1 / 9

The Times 100 Business Case Studies Edition 15

The Times 100 Business Case Studies Edition 15. Providing consumers with ethically sourced garments Primark. Introduction to Primark. A fast-growing brand Part of Associated British Foods (ABF) 200 stores across UK, Ireland and Europe Growth stems from meeting customer needs

mead
Download Presentation

The Times 100 Business Case Studies Edition 15

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Times 100 Business Case StudiesEdition 15 Providing consumers with ethically sourced garments Primark

  2. Introduction to Primark • A fast-growing brand • Part of Associated British Foods (ABF) • 200 stores across UK, Ireland and Europe • Growth stems from meeting customer needs • Offers high fashion at value-for-money prices • Expanding stores • Moving into new markets • Products sourced from over 600 suppliers in 16 countries • Europe, Asia, Middle and Far East • Primark has responsibility to source ethically

  3. Business ethics are: Rules of conduct Patterns of behaviour in business ‘Doing the right thing’ Involves responsibility to: Suppliers Employees Wider community Business ethics

  4. Primark and business principles • Primark shares values with parent ABF • Shape relationships with all stakeholders • Affects dealings through supply chain • Key principles • Respect for human rights • Setting appropriate conditions of employment in suppliers’ factories • Over 700,000 workers in three continents • Around 95% of Primark suppliers also supply other high street retailers

  5. Ethical sourcing • Key role of Ethical Trade Director • Leads team of ethical managers in sourcing countries • Ensures Primark goods sourced ethically • Primark is member of Ethical Trading Initiative • Alliance of companies, unions and NGOs • Working to improve working conditions

  6. Primark business model • Business model based on • High sales volume • Lower retail margins • Value for money stems from • Economies of scale - buying volume • Sourcing products efficiently • Lean production • Using simpler designs or local fabrics • Focusing on most popular sizes • Using off-peak factory time for production • Not spending heavily on advertising

  7. Ethics in practice • Primark Code of Conduct • Based on International Labour Organization Code • Translated into 26 languages and published on Primark website • Sets out full policies and is part of Terms and Conditions • Training for suppliers and buyers to ensure adherence to ethical practice • Tough selection process for new suppliers • Subject to independent audit before approval • Primark pays for remedial work to bring supplier up to standard required

  8. Benefits of an ethical approach • Primark’s key business objectives • To be profitable • To be sustainable • Also aims to act as responsible corporate citizen • Helps to build confidence in the brand • Reduces risk of poor publicity on ethical issues

  9. Costs of ethical behaviour • Primark bears costs of • Audits and training • Remedial actions • Employment of Ethical Trade teams • However, these are all seen as contributing to sustainable business • Improvements to a supplier mean Primark standards improve • Transparency in business gives all stakeholders, including customers, confidence in the brand

More Related