John Lewis, a renowned retailer in the UK, is following the lead of Primark by declining government funds aimed at supporting staff who were furloughed during the lockdown period. The UK government has offered a £1,000 bonus per worker to companies that bring back furloughed employees and commit to retaining them until January. Primark has already made the decision to reject this financial aid, and now John Lewis is expected to follow suit.
With an estimated 14,000 employees currently on furlough, John Lewis could potentially be turning down a grant of approximately £14 million. Similarly, Primark could have received around £30 million through this initiative. Despite the substantial amount of money involved, both companies view refusing government funds as a strategic move to enhance their public image.
Throughout the lockdown, several retailers have faced criticism for operating under unsafe conditions or for accepting government assistance when they could have managed without it. Brands like Frasers Group, Victoria Beckham, Boohoo, Next, Net-A-Porter, and Asos have all received negative attention, prompting some of them to reverse their initial decisions. The Treasury commended Primark for its choice, particularly at a time when the company is facing allegations of improper practices in sweatshop factories in Leicester.
Known for its employee ownership model and ethical standards, John Lewis’ decision to forego government funds aligns with its commitment to responsible business conduct. Despite the closure plans for eight stores, John Lewis is demonstrating its dedication to integrity and maintaining a favorable reputation. In an era where ethical norms are under intense scrutiny, both Primark and John Lewis are taking proactive measures to uphold their values and make a positive impact within the retail sector.
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