The primary objective for companies is to maximize profit, which is achieved by raising the price of the product, or lowering its production cost. Nike has faced ethical accusations because of the presence of child labour in their factories. Children in developing nations, aged from four to twelve, tend to struggle in and survive under harsh conditions with unimaginable low wages. Sixty cents are offered for each soccer ball that they have stitched; although its cheapest market price is around fifteen dollars. The high reputation of Nike creates a high demand of these soccer balls in the market, which leads to high potential profit. This will cause the company to increase the supply of the product, which ultimately leads to the continuation of the exploitation of young workers. It is like a vicious circle that keeps returning to the same starting point, and continues with the same unethical, controversial behaviour. Buying and selling commodities is not just about doing a business, it is also about doing a just business. Business should always consider and follow the moral guidelines in the production and promotion of their products, and most of the time, they overlap with the values of consumers in the society.

Picture and Article Link:

http://www1.american.edu/ted/nike.htm

http://www.b-eye-network.com/view/16391