Essay Sample on Primark Company

Introduction

Primark is among the beneficiary companies of the associated British food group (ABF). Primark was established and founded in the year 1969 in Ireland where it traded as penny's then. By the 2nd millennium, the company established close to 100 stores in Britain and as Ireland as well. The company so far has more than 238 in Europe. Primark is a company that has maintained top-notch high-value production of their products. This is a feature that makes the company unique from the others. The company has continued to be innovative and driven by a sense of fashion. Primark is a retail fashion organization that does not deal with the manufacture of goods just like the other retail businesses. The company has managed to stay long in the business world due to its exceptional understanding of the consumers' specifications and working in a close range with their suppliers to ensure that the goods produced are in line with both the consumer's needs and those of the company. The company's operations have managed to work effectively by ensuring that their goods are availed to the right places and at a reasonable price. The company makes profits from making more sales ("Corporate Social Responsibility," n.d., p. 86). The company's value for cash has seen to rely on low costs; the profits are incurred through the economies of scale and the reasonable distribution. The company sources its products from Europe and Asia. The leading company suppliers are countries like Bangladesh, India, turkey, and China. Primark is an employment platform for it indirectly creates employment to the citizens from the supplying countries. The jobs created provide income to the prospective citizens hence improving the living standards of the employed citizens.

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Corporate Social Responsibility

It is very crucial for all business organizations to apprehend and react to all factors within their environment. For instance, it is the organizational responsibility of the business to be accountable when it comes to the changes that may arise in the workforce as well as the impact of the business organization to the local environment. Corporate social responsibility can be described as the responsibility of a business organization to be accountable to all its stakeholders and shareholders. This is by attending to all their needs in a fair manner. The stakeholders of an organization are not only the shareholders but also the members of staff or the employees. The shareholders anticipate on getting returns on their capital which means that the company is required to register profits (Ali, 2018, p. 77). The employees, on the other hand, want to be assured of job security, satisfaction at the job, good working conditions along with good pay. The external stakeholders are comprised of the suppliers, the consumers, the non-governmental organizations as well as the local communities where the organizations are located. The different aspects of the organization have needs which vary. The organization which is well managed should be set well enough to respond to all the needs within its environment effectively. The activities of corporate social responsibility are wide-ranging in that it requires extra effort from the organizational management team. Such activities include; encouraging and motivating the employees to indulge in the community works such as cleaning the environment. Primark is an organization that it is well known to embrace corporate social responsibility. Primark is a business organization which operates as an international business with a worldwide supply chain. The company has a rapidly growing retail base.

Primark Company has taken the responsibility of ensuring that the company indulges in the activities that promote the company's corporate social responsibility. The business operations within the organization have been standardized to the value of the company as well as the ethical standards required. The Primark code of conduct has made sure that all the ethical standards and values stipulated are effective. The code of conduct has made sure that all the employees of Primark and its branches from various countries across the globe are not mistreated. The employees are paid fair wages by the amount of work done. The company's policy has also made sure that the workers or employees work in right if not favorable conditions (Cook et al., 2018, p. 78). Giving funds to fund and support charity works, and contribution of money and time in order to improve and manage the environmental impact. Primark fully understands that by working according to ethics happens for the good of all within the organization. Primark is a company that has so many employees, close to 700, 000 employees coming from the three based continents. The company ensures that the rights of the people that it employs are respected. In as much as the Primark company may not be a manufacturing company, it still makes sure that the workers who work in the companies that supply the goods for them are treated by the rights of the employees. The Primark company is funding a project by the name HER this is enough evidence that the organization seeks to impact the lives of the supplier employees positively. The HER project in Bangladesh funded by the Primark organization states that 50% of the manufacturing workforce is the women. In as much as the women might be naive due to school dropout cases in order to fend for their families. The program is meant to provide education to women. This is because, according to the company's policy; education is the primary essential tool for fighting the interrelated problems which are brought about with the high level of illiteracy in the workforce. The HER project has gone ahead to improve the lives of women aside from offering them with education. The tools availed to the women gives them the chance to improve their personal and working lives. The project not only impacts the women workers but also indirectly extends to the outside lives which way up to their families. This is a step that then results in the improvement in the lives of all the community members.

