Corporate Social Responsibility Policies Commerce Essay


According to business dictionary organization is a social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivided and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are systems-they affect and are affected

We have different types of business organization but these are the main types in the private sector in the U.K according to business case studies

sole traders




The sole trader

The sole trader is the most common form of business ownership and is found in a wide range of activities (e.g. window cleaning, plumbing, electrical work, busking). In the UK about 20 percent of sole traders operate in the construction industry, a further 20 percent in retailing, and about 10 percent in finance, and 10 percent in catering. But there are disadvantages. As a sole trader you have to make all the decisions yourself, and you may have to work long hours.

The partnership

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An ordinary partnership can have between two and twenty partners. However, the Partnership Act of 2002 has made it legal for some forms of partnership e.g. big accountancy firms to have more partners who also enjoy limited liability. People in business partnerships can share skills and the workload, and it may be easier to raise the capital needed. For example, a group of doctors are able to pool knowledge about different diseases, and two or three doctors working together may be able to operate a 24 hour service. .


A company is owned by shareholders who appoint Directors to give direction to the business. The Chief Executive is the senior official within the company with responsibility for making major decisions. Specialist managers will be appointed to run the company on behalf of the Board


In the United States almost half of all retail sales are made through firms operating under the franchise system like McDonald's which has a brand franchise. Franchising is becoming increasingly popular in this country.

Franchising is really the 'hiring out' or licensing of the use of 'good ideas' to other companies. A franchise grants permission to sell a product and trade under a certain name in a particular area. If I have a good idea, I can sell you a licence to trade and carry out a business using my idea in your area. The person taking out the franchise puts down a sum of money as capital and is issued with equipment by the franchising company. The firm selling the franchise is called the franchisor and a person paying for the franchise is called the franchisee.

The franchisee benefits from trading under a well-known name and enjoys a local monopoly. Training is usually arranged by the franchisor. The franchisee is his or her own boss and takes most of the profits.



The obligation of an organization's management towards the welfare and interest of the society in which it operate.


The term "corporate social responsibility" is often used interchangeably with corporate responsibility, corporate citizenship, social enterprise, sustainability, sustainable development, triple-bottom line, corporate ethics, and in some cases corporate governance. Though these terms are different, they all point in the same direction: throughout the industrialized world and in many developing countries there has been a sharp escalation in the social roles corporations are expected to play. Companies are facing new demands to engage in public-private partnerships and are under growing pressure to be accountable not only to shareholders, but also to stakeholders such as

employees, consumers, suppliers, local communities, policymakers, and society-at-large.


According to Kirk O. Hanson, a renowned ethics expert who also doubles as the Executive Director of the Markkula Center for Applied Ethics, "business ethics is the study of the standards of business behavior which promote human welfare and the good.

According to Johnson and schools there are three levels of business ethics which provide a useful way of classifying them

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the macro level: the role of business in the national and international organization of society

the relative virtues of different political/social systems, such as free enterprise, centrally planned economies, etc international relationships and the role of business on an international scale

the corporate level: corporate social responsibility

ethical issues facing individual corporate entities (private and public sector) when formulating and implementing strategies

the individual level: the behavior and actions of individuals within organizations


From the first Penneys store in Ireland to the latest flagship store in Edinburgh, the Primark story has been one of continuing success founded on a unique combination of fast fashion and lean operations.

In June 1969, the first Penneys store opened in Mary Street, Dublin. Within a year, four more stores were added - all in the Greater Dublin area.

In 1971, the first large store outside Dublin was opened in Cork and by the end of that year there were 11 more stores in Ireland and one in Northern Ireland.

By 1973 Primark began trading in Great Britain The following they opened the first UK High Street stores in Derby and Bristol. In the next ten years,18 stores were added in the UK and nine in Ireland, bringing the number of stores in the UK and Ireland to 22 each.

From 1984 to 1994 13 stores were added in the UK and 12 in Ireland, making it a total of 66 stores, 32 in the UK and 34 in Ireland. A major flagship store was purchased in 1992 - a 50,000 sq. ft. unit in O'Connell Street, Dublin, as BHS exited Ireland

Primark had a milestone year in 1995 with the development of the UK business following the acquisition of the BHS One-Up discount chain As a result, 16 stores were added to the UK business and all of a significant size. The next major development occurred in 1999 with the acquisition of 11 stores from the Co-Op, including Reading. The Reading property, after much refurbishment, also facilitated the much-needed relocation of the UK buying offices.

More flagships stores and acquisition were acquired in 2001 a 40,000 sq ft store opened in Blanchard's town, Dublin. At the end of 2001, the number of stores had grown to 109 (75 in UK and 34 in Ireland). In 2002, two major stores were opened in Glasgow and Birmingham.

In May 2006, Primark expand into Spain by opening its first store in Spain - in Plenilunio (Madrid), followed by a second store in Murcia in September 2006.

Primark opened its first store in the Netherlands (Rotterdam) in December 2008.

In May 2009, Primark opened its first store in Portugal (Lisbon) and its first store in Germany (Bremen).

In November 2009, a second Primark store opened in Germany (Frankfurt).

In December 2009, Primark opened its first store in Belgium (Liège) and a second Primark store opened in Portugal (Porto).

In September 2010, the first Primark store opened in Gran Canaria (Las Arenas, Las Palmas). Primark opened its second store in the Netherlands (Hoofddorp) and also in Gran Canaria (El Mirador) in November 2010. In December 2010, the third Primark store opened in Germany (Gelsenkirchen).

In 2011, Primark further expanded with store openings in the UK, Spain, The Netherlands, Portugal, and Germany.  New stores include Edinburgh and Stratford City (UK); La Coruña and Malaga (Spain); Zaandam (The Netherlands); Braga and Portimao (Portugal) and Dortmund, Essen, Hannover and Saarbrucken (Germany).

As at 4th October 2012 Primark has a sum total of 248 trading stores 38 in Ireland, 32 in Spain, 159 in UK, 3 in Netherlands, 6 in Portugal, 8 in Germany, 1 in Belgium, 1 in Austria.


The aim of the study is to examined the followings

How do they impact their customers with their brands

Do they manage the interest and the welfare of their customers

How do they handle the new demands from their customers

How do their social responsibility policies and their business ethics affect their customers and their environment

Do their social responsibility policies including their business ethics have impact on their business practice and their customers


The general objective of the study is to examine the assessment of Primark corporate social responsibility policies, including business ethics, and their impact on business practice and key stakeholders

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To examine the influence of their brand on their customers

To examine the rate of interest and welfare of their customers

To examine the flexibility of demand by their customers

To examine the effect of the social responsibility policy and their business ethics on their customer and the environment

To examine the effect of social responsibility policy including their business ethics, and their impact on practice and key stakeholders