Organization Ethics


Organization Ethics


Even though the key aim of a enterprise organization would be to optimize the gain technology, it has a social responsibility as element of the culture to enhance the welfare of your numerous intrigued stakeholders. A business business is predicted to have interaction in company social responsibility things to do like a indicator of providing back towards the modern society that has supported its progress and a crucial spouse (Luo, Wang, Raithel, & Zheng, 2015, p. 15). The enterprise ethics in the contemporary environment has become influential in influencing the competitiveness and survival of your enterprise organizations due to your reactions it attracts from the market. Accordingly, the three ethical issues namely child labor, working condition, and low wages that Primark Company is facing provides a significant impact before and after it’s resolved. An intensive analysis in the impacts the company stands to experience before and after it has implemented the business code of ethics in resolving the issues has been conducted.

Before Small business 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 from the company to maximise revenue technology by entering these markets will be frustrated before it resolves the child labor ethical issue. Equally, the revenue era ability with the Primark Company will be affected negatively by the local market due towards the reactions it will receive from the non-governmental organizations. The civil culture carries a significant influence in determining the decisions of your populace since they are perceived as the real defender from the public interests (Nica, 2013, p. 12). Thus, the mobilization by the non-governmental organizations against the consumption of 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 features 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 from 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 of your firm to face frequent trade disputes disrupting operations is quite high. These occasions will lead to your destruction of properties and undue litigations that hamper the revenue maximization objective. Additionally, the public perception from the 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 to the unethical child labor and unfair employment practices.

After Implementation of Enterprise Ethics Code

In contrast, the decision the by the management of the firm to rectify the current position by implementing a business code of ethics will have a positive impact on its revenue technology, profitability, and market competitiveness (Boylan, 2013, p. 72). The implementation with the organization code of ethics prohibiting child labor, unfair wages, and promoting a safe and healthy working environment will instill the feeling of the caring and responsible company internally and externally (Nica, 2013, p. 13). The elimination on the child labor will enrich the potential with 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 of the civil modern society being a caring company in the culture, which is essential brand building. This development will enhance the ability with the company’s brand to penetrate the market due towards the positive public reception leading to high sales volume. Likewise, the introduction of fair compensation and working condition by the management in the Primark Company will boost the morale and loyalty of the employees due to the feeling of being recognized and appreciated as significant assets in the organization (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 of your company being a caring corporation to its workforce will boost its competitiveness in attracting the best talented and skilled employees in the market. The reputation from the work environment is critical in determining the quality in the workforce an organization can attract (Boylan, 2013, p. 64). Thus, the capability of your firm to attract productive employees will see its production costs slowing and the quality of the products it supplies into the market improving. This means the revenue and income era in the Primark Company will be improved. Consequently, the sales revenue and net earnings on the Primark Corporation will be higher after the implementation from the organization code of ethics compared to the prior position.


Boylan, M. (2013). Organization 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, Company Welfare, and Enterprise Ethics. Psychosociological Issues in Human Resource Management , 1 (1), 9-14.

Be the first to comment

Leave a Reply

Your email address will not be published.