Many companies fail to imply a good effective CSR to a business and this can have an overall effect on the company’s process. CSR is basically for a company to have an overall positive impact on the environment, consumers, employees, stakeholders and communities. I will be discussing and implying sources and concept to my chosen company Primark and discuss where they failed to add CSR to their company. A good use of CSR in a company can be the fulfilment of social or environmental goals, as opposed to a business that tries to achieve its financial goals while minimizing any negative impact on society or the environment. These businesses are called Social Enterprises.
Primark is a multinational, high street popular company with Headquarters based in Dublin. Primark had a poor image due to their lack of irresponsibility of applying CSR to their business mainly because they were labelled with using Child labour; according to the (Daily Mail Reporter 2008) An investigation revealed that children as young as 11 were working in foul conditions, sewing tiny beads and sequins onto cheap t-shirts, and having said that Primark also recalled that ‘it is possible to sell T-shirts for as little as £2 without compromising its ethics’ which is an unjust comment being made by Primark who once did not respect their companies ethics. This Child Labour accusation on Primark resulted in losing customers, according to the Guardian 2008 a poll was published conducted by (ICM Research for Drapers magazine) found that 42% of shoppers who shopped at Primark were less likely to shop there, this has been a cause of a major affect to Primark’s reputation and status. Also according to BBC an investigation of BBC panorama was undertaken to find out what’s really going on behind the scenes. They found out children under the age of 11 being paid 60p a day working in refugee camps with major issues of Health and Safety. All of these accuses on Primark has really affected their reputation which once was selling clothes for a cheap price, but for cheap clothes requires cheap labour right? In relation to the cheap clothing and labour of Primark many people still buy their clothes, according to (The independent 2013) it claims a young lady Hannah to buy clothes from Primark for their ridiculously cheap clothing and she also mentioned Primark must be getting cheap labour due to their cheap clothes. So not many customers did back down from Primark regardless of knowing about cheap labour. As Martin and Hetrick (2006) stated, this is a fine example of a brands reputation being affected by the lack of CSR. According to Hopkins (2008) Primark customers protested outside of the oxford street Primark in London in response to the devastating news of using cheap labor (child labor) taking into consideration Harcourt (2008) for the Telegraph wrote that the relations with the three suppliers from India, that were subcontracting child workers, were stopped and Weston, the chief executive for Associated British Food said for The Guardian (2008) that an order that worth millions of pounds was cancelled. So this played a huge effect on Primark’s reputation as they lost their workers where which meant they would have to spend more money on labour.
The word “stakeholder” means any person with an interest in the business -- someone who can contribute to the company’s growth and success or who benefits from its success. The term of “Stakeholder” not only consist of anyone’s interest in the outcome of a company but also outside the company, including supplier and consumer (Verkerk 2001). According to ‘Primark’ it’s self ‘Stakeholders are those who has direct or indirect their stake in the organisation’ Stakeholders are considered of being a main part in a business and all have various roles to keep a company running efficiently. I believe that the 3 most important stake holders for Primark are the customers, suppliers and employees as they fulfil the need of...
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