All people associated with the company which have a holding value with the company, which are consumers of the company, which are working with the company and which are impacted because of the company in any ways are the stakeholders of the company. Ethical behaviour towards stakeholders should be directed firstly towards doing no harm to stakeholders, and wherever possible companies should work with the more primary stakeholders to create maximum benefits.The retail industry is indeed driven by the profit motive. The industry attempts to maximize profit and in doing so is seen to face many ethical and legal challenges as well.
There are many competitors in the industry such as local and international competitors. This increases the pressures to improve profit more than ever. The work discussed some of the current challenges to the retail industry. In profit making, the companies in the retail sector must work such that they do not coerce their suppliers. They have bargaining power but must make use of the bargaining power in good faith. Similarly, in the context of auditing and other contexts, they should improve the internal practice of working and should also not coerce their employees to share false details.
In terms of regulations, companies should attempt to self-regulate where possible and standardize their ethical framework of working with their international partners. This will be very helpful in preventing such incidents like the one that happened at the Rana plaza (Hoskins, 2015). Companies must seek to self-regulate in a such way that they preserver their integrity of working. Aftercall, it is the long-term relationships that they form with their consumers that will stand them in good stead. Management must be advised to undertake such long-term relationship forming strategies instead of focusing on short term profit making.