The Times 100 Business Case Studies Edition 16 Engaging with stakeholders

Introduction to Primark Rapidly growing with stores in UK and Europe  Employs over 70,000 people worldwide  Sources products from many countries worldwide A subsidiary company of Associated British Foods  Shares corporate values Key focus on behaving fairly and ethically, i.e.  Taking care of people  Being a good neighbour  Respecting human rights  Engaging with stakeholders

Stakeholders Individuals, groups or organisations which affect or are affected by a business  Internal – e.g. employees  External – e.g. customers, shareholders, suppliers, trade unions, civil society groups, communities Engaging with stakeholders involves:  Communicating and informing  Influencing decision-making Stakeholder groups have different levels of power & influence

Trade unions and civil society groups Share a common goal  Protecting workers’ rights Methods of engagement include:  Working with partner organisations, e.g. NGOs in sourcing countries  Open and honest reporting on local working conditions (through Ethical Trading Initiative)  Factory assessments, advice,training (International Labour Organization’s Better Work Programme)

Workers and communities Long-term programmes support vulnerable communities, e.g.  China Aims to improve productivity and output and ensure all workers receive living wage  Bangladesh Supporting remedial and preventative health initiatives for female workers  India Local NGO surveying garment workers to identify issues and provide support/advice. Also educates women on safety, health and their rights Bringing banking kiosks with finger scanning technology to rural (often illiterate) communities. Helps them to budget, save and earn interest

Customers Key stakeholders in terms of growing the business  Require best value-for- money products  Loss of confidence in Primark’s business practices could impact on sales/turnover Reputation is key communication factor  Primark does not have big advertising/ marketing budgets  Relies on customers to promote the brand Must demonstrate the business’ involvement in ethical trading  e.g. Primark’s School Project encourages debate on ethical trading issues

Shareholders Own shares in the company Are able to influence direction and decisions e.g. through board member selection Expect Primark to uphold business’ core values Primark’s documents its ethical behaviour through its Corporate Social Responsibility report