Ethics Essay Primark Essay

This essay sh whole visualize at the cost to human c beer and lifestyle through the demand of depleted cost materialing in the UK. This pull up stakes be undertaken specific entirelyy looking at Primark and the genus genus genus Rana space factory collapse in Bangladesh, observe as modern day slavery, having a race to the bottom characteristics, occurring as a resolution of globalisation. This essay will analyse differing estimable approaches including Virtue, Kantian and utilitarian ethics. An overview of the findings will be given, using the Rana home Factory in Bangladesh as a caseful study, along with an analysis of Primarks come forth chain. Bangaldesh has for m any(prenominal) an(prenominal) years has been drug ab utilize for outsourcing, attractive to western costume companies append chains receivable to low costs. East Pakistanis economy is almost entirely reliant upon these export sales (80%) in the cloth trade (Jacob, 2012). Given this, it is clear that th e Rana Plaza disaster (2013) killing more than 1000 twisters did non occupy only a local effect, but a global one, with it raising many questions.It has been testify that those who died, did so as a government issue of distressing operations management. The disaster further served to highlight that conditions of many factories were poor and oft illegal. Large mould brands including Primark, were seemingly happy to ignore such factors, to continue to spend a penny profit, observed by the lack of procedures in place to ensure that metres of health and pr reddentative were met. This alongside the fellowship that child labour was often used, has led to many questions regarding ir office of western companies. Despite the cost of life in one of the major disasters (the Rana Plaza collapse) of the trend industry, Primark has made huge profits (44 % higher(prenominal) than in 2012) highlighting that cost earlier than ethics is at the forefront of the stakeholders.The race to the bottom characteristics1 of Bangladesh fork over facilitated giant western companies, cheaper labour and severes. Furthermore the lack of enforcement of the limited laws and regulations, along with the Bangladeshs class system, to round extent has allowed large companies to exploit these loopholes, given that Bangladeshs economy is dependent on the textile industry, outlay one billion dollars in 1985 and now estimated to be worth over 20 billion dollars (Young, 2013). What has been debated is whether or companies such as Primark be ensuring, and non just assuming, that all in their supply change be acting ethically. The focalise of thisstudy will be on Primark.Fast FashionThat bastion of close fashion, scorned and idolised by the British public indeed, all of Europe (Joy, et al., 2012). Fast fashion whitethorn be described as inexpensive habilitate which mimics catwalk fashion trends, lasting only the trend, thus give out of the throwaway culture leading to unsustaina bility. This is supported by Joy et al. (2012) who express that fashion trends run their course, with at onces styles outdoing yesterdays, with yesterdays having already been relegated as trash (Joy, et al., 2012), this is Primarks main pipe transmission channel toughie offering competitive advantage and success. For example, fast fashion results in consumers having at least 30% of unworn clothing (worth 30 million) with approximately 140 million of used clothing going to landfill annually (WRAP, 2014).Changing trends buzz off shown that in the 1900s, 15 % was spent on clothing in semblance to 2.8 % (2010), although a greater crook of items were purchased with the onset of time, indicating that the majority of purchases were low-cost items. Packard (REF) refers to consumerism in negative way, highlighting the role of advertising in the launching of consumption for consumptions sake , which leads to mindless consumerism, whereby single(a)s are more wasteful, imprudent, and ca refree in their habits. As a issue natural resources are habituated unnecessarily at an alarming rate. at that placeof indicating that all stakeholders of Primark, including consumers are participants of mindless consumerism.Stakeholder systemInitially, Milton Friedmans stakeholder theory will be utilised, Friedman is known for his famous bring up of trading of business is business. He claims that there is one, and only one social responsibility of business, to use it resources and engage in activities designed to increase its profits, so long as it stays within the rules of the game, therefore engages in open and free competition without deception or fraud. REF he furthers this by expressing what does it designate to say that business has responsibilities?, only people have responsibilities.As articulated by Friedman (1970), a mass is an artificial person and in this sense whitethorn have artificialresponsibilities, but business as a whole can non be said to have respons ibilities, even in this vague sense .Milton. reader The Social Responsibility of Business Is to Increase Its Profits. New York Times Magazine, 13 September 1970. Identifying that Milton Friedman thinks that businesses should only look at the shareholders in the organisation, their antecedentities and needs. For instance, as with Primark low prices, to maximise profits for shareholders.FreemanAlternatively, Freeman contradicts Friedmans theory through the stakeholder theory (Freeman, 1984). Freeman states that business will only maximize profit over the long-term, if it takes into