A Report on Corporate Social Responsibility Practices at Primark

This report examines the Corporate Social Responsibility (CSR) practices of Primark, a popular retail store. It provides an executive summary outlining the report's focus on Primark's CSR activities, including its sustainable cotton program and the child labor scandal. The main body delves into CSR theories, particularly the Triple Bottom Line theory, analyzing Primark's economic, environmental, and social performance. The report discusses the Ethical Trading Initiative and Primark's partnerships with NGOs. Recommendations are made based on the findings, and the conclusion summarizes the key insights. The report highlights Primark's efforts to improve worker lives, reduce poverty, and promote ethical sustainability while acknowledging the challenges posed by past child labor issues and the need for continuous improvement in its CSR strategies. This report is a valuable resource for students studying business ethics and corporate social responsibility, providing a comprehensive analysis of Primark's practices and their impact on society and the environment.

CORPORATE SOCIAL RESPONSIBILITES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
RECOMMENDATIONS.................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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EXECUTIVE SUMMARY
The aim of the report was to discuss the Corporate social responsibilities practices
conducted by Primark- a store shop known for keeping the latest trends without braking the
bank. it offers diverse range of products, from baby to kids, to women's, men's, accessories
needed in homes. Also the report discusses Primark child labor practices in relation with its CSR
activities. A triple Bottom line theory is undertaken to set the standards of CSR practices. Further
Ethical training initiative taken by some companies and trade unions were highlighted. Moreover
recommendations and conclusions have been made from the understanding of the topic.
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INTRODUCTION
Organizations in the present world is not only carrying out the activities for the desire of
profit rather they are more focused on social issues. In layman language these social issues in a
corporate world is given a name Corporate social responsibility, which is commonly known as
CSR. There have been a significant rise in CSR activities in a decade and continuously growing
at a rapid pace(What is corporate social responsibility?, 2016). This study has been undertaken
to know various theories of Corporate social responsibilities and how these practices are used by
corporate which eventually build their brand image in the mind of consumers.
For the purpose of study Primark(company) has been undertaken which has been in
uplifting the environmental protection and sustainability from years. An effort has been made to
make the reader of this report aware about CSR activities that corporate are into and a study on
the Child labor scandal in Primark. Theory undertaken here is "Triple bottom line" theory to
understand the factors which led to Child labor and making recommendations for corrective
actions.
MAIN BODY
CSR refers to the responsibility of the organizations to work ethically which not harm the
society as whole and does not do any damage to natural resources. For a firm CSR is basically
taking into account environmental and ethical impact they make on the society and work in order
to make life of people/society easy and convenient. CSR can be done through doing something
for the society, introducing products which have no charge, through protection of historical
places, maintaining culture in the society, working with NGO's to make world a better place for
the society(Corporate social responsibility, 2017). For a company CSR is now seen as a road to
increase its brand awareness among the customers, gaining the competitive advantage, etc. It is
an investment for a company to lift its brand image and make move towards achieving its
primary objectives.
CSR in Primark
Primark have been working in order to improve the life of its workers from many years.
Back in 2013 they have partnered with agricultural experts, cotton connect and self-employed
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women's association to come up with a program known as 'Primark Sustainable cotton program'.
This program highlighted the wage increment of workers/farmers and improving the cotton
yields(Young and Thyil, 2014). Through various programs conducted by Primark many female
farmers have given the employment. Also in order to develop the living standards of garment
workers Primak have joined the hands with DFID. Primark have been always in to reducing
poverty in five of its key markets: Bangladesh, Pakistan, Burma, Ethiopia and India. The "HER"
project in Bangladesh is a reflection of the level of ethical sustainability achieved by Primark in
making positive changes to the lives of supplier worker forces.
As Primark has facilitated so many job opportunities internally somewhere they have
employed Child as laborers to increase their profits by making cheapest garments which cost
shoppers few pounds. Primark was into Child labor practices in Indian refugee camps with 11+
child's sewing/making the T-shirts. This has deteriorated Primark's image in the minds of
customers. Consumers need to understand that it is difficult to track down these shops or
factories where child labor's are working, Cops have to rely on rare-tip offs . It is the company
who needs to understand that what they have gained from the society will eventually be going to
society only(Amaladoss and Manohar, 2013).
Triple Bottom Line Theory
Among various theories of Corporate social responsibilities Triple bottom line theory is
undertaken to understand the performance of environment and society. It is basically a
accounting framework consists of environmental and social dimensions. This theory was
proposed by John Elkington to measure sustainability in the corp[orate sector. Triple Bottom line
theory plays an important part in supporting sustainability goals.
