Organization Ethics

Organization Ethics


Despite the fact that the primary aim of a business business is usually to maximize the gain era, it’s a social responsibility as component of the modern society to reinforce the welfare with the numerous intrigued stakeholders. A company firm is predicted to engage in corporate social responsibility actions to be a indication of offering back on the culture which includes supported its advancement and a significant lover (Luo, Wang, Raithel, & Zheng, 2015, p. 15). The organization ethics in the contemporary environment has become influential in influencing the competitiveness and survival of your small 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 includes a significant impact before and after it has resolved. An intensive analysis from the impacts the company stands to experience before and after it’s implemented the 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 of the company to optimize 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 towards the reactions it will receive from the non-governmental organizations. The civil society carries a significant influence in determining the decisions with the populace since they are perceived as the real defender of your 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 includes 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 firm (Boylan, 2013, p. 67). Thus, the production efficiency of your 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 from the firm to face frequent trade disputes disrupting operations is quite high. These occasions will lead to the destruction of properties and undue litigations that hamper the profit maximization objective. 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 Organization Ethics Code

In contrast, the decision the by the management on 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 the caring and responsible company internally and externally (Nica, 2013, p. 13). The elimination of your child labor will enhance the potential on 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 as a caring company in the culture, which is essential brand building. This development will enrich the ability of the company’s brand to penetrate the market due to the positive public reception leading to high sales volume. Likewise, the introduction of fair compensation and working condition by the management from the Primark Company will boost the morale and loyalty from the employees due on the feeling of being recognized and appreciated as vital 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 of the company as being a caring business to its workforce will improve its competitiveness in attracting the best talented and skilled employees in the market. The reputation of the work environment is critical in determining the quality in the workforce an organization can attract (Boylan, 2013, p. 64). Thus, the capability from the firm to attract productive employees will see its production costs slowing and the quality in the products it supplies for the market improving. This means the revenue and gain generation on the Primark Company will be improved. Consequently, the sales revenue and net income of the Primark Corporation will be higher after the implementation with the organization code of ethics compared on the prior position.


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 Accountability, Corporate Welfare, and Organization Ethics. Psychosociological Issues in Human Resource Management , 1 (1), 9-14.