Business Ethics

Primark fires sub-contracted supplier firms which were using child labour

Competitive companies sub-contract supplier firms in developing countries to take advantage of the low-cost labour force available. This profit-seeking method of production often runs into conflicts with ethical standards, as the suppliers of Primark have demonstrated.

Primark, one of the leading UK clothing companies, has fired three of its Indian supplier firms for employing children in their production process. Evidence showed that Indian children as young as 11 worked long hours sewing garments in awfully conditioned refugee camps.  The use of child labour is considered as unethical business behaviour by the modern society. It has also violated Primark’s code of conduct, which bans such practice in its supplier chains.

Following the unveiling of Primark’s suppliers scandal, popular companies are on the run to response to those consumers who are becoming increasingly conscious towards the ethical problems in the business world.

 

http://tutor2u.net/business/strategy/business-ethics-issues.html

http://news.bbc.co.uk/2/hi/business/7456897.stm

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