Organization Ethics


Organization Ethics


Though the main aim of a business enterprise corporation is to increase the revenue generation, it’s a social responsibility as portion of the society to enhance the welfare in the diverse fascinated stakeholders. A company corporation is expected to engage in company social accountability routines as being a signal of offering again for the society which includes supported its progress and a crucial associate (Luo, Wang, Raithel, & Zheng, 2015, p. 15). The business enterprise ethics in the contemporary environment has become influential in influencing the competitiveness and survival with the enterprise organizations due on the reactions it attracts from the market. Accordingly, the three ethical issues namely child labor, working condition, and low wages that Primark Company is facing includes a significant impact before and after it has resolved. An intensive analysis on the impacts the company stands to experience before and after it has implemented the small business code of ethics in resolving the issues has been conducted.

Before Enterprise 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 with the company to maximize revenue generation by entering these markets will be frustrated before it resolves the child labor ethical issue. Equally, the revenue era ability in the Primark Company will be affected negatively by the local market due into 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 in the public interests (Nica, 2013, p. 12). Thus, the mobilization by the non-governmental organizations against the consumption of your 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 contains 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 organization (Boylan, 2013, p. 67). Thus, the production efficiency from the 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 from the 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 profit maximization goal. Additionally, the public perception on 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 towards the unethical child labor and unfair employment practices.

After Implementation of Company Ethics Code

In contrast, the decision the by the management of your firm to rectify the current position by implementing a company code of ethics will have a positive impact on its revenue generation, profitability, and market competitiveness (Boylan, 2013, p. 72). The implementation on the business enterprise code of ethics prohibiting child labor, unfair wages, and promoting a safe and healthy working environment will instill the feeling of a caring and responsible company internally and externally (Nica, 2013, p. 13). The elimination of the child labor will enrich the potential on 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 on the civil society as a caring company in the society, which is essential brand building. This development will greatly enhance the ability in the company’s brand to penetrate the market due into 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 in the employees due to your feeling of being recognized and appreciated as essential 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 with the company like a caring firm to its workforce will greatly enhance its competitiveness in attracting the best talented and skilled employees in the market. The reputation with the work environment is critical in determining the quality of the workforce an group 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 from the products it supplies into the market improving. This means the revenue and gain technology of your Primark Company will be improved. Consequently, the sales revenue and net revenue of your Primark Corporation will be higher after the implementation of your enterprise code of ethics compared on the prior position.


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

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