Ethics are moral values to measure companies’ behavior. Since these values are from public’s point of view, they are changeable with the changing time. For example, plastic bags were regarded as one of the greatest invention in the 20th century, but now, they become one of the worst because of the white pollution. However, if companies neglect current rules, they will sink into emergences, such as the Nike case in the article.
Most of people treat corporate success and social welfare as a ‘zero-sum game’，because companies aim to make profit rather than devoting to the wellbeing of society, (except the non-profit organizations). However, I tend to think that they can coexist sometimes. For example, many companies simplify products’ packaging they cut cost and achieve environmental friendly objectives; companies can win reputation and customer loyalty, although they cost more on their ethical behaviors. Actually, the harvest will be more than the cost when companies obtain the public’s support.
Companies may also face limitations of ethical behavior, such as stakeholders’ conflicts and not enough profits. In these situations, I think that companies producing harmless products and ensuring qualities match prices are ethical behavior.
The public should supervise companies’ behavior but they should not use fixed rules to constrain their’ ethical behaviors. Probably, companies can find the way which most appropriate to their strategy.
References:
http://hbr.org/2006/12/strategy-and-society-the-link-between-competitive-advantage-and-corporate-social-responsibility/ar/1
Business and Management, author: Paul Hoang, 2nd Edition