write up its social responsibilities Businesses that are seen to ignore the interests of the wider community and to fail to protect societys welfare will pay in terms of damage to image and reputation. Although it is evident that Freemans theory did non hold, as despite the Rana Plaza disaster, and associated wrong practices, Primark has continued to be successful. As Freedman states Primark should not only look at their shareholders interest but should also proactively engage with stakeholders.Responsibilities of supply chains and out-of-pocket assiduityDue diligence is the procedure by which companies monitor and review actions of a companionship, prior to subscribe a contract. Intrinsically this procedure is used to identify whether the business partner is running(a) to a standard which complies with that required by the investor (Brown et al). Therefore identifying if a community is adhering to its own code of ethics, as they would have prior knowledge of the proposed outsourcer and their standards, allowing them to make an informed choice. This is undertaken by best practice of collectable diligence, in doing this Primark could obtain info that could be critically evaluated to ensure that their business partners in the supply chain are acting responsibly. bring out a lack of collect diligence by Primark, in place at the time of the Rana Plaza disaster.Supply chainW ith the onset of globalisation, many difficulties as well as advantages havearisen. ace of the main difficulties associated with globalisation is the lack of visibility and transparency of the supply chain, which may lead to essay, as highlighted by the Chartered Institute of Purchasing and Supply (CIPS) who disclosed that within at least 11 % of UK business, it was exceedingly probable that modern slavery exists within the supply chain. As emphasised by the Rana Plaza collapse, the occupations of lack of visibility are inherent, due to extensive supply chains, with many of the associated problems as a consequence undisclosed to buyers.Researched by the CIPS states, 72% of British supply chain professionals have no visibility of their supply chains beyond the second level with only 11% having complete visibility of the chain (Noble, 2014). It is not understood whether Primark was fully aware of the problems at the Rana Plaza factory, although they could still be considered at fau lt, due to ineffective checks and monitoring of subcontractors, highlighted by Panorama (date). Alternatively it could be assumed that Primark was indeed aware and was uncoerced to take the risk, for profitability, at what cost?Ir trustworthy behaviour analysisFast fashion underpins the entire fashion merchandising industry. Children and adults are used to produce such fashion items, primarily in underdeveloped countries including Bangladesh. These individuals work in very poor, and often dangerous conditions, earning very small amounts of money. In work, the young children are ineffective to access education. The workers have limited rights and are full general thankful to be able to earn any amount of money whatsoever. Western society often views such circumstances as being exploitatory and unethical. There are several theories of ethics which have differing pedestals. These let in a Utilitarian, Kantian and Virtue ethics. Utilitarian ethics relate to benefiting the majority of society, focussing not upon individuals but a collective whole. Many businesses utilise this approach as a basis to provide guidelines for ethical decision making for the greater good. The number is that the majority of stakeholders benefit. Utilitarianism looks to fit well into a companys business strategy, connecting ethical responsibility with business and society, in their focus of striving and justifying their approach as being for the greater good for the majority Gustafson, 2013)..Thereforefrom a consequential (Utalitarian approach) perspective, whereby an act is deemed to be right or wrong, is judged using two principles. Initially determine the outcome, with the proviso that the greatest good for the greatest number of individuals is attained, limiting harm and maximising overall good (Hartman & DesJardins, 2011). Therefore from a consequentialist viewpoint Primark did not appropriately undertake a cost versus benefit analysis, by not accounting for their lenient attitu de in adore of their suppliers. Knowledge of poor working and safety conditions were widely known prior to the collapse of the Rana Plaza (BBC News, 2013), indicating that Primark had no regard with respect to risk factors, that could be caused by the absence of due diligence. Therefore, Primark did not act ethically, from a consequentialist viewpoint, exploiting workers for financial gain and at the same time failing to achieve the greatest good for the greatest numbers. that, if the example of workers at the Rana Plaza factory is considered, working on behalf of Primark, it may be seen that these stakeholders suffered at the hands of a Utilitarian approach. This is due to the main driver of Primarks business being profitability, along with a demand for cheap clothing by UK consumers, therefore the greater good does not incorporate the workers in the factories, paid low reinforcement to keep production costs down. Despite this, it may be argued that without work, those effective ly excluded from Utilitarian ethics would be left in an even more difficult position, having no finances whatsoever. Since Capitalist societies in general dominate