Bill Davies reflects on enlightened shareholder value on Oxford Street
On Monday 23 June 2008 the BBC Panorama programme reported that Indian suppliers of the high-street chain Primark had been sub-contracting work to firms who used child labour.
Primark had previously issued a statement saying that this sub-contracting had occurred without its knowledge or consent and was forbidden by its code of practice. Primark also stated that they had been let down by three trusted suppliers and had terminated their contracts.
Primark also announced plans to appoint a non-governmental organisation to improve the monitoring system that it already had in place. In addition, Primark is setting up a charity to help young people in the areas in which it operates.
The speed with which Primark has acted is not surprising given the amount of bad publicity generated. The viewing figures suggest that 4.1 million viewers tuned in and the story has provided excellent copy for the national press.
Primark's swift action may well mean that it suffers no lasting damage. This case nevertheless highlights the importance of constant vigilance for any company operating
