Organization Ethics

Organization Ethics


Although the first objective of the business enterprise business will be to maximize the financial gain technology, it’s a social duty as a part of the culture to improve the welfare of the diverse intrigued stakeholders. A business firm is predicted to have interaction in corporate social duty things to do as being a sign of giving back into the culture which has supported its expansion and a vital spouse (Luo, Wang, Raithel, & Zheng, 2015, p. 15). The business ethics in the contemporary environment has become influential in influencing the competitiveness and survival of your business organizations due to 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 incorporates 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 small business code of ethics in resolving the issues has been conducted.

Before Organization 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 in the company to maximise revenue era by entering these markets will be frustrated before it resolves the child labor ethical issue. Equally, the revenue technology ability with the Primark Company will be affected negatively by the local market due to your reactions it will receive from the non-governmental organizations. The civil society carries a significant influence in determining the decisions of 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 from 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 with the small business 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 on 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 earnings maximization aim. Additionally, the public perception in 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 your unethical child labor and unfair employment practices.

After Implementation of Business Ethics Code

In contrast, the decision the by the management from the firm to rectify the current position by implementing a business code of ethics will have a positive impact on its revenue generation, profitability, and market competitiveness (Boylan, 2013, p. 72). The implementation from 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 with the child labor will greatly enhance the potential with 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 of your civil society like a caring company in the modern society, which is essential brand building. This development will greatly enhance the ability on the company’s brand to penetrate the market due for the positive public reception leading to high sales volume. Likewise, the introduction of fair compensation and working condition by the management of the Primark Company will boost the morale and loyalty from the employees due to your feeling of being recognized and appreciated as critical assets in the business (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 greatly enhance profitability. Similarly, the reputation on the company being a caring firm to its workforce will increase its competitiveness in attracting the best talented and skilled employees in the market. The reputation in the work environment is critical in determining the quality from the workforce an firm can attract (Boylan, 2013, p. 64). Thus, the capability of the firm to attract productive employees will see its production costs slowing and the quality from the products it supplies into the market improving. This means the revenue and financial gain era from the Primark Company will be improved. Consequently, the sales revenue and net income from the Primark Corporation will be higher after the implementation of the 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). Corporate social performance, analyst stock recommendations, and firm future returns. Strategic Management Journal , 36 (1), 123-136. Nica, E. (2013). Social Accountability, Corporate Welfare, and Organization Ethics. Psychosociological Issues in Human Resource Management , 1 (1), 9-14.