Unit 38

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BTEC NATIONAL CERTIFICATE & AWARD

BUSINESS

ACADEMIC YEAR 2009-2010

UNIT 38

UNDERSTANDING BUSINESS ETHICS

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UNIT TUTOR:

COURSE CO-ORDINATOR:

FINAL DEADLINE:

Contents page

• Task one- letter
• Task two

Task one- letter

ADDRESS Line 1
Address Line 2
Address Line 3
Post Code

21st April 2010

Dear Mr Smith (managing director)

I am writing to you to assess and put my views across towards how Primark could improve its operations ethically.

• The manufactures poor working conditions in the factors in Bangladesh where the cloths are made. • Child labour
• Low wages for the workers

I feel that after careful consideration it is important that the ethical issues for Primark that are listed above are addressed from a different angle to see if there are changes that can be made to improve Primark ethically.

Poor working conditions

This is an issue which will cause a lot of controversy and bad publicity for Primark, and is not hard to resolve as if Primark put more money from profits made towards improving the working standards of the factories in Bangladesh then the problem could be resolved, by resolving this Primark will avoid a lot of unnecessary and unwanted hassle. Child labour

In Primark’s code of conduct it is strictly written that child labour is forbidden in any manufacturing place that provides cloths for Primark. However it seems that although it is in the code of conduct Primark are not doing enough to ensure that it is obeyed completely, as just simply having that rule on their code of conduct doesn’t seem to be enough. Primark has in the past sacked all manufacturers that have been found publicly to be forcing or allowing children to work in the factories however, simply walking away is not always going to solve the problem.  When it was publicly claimed that an 11-year-old Tamil girl at the Bhavani Sagar refugee camp was shown sewing sequins on a shirt from the Secret Possessions range the public was angered about it so much so that they protested outside of Primark stores in Oxford Street and was on BBC’s panorama TV, this created bad publicity and caused a lot of problems for Primark. Clearly the public are very unhappy with the allegations about child labour at manufacturing places in India that make the cloths for Primark, therefore Primark needs to consistently ensure that there is no children working at the manufacturing places that make cloths for Primark around the world. They should maybe look into sending some one that is a Primark worker over to the factories weekly to review that all the code of conduct is being met by the manufactures and look at and address wages as well, to ensure the factories are following Primark’s code of conduct. Low wages – there are plenty of headlines everywhere claiming that the wages for the workers are appallingly low in India, Bangladesh and various other places around the world, and some of which are the manufactures for Primark that are getting wages under the minimum £5 hour rate, therefore Primark need to address this in a much more active way. Again just having it in the code of conduct is not enough. Primark should do what no other brand or retailer has done yet and put together a systematic programme of work that is likely to raise wages to acceptable levels in the near future. As although Primark is working towards increasing wages it is still not doing enough yet therefore more effective measures such as creating a programme of work to raise wages should be taken. Without this being changed there will always be controversy for Primark on this issue as it will not just blow over...
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