The Primark Question

Over recent years, this topic has come up as ‘the most asked question’ in Business and Economics lessons.  Specifically, is it ‘ethical’ to buy low priced goods produced in poor countries?  My personal answer is an emphatic ‘yes’.  It’s hard to see how our refusal to open some markets to free trade – particularly in agriculture – helps the world’s poor.

But the debate seems to hinge on the rights, conditions and dignity of the producers.  For this reason, retailers like Primark (who like Tesco find themselves on the front line of this debate because of their public profile) seek to anxiously protect their reputations as ‘ethical’ employers.  Recently Primark has fired three Indian suppliers because they used child labour to finish goods.

The suppliers sub-contracted smaller firms, which were using child labour to carry out embroidery and sequin work. A Panorama special on Primark will be broadcast on BBC1 at 9pm on 23 June: during their six-month investigation, the BBC uncovered the evidence which they passed to Primark.

Primark responded with:

“The information provided by the BBC enabled us to identify that illegal sub-contracting had been taking place and to take action accordingly … the sub-contracting involved home working and in some instances children were also found to be working at home.  We take this lapse in standards very seriously indeed. Under no circumstances would Primark ever knowingly permit such activities, whether directly through its suppliers or through third party sub-contractors.”

According to Primark, the garments affected accounted for 0.04% of the retailers’ worldwide sourcing. It currently has more than 170 stores and made a £200m profit in 2007 on total sales of more than £1.6bn.

And who are the winners?  Their shareholders?  The shopping public?  Their employees – across the world?  This discussion will run and run.  You might like to ask yourselves a tough one.  Are all forms of child labour always wrong?

Revision Presentation - Working with Suppliers [17 May 2012]
CSR - Ethics and Pay Day Loans [14 Apr 2012]
Its Ethics, not Airfix you Plonker!! [5 Jan 2012]
Online marketing at children [19 Dec 2011]
Ethics - Coca Cola ‘Happiness is Home’ Project [13 Dec 2011]
Stakeholders gripped by the bad news coming from BAE Systems [28 Sep 2011]
Where there’s muck there’s brass [6 Jul 2011]
CSR and Business Legislation - The Bribery Act comes to town [5 May 2011]
Strategy and bargaining power - food for thought [22 Mar 2011]
CSR - Responsible Jeans?  Its a Blast… [22 Mar 2011]
CSR - Insights from the Leader of the Revolution [14 Mar 2011]
CSR - How Transparent are the World’s Oil Companies? [6 Mar 2011]
Stunning Video - CSR, Ethics and Milton Friedman [26 Feb 2011]
CSR - Lesson Video: Primark on the Rack [16 Feb 2011]
CSR - Apple audits the supply chain [15 Feb 2011]
CSR - Avoiding the child labour hotspots [15 Feb 2011]
CSR - keeping a CCTV eye on suppliers [4 Feb 2011]
Cash flow and trade credit - putting the squeeze on suppliers [3 Feb 2011]
Q&A - Explain what is meant by outsourcing [29 Dec 2010]
Working with Suppliers - Thomas Cook Challenges Hotel Bills [2 Nov 2010]
Working with Suppliers - How Not to Do It: The Serco Way [1 Nov 2010]
Outsourcing gets closer to the UK Classroom [11 Sep 2010]
Online distribution channels - which retailers are still missing out? [1 Sep 2010]
Farmers v Supermarkets - the battle continues [19 Jul 2010]
The Dark Side of the iPad and iPhone? [26 May 2010]
Video case study - World Cup Merchandise is Big Business [25 May 2010]
Business ethics - good news for IBM, Intel and M&S but not so good for Ryanair [30 Jan 2010]
Google in China: Business ethics, business sense or both? [15 Jan 2010]
Video Case Study - The Supermarket Bullies? [20 Oct 2009]
A bridge too far?  A classic case of illegal and unethical business [26 Sep 2009]
Playing The Ethical Business Game [17 Jul 2009]
Porter’s Five Forces hits the fish counter [10 Jun 2009]
The Life Of Big Brother [3 Jun 2009]
Spotting an opportunity - or poor business ethics?  You decide [29 May 2009]
Credit Insurance and Retailer Cash Flow [6 Mar 2009]
Working with suppliers - the grocery battle [30 Jan 2009]
Small firms fighting the economy blues [21 Jan 2009]
Ripple effects of a brutal outlook for the car industry [16 Jan 2009]
Making a mint from “out-of-time” [15 Jan 2009]
A Devastating Blow for the Irish Economy [8 Jan 2009]
SWOT analysis for Britain’s leading high street retailers [30 Dec 2008]
Zavvi joins the casualty list [25 Dec 2008]
Bracing ourselves for a series of retail business failures? [21 Dec 2008]
Video case study - falling demand for organic milk means a poor return on investment [20 Dec 2008]
How Small Businesses are Handling the Downturn - An Update [18 Dec 2008]
Revision quiz - Working with Suppliers [26 Oct 2008]
Supermarkets under fire for price promotions that focus on fatty foods [3 Sep 2008]
Working with suppliers - Matalan applies the squeeze [29 Aug 2008]
Ryanair advert grounded by the ASA [4 Feb 2008]

BUSINESS TEACHER RESOURCE NEWSLETTER
Get first news of business teaching resources, ideas and other materials from tutor2u. Over 9,400 business teachers from the UK and around the world receive our regular teacher email newsletters. Sign up for free here!