PR Crisis : Primark on the Rack

Seminar 7 – PR Crisis: Primark on the Rack

It was late in the evening and Primark marketing director, Jane Carson, was reflecting on how quickly difficult situations seemed to develop.

The current crisis had its roots in a BBC TV documentary called Panorama which was broadcast two weeks earlier. The documentary had set out to investigate the so-called negative effects of globalisation. The agenda was a familiar one, focusing on the power wielded by multinational clothing companies, such as Gap, Primark and H&M, in developing countries. The TV programme showed the manufacture of branded clothing for world markets - appealing advertising images from Europe, contrasted with distressing views of unpleasant and oppressive working conditions in developing countries.

In the days following the BBC programme, newspapers and social media took up the themes of the programme, resulting in a flood of e-mails from readers and heated discussions on various news websites and blogs. It was clear that the programme had been very effective, at least on an emotional level. Soon Primark store managers started to report increasing numbers of hostile questions from customers about the company’s sourcing policy; the levels of phone calls and e-mails to Primark’s HQ confirmed this development.

Primark always insisted on working conditions that were in line with ‘local best practice’, although the wage rates were low by EU standards. Objectively, Primark could argue that its suppliers maintained high standards and its participation in developing countries was of clear benefit to those economies. However, the present public debate was not being conducted objectively, and Jane Carson wondered how to regain the initiative.

Questions:

1. Describe a company that has good ethical values. Please state why you think that they are ethical.

1. What are the ethical issues for Primark that arise in this case?

1. Who are the stakeholder groups in this case? What message should Primark convey to them? How should the retailer communicate with them?

1. How should Jane Carson regain the initiative, and what should she say (to journalists & bloggers) to defend Primark’s reputation?

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