Explain the implications for the business and the stakeholders of a business operating ethically.p2
Evaluate the impact of a selected business’s ethical behaviour on the stakeholders and the
business.d1
Shareholders
The implications of Primark operating ethically to a shareholder are that it can help build and
maintain higher share prices as well as create a safe place for shareholders to invest in. For example,
Primark using recycle bags means that they are supporting the environment by doing such act, it is
creating less waste and is causing less harm to the environment, this creates trust with the
shareholders because it creates good publicity which affecting the share price in a positive way as
more profit will be made if more customers buy their product as they are doing good to the
environment. The picture above shows that Primark has used 100% recycled carrier bags. Another
positive implication of using this is Primark acting ethically to the shareholders is that it can build
higher profits. Primark acting ethically by providing their workers with the at least the minimum
living wage which means that their workers are being provided with the right amount of money and
is not forced Into labour or being classified as modern day slave because they are being paid less
amount of money that does not pay enough to make a living which effects their shareholders
positively as more customers will be buying Primark’s product as they are ethically made increasing
profit for their shareholder. However in the other hand, Primark acting ethically can affect the
shareholder as acting ethically can be expensive. For example, acting ethically by cleaning out the
water that has dye and dumping clean water makes Primark more ethical however in the other hand
machines that filter out water can be expensive where as if Primark where to act unethically and
release dyed water, it would have been cheaper. As a result, shareholders are initially getting lower
share price and profit causes a negative impact to the shareholder.
Employees
Evaluate the impact of a selected business’s ethical behaviour on the stakeholders and the
business.d1
Shareholders
The implications of Primark operating ethically to a shareholder are that it can help build and
maintain higher share prices as well as create a safe place for shareholders to invest in. For example,
Primark using recycle bags means that they are supporting the environment by doing such act, it is
creating less waste and is causing less harm to the environment, this creates trust with the
shareholders because it creates good publicity which affecting the share price in a positive way as
more profit will be made if more customers buy their product as they are doing good to the
environment. The picture above shows that Primark has used 100% recycled carrier bags. Another
positive implication of using this is Primark acting ethically to the shareholders is that it can build
higher profits. Primark acting ethically by providing their workers with the at least the minimum
living wage which means that their workers are being provided with the right amount of money and
is not forced Into labour or being classified as modern day slave because they are being paid less
amount of money that does not pay enough to make a living which effects their shareholders
positively as more customers will be buying Primark’s product as they are ethically made increasing
profit for their shareholder. However in the other hand, Primark acting ethically can affect the
shareholder as acting ethically can be expensive. For example, acting ethically by cleaning out the
water that has dye and dumping clean water makes Primark more ethical however in the other hand
machines that filter out water can be expensive where as if Primark where to act unethically and
release dyed water, it would have been cheaper. As a result, shareholders are initially getting lower
share price and profit causes a negative impact to the shareholder.
Employees
