc M&S holding, believes the market has already taken account of the group's problems and is looking to see if any bidders are on the horizon. "So us and the market will wait but he is under pressure," he added. The beleagured Mr.Bolland had a torrid time after unveiling disappointing Christmas sales figures and enduring a damaging early leak of the figures. Sales of clothing and other ranges of general merchandise were down almost 4pc, with the result that like for like sales dropped 1.8pc. Mr.Bolland shrugged off questions about whether he would be announcing...
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...------------------------------------------------- Company Report: Gap Inc. and Business Ethics Depestel Caroline Milijana Zlatic s0101027 s0100470 Professor S. Hughes Year: 2012-2013 3th Bachelor Applied Economics 1. Executive Summary The topic of this paper is business ethics within Gap Inc., a multinational retail – clothing company. The foundation of its corporate ethical approach is summarized in the Code of Conduct . This paper outlines the ethical problems Gap Inc. faced in the last years and more important, the solutions they found in order to remain a successful company. It shows how large companies deal with common issues like child labour and sweatshops. In the first place, this report points out several examples of the problems had to deal with. These points, among which an important lawsuit and documentary, illustrate that their Code of Conduct is not sufficient enough to name Gap Inc. a model corporation in terms of business ethics. Secondly, it is essential to make an overview of the resolutions for the problems that Gap created over the years. In answer to the critics on child labour and employee abuse, they launched a campaign in which they support several organizations. Furthermore, Gap increased its corporate responsibilty by creating several multi-stakeholder initiatives. The quick solutions Gap came up with show that a big company can limit its economic damage when ethical issues occur. To maintain...
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...responsibility (CSR), which came into general use in the late 1960s and early 1970s (Harvard Kennedy School,2008), has become a vital portion in business model. There are a large number of definitions on corporate social responsibility. According to Harvard Kennedy School (2008), CSR is a procedure targeting at embrace responsibility for the company's actions and inspire a positive impact through its activities on the employees, environment, communities, consumers, as well as stakeholders. It seems that CSR is balance between positive social effect and business processes. With the development of CSR, more recent definitions focus mainly on the impact of how the companies manage their core business. In other words, the idea whether CSR serves as a resource of competitive advantage has emerged. In this essay, the author believes that the CSR indeed brings financial profits to the business and is overall beneficial to fashion business development. In the recent years, most high-street brands, such as Primark and Top Shop, including some luxury fashion brands, have worked on sustainability reports and corporate responsibility (CSR) for the sake of their long-term growth. This study will focus on the influence of CSR in the fashion business and discuss the issues mentioned above. Additionally, based on the aspects of CSR definition, this essay is divided into three dimensions, including environment, staff welfare and community in order to discuss the relationship between CSR and competitive...
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...Anshul Maini 1036526 Marks and spencer also called as M&S and Marks and Sparks was found in the year 1884 by two people Michael Marks and Tom spencer (Bevan, 2007). Ever since then marks and spencer has delivered goods of the best quality and now to day it stands as one of the best retail chains in the UK. They primarily deal in Clothing and food. The company is headquartered in London, UK and is the one of the biggest companies in the world. It’s ranked #725 in the Forbes 2000 list (Marks and Spencer on Forbes 2000 list, 2011) and is amongst the top 5 retail firms in the country. Currently the chairman of the company is Robert Swanell and the Chief Executive is Marc Bolland. (Annual Report, 2011). Over the years Marks and Spencer has gone through ups and downs. It is the first British Retail firm to make a Profit before tax of over £1 Billion which was in the year 1998.After that the company had hit rock-bottom which was due to heavy competition and the company’s inability to satisfy its customers, it went into heavy losses in its turnover. After amending a few policies and the change of the Chief executive, the company looked more closely at the customer’s needs, wants and demands and modelled their strategies around it, thus rising it from the ashes. However again in 2008, the company went into a credit crunch which was mainly because of the recession. (M&S shares dive on gloomy outlook, 2008) (Bevan, 2007).Although M&S has faced many challenges in its recent years; it has...
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...Executive Summary Apparel sector is the significant foreign exchange earning sector of Bangladesh which accounts majority portion of country’s GDP. Since it is a labour intensive sector, social compliance issues regarding workers and employees became the prime concern for the buyers and suppliers nowadays. The sourcing model of global apparel brands within its ethical purchasing and supply chain management functions have been critically analysed to evaluate their effectiveness and value they add throughout their supply chain and in overall organisational operation. This report has emphasised on three key areas such as general sourcing model and its components in the context of global buyer’s perspective i.e. Transnational Corporations, a clear scenario about current ethical situation of Bangladesh’s apparel sector, and relevant supply chain theories and its implications related to ethical purchasing in apparel industries. At the end, a proper conclusion has been given by evaluating all the three sections critically based on the theoretical lens of purchasing and supply chain management. Table of Contents Executive Summary 1 Introduction 3 Section-1: General Discussion on Sourcing and its Components 4 Sourcing and its Role in Supply Chain 4 Sourcing Needs of the Companies and its Impact on Supply Chain 4 Steps of Making Sourcing Decisions by Transnational Corporations 5 Ethical Sourcing 6 Ethical Sourcing by TNCs in Apparel Sector 6 Importance of being...
