Primark and Child Labor - Research Paper Example

Modern business is all about remaining competitive. However, in the process of striving to maintain the required stability in the market, organizations have the mandate to stay ethical. Unfortunately, it happens that in most cases they engage in risky behaviours and as it concerns Primark, child labour is one of society condemns it heavily. As this research paper analyses, it is evident that Primark sought the services of children in its clothing industries. The introduction herein showcases the relationship between child labour and unethical business and how Primark got involved. The literature review is the gist of the matter and analyzes scenarios in various companies, the forms they take, and how they impacted business processes. Regarding Primark, this part cements the claim that the behaviour is destructive and validates the assertion that Primark engaged in child labour. The research methodology highlights the methods used to get data that includes case studies, interviews and the use of external sources. The results section discusses the key findings while the conclusion summarizes the relevant observations and deductions made.

Primark and Child Labour

Introduction

Primark is one of the leading clothing retailers in the world and engages in various forms of businesses about the garment industry in many parts of the world. In particular, it operates in the dominant market forces in the European market that include France, Belgium, Italy, Ireland, and the United Kingdom. It also works in the United States. It is also essential to note that it is a subsidiary company of the Associated British Foods although its specialization is retail clothing. As it is the case in modern day business, it is not an exceptional case for a company to engage in scandals either deliberately or accidentally. This study seeks to evaluate whether Primark has child labour issues and the various forms it takes.

As an essential note, all companies have a critical responsibility to ensuring that they don’t oppress its workers as it seeks expansion or a better competitive edge. One noticeable thing about Primark’s products is that they are relatively cheap apparel which many companies cannot rival. However, this advantage comes with a note that Primark is capable of reducing its prices to lower levels as compared to other businesses since it takes advantage of cheap labour from children.

Research objectives

a) To examine the relationship between child labour and ethical business

b) To seek the validity in the claim that Primark engages in child labour practices

c) To assess whether other companies get involved in unethical business practices and the forms they take

d) To evaluate the reasons as to why a company may engage in the hiring of underage employees

Research questions

a) What is the relationship between child labour and ethical business?

b) Is it a valid statement to deduce that Primark engages in child labour?

c) Do other companies participate in unethical business practices? If so, what are the forms they take?

d) What are the primary reasons that compel a company (Primark) to hire young employees?

LITERATURE REVIEW

Pressures to remain competitive forces the companies to use unethical means

Businesses operate in a very complex environment where endless competition is a dominant aspect. As such, it forces the companies to go to extremes in a way to meet their target profits. However, in their endeavours to achieve the set goals, it usually happens that there is a violation of all the requirements for a recommended working setting. A notable case involves the oppression of workers and related forms of harsh labour. Consequently, it makes the business organizations face a multitude of ethical issues which affect their reputation in turn. Employees’ mistreatment is very unethical and takes various shapes in many companies.

As an aside, ethics deal with the principles of right and wrong and every business practice that oppresses the employees in any way is categorically unethical. Apparently, many large-scale retailers are victims of ethical issues and especially discrimination of workers. The hiring of children also goes into records on numerous occasions. Businesses have a responsibility to adhere to the set codes of conducts in ensuring that the existing working conditions are favorable for all workers. However, this isn’t the norm as expected since oppression in areas such as employees’ safety, abuse by overworking, underpayment and employment of underage always happen.

In connection, the continued presence of such conditions indicate poor working environment, and as reflected in the case with Nike, Wal-Mart, Amazon and Primark, it shows employers need to be more responsible, and the law should also play its part effectively to ensure working conditions are suitable for all. In particular, the reason for picking children to work for any organization is in entirety illegal, and it only becomes a known case if the public and especially watchdogs unearth the issue. In relation, the primary reason for hiring underage is all because they offer cheap labour that translates into more profit (Werner, 2011).

The Social Bar

The society raises the bar of expectations, and it’s the reason that makes Primark face the numerous accusations. Among the notable society’s expectations is hiring qualified and capable employees, a factor it has fallen short of, and recruited underage (below 16 years). Often, it is in the fabrics of every community that the companies within and around them should not engage in unethical business practices. As such, they are entirely responsible to the communities they serve hence the need to code their behaviour as the environment recommends (Congress, 2013). However, if it happens that the case is different such as the use of child labour in Primark, the perception about the company changes drastically and negatively affects its image and reputation.

