The stakeholders who are affected
How these stakeholders are affected (positive or negative and why) Costs to business
Benefits to business
Long term impact on business and stakeholders
Unfavourable working environment /conditions
Workers who sew the clothes for Primark in Bangladesh.
Primark’s top employees such as managers and board of directors are affected as well. They are affected because they are the ones making the clothes in these unfavourable working conditions. The managers are affected because it is their duty to provide a safe and favourable working environment for workers and by not doing so, the organisation is operating unethically and this affects the organisation negatively as they could lose substantial amount of profit by operating this way. This affects Primark because it paints the organisation with a bad reputation and a name. This also affects Primark because they could lose substantial amount of money that could have been diverted to profitable activities to lawsuits and payment of compensations. This doesn’t benefit Primark in anyway.
If this continues to happen the organisation might lose its right to trade and also lose all its shareholders as no one wants to be involved with an organisation that doesn’t carry out their activities ethically. Stakeholders such as managers and employees would be affected on the long run because the organisation might get shut down or run out of customers due to their unethical activities. Fair wage
The workers who sew the clothes for Primark are the ones affected. Primark’s’ shareholders could also be affected by this.
The underage children who are made to sew clothes, customers and shareholders are affected.
The top employees such as managers and accounting officials, customers and shareholders are affected by this. They are the ones affected because they are the ones getting the recommended monthly minimum wage is $68 Primark’s shareholders are affected because if the organisation increases the amount of wages they pay their workers, the cost of operation increases which in turn would have an effect or reduce the dividends the shareholders get on their investments.
The underage children are affected because they are the ones made to sew clothes in terrible and unfavourable working conditions. Customers are also affected because they would have to find another fashion retailer to shop with because no one wants to get involved with an organisation that uses child labour for its production activities. Shareholders are affected because if customers boycott shopping with Primark, profits reduce and so would return on investments.
The managers and employees are affected by corruption allegations because their activities would be scrutinised and their job security would not be guaranteed by this happening, especially the accountants as they might be accused of falsifying accounting records and numbers. Customers are affected because they would tend to stop shopping with a corrupt organisation. Primark’s shareholders are affected because corruption allegations show that their investments are not be used efficiently and effectively enough for the benefit of the organisation. This affects Primark because the minimum wage in Bangladesh just increased recently and by so doing the wage bill Primark pays to its workers also increases automatically This affects Primark because the organisation cost of operation increases and their income would reduce due to this.
This affects Primark because it portrays them as an organisation that do not follow ethical morals and values. This would also affect Primark because if customers boycott shopping with them their profit would reduce massively and shareholders would be reluctant to invest into the organisation.
This affects Primark because corruption allegation blemishes the reputation of Primark as it portrays them as a fraudulent and unethical organisation. This benefits Primark because they are following the law and ethical morals and values.
This doesn’t benefit Primark in anyway or form.
This doesn’t benefit Primark in anyway or form.
This benefits the Primark on the long run because if they keep carrying out their activities ethically they would tend to attract more shareholders. This would eventually benefit shareholders on the long run because by the organisation operating ethically, they attract more customers which would bring more profit which in turn brings more return on investments.
If this continues to happen the organisation might lose its right to trade, also the organisation would lose a lot of money through payment of compensations. Also Primark would lose all its shareholders that invest in the business, as no one wants to be involved with an organisation that do not follow ethical morals and values.
This affects Primark on the long run because as they’ve been portrayed as a corrupt organisation, no one would want to get involved or invest into their organisation as investors tend to avoid shady or corrupt organisations. This also affect the workers such as the accounting officials ,because corruption allegations towards them would lead to job loss as their duties involve dealing with the organisations figures and numbers.