Page 4: Why take an ethical approach?
As with most businesses, Primark's main objective is to be a profitable and sustainable business. Consequently, it is always seeking opportunities for profitable growth to ensure these primary objectives are achieved year-on-year. At the same time, Primark is committed to acting as a responsible corporate citizen. The term Corporate Social Responsibility (CSR) describes this approach.
When a company operates in a responsible way, for example, through conducting ethical audits and working in collaboration with its suppliers to address issues, it helps to:
- build confidence in the brand. The reputation of the business grows; stakeholders are pleased to be associated with it.
- reduce risk to the business, for example, from poor publicity about ethical issues.
Good business practice involves being sustainable over the long term. A business is sustainable when it is able to make profits for shareholders, offer good employment opportunities for its staff, pay taxes to the governments of countries in which it operates, and at the same time give consumers what they want (e.g. products that represent good value for money at affordable prices). A business that makes a profit is able to make an important contribution to society and to look after all of its stakeholders.