Beyond corporate social responsibility

Introduction to Primark A subsidiary company of the ABF (Associated British Foods) Group Launched in 1969 in Ireland (trading as Penny's) By 2000, over 100 stores across Britain and Ireland; by branches across the UK, Ireland and Europe Distinctive for offering unbeatable value with innovative, fashion-driven edge Value-for-money prices rely on low costs - achieved through economies of scale and efficient distribution Profitability depends on volume of sales Does not manufacture goods itself Works with suppliers to produce goods to Primark’s specification China, India, Bangladesh and Turkey are key sourcing countries

Corporate Social Responsibility CSR = a business’ responsibility towards all stakeholders to deal with their needs fairly Organisations demonstrate CSR in different ways, e.g. Encouraging employees to volunteer in community projects Sponsoring/supporting charity work Contributing time/money to improving environmental impact Primark’s Code of Conduct sets out standards for suppliers Ensures all supplier workers are paid a fair wage and work in good conditions Primark’s programme of activities includes HERproject (Health Enables Returns) Raising awareness and delivering healthcare education to female workers in supplier countries

Why Primark embraces CSR Primark directly contributes to the employment of more than 700,000 workers across three continents Ensuring their rights are respected is key to Primark’s continued growth Primark believes that it has a responsibility to act and trade ethically It can be a force for good

Challenges 50% of garment manufacturing workforce in supplier countries is female Gives them independence and income Women have little education/ literacy Lack knowledge of health, hygiene and nutrition issues Lack of medical advice Results in vulnerable workforce More women than men are malnourished and suffer from illnesses e.g. anaemia

HERproject Initiative started by BSR (Business for Social Responsibility ) Non-governmental organisation that works with over 250 companies on environmental, social and human rights Aims to improve the health of female workers through training and education Provides tools to help them take charge of personal and working lives Around 10% of female staff in a factory are trained as ‘peer group educators’ Responsible for training other women in the workplace Women trainers understand the local culture and can build self-confidence as well as practical knowledge Emphasises mutual help and encouragement Informal learning continues outside the workshops Benefits their families and whole communities HERproject has helped over 50,000 women in different countries Through companies like Primark, Primark’s suppliers and local health providers

Value of HERproject Empowering/educating female workforce important goal in its own right Improves communication skills Builds trust and confidence Improves teamwork and motivation Enables women to take more responsibility Benefits factories and companies Improvement in productivity More stable workforce Lower absenteeism Decreased labour turnover Improved quality Reduction in housekeeping costs Benefits communities Helping to reduce infant mortality Encourages women to take on leadership roles in communities

CSR as force for good HERproject makes a difference to the lives of its supplier workers and delivers business benefits 4,500 women in Primark’s factories have been trained under the HERproject in Bangladesh so far Positive results mean project is being rolled out to Primark’s suppliers in China and India CSR needs commitment of resources, management time and energy Each dollar invested in the health of female employees can yield more than three dollars in business benefits Primark’s ongoing involvement will help to provide a sustainable and ethical business model