i have 3 case studies with qouestions, i need the answer for them

Introduction

Primark is a subsidiary company of the ABF (Associated British

Foods) Group. The company was launched in 1969 in Ireland trading

as Penny's. By 2000, there were over 100 stores across Britain and

Ireland. By 2012 Primark had 238 branches across the UK, Ireland

and Europe. Primark has become distinctive for offering unbeatable

value while never losing its innovative, fashion-driven edge.

Like many retail fashion businesses, Primark does not manufacture

goods itself. Its expertise lies in understanding its customers and

working with its suppliers to produce goods to Primark’s

specification. It then gets the right goods to the right places at the

right prices. Its profitability depends on sheer volume of sales.

Primark's value-for-money prices rely on low costs. These are

achieved in part through economies of scale and efficient distribution.

Primark’s products are mainly sourced from suppliers in Europe

and Asia. Its key sourcing countries are China, India, Bangladesh

and Turkey. Putting the manufacturing of garments into these

countries creates jobs. These are often at better rates of pay than

other types of work on offer, improving overall standards of living.

Primark has initiated a programme of activities which supports its

corporate social responsibility (CSR) stance and ensures that its

trading meets the company’s values and ethical standards.

Underpinning its programme of activities is Primark’s Code of

Conduct which ensures that all workers making its products are

treated decently, paid a fair wage and work in good working

conditions. For more information please visit

www.primark-ethicaltrade.co.uk

This case study looks at Primark’s involvement in the HERproject

(Health Enables Returns) which is raising awareness and delivering

healthcare education to female workers in supplier countries.

What is CSR?

Businesses need to acknowledge and respond to factors in their

environment, for example, changes in available workforce or the

business’ impact on its local communities. Corporate social

responsibility represents the responsibility that a business has

towards all its stakeholders, not just to owners or shareholders,

to deal with their needs fairly.

Internal stakeholders include shareholders and employees.

Shareholders want a return on their capital and this depends

on making a profit. That in turn means by adding value.

Employees want job security, good pay and conditions and job

satisfaction. External stakeholders include customers, suppliers,

non-governmental organisations, workers and the local

communities where products are made. All of these have

different needs.

An organisation therefore needs to be able to respond and

demonstrate responsibility in different ways. This might include

activities as wide-ranging as encouraging employees to volunteer in

community projects; sponsoring and supporting charity work; or

contributing time and money to improving its environmental impact.

Beyond corporate social responsibility

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Curriculum topics covered: • Corporate social responsibility • Business ethics • Stakeholders • Supply chain

NEW PRIMARK 29/8/12 13:19 Page 2

www.thetimes100.co.uk

Why Primark embraces CSR

As an international business with a global supply chain and a

growing retail base, Primark believes that business has a

responsibility to act and trade ethically and that, by doing so, it

can be a force for good. Its business directly contributes to the

employment of more than 700,000 workers across three

continents. Ensuring that their rights are respected is key to its

continued growth.

Primark does not own the companies or factories that produce its

goods, but it does have a responsibility to the workers in those

factories, to its customers and shareholders, to ensure that its

products are made in good working conditions. The HERproject in

Bangladesh is an example of how Primark is actively seeking to

make positive changes in the lives of its supplier workforces.

In Bangladesh, over 50% of the manufacturing workforce is made

up of women. The jobs available to women in garment factories

give them greater independence and help to reduce poverty.

However, these women often have little education and low levels

of literacy as they drop out of education early to help their families.

They also lack basic knowledge of health, hygiene and nutrition

and an understanding of how a woman’s body works. Poor

hygiene often causes persistent and painful infections. Childbirth is

particularly hazardous and post-birth complications are common.

There is little understanding of the symptoms of sexually

transmitted diseases (including HIV) or the means of preventing

transmission. Far more women than men are malnourished and

many women suffer from anaemia. These issues, often combined

with a lack of access to qualified medical advice, mean that the

female workforce is particularly vulnerable.

The HERproject uses education as the key tool against all these

interrelated problems. The programme aims not only to improve

the health of female workers through training and education, but

also to give them the tools to help them take charge of their

personal and working lives. These benefits in turn pass on to their

families and help to enhance whole communities.

Making CSR happen

The HERproject is an initiative started by BSR (Business for Social

Responsibility), a non-governmental organisation that works with

over 250 companies on environmental, social and human rights.

The HERproject has so far helped over 50,000 women in different

countries. It has done this through working with companies like

Primark, Primark’s suppliers and local health providers.

The HERproject is simple but surprisingly powerful:

• A small number of female staff in a factory (around 10%) is

selected to become health education trainers called ‘peer

group educators’.

• The local health service provider trains the peer group

educators, who are then responsible for training the other

women based in the workplace, passing on the message and

helping to disseminate what they have learned.

The process emphasises mutual help and encouragement. The

women trainers are effective because they fully understand the

local culture. They are not seen as outsiders imposing strange

ideas. Instead, the trainers understand why the women may be

reluctant to seek help with issues that can be sensitive. They can

build their self-confidence as well as their practical knowledge.

‘I didn’t have anyone to tell me how to look after myself, it

wasn’t taught at school. The trainers told me that many

diseases come from the unpurified water that I was taking

from the tap. This water can be the cause of sickness,

cholera and diarrhoea. At first my family said to me, how do

you know this stuff? You work in a garments factory! I told

them it’s what I have learnt from the HERproject. When I

began to give them advice they started to get interested in

the project. Everyone I have told now boils their water and

they don’t suffer like before.’

