International Business

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Providing consumers with ethically sourced garments

Summary

Introduction

Much of UK high street fashion is produced abroad because of the lower material and labour costs in these countries. In order to meet consumer demand, Primark works with manufacturers worldwide. This study shows how Primark sources clothes in an ethical, fair and cost-effective way.

Producing on a large scale

Efficient operating process at Primark

Using fabrics produced locally to the manufacturer Reducing packaging and extensive use of multi-pack product

What are business ethics?

Business ethics are rules of conduct and principles that involve ‘doing the right thing’. They look after all those involved in the business process. Primark’s values include: • • • taking care of employees being good neighbours building ethical business relationships.

Minimal advertising

Focus on key garment sizes

Using off-season factory time for production

Ethics in practice

Primark ensures that its partners also act responsibly by: • having an Ethical Trade Director, who ensures Primark sources ethically and leads a team of ethical managers based in the key sourcing countries • being a member of the Ethical Trading Initiative (ETI), an international body that improves workers’ lives worldwide. Primark also respects human rights and sets guidelines for employment in suppliers’ factories. Primark offers low prices through economies of scale, lean production and efficient operations. These make its manufacturing practices both efficient and ethical. For example, by using offseason factory time, costs are lower and staff get work when they might not have otherwise.

EDITION

Primark is aware of the challenges of operating ethically. It works in partnership with industry and international bodies seeking to promote good ethics. Primark bases its Code of Conduct on the International Labour Organization’s (ILO) Code, which promotes ethical opportunities for workers....