Unethical treatment of workers: An account of major cases

Primark Scenario

Although it enjoys an unrivalled market due to its pricing, one of the main reasons that customers shun doing business with Primark is because it engages in child labour. There are also related manifestations regarding this wrong approach to manufacturing and selling products although its code of conduct prohibits child labour. In an expository case through the mail online, it is evident that the company has numerous sweatshops that pay children as low as 60p daily. On the same matter, children even below the age of eleven also under unfair working conditions to sew sequins and beads on tops (Reporter, 2008).

A case example of the unfortunate case involves the Indian market in particular where the company has even gone to the extent of axing suppliers because of associating with contractors who factor child labour in their business operations (Crane & Kazmi, 2009). To show the sensitivity of the matter, the children not only work in physical locations that one can trace with ease since many were embroidering dresses among other items that the company display for sale in its numerous stores (Reporter, 2008). As a result, it became a tough case for Primark since its management could always claim their capability to maintain low prices without compromising its ethics.

On a related note, as recorded in the Observer, the sacking of officials came as a result of an investigation by the BBC regarding the businesses relationship with their employees. In this case, the exploration round that there were children without covers in the Indian refugee camps that the company used for the production of its garments which it would sell later across Britain (McDougall, 2008). Apart from just working, the children were also subjects of prolonged and rest free service provision; therefore, besides the age factor, there was also the concern of oppressive working conditions (Hawkes, 2009).

The case with Amazon

Amazon enjoys the pride in unique item selection, but as in other companies, issues with employees’ working conditions remains rampant. The best example in Amazon is mistreatment of its warehouse workers where they are forced to sign non-compete agreements in a way to limit them from securing similar jobs for a period not less than one and a half years in case the company lays them off (Congress, 2013). A good example of poor working conditions is the seasonal compulsory overtime where it compels the employees to meet extra five 11-hour shifts on a weekly basis to meet increased online demand for its various products (Scott, 2015).

Unfortunately, there is no equivalent compensation of the employees for the time lost in security lines and management by stress is also a common practice. Employees in the warehouses are restricted to work for $9 to $14 per hour and at times forced to pack over 240 boxes per hour while the industrial rate is 150 boxes which are a great sign of oppression (Head, 2014). The case is not in Germany alone, and tougher working conditions are experienced in the United States also. As a note, staff in Pennsylvania has worked in temperatures above 30 degrees Celsius while those in Seattle working for more than 80-hour weeks (Congress, 2013). Although there are other cases, the listed examples are enough evidence to show the extent to which the company has gone as far as workers conditions remain a subject, which is unethical.

The Case with Wal-Mart

Wal-Mart has been a primary victim of poor working conditions as well as discrimination cases, and the best example is its healthcare policy. For instance, Wal-Mart’s health care system has some shortcomings which only show that the policy is in practice just because the law requires companies to cover their employees. For instance, the system requires the workers to wait half a year before enrolling in the health benefits plan. Secondly, the retirees do not access health benefits program. Thirdly, the policy is three times higher of the regular amount deductibles to employees. In Bangladesh for instance, the minimum wage for the workers is $37 per month which is among the lowest in the world despite the high profits that the company makes (Werner, 2011). Regarding safety, employees have not been working in the best environment with the fire rage in Dhaka that claimed the lives of over 110 people being an indication of the company’s gross neglect. Moreover, over 1,000 workers have died in the line of duty while over 3,000 have been seriously injured without comparable compensation (Werner, 2011). Furthermore, back in April 2013, the Rana Plaza garment factory collapsed which also shows how employees’ safety is at risk. The company has paid over $1 billion against employees’ working conditions cases and unpaid work.

Nike and its Sweatshops in Asian Countries

Nike faces a constant accusation of its workers’ mistreatment with many testimonials revealing a company that seems insensitive to its workers’ conditions. On ethical considerations as in its cases, Nike has been a victim of allegations that mainly emanate from the way the company treats workers in its overseas plants, particularly in Indonesia, Thailand, China and Vietnam. The hiring of underage workers in Indonesia while paying them 14 cents per hour is a rate too low for survival. On the contrary, Nike has been spending heavily on endorsements as revealed in Gifford story with Michael Jordan’s $ 20 million and Tiger Wood’s $25million annual contracts being some of the best evidence from past practices (Doorey, 2011). Workers need better pay and treatment, and corporate social responsibility should be integrated among businesses core principles since they are answerable to the society as well.