Umme Habiba (garment worker)

The HERproject is also helping others not directly involved in the

project. Outside the workshops informal learning continues.

Women build supportive relationships and talk to each other out of

work. This is reinforced by the project helping to set up factory

clinics and creating vital referral links to local hospitals.

NEW PRIMARK 29/8/12 13:19 Page 3

Selina Kamal is a factory quality inspector and a peer educator for

HERproject. Through her own training she is now more aware of

the importance of cleanliness for herself and her children. They all

now drink purified water and eat more vegetables. She has

already helped a friend, Shilpi, who is a school teacher.

‘I came to Selina after I had two miscarriages and irregular

periods. Selina advised me to go the doctor as she knew

something must be wrong. The doctor prescribed me

medication for my problem.’ Shilpi (teacher)

The value of the HERproject

Improving the health of women workers in Bangladesh and

helping to empower and educate the female workforce is an

important ethical goal in its own right. The benefits to communities

can also been seen. Over time, initiatives like this can support key

issues such as reducing infant mortality.

Factories in Bangladesh taking part in HERprojects have seen

healthy returns on the money invested by Primark in the

programme. This has been achieved through improvements in

productivity, a more stable workforce, lower absenteeism,

decreased labour turnover, improved quality and a reduction in

housekeeping costs. As an example, the managing director of one

factory in Bangladesh found that absenteeism in the factory fell by

55% during the first six months of the HERproject. Turnover of

female workers dropped from over 50% to around 12%.

Mrs Kaniz Fatema is the managing director of a medium-sized

factory in Dhaka, Bangladesh. When the HERproject was

introduced to her factory a year ago, she was unconvinced,

viewing it as ‘just another project’. However, just one year later her

view has been transformed. Women's health is now high on her

agenda. A healthier workforce is literally paying dividends.

Absenteeism and labour turnover are down by a startling 50%.

Productivity is up and even internal staff communication is more

effective. Mrs Kaniz Fatema now employs a female doctor and has

set up a scheme to provide sanitary napkins to her female

workers, helping to embed a new culture within the factory and

allowing health education in the factory to continue after the

project ends.

‘HERproject has made a real difference in my factory. The

workers have increased their productivity as they are now

looking after themselves better. I have become a lot closer

to my female workers. I have also told other factory

managers about the success of the project at our factory.

The male workers are now asking when we will start a

similar project for them.’

Mrs Kaniz Fatema (factory manager)

Other benefits are harder to measure but are increasingly recognised

by the factory managers. Getting women to communicate effectively

on health matters builds trust and confidence. This feeds back into

better communication with supervisors and managers. This, in turn,

leads to improved teamwork and the motivation to accept more

responsibility and leadership roles in the community.

‘Workers now stay longer and are more productive. The

HERproject has also helped my relationship with the women

workers. They are not so shy to talk to me anymore. If there

are problems, I now hear about them.’

Mr Riaz (factory manager)

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NEW PRIMARK 29/8/12 13:19 Page 4

This demonstrates the principles of the Hawthorne effect theory of

motivation. Theorist Elton Mayo found that factory workers with

long hours of routine work were motivated by someone taking an

interest in them and their work. Feeling that they mattered as

individuals, they experienced a new connection with the job. As a

result, productivity improved. In a similar way, by focusing on the

women workers and their health issues, the HERproject is also

delivering improved motivation. See the HERproject video at

http://www.primark-ethicaltrading.co.uk/ourwork/c/womens_health

‘Not only has HERproject given women the knowledge to

improve their health behaviour, it has empowered them to

seek leadership roles in their jobs and their communities.

The peer-to-peer model – with women teaching each other

about women’s health – has given them the confidence to

go against the grain in regions where the traditional role for

women is not as strong.’

Racheal Yeager (BSR HERproject Manager)

Conclusion

The industrialised countries of the world benefit from the lower

costs of labour in countries such as Bangladesh and India.

However, more consumers are now asking if this is ethical and

questioning its sustainability.

Some trade-offs between stakeholder needs are inevitable. CSR

does not come free. It involves a real commitment of resources,

management time and energy. On the other hand, as studies of

the HERproject in other countries have shown, each dollar

invested in the health of female employees can yield more than

three dollars in business benefits. In addition, the improvements in

human well-being are incomparable.

Despite criticism of globalisation, business and trade can be a

force for good. This is increasingly recognised in the ways that

consumers assign values to brands. Primark is making progress in

taking on wider responsibilities and devising relevant projects that

work on the ground. It has done this with help from NGOs and

organisations such as BSR. Its approach with the HERproject is

not purely about business benefits, but focused on making a

difference to the lives of its supplier workers.

To date, 4,500 women in Primark’s factories have been trained

under the HERproject in Bangladesh. The project results have

shown such benefit that the project is being rolled out to Primark’s

suppliers in China and India. Primark’s ongoing involvement with the

women workers in Bangladesh and other supplier countries will help

to provide it with a sustainable and ethical business model.

Primark | Beyond corporate social responsibility

E xam

-style q u

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www.primark.co.uk

1. Describe what is meant by CSR. (2 marks)

2. Explain the basis for a company undertaking CSR

activities. (4 marks)

3. Analyse why the HERproject has been a business

success, over and above improving the well-being of

the workforce. (6 marks)

4. Evaluate to what extent you think Primark has been

able to reconcile the interests of its shareholders and

those of the employees of its suppliers. (8 marks)

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