Ethical Business Practices and Policies in the Context of Ethics

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
a) Explanation of ethical concern and identification of key stakeholder...............................3
b) Ethical Theories.................................................................................................................6
PART 2............................................................................................................................................8

Qualities for ethical leadership and creation of ethical organisation.....................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business ethics are considered as the appropriate business practices and policies
associated with some of core subjects that is discrimination, corporate social responsibility,
corporate governance etc. These ethics also guides managers and other business associated
people that can check and analyse what is right or wrong at the time of taking decision
effectively (Weiss, 2014). In order to sustain longer at workplace business organisations are
focuses on complying all legal as well as ethical procedures in order to avoid any of the
uncertain situation. By following all of the associated norms they can easily enhance their
sustainability at market place. The current project is based on case of Nike that is associated with
its advertising case. The company has faced various controversies related to their promotional
advertisement which have been perceived by viewers in wrong manner. Viewers has thought that
this advertisement promotes terrorist looks more instead of actual promotion of particular
product of Nike. The report will explore various edges of ethics which are linked with the case of
company. It will also define that what makes an individual as a ethical manager or leader.
Further, it will include assessment of some qualities which can be taken as the mode of
recognition for ethical leader.
PART 1-a
a) Explanation of ethical concern and identification of key stakeholder
The current study is associated to Nike, a popular sports brand which offers sports
equipment as well as clothing products to its customers. The company has introduced one its best
product named as Balaclava in July. The product became centre of attraction across the society,
but this popularity was not associated with quality of product, but it was related to its marketing.
It has been analysed the marketing team of this company has represented this product as a
military kind of outfit, but which will cover maximum upper portion of individual (Hibbert and
Cunliffe, 2015). According to the company this advertisement will influence interest of
customers as it is presented in the military look but, many of the people has perceived this
advertisement in wrong manner. They had taken it as the advertisement which supports or
promotes terrorist activity as the overall look reflects like the attire of gangster. This perception
of people has placed this product into the situation of criticism. The overall scenario has
developed negative image of Nike in front of its customers as they are taking company as the one

does not perform their activities under the parameters of ethics. The scene became sensitive in
society and also placed a big question mark on the marketing department of Nike as they have
completely ignored or neglected this consequence which have not only affected its sales
performance but had also affected its brand image (Ismaeel and Blaim, 2012). In order to protect
themselves the company has also placed many claims such as they developed this product for
protecting individuals from the cold in winter season. But, for gaining customers positive
influence, the company has said that they will ensure that marketing team will further emphasize
on pursuing ethical norms and consider society at the time of promoting product among
customer. Here, it is essential for marketing department to focus on choosing right intention
about the product so that they present same intention and values of product in front of customers
at the time of presenting it to them in advertisements. Thus, it can be said that it is important for
Nike to concentrate on using ethical and societal aspect at the finalising any advertisement for
the company. This will help them out in developing positive image of the company in front of
customers as slowly they will accept Nike again. As a result, it will contribute in the
enhancement of organisations sales performance effectively.
Stakeholders concepts
With reference to the Nike, Key stakeholder for this company are investors, employees,
suppliers and customers. In terms with investors, they got affected as they were expecting
profits but after the controversial case there were high amount of losses that has been faced by
investors while some investors also got bankrupt. While if it is seen in terms of employees,
advertisement case impact employees in terms of having incentives and additional hikes. While
some employees lost their jobs due to increase in loss percentage that has been faced by
company. In addition with this, Customers get affected as their expectations from company
decreases. This affect suppliers the most as black lash from advertisement made them face high
amount of loss. They all get affected due to placed influence over the power utilisation as well as
decision making of the Nike at extent level. As per current situation, it has been analysed that
Nike requires support of its stakeholder in overcoming criticism faced for the Balaclava. It can
be said that support of stakeholders will help company in gaining its positive image back among
society. In this regard, for enhancing sustainability of stakeholders with Nike top management
team of the company is required to follow stakeholder theory which will aware them about
retaining stakeholders and guide them about effective execution of their operational activities