Nike overlooks the living wage proposal for the minimum wage that faces a lot of criticism. Unfair labour practices are common in Nike. Employees are forced to work 16-hour days on fast moving lines while being denied the minimum wage. For instance, in Taiwan, the hourly package is 50 cents an hour while the minimum should be about 55 cents per hour. Moreover, workers often face sacking and sanctions after filing complaints, which is against labour recommendations.

The essential role of the law

The poor working condition is unethical, uncalled for and everything should be done to ensure the suitability of the working conditions. Worker Pay-fairness is crucial and shouldn’t be at any time overlooked or considered as a secondary inclusion in companies. Secondly, workers should not serve as survivors as in the conditions with the highlighted cases. Above all, businesses must perform within the expectations of the society by raising the minimum hiring age, periodically reviewing employment packages, ensure safety and avoid overworking if not reasonably protected. Labour laws should also be ruthless and severely punish organizations that oppress their workers. In a way to make sure that the business practice is ethical, organizations should ensure that no employee receives below the recommended minimum wage.

As a lasting solution, the gap between promise and performance need a bridging by making the companies fulfil their pledges to observe in their mission and vision statements. The companies must also comply with their code of conduct, and the code compliance should need frequent monitoring by the board audit committee and punish in the case of noncompliance. Wages needs review as well but in proportion to the amount of work done and increased as time advances. With all these considerations, the various lawsuits that face such companies will be avoided and ensure that organizations align their operations in an ethical manner while taking care of employees’ working conditions.

As an essential note, regardless of how a company wishes to compete in the business environment, workers’ state should always remain a priority. Employers should also be aware of the safety in the workplace and must reasonably compensate their employees. No employee should unreasonably work for long hours, and in case a company is genuinely accused of workers’ mistreatment, the legal actions should punish severely to prevent similar situations in the future. In unfortunate scenarios, some companies go to the extent of hiring the underage and mistreating them as well. The rules need to be further stricter as a way to warn them of the consequences that should come along with wrong doings.

RESEARCH METHODOLOGY

Materials from case studies

Research elements vary according to the interest of a researcher and the objectives also change the type of study. Among the research concepts that involve in-depth study before making a claim is a case study. As the name suggests, a case study entails identifying a particular subject to investigate. The case may include an individual, a group of people, institution, companies, and even places. It is a way of picking a particular situation and converge it into a small topic to investigate and give a conclusion (Yin, 2013). It includes identifying a problem, providing an effective solution as well as recommendations. In this scenario, the research about Primark and child labour has evaluated different cases and how they present the issue with employment of the underage at large.

As a research method, there are many areas of study in a case study, and the topics are many. However, the subject matter changes depending on the scope of concentration that a researcher chooses. For instance, issues are different when exploring descriptive events compared to when someone is doing an investigative study. The situation also applies to cumulative disciplines as compared to others, and it is entirely different when examining cases with cause and effect outcomes. However, the most common issues deal with behaviour patterns and how a certain concept within a population represents a problem. In this case, the examiner evaluates the contribution of the noted element to the present setup and recommends the way forward to eliminate it.

The mentioned aspects are some that the study used to make deductions.

However, it is important to note that the research borrowed items from past case studies since it is not possible to explore the evidence in primary considering the time and scope of the problem. As such, most of the material used to support issues and make judgments include secondary resources. All in all, they are proven and credible sources that present important details crucial to the development of the topic of interest.

Use of Interviews

The study also applied the use of interviews. As such, there are opinions from interviews that a researcher conducted that concerned asking people about their perception regarding Primark. However, it is imperative to note that they are not initial interviews regarding this case and it is as provided in the link https://mab.to/fUhPYEH86 that through a video talk, the different perceptions regarding Primark’s business aspects come into light. In connection, Interviews investigate issues in an in-depth way which helps in discovering how individuals think and feel about a topic and why they hold certain opinions. Besides, they add a human dimension to impersonal data and deepen understanding and explain statistical data (Harrell & Bradley, 2009).

Apart from that, interviews allow the researcher to ask more direct and detailed questions. Therefore, it enables the clarification of ambiguities to take place as well as the follow-up of incomplete answers. As a result, they give a person the confidence that the findings presented in a case are accurate and reliable hence research validity.

External sources

One of the most trusted external resources in the research study is the video link as used for interview purposes. However, in coming up with the numerous deductions as the discussions and analyses can reveal, there is much dependence on books, journals, websites, and other credible sources to develop the research topic. Indeed, one of the most dominant features about sourcing for materials this way is that they give both the past and present scenarios. As a result, they help the researcher to review and use the materials that are credible and not ambiguous. They contribute in approving the concept that Primark did engage in child labour and the impact of such an unethical act in a business affect the company’s image.

