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Business ethics refers to the study of appropriate policies as well as practices of business. These policies are related to issues of potential controversies like discrimination, corporate governance, fiduciary responsibility, social responsibility and bribery (Bonnefon, Shariff, and Rahwan, 2016). These policies help a business entity in operating their business activities in a ethical manner. This report is based on case study of Nike company regarding creative advertisement. They used an advertisement technique which was misunderstood by public. Moreover two ethical theories are being used under this assignment to judge ethics in a sated case study . Characteristics for being an ethical manager are also been discussed so that ethical standards of an organisation can be increased and ethical working environment can be maintained.
In recent era, the main motive of an organisation is to generate revenue and to hold a highest rank within a market place. But in order to attain these certain goals may not seem to be ethical at all costs. So it is required by a business to implement business ethics in order to performs their operations and activities in an ethical manner. In case an organisation fails to do this, then it will lead to decrease in base of customers as well as company will have a negative brand image (Crane and Matten, 2016). Main aim of this report is in regards with Nike which is being a clothing industry and face issue related to creative advertisement.
Under this they targeted youngsters for selling balaclava but it critics as stereotypes of black youths which are involved in gang violence. Whereas, company states that they had no intention of encouraging a serious issue related to gang culture and criminal.
Under this case it was found that a young black model was wearing a T-shirt and a garment which was same as military special forces webbing. This was appearing as if youngsters are concentrating of inspired look as a gang and this was being popularised by videos of drill music. Later on Nike had to stop their selling of balaclava from its website and displayed that this product is no longer available for sell.
This report is written from middle manager to senior manager in Nike with an aim to highlight the unethical practices adopted by marketing department in company. This report discusses the ethical dilemma “should marketing unit engage in making such advertisement which encourages youngsters to indulge in criminal activities?”. The consideration of this dilemma holds significance as this would ensure that entity does not make any advertisements or adopt practices that are against public interest.
Also, emphasizing upon this situation is necessary to make sure that there is no violation of interest as well as power of stakeholders of organisation. The major objective behind this is to reflect the implications of such misinterpreted advertisement upon the millenials that are a significant part of the society so that such unethical actions and practices can be prevented in future context.
A stake holder refers to a person who has an interest or concern in business (DeKeyser, Ganz and Berkovitz, 2012). Hence, Nike sees its external as well as internal environment in form of their stake holders. It simply means that any person who have an impact on activities of business can be called its stake holders. But each stakeholder will have a different role to play in the process of Nike company.
Stake holders of Nike company who are affected by this are customers, employees, ,business partners and their shareholders. Shareholders as well partners always wanted Nike to earn profits. While employees would require to have a sense of work satisfaction and treated fairly. On the other hand customers concentrates mainly on quality, safety and availability of a product and service for which they spend money for.
Moreover, other comprises of local communities as well as government who involves a special kind of interest in groups. As per Friedman theory, stakeholders play a crucial role in business, as their decisions affect performance. They can be affected through organisational policies, actions and decisions or ethical dilemma.
For better understanding the requirement of communication with stakeholders in making decisions and strategies, interest/influence matrix can be used. Here, “Interest” focus on terms related to change, while, “influence” indicates the ability for resistance and stimulates the same as well. This matrix help in resolving issues related to loss of trust and belief of stakeholders, investment, long term relationship with clients and more.
This issue of Nike has affected some shareholders of Nike particularly as customers will feel betrayed by their unethical practices whereas shareholders share will decrease as company will have a negative brand image due to which it decreases its earning in profits. Local communities will be affected as they will get a wrong image from this adve