Triple Bottom line theory is an accounting framework which is a combination of social,
environmental and financial factors(Sierra, Zorio and García‐Benau, 2013). This is a modern
framework different from traditional one. The level of business, what type of project is being
pursued and the area will drive many of the decisions regarding measures to be included. TBL
has laid its emphasis more on social and environmental factors, so that it can be measure the
performance of the businesses who are into CSR initiatives and up to which extent it has
benefited the society. Three variables of TBL are:
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 Economic Measures: These measures as per TBL deals with flow of money. Economic
measure's can look at income, taxes, business climate factors, employment, etc. It
includes cost of underemployment, establishment churn, job growth, personal income,
percentage of firms in each sector. Primark have been in delivering a large number of job
opportunities in the poverty prone areas to the rural people from so many years. It has
generated so many jobs for women which have given society to look world in a new way.
This has increased employment and generated income for those who are below poverty
line. Environmental Measures: It represents natural resources and reflect the potential factors
that influence environmental measures. It can be a combination of air quality, water
quality, natural resources, wastage, land use. If businesses have long-term trends in
relation with these factors then they can identify the impact of project or policy on
environment(Smith, 2014). It includes: selected priority pollutants, excessive nutrients,
electricity consumption, solid waste management, etc. Primark has never been into the
wrong use of natural resources but have been in news due to its 2005 child labor issues in
the regions of India which has caused Primark a major loss in its brand image. Through
its child labor practice it has degraded the environment in future prospects.
 Social Measures: Refers to social dimensions, generally relates to areas, regions or a
community. It includes equity and access to social resources, measurements of education,
unemployment rate, median household income, relative poverty, average commute time,
violent crimes per capita, etc. Since Primark has been involved in generating employment
opportunities for below poverty line people, they eventually have contributed household
income levels, poverty is reduced, people are getting skills of sewing the clothes, etc. But
on the other hand due to its child labor scandal education scenario have been changed,
which has created a negative impact on Primark.
Ethical Trading Initiative
Ethical training Initiative refers to the initiative taken by companies, trade unions and
Non-governmental organizations to work together to promote good practices in the environment
and society(MacInnis, Park and Priester, 2014). There work is to implement the codes of labor
practices, which further includes proper monitoring and independent verification of the practices
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undertaken. they feel that togetherness in the society will bring a significant change in the
society, a positive change. Ethical training initiative is based on incorporating standards into
codes of labor practice. ETI has initiated a code of labor practice which is known as 'The Base
code'. The base code has 9 code's which are:
1. Employment is Freely chosen.
2. Freedom of association and right to collective bargaining are respected.
3. Working conditions are safe and hygienic.
4. Child labor shall not be used.
5. Living wages are paid.
6. Working hours are not excessive.
7. No discrimination is Practiced.
8. Regular Employment is provided.
9. No harsh or inhuman treatment is allowed.
Main purpose of Ethical training institute was to identify, develop and promote good
practices in the society with respect to its labor practices(Leipziger, 2015). For critical areas
proper monitoring is been carried out by the authorities to examine the practices carried out has
been with proper standards or not. Some of the principles are: Commitment: Here a company gives its membership of ETI, codes and how they going to
implement the process, everything is informed through a endorsement. This commitment
is send to its suppliers and sub-contractors then a member from senior management is
assigned responsibility. The company will ensure that human and financial resources are
made available to them. Since commitment is brief of what a team has to do, Primark
should also in order to tackle the child labor scandal appoint a authority at every zone it
has been into and try make the ways to achieve the desired objectives whitout harming
the early age of children. Monitoring & Reporting: After a work has been assigned member companies have
agreed to the principle that work done will be assessed through proper monitoring and
independent and performance will be measured and the deviations will be found out as
per the set standards(Kolk, 2016). Since Primark have been in child labor practices, the
authority who framed the commitment part to carry out the objectives need to have a
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monitoring team in order to a have a look over the operations and asure4 that no child is
used in to make the clothes. Awareness raising & training: This principle talks about the training given to relevant
professionals which will enable them to apply the code in the proper manner and as per
set standards. Suppliers are made aware about the codes that any of such should not be
violated. Training the individuals is the need of Primark because this will not make them
look for more workers and which eventually does not involve children into this. Also
awareing people about the children usage into workstation and try to make them not to do
so and if find guilty then they should be fired. fear will make them not to do so. Corrective actions: Member companies have set up the principles to negotiate and
implement schedules for corrective actions and where any member breach the said codes
then immediate action is taken towards them and might follow with the termination of
business relationship with suppliers. Corrective actions needed to be taken in order to get
every thing on right for Primark.
 Management Procedures: Negations will help to develop good relationship among
suppliers and companies(Brower and Mahajan, 2013). to understand and implement the
said codes it is essential to comply with positive performance measures when assessing a
particular personnel. Management of Primark should establish measures which are
helpful to evaluate and monitor that child labor practices have not been carried out and if
carried out then who is responsible for it how that can be overcome and the responsible
party should be fired or necessary action should be taken against him.
