Target's Ethical Business Practices

As a large retailer, Target has the ability to defend themselves from “show-rooming”. One of the largest ways Target has combatted against this practice is pressuring their suppliers for special limited time products for a cheaper price. While these practices can entice customers to purchase from Target, there could be ethical issues to consider. Target will need to consider the ethical issues of quality and labor to produce cheaper products when making demands to their suppliers (Kinicki & William, 2013).

Target is justified in demanding exclusive products from their retailers. They have to consider how their suppliers meet these demands without crossing the ethical line. It is common practice for supplies to send business overseas or use sweat shops to drop their bottom line. While Target may not sanction this practice, they have to consider that is one way for the supplier to drive their prices down. This could be a marketing nightmare as I’m sure Target doesn’t want to be associated with such behavior. Secondly, suppliers may change the quality of their products to offer them at a lesser price. By making suppliers meet their demands, Target can therefore hurt their consumers. Over time if products bought at Target are of poor quality, consumers will purchase elsewhere. …show more content…
As a large retailer, it is expected that these companies have no choice and must meet Target’s demands. Target ultimately can be held responsible for the actions of their suppliers in consumer’s eyes. This is why it’s important to for the retailer to understand the ramifications of their demands to their suppliers. Ethical issues can be avoided by setting clear boundaries with their suppliers and making sure that ethical line is not