While the ideology of capitalism sweeps across the globe and dominates competitive markets by the end of the 19th century, addressing to business ethics is no longer negligible. Since humans are capable of abstract thoughts, our behaviours often blur the very fine line between what is right and wrong. In other words, should a company strive in doing what is best for the profitability of the business even when the actions are consider unethical?
Nike, the world’s leading sportswear franchise is an example of a multination corporation that faced ethical dilemma. Some of the controversial issues within the organization include the use of child labor in Nike’s Asian factories, minimum wage violations, and poor working conditions. Although Nike might argue that some of these actions are necessary for its survival in the competitive business world, its brand image and sales have been affected negatively due to the unethical business behaviours that have been performed. Upon realizing the potential harms to its shareholders, Nike should practice corporate social responsibility such as treating their employees fairly and ethically. By doing this, Nike is essentially fulfilling its own principle, “Just Do It”.
Ultimately, if a business is able to establish a meaningful relationship with its shareholders, allowing them to recognize that they are being taken care of and that the company’s only motive is not profit, the corporation is likely more profitable in the long-term.
Sources:
http://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5