Nike Info

Only available on StudyMode
  • Download(s) : 32
  • Published : December 6, 2012
Open Document
Text Preview
Ethical theories can help rationalize certain decisions that Nike has made as a company and highlight the issues pertaining to its followed consequences. Let us now examine some ethics theories and observe the case of Nike in this light. Egoism - This theory states that individuals or corporations have a right to guide their conduct placing ones own interest foremost in rational decisions. Through this theory one can justify the placement of profits or revenue generation as the high attained goal of an entity. In this regards Nike has played to the theory as far as possible. They have not only conducted manufacturing with cheap labor but also ensured that the factories do not earn even a little extra than they were supposed to. This theory states that every person that promotes self interest bring about social good. In this context we could see that while the founder of Nike, Phil Knight performed with self interest in mind, he was propelling Nike ahead by huge proportions. Doing so, he did manage to bring about the rise of one of the most well known brands in the world today. Social Group Perspective - It is not only self that determines all decisions but the surrounding that forms the social group under which the individual or company resides. It is the norm or standard in social groups wherein an entity can determine the wrong or right in that particular case. For Nike this social group has become a collection of customers, shareholders, employees, foreign contractors and others. The perception of right and wrong is determined by these social groups that operate differently in different places. For example, while the minimum wage in Indonesia, Korea and China may be less that that in the United States of America, the standard of living there will meet the minimum wage requirements and Nike has to ensure that they abide by that. Cultural Relativism - Every country has its unique culture that accompanies it. For Nike, a company that has a presence in many countries in the world, minding the cultural relevance can prove to be an effective means to growth. For example, while bribes are seen as a cultural norm in some countries, they are seen as unlawful in certain other countries. Society as a whole in certain countries is known to consider bribes as a normal occurrence, which for some countries is a crime. This culture makes or breaks certain laws in place and as long as Nike abides by these laws, in the respective country, and at the same time minds its home country standards, controversy for Nike will be minimized. Utilitarianism - This theory works under the premise that the greatest good is for the greatest number. Herein it is the majority that counts above anything else. If only a few elements of the entity think that the decision is wrong, the decisions must be right which is what is said by the majority. In the case of Nike, the decisions that were enforced by the majority are responsible for the sustained controversy surrounding it. The board obviously took certain steps in clearing the controversies that have affected the company. Since these decisions are taken with the view of the company good in mind, with the majority of the people agreeing to it, the decision must be seemed as right. Deontological Perspective - This view goes by the saying 'do unto others as you would have them do unto you.' The duty to make this world a better place is a duty that one has to take upon themselves, besides following certain obligations. For example, telling the truth is an obligation and that is seen as 'right.' In the same way for corporations, it is the giving back in return concept that needs to be perfected. The corporation is obliged to provide a good product and it is entitled to bring positive changes to its constituents. Values Clarification - This ethical theory expects that one is familiar with ones own views, reasoning and rationale. It is for this reason that companies try to build cultures within the organization...
tracking img