Primark & NGO's
Primark's aims to maximize the abilities of its workers, employees all over the world.
This means that employees should have equal opportunities based on merit, suppliers should be
treated fairly, local communities are respected and supported by Primark and company should
take environmental responsibilities seriously, but they didn't have as after the case of child labor
was opened to all. Primark if talked about its contribution to the society has partnered with
experts, cotton connect and various NGO's to create the Primark sustainable cotton program.
This program was to introduce sustainable farming and increase the farmer's income(Bice, 2013).
In Gujarat with NGO's Primark trained around 1300 women's who were below poverty line to
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make them self-capable and earn for their children's education (Walsh and Bartikowski, 2013.
With NGO's Primark have Established various job opportunities in the rural areas which have
made Primark a major loved store in those areas. Primark with NGO's have created jobs for
women's of below poverty line which eventually has created a source of income for them which
has imparted certain skills in them.
Also company was indulged in Sustainable cotton program which has been highlighted in
two reports: Women for agriculture, Addressing gender inequality. In addition Primark has
joined the hands with DFID( Department of international Development) to improve the lives of
garment workers in developing markets. Primark has cultivated the society with the help of
NGO's for many years((Leipziger, 2015)). But as and when News flashed that Primark is part of
child labor practices for the financial benefit, many perceptions changed.
RECOMMENDATIONS
Having an understanding of the topic and by the in depth analysis of the subject
mentioned above, certain recommendations have been drawn:
1. Just like to govern the trade between the two different countries institutions have
been set up, that applies to here also under CSR also these type of bodies should
be set up to govern the negative practices which are going on.
2. Primark should make a concerned body to look after its CSR initiatives.
3. Primark should follow triple bottom line theory in order to have a measure of its
services.
4. Ethical Training initiatives should be implemented in the organizations to follow
good practices.
5. NGO's Should have a monitoring on the companies CSR practices.
CONCLUSION
From the above report it has been conclude that to carry out Corporate social
responsibilities a organization need to exami9ne its resources and have certain set of guidelines
in relation to follow the codes given by Ethical training initiative. Primark has been indulge in
various CSR activities right through the years but this has made Primark more concern about its
profits and eventually Primark has been found guilty in violating the codes given by ETI, which
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is Introducing child labor in making cheap garments. Further more4 recommendations have been
given in relation to CSR practices and Primark's do's and don't s have been discussed to attain the
CSR status again.
REFERENCES
Books and Journals
Amaladoss, M. X. and Manohar, H. L., 2013. Communicating corporate social responsibility–A
case of CSR communication in emerging economies. Corporate Social Responsibility
and Environmental Management. 20(2). pp.65-80.
Bice, S., 2013. No more sun shades, please: Experiences of corporate social responsibility in
remote Australian mining communities. Rural Society. 22(2). pp.138-152.
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Can you please ensure that you have met this criteria:
The report will be assessed according to the following criteria:
 The examination of the topic, concepts and initiatives and the quality and
appropriateness of the literature search
 The application of your topic to your selected organisation(s) or cases/operational
practice
 The development of conclusions and recommendations
 The quality of the report including structure, readability and presentation, and the use
of appropriate diagrams/illustrations

Brower, J. and Mahajan, V., 2013. Driven to be good: A stakeholder theory perspective on the
drivers of corporate social performance. Journal of business ethics. 117(2). pp.313-331.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Leipziger, D., 2015. The corporate responsibility code book. Greenleaf Publishing.
MacInnis, D. J., Park, C. W. and Priester, J. W., 2014. Handbook of brand relationships.
Routledge.
Sierra, L., Zorio, A. and García‐Benau, M. A., 2013. Sustainable development and assurance of
corporate social responsibility reports published by Ibex‐35 companies. Corporate Social
Responsibility and Environmental Management. 20(6). pp.359-370.
Smith, N. C., 2014. Morality and the Market (Routledge Revivals): Consumer Pressure for
Corporate Accountability. Routledge.
Walsh, G. and Bartikowski, B., 2013. Exploring corporate ability and social responsibility
associations as antecedents of customer satisfaction cross-culturally. Journal of business
research. 66(8). pp.989-995.
Young, S. and Thyil, V., 2014. Corporate social responsibility and corporate governance: Role of
context in international settings. Journal of Business Ethics. 122(1). pp.1-24.
Online
Corporate social responsibility, 2017. [Online] Available
through:<https://www.theguardian.com/environment/corporatesocialresponsibility>.
[Accessed on 22nd March 2017].
What is corporate social responsibility?, 2016. [Online] Available through:
<http://www.ed.ac.uk/careers/your-future/options/occupations/csr/what-is-csr>.
[Accessed on 22nd March 2017].
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