Ethical Issues In The World Of Business

A business has no right to claim it is ethical if it does not follow ethical practices such as using child labor, sweatshop production, violation of worker’s right, ignoring environmental standards and health standards. An example of this is the ethical violation is that occurred in the cheap and yet fashionable clothing company called Primark.  In 2008 BBC’s Panorama program found evidence that the companies a third party of suppliers were using child labor in the production of the clothes. The moment that the company was presented with the information that children were being used to carry out embroidery and sequin work they took action and the UK’s clothing firm fired 3 of their suppliers in India due to the unethical use of child labor. Although Primark states that only 0.04% of their clothes had been affected and that “under no circumstances would Primark ever knowingly permit such activities”(Primark Statement) one must wonder if it wasn’t for BBC’s panorama six-month investigation would Primark have done their research to see whether they were being ethical? Would they have fired the company if it weren’t for the consumer’s pressure for ethical use? Now a day’s consumers want products to be done in ethical ways so it is to the advantage of a company to promote proper treatment, they can demand higher prices and increase revenues due to consumers support, have the proper incentives from the labor force and are even able to receive a new sources of finance from ethical investors.

Business Fundamentals Section 102