We lives in the world which is the rich become richer while the poor become poorer. Many nations in the world had set a price floor of the minimum wages to overcome this problem. Minimum wages is the lowest hourly wage that may be paid to an employee, as fixed by law or by union contract (Webster 1991). However, some of the company used violent to force the employees accept the wages. There are 3 model ethics in management which are utilitarian, moral right and justice. Due to Nike’s problem, all 3 model ethics are related to this problem. First model ethics is justice because all company should pay the employee the minimum wages that stated by the law because it can increase standard of living for lower earners. The second model ethics is utilitarian which had shown is this case when Nike set to force their workers to sign the agreement to get the lower salary than the minimum wages. This will affect the employee’s moral that can lead the low quality product produce that will give bad impact to both sides. Last model ethics is moral right which had shown when Nike should not perform the forced because it can decrease economy development in Indonesia. Based on the case of Nike accused of military to intimidate factory workers (ABC News), managers should not accept the offer because it cause to lack of justice to worker.
First of all, all managers should know and perform the three ethical models to give all of the company related. The model ethics should to consider by the manager to deal with the company that do not give the fair and justice to their employees. Justice is one of three model ethics that must be used by all managers to make sure the employees get the fair decision. Justice is moral decisions must be based on standards of equity, fairness and impartiality (Waddel, George and Jones, 2012). All of the company should give the employee’s salary according to the law that stated by law or union contract. This is because the economy nowadays had been worst due to inflation. Inflation is a sustained rise in the general level of prices (Berkeley 2008). The range of salary nowadays from the highest earner to the lowest earner had a huge difference that lead to lower standards of living (Brown, Charles, Gilroy , Cohen 2001 ). When the employees can resist the resistance of inflation, they can increase their standard of living by receive the fair salary. This is because when they get the fair salary, they can have all utility needed by a human being as they can gain stable wage. All of managers should practice justice to their employees to help the employees gain not only fair salary, but also the right hospitality to help the employees to increase their standards of living (McIntyre 2003). In Nike case, the manager should practice justice to preserve the right of the employees.
Besides that, utilitarian model also should be practice as it can produce greatest good to greatest number of human. Utilitarian model is the moral behavior produces the greatest good for the greatest number (Mascull 2010). Utilitarian model also is a way to help a manager to make decision to choose the most benefit way to make right thing for many side as they can. Companies need to regain the high moral of workers to avoid the low product produced to make both side gain benefits. According on the case of Nike accused of military to intimidate factory workers (ABC News), Nike was made $2.2 billion in profits last year and it would cost $1 extra per pair of shoes to pay the minimum wages (Keady 2013). Since Nike gain a high profit, they should not use military force to the decrease their worker salary from $4 per day to $3.7 per day to increase their worker moral that can enhance the quality of product that their produce. If the Nike’s manager use utilitarian model, he will not used force to deal an agreement with his workers as it lead to bad accident to both side. So, a company should to take action that give benefits to many party as...
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