What are the ethical issues (internal and External)facing organisation Essay

What are the ethical issues (internal and External)facing organisation in xxx sector and how are they being addressed - Essay Example eport highlights ethical factors arising from both internal and external factors based on PESTLE analysis while also including recommendations that might respond to the ethical concerns noted in the report. The UK clothing sector is also characterised by dominant multiple store retailers who sale up to 70 percent of their finished products to markets in Western Europe and 85% percent in the United States (Allwood, Laursen, de Rodriguez and Bocken, 2006). The UK clothing and textile sector has recorded a significant decline since the turn of the 19th century. However, the 1990s were period of greater change for the industry as major players such as Marks and Spencer ended demand for supply from UK clothing and textile manufacturers shifting to importing over 70 percent of supplies from developing countries (Tait, 2000; Gereffi and Memedovic, 2003). The consequence of such changes is that the UK clothing sector has shifted focus from manufacturing to designing. However, the declining production has provided ground for development of innovative aspects of the sector as entrepreneurs and retailers seek to take advantage of niche or high quality products (Allwood, Laursen, de Rodriguez and Bocken, 2006). The decline in manufacturing has also had minimal negative impact on the sector as businesses, especially those operating from the end of supply chain, continues recording high profits. Retailers are now taking advantage of increased demand for innovative products to increase their profits in a sector where retailing and marketing generates higher returns than sourcing, manufacturing, assembly, finishing, packaging, and distribution. Ethical issues in social aspect of the sector revolve around labour practices mostly on the side of suppliers. Majority of the retailers in the clothing industry have adopted outsourcing of raw materials from different suppliers, especially in Asia, in order to establish competitive advantage over other players in the industry (Kumar and