EVALUATIONS AND FINDINGS

Through an in-depth analysis of the case, some issues come out clearly regarding the research questions. On the relationship between child labour and ethics, it is evident that hiring of the underage remains an unethical behaviour in all avenues, and it is because companies act in hiding that the practice goes on. Indeed, it is illegal, and the law punishes it. On the other hand, the research validates the claim that Primark engages in child labour. For instance, the two situations in India concerning young employees and suppliers engaging in child labour comes out to light and shows that the claims were not just on the surface, but it is true that the company was a culprit.

As the study indicates, it is evident that apart from Primark and the issue of child labour, other enterprises in the world also engage in workers mistreatment for various reasons. The only thing that varies is the magnitude of the impact. Primark isn’t the only company that has widely used sweatshops although its main disadvantage was being international; therefore known. The media and labour associations highly converged anti-labour accusations on it though in a way helped in reshaping its practices. The several efforts were as a result of allegations, and if this didn't come to happen, the situation could not have been the way it is in the present. Though the company has done reasonably well in protecting itself as a global figure of abusive practices, reports of abuse, low wages and factory tragedies are still present meaning that it hasn’t successfully won its war against anti-sweatshop movements and labour scandals.

Also, there are others that also participate in child labour such as Nike that has sweatshops in Vietnam and other Asian regions; therefore, helping it to convert the cheap labour into a price essential. The image is destructive and can at times be embarrassing. Above all, the main reason that compels companies to go into such as extreme is all about meeting competition pressures. It is no doubt that pricing makes a significant difference in the market and in a way to have the most attractive, competitors usually seek for alternative strategies of fixing gaps hence resolving to cheaper labour sources. Consequently, the children become the victims.

Primark’s Change and Recognition

In a way to reverse the course of the current waves successfully, Primark must centre its efforts on the management of workers, review and focus deeper on its social agenda and comply with the set standards and recommendations from the various independent reports. The society values proper treatment of employees and remuneration, and employment of the underage can be one way to damage its reputation. Regarding that, processing of the corporate social responsibility frequently reports as proposed, is crucial to indicate often the extent to which the company has engaged in public practices. Protecting its image is imperative to present and future competition; therefore the need to respond to child labour accusations sufficiently.

In compliance as well, Primark should solve its issues with work management forces as delineated in false advertisement charges and avoid the risk of lawsuits at all times. If the company manages to factor all these considerations and recommendations in its processes, it will be possible to make a change in its negative perception, and in turn become a universally recognized and less criticized brand. As such, it is an initiative with much responsibility that is expected to cost the huge company resources although its impact cannot compare to the continued damage that Primark can have in the existence of the sweatshop and child labour allegations.

In conclusion, ethics is part of business process. It is not only the government that regulates business processes, but the society also intervenes when things do not happen as expected. In like manner, the competitors also check the behaviours of other companies closely and if there is something they can use to portray them negatively, they expose it. A common aspect has to do with child labour. In this case, it may be in low tones that Primark engage in the employment of the underage, but the idea can appear falsely at some levels which don’t reflect the real scenario. However, the fact remains that it ruins the image of a company significantly.

Reference List

Congress, T. U., 2013. Trades Union Congress-Risks 551-14 April 2012. Labour.

Crane, A. and Kazmi, B.A., 2010. Business and children: Mapping impacts, managing responsibilities. Journal of Business Ethics, 91(4), pp.567-586.

Doorey, D. J., 2011. The transparent supply chain: From resistance to implementation at Nike and Levi-Strauss. Journal of Business Ethics, 103(4), 587-603.

Harrell, M. C., & Bradley, M. A., 2009. Data collection methods. Semi-structured interviews and focus groups. RAND NATIONAL DEFENSE RESEARCH INST SANTA MONICA CA.

Hawkes, S., 2009. Primark drops firms using child labour. The Times: London.

Head, S., 2014. Worse than Wal-Mart: Amazon’s sick brutality and secret history of ruthlessly intimidating workers. Salon.

Scott, R., 2015. What Amazon's Work Culture Tells Us About Employee Disengagement. Forbes.

Werner, L., 2011. A Controversial Champion FOR JUSTICE. Americas, 63(1), 42.

Yin, R. K., 2013. Case Study Research: Design and Methods. Thousand Oaks: SAGE Publications, Inc.