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...MG 2033: Quality Control Assignment 1 : H&M Group 20: Dominik Flum Thies Fingerhut Introduction Hennes & Mauritz (H&M) is a 100 billion SEK company. It´s engaged in designing and retailing of fashion apparel and accessories. The company offers a range of apparel, cosmetics, footwear and accessories for men, women, children and teenagers. H&M primarily operates in Europe, North America and Asia, and has a presence in over 38 countries. The company is headquartered in Stockholm, Sweden. Approximately 87,000 people on a full-time basis are employed at H&M. Strategy According Michael E. Porter (1996), the strategy of a company, per definition is selecting the set of activities in which an organization will excel to create a sustainable difference in the marketplace and which is also supported by Kaplan, R. S. and Norton, D.S. (2010) and the strategy of H&M confirms this definition. “Fashion and quality at the best price“ (H&M 2011a). That´s how Helena Helmersson, Head of Sustainability at H&M, describes the business concept. This statement implicates the three main goals of H&M. First H&M wants to sell a wide range of fashionable products and not just ordinary clothes. “People who come to an H&M store must be able to find everything: the latest fashion, reliable classics and their personal favourites,” says Ann-Sofie Johansson, H&M’s Head of Design. For that reason H&M continuously develops its collections so that each customer can find something new every time they come...
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...global organisations in implementing corporate CSR policies Prepared for John Toth Prepared by Emma Wimhurst 10 November 2013 Contents Section Page 1 Introduction 3 2 Definition of Corporate Social Responsibility 3 2.1 Carroll’s pyramid of CSR 3 2.2 Theoretical clusters 4 2.2.1 Instrumental theories 4 2.2.2 Integrative/Political theories 4 2.2.3 Ethical Theories 4 3 Implementation of CSR 5 4 The Body Shop: core purpose 5 5 Balancing act 6 6 Heightened awareness 6 7 Cost Implications 7 8 New Look: Stakeholder’s conflict 8 9 Challenges 8 9.1 Increased responsibility 8 9.2 Daily implementation challenges 8 10 Recommendations 9 11 Conclusion 10 12 Appendix one: The Body Shop 12 13 Appendix two: New Look 14 14 Appendix three: Carroll’s Pyramid 17 15 Appendix four: Schwartz and Caroll Venn diagram 18 16 Appendix five: Ethical Trading Initiative 20 17 Bibliography 21-24 1. Introduction This report identifies the key challenges faced by organisations with a global supply chain in implementing Corporate Social Responsibility (CSR) policies. The Body Shop (appendix 1) and New Look (appendix 2) are UK based companies, with a global trading presence and both depend on a global supply chain for the purchase of their products. In 2013 both companies remain committed to CSR and ethical trading. These companies have been...
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...Assignment 1 Introduction In this business assignment we will be investigating JCB and Rotary as businesses, analysing the factors that affect a business. This will include stating stakeholders for these businesses and understanding how each one of them may affect business activities. These stakeholders include trade unions, employees, local communities, customers and many more. We will also be investigate economical, environmental, political, social, legal factors on these businesses and explain how they affect the business and its activities. JCB What is JCB? JCB is one of the world’s biggest and leading manufacturers of construction material. They are world renowned, have a very iconic brand and sell to almost all of the countries around the world. JCB employ over 10,000 people on 4 continents and sell their products in 150 countries through 2,000 dealer depot locations. JCB is a Private Limited Company (LTD), whereby the responsibility has been passed down through the family from original owner Joe. C. Bamford to his sons Lord Anthony and Mark Bamford. Being a Private Limited Company (LTD) allows them to have better protection over their brand and they have the ability to sell shares privately or invite in a partner to assist in business decisions if they choose to. JCB’s operation lies within the secondary business sector, in turning raw materials into a finished product ready for sale. They rely on the primary business sector to provide them with the materials in which...
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...production-oriented strategy lead M&S to gain immense market share and strong brand loyalty however, this could only take them so far. In a market place where retailers were moving to a more consumer-oriented strategy, M&S struggled. Unable to provide fashion conscious clothing that the younger consumers desired, it lost significant market share and became known only for its good underwear and clothing targeted at older conservative women (Flynn, 1998). Today the company is trying to vigorously recapture their market by being more consumer-oriented and aware of their competition. They are taking measures to understand and listen to what their customers want and also to realize that the customer has evolved from when they started out in the industry. They have put in place several new strategies to appeal to the new consumer. From campaigns with noted celebrities, to striving to be the world’s first GREEN retailer, supplying fair trade products and being the conscious Corporate Social Responsible Company (Corporate.Marks and Spencer, 2011). M&S was recently ranked 5th in the top 10 UK retailers for 2010-2011 (Retail week, 2011) and acknowledged as a “top family brand” for 2011 by ad agency Isobel and Yougov (Baker & Costa, 2011). This is an exciting time for the M&S marketing team as they strive to appeal to new segments while ensuring that they do not alienate their current base of loyal customers. As this report will show, the current core M&S consumers are affluent...
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