Small business Ethics

Small business Ethics


Despite the fact that the principal aim of a organization corporation will be to maximize the profit technology, it’s got a social responsibility as part of the culture to improve the welfare with the numerous interested stakeholders. A business group is expected to engage in corporate social accountability activities like a sign of offering back towards the modern society which has supported its growth and a significant companion (Luo, Wang, Raithel, & Zheng, 2015, p. 15). The business ethics in the contemporary environment has become influential in influencing the competitiveness and survival in the company organizations due into 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 from the impacts the company stands to experience before and after it’s got implemented the organization code of ethics in resolving the issues has been conducted.

Before Company 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 maximise revenue technology by entering these markets will be frustrated before it resolves the child labor ethical issue. Equally, the revenue technology ability of your 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 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 with 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 incorporates 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 group (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 towards the destruction of properties and undue litigations that hamper the financial gain maximization goal. 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 towards the unethical child labor and unfair employment practices.

After Implementation of Enterprise Ethics Code

In contrast, the decision the by the management with the firm to rectify the current position by implementing a company code of ethics will have a positive impact on its revenue generation, profitability, and market competitiveness (Boylan, 2013, p. 72). The implementation of your company 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 on the 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 on the civil culture like a caring company in the society, which is essential brand building. This development will enrich the ability with 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 on the Primark Company will boost the morale and loyalty of your employees due towards the feeling of being recognized and appreciated as crucial assets in the corporation (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 with the company like a caring organization 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 of the workforce an organization can attract (Boylan, 2013, p. 64). Thus, the capability in the firm to attract productive employees will see its production costs slowing and the quality of the products it supplies towards the market improving. This means the revenue and revenue generation from the Primark Company will be improved. Consequently, the sales revenue and net financial gain on the Primark Corporation will be higher after the implementation of the business code of ethics compared towards the prior position.


Boylan, M. (2013). Enterprise Ethics. Hoboken: Wiley. Luo, X., Wang, H., Raithel, S., & Zheng, Q. (2015). Company social performance, analyst stock recommendations, and firm future returns. Strategic Management Journal , 36 (1), 123-136. Nica, E. (2013). Social Obligation, Corporate Welfare, and Small business Ethics. Psychosociological Issues in Human Resource Management , 1 (1), 9-14.