Donald Sterling with V.Stiviano attending an LA Clippers game prior to the scandal.

In April, 2014, TMZ Sports publicized Donald Sterling, Los Angeles Clippers owner, to be the center of a racial scandal. A recording of Sterling was released of him making racial remarks regarding his dislike of his female friend, V. Stiviano, being associated with African-American men.

As questions of the moral integrity of Sterling arose, The Clippers found themselves to be represented by a less-than adequate figurehead. Sterling’s single act brought negative publicity towards the entire franchise and had to be handled in a delicate manor in order to uphold the values of the NBA. NBA Commissioner, Adam Silver, consequently sentenced Sterling with a lifetime ban from any activities associated with the NBA, as well as a fine of $2.5 million to be donated to charity.

The ethical principals and morals of an individual contribute to the overall conduct of a companies business ethics. Discrepancies and injustices of an individual must be dealt with in order to maintain the integrity and persona of the entire company. Adam Silver was able to demonstrate this by eliminating the source of issue, being Donald Sterling, while making a positive impact by donating his fine to an anti-discriminatory organization, compensating for the actions of Sterling.

http://www.forbes.com/sites/leeigel/2014/04/29/why-adam-silver-was-right-in-banning-donald-stirling-from-the-nba/