the fast fashion market, the actions of these corporations must be evaluated and the significance of their impact considered.Given that such corporations are driven primarily by profit, many may suggest that the lack of provision of education and meliorate living and working conditions, is indicative of the fact that companys do not consider if their actions are moral or not. Instead they do what they want, without thought of the negative impacts, to drive their goal, in Primarks case the provision of cheap fashionable clothing. This is a clear demonstration of a company taking a Utilitarian approach, marginalising the minority whilst providing for the majority. However, from a deontological viewpoint, whereby dutiful obligation plays the greatest role, in which regardless of consequence all individuals are commanded to do the right thing , with these actions deemed to be ethical, only if they have thepossibility to bewilder general law (Fisher et al., 2013).In order to be a part of society, there are accredited social norms and laws that individuals must follow (Stanwick & Stanwick, 2014). Primark (supposedly) partakes in the following of societal norms, clearly stated within their ethical guidelines (2011), where they explicitly state amongst other norms, that Primark will not tolerate either unsafe or unhealthful working environments? Despite the inclusion of these norms within their guidelines, their failure to adhere to them is clearly visible. Despite Primarks responsibility to do the right thing, they did not, from a deontological ethics viewpoint. Had Primark acted ethically in a deontological way, consideration of workers well-being, felicitousness and other rights would have been considered.Likewise Kantian ethics (1785), have the expectation that individuals are able to know right from wrong, based on an individuals beliefs and moral, not via legal laws. It is clear that no individual would consider working 19 hour shifts for very low wages an acceptable scenario, and allowing individuals to do so in the factories of Bangladesh, brings into question Primarks ethical judgement, or lack of, based on Kantian ethics. However Kantian ethics is seen as opposing Utilitarianism, its core values emphasise treating employees as individuals, having equal value.Furthering this, Kantian ethics incorporates within its ethos that employees should not be treated as a means to an end (Driver, 2006) and that for each one should have individual rights, whilst not being viewed only as a source of labour (metalworker and Dubbink, 2011). The Kantian approach involves the decision-maker being detached from personal motives when making a judgement (Smith and Dubbink, 2011). In this approach, no outside factors are considered. However, due to the personal emphasis on profit in the current climate, companies are otiose to detach themselves from the personal motive of profit and cannot adhere to Kantian ethics (Driver, 2006).Virtue ethics focus on personal characteristics and whether or not they acted in a virtuous manner when making a decision (Driver, 2006). Justice and generosity are often agreed to be such traits that are industrious to pursue good practice (Audi, 2012). Paralleling this to a company, a company would be deemed virtuous, and therefore acting ethically, if their tendency wasto achieve a caring environment and general positivity of employees, rather than maximising profits alone. one time again, Primark based on virtue ethics is not observed, acted with no regard to safety or well-being. new initiatives to improve due diligence in the supply chain have been undertaken as a consequence of the Rana Plaza disaster, however consequential actions do not follow the rules of virtue ethics, actions must be commonly practiced.Evaluation of ethical theories and PrimarkAdam Smith states that It is not from the benevolence of the butcher, the brewer or the baker, that we expect our dinner, but from their regard to their own interest. (1776, Wealth of Nations PAGE NUMBER). He attests that in engaging in self-interest that individuals also bring about greater good for the society as a whole. Smith furthers this in expressing that should an invisible hand be guiding the economy, then competitive producers would produce goods required at the lowest cost, leading to a self-regulatory economy, a free market. There are limited regulations with regards to Health and natural rubber in particular, in Bangladesh in comparison to the UK. Had Health and Safety been at the level of UK standards, with workers not having been used as a means to an end, as described by Kant, it is unlikely that the Rana Plaza tragedy would have occurred. However, in respect of a Utilitarian approach and cost-base analysis, without cheap labour, working in poor conditions, the outcome would not have been as required and consumers would not obtain cheap fast fashion goods, nor would shareholders resultantly be rewarded as expected. In this respect as the greater good is generally attained, individuals in Bangaldesh have habit, shareholders have profits and consumers have the latest cheap fast fashion.Therefore it may be criticised that no moral/ethical behaviour is taken into consideration within Smiths theory (Mill, n.d.). found on Kants theory it may be argued that the above scenario is in fact unethical, as the workers rights are not taken into consideration and that they are viewed only as a means to an end (Bowie, 2002), prioritising productivity and therefore profits, whilst