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Corporate Social Responsibility - An Evaluation At Primark Stores - Case Study Example

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The paper "Corporate Social Responsibility - An Evaluation At Primark Stores" states that unless CSR conducts the trade morally, the malpractices and loopholes in the operations may surface at any time and become the organisations’ weakness in winning the hearts of customers. …
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Corporate Social Responsibility - An Evaluation At Primark Stores
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Download file to see previous pages Large corporations are expected to produce and market the products and services ethically and in an environment-friendly manner, provide good working conditions for the employees, etc. Along with these, the organisations owe their revenues to the society and thus have to pay back a part of it by serving the community at large. All these expectations in Toto make up the Corporate Social Responsibility(CSR) of a firm. It is defined as, “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” ((Mcnall & Hershauer, 2011) CSR is a means of ensuring the sustainability of an organization. Decent working conditions attract good job-seekers and make the organization a better place for the employees, this again reflects on their loyalty. When a percentage of profits are diverted towards community development, the company appeals to the attention of a larger audience and helps it build a brand image. Finally, the stress on the environment is the order of the day and there is a growing concern in the consumers towards using eco-friendly products. Thus, CSR is a social investment that reaps huge competitive advantage to the companies and guarantees their viability in the competitive markets (Banerjee, 2007). 2. Primark Stores Primark is a chain of 235 clothing stores spread in 7 countries including Ireland, Spain, UK, Netherlands, Portugal, Germany and Belgium. Associated British Foods (ABF) plc., is its parent company. The clothing line offered by Primark includes men, women, kids and baby clothing, accessories such as shoes and home linen and upholstery. Its competitive advantage lies in presenting variety to the fashion-conscious customers at affordable rates. The factors that allow Primark to sell high fashion products at such low prices are Bulk-buying merchandising only the most popular sizes Stream-lining of operations their easy and unsophisticated design logic low expenses on promotion good ties with suppliers 3. Corporate Social Responsibility at Primark Primark’s CSR is aligned according to the instructions drawn out by ABF. These initiatives fall into 6 categories under the Twinings Ovaltine Strategy Model developed by ABF. The model is illustrated in figure 1. The facets of this strategy pertinent to Primark are discussed in the following sections. Figure 1: Twinings Ovaltine Strategy Model of CSR at ABF. 3.1. Its People The company believes that its human resources are one of its main assets. All the employees are treated equally, provided with equal opportunities in case of employment, training, promotion, etc., based on their skill and ability. The company gives due regard to their safety during work. They abide by the regulations set by national and international statutory bodies in the countries where they operate. Harassment is considered as a crime. Primark accords due respect to the cultural differences among employees, who belong to different backgrounds. Open communication among the entire workforce is encouraged. The strong whistleblowing policy guarantees that the employees abide by Primark’s code of conduct (Werther & Chandler, 2011).  ...Download file to see next pages Read More
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