Tuesday 10 February 2015

How can Primark change their ethics?

Primark have begun to change their ethics by having inspectors from a third party check their factories and make sure that they are not using child labour anymore and that the working conditions meet the standards set by the inspectors. This will benefit Primark as it shows the public that they are turning into an ethical company which will attract customers to start shopping at Primark again which will increase the sales and profit of Primark and will allow them to gain more customers. In 2013, Primark has 2,058  of their factories inspected. A drawback of this is that it will increase Primark's costs as it will cost Primark money to hire the inspectors which will narrow the profit margin of Primark giving them less money to invest into other business activities. Due to the profit margin narrowing, Primark may have to increase the prices of their products to make the profit margin wider again which may lead to customers going to rival companies to buy their products cheaper which will also decrease the profit margin of Primark due to less revenue generated due to less customers and sales. It will also decrease Primark's competitiveness against rivals such as TK max.




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