The Impact of the Proposal to Different Stakeholders

The top management teams of international organizations have always had a tough time in decision making when it comes to the introduction to emerging trends. The strategies become so severe and critical because; it is tough to move from the old ways of doing things to venturing into doing something new in an international company which already has roots in the respective countries. It only becomes more comfortable when the company results in making trials of the new strategies in its own home country before implementing them to the other branches. The management team should have a tactful way of making sure that they come up with strategies that will become successful globally ("Corporate Social Responsibility: Theoretical Perspectives," n.d., p. 78). The proposal by the finance director to move the manufacturing market to emerge markets either through the wholly owned production or the entirely outsourced production will have various impacts on all the stakeholders and the shareholders depending on whichever way that the company may end up taking if the board of directors may choose the proposal of going as an outsourced production company. It will have various impacts on both the stakeholders and the shareholders. Outside outsourcing by Primark company will involve hiring people who are not employed by the Primark retail line to assemble the products they sell so that it can be fully formed to be the company's production. Choosing to outsource production from other countries will impact the Primark retail line a great deal. This is because the company will cut down on the production cost which will reduce the labor cost incurred at the same time. This is an effect that is both positive and negative effects at a go. For instance, the reduction in the cost of production will mean that the company will increase or rather maximize the amounts of profits from the production and the sale of goods. In such a case, the shareholders of the company will be impacted positively. Taking such a proposal will ensure that the return on capital increases which means that the shareholders of the company will even get more out of the production line by the Primark Company (Linn, 2016, p. 30). According to the shareholders, it would be a return on their investments which is best for the company to run. Any company would highly anticipate running at a low production cost while maximizing on the output as well as the profits.

However, despite the significant profits made from outsourcing, an organization like Primark is an entity that highly values upholding the corporate social responsibility that ensures that in as much as the company may be making a profit, how much does it impact the environment around the operation? This is in terms of both the employees, the local environment and the employees at large as well as the current suppliers of the products it does not manufacture its goods. Outsourcing of the production r manufacture of goods might not be in line with corporate social responsibility. This is because such a move or proposal by the organization will end up living so many people jobless - the people who had earlier on depend on the Primark Company for income to sustain their families. For instance, the charity program in Bangladesh which promotes women empowerment and education might be compromised in a case where the company decides to adopt the entirely outsourcing production proposal. Most people employed in various manufacturing companies across the three continents will lose their jobs. This means that they will lose their source of income; this will affect both the family members and the society at massive creating unemployment in the respective countries. According to the company's primary goal and objective which is sales and marketing, it might be good for the company to outsource its production. This effect will mean that some of the employees will have to lose their jobs (London, n.d., p. 69). However, the company might continue funding the charity organizations formed earlier on so that the local community that the organization is located in remains at the heart of the organizational decision making. For instance, it will be good if the Primark organization continued its investments in charity organizations such as the HER project that had been started in Bangladesh. Outsourcing may be very beneficial to the organization, but it will to some extent fail to uphold the company's policy on corporate social responsibility.

If the board of directors decides to make the Primark organization a wholly mark a wholly owned production or subsidiary, it means therefore that the company will be more accountable for its corporate social responsibility acts. This is because, in as much as the parent company may be controlling the stock, the wholly owned production company is in charge and can manage all the supplier manufacturing company. This will quite a bold step because, by being in charge of all the suppliers of its products, Primark can monitor the kind of goods and services provided to its customers. By so doing the company gets to sell goods that are produced by the consumers' demands and specifications. Being a fully owned production will help in the maintenance of the consumers that choose to buy the goods sold by the Primark Company (Michael, 2013, p. 98). This, therefore, means that the company can make mega sales by being in a position to exercise control over suppliers. It gives the company an added advantage because it is in a position to control how the employe...