On the contrary, another great theorist Dahl (1972), believed that every large business should be considering of a social responsibility, that is entity whose existence and decision, can be justified insofar as they serve public or social purposes. Similarly, Carroll stated that company implicates the economic, legal, ethical and discretionary expectations that society or primary stakeholders has of company at a given point in time.
Looking at Primark, there are many arguable questions how Primark keeps their cost low and very successful in the market, theory is the organisation don’t advertise, they save by not advertising as other competitors do, it’s one of the way to keep price low. Primark design clothes that offer the latest brand, without expensive hangers or labels, also they try to be efficient transporting the products from factories to stores, that’s some key elements why Primark keep price low.
The local laws of the UK can impact on all the retail businesses that operate there. (for external analysis refer to appendix, Porter value chain).
If new law implemented in employment law, such as changes in health and safety in the working environment or national minimum wage then Primark have to adopt and act accordingly, in order to be aware with all implications and legislations, by acting upfront by constantly monitoring and assessing all regulations on society, it mostly related with employee’s working conditions, minimum wages, Anti-discriminatory policies and most important aspect is fairness, working hours etc. these regulations and employment practises various from country to country and business to business respectively.( Armstrong and Taylor,2016.) These methods have implemented to different fair and ethical principles that the company has to show in its performance. In case of failure a retail company might face complications and damages to its brand and reputation, which can lead reduction of sales and profits. For instance, the best example can be of Tesco’s horse meet scandal in which the organization had to remove enormous number of meat products that were made out of horse meet. (Tesco,2015 website) Thus, modern world of retail industry there are not limitations of sustainability and profitability, additionally the relation has expanded to corporate social responsibility, environmental and meeting stakeholder’s expectation objectives, the same concept and objectives applies to Primark. In order to be at the same level with ethical companies, Primark must act ethical with respect to Corporate Social Responsibility. The organization operates with number of third party suppliers that belongs to different parts of the world especially from other countries. Primark intends to establish that through the supply chain, the all products is being made under right working conditions and the workers are being treated accordingly under an Ethical condition. In addition, the company appointed by CEO an Ethical Trade director to ensure that all goods are manufactured under fair and Ethical concept. (Primark,2014 website)