There is “no right way to do the wrong thing.” The same principles of ethics apply whether in school, at home, or in the business world.
One may remember Nike’s tainted image in the late 1900’s where the “Just do it” slogan was marred with images of sweatshops and poor labour conditions in Asia. Nike’s practice of outsourcing led many to question the ethics of the company. Ultimately, Nike battled through its wavering reputation by raising the minimum age of factory workers, adapting to US clean air standards and initiating the Fair Labour Association.
Similarly, to battle the questionable practices of the clothing industry and alter the image of fast-fashion, H&M’s new Conscious Collection marks the company’s aim to produce eco-friendly and sustainable clothing.
In both scenarios, Nike and H&M opted towards more ethical business decisions. However, H&M is currently moving forward with healthy practices to prevent possible scandals, where as Nike’s improvements were due to its already tainted image. This exemplifies the rationale behind each company’s actions, thus raising certain questions.
Are ethical practices built upon an already ethically-run company with “moral” beliefs? Or do companies opt to be more ethical in order to preserve its image?
I answer both. The importance lies within the fact that companies have incentives and are motivated to become more ethical. Thus, they set trends in the business world through responsible practices.
Perhaps one day there will be a moral compass app?
I agree with your perspective that ethical practices are a combination of their belief in morals and preserving their image. On a more philosophical note, does it matter what the source of motivation is for a company to be socially responsible or is it just the final result that is important? For example, is a company’s efforts less valuable if it maintains good social practices due to underlying incentives like promoting a positive brand image?
Great comment! That was exactly the point I was trying to get at. I suppose that is the reason why there are regulations and laws surrounding business practices to ensure that MINIMUM ethical requirements are met (ex. pollution limits, age requirements etc.)!