viewing the employee only as a form of labour. When comparing a Kantian viewpoint to that of an Utalitarian perspective, then the Kantian standpoint does not consider a situation to be unethical even if it is for the greatergood, as in the case of an Utalitari an approach. Furthermore any gains made by a company that are achieved through any activity which does not take an employees rights into consideration is regarded as unethical (Bowie, 2002). However, for some consumers ethical responsibility of a company may influence whether they purchase a product, which may affect profitability and could also affect brand and brand image.Damage to a brand is often irreversible. However, in the case of Primark after the factory collapse, due to unsafe and unethical practices for example workers were locked in, unable to escape, luckily this potentially disastrous impact on brand image, had in reality little impact. Initially there was uproar and disgust expressed by western society, although this negative and damaging event slowly watery from the press and media, and rapidly from the minds of the consumer. Therefore highlighting that western consumers, although horrified and shocked about the conditions, seem not to care and have no moral stance and may be described as egoethical.Egoethical characteristics include self-interest without consideration of the consequences of the demand for cheap goods. Given the recent increase in interest regarding business ethics, it may be deemed that having an ethical business can lead to competitive advantage, attracting business from ethical consumers. Although in reality this may be a tool, used solely for the purpose of increasing profits rather than benefiting employees (Schwartz, 2011). The power of business in todays society along with the time individuals spend in employment, necessitates the need for an ethical environment ( Mishra & Crampton, 1998) .Primarks response and actions to improve ethicsBalch (2013) expresses that companies are ethically responsible to deal with problems when and wherever they are highlighted. Ruggies (2010) framework in respect of human rights and business advocates that if a problem arises within the supply chain, the inclusion of this part of the supp ly chain must be considered in respect of a companys Corporate Social Responsibility (CSR) to define whether inclusion is crucial. Should it be considered crucial, the company must seek to safeguard that ethical practices are improved, if not critical, an alternative should be sought. Primark based on a consequentialist perspective as mentioned earlier, plays a large role inBangladeshs economy, by the employment of many workers as part of its supply chain, with this it may be argued that Primark is supporting a reduction in poverty rates. Additionally as described by Primarks Ethical Trading (2013), 85% of its Bangladeshi workforce are female, offering opportunity and developing their independence.Consequently it may be argued that if Primark removed its outsourcing from Bangladesh elsewhere, this would be extremely detrimental, and would add to the high numbers already living below the national poverty line , 49.8 % in 2002 (ILO, 2009), highlighting that despite many ethical reserv ations Primark impacts the country and the people of Bangladesh in a dictatorial way. From a deontological perspective, almost immediately after then Rana Plaza disaster Primark was seen to be improving, observed by Primarks assessment of structural integrity of the factories and also via their joining the Accord on terminate and Building Safety (Bangladesh Accord, 2013).Furthermore Primark later terminated contracts with factories that were investigated and were considered at risk of collapse. Primark attests that there is due diligence throughout its supply chain which is undertaken irrespective of consequence. From a virtuous perspective Primark immediately acknowledged its responsibility and responded instantaneously to the catastrophe of the Rana Plaza collapse (providing financial and food aid to victims and their relatives), in comparison to other major fashion chains also using the factory (Primark, 2013).Primarks actions were virtuous, in that not only did they support th eir workers (and relatives), they supported those employed by other fashion chains within the Rana Plaza factory. Additionally it may be seen tthat Primark is working towards provision of improved well-being and education via projects such as their Health Enables Returns (HERproject) for female employees (Primark, 2011), enabling employees to have a better standard of living. Furthermore Primark is working towards suppliers increasing wages to give employees a living wage and to improve working conditions (Siegle, 2013).ConclusionHaving evaluated and analysed Primarks responsibilities and ethical considerations regarding their contribution to the Rana Plaza disaster, primarily based on a lack of due diligence in the supply chain, using a wide pattern of ethical theories, that presented a variety of perspectives. These have highlighted that Primarks ethical standards were deficient and questionable, however subsequently Primark has identified its poor practice and is working towards sustainability, via a variety of ethical considerations, improving overall standards for its employees in the supply chain, demonstrating positive CSR. Although to what extent Primark may achieve and sustain these goals in the future, whilst still focussing on profitability may be uncertain.