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Ethical Perspectives 1
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TABLE OF CONTENTS INTRODUCTION................................................................................................................................3 TASK 1.................................................................................................................................................3 a) Explanation of the background and development of theoretical ethical approaches...................3 b) Comparing and contrasting of an absolute and relative ethics....................................................4 c) Explanation of the ethical issues which can affect the operational activities of Nike.................5 d) Explanation of the business objectives which are affected by ethical considerations.................5 e) Evaluating the implications for the business and its stakeholders to operate ethically...............6 CONCLUSION....................................................................................................................................7 REFERENCES.....................................................................................................................................8 2
INTRODUCTION An area of study that deals with moral values which deals with the right and wrong and with moral duty and obligation is known as ethics (Velasquez and et.al., 2015). Nike is an American Multinational Corporation which designed, developed, produce, sells and markets the footwear globally. The company also deals in apparel, equipment, accessories and services and also operates its operation in the UK (Nike,2016). For conducting the present research, report will cover the background of ethical approaches and different ethical perspectives in operating business. It also covers the business objectives from ethical perspectives for business and its stakeholders. TASK 1 a) Explanation of the background and development of theoretical ethical approaches Business ethics is an attribute which shows the framework in which business is formed and by which business deals with other business. Different businesses have different ethics and it depend on the way by which it is formed by the management. Business ethics can be summarized as standards and principle which is guiding behaviour of people in business (Bakhtiyari and et.al., 2014). Some business only consider of making profit whereas some business think of making profitability but it also think about the customer satisfaction. Ethics is a set of moral principles that a business should follow and values that a business should embraced in order for a business to be successful. There are different types of theoretical ethical approaches and they are as following:1.Teleological approach: This approach is also known as consequentiality approach which determines the moral conduct on the basis of the consequences of an activity (Jondle and et.al., 2014). When an action is right or wrong is wholly depend on the consequences of such an action. An act would be reasoned moral if it produced more satisfaction to the society than dissatisfaction.The word teleology is derived from the Greek word 'telos' which means end or purpose. This ethical theory argues the goal in the development of human mind to the fullest possible potential(Sebastiani and et.al., 2013). This theory believes that actions are right if they give happiness to people. For example, telling lie to the friend to give happiness to him.Deontological approach: When teleological approach is emphasis more on the welfare of the society. On the other hand, deontological approach is focuses on the right thing which based on moral principles. This approach is based on intrinsic good and bad in an act on which moral judgements should be done.The word deontological is derived from the Greek word 'deon' which means duty. This approach holds ethical decisions which has some moral principles which does not think about the consequences (Lucas and et.al., 2015). Deontological approach is duty based and action based which is known as humanitarian approach. For instance, one 3
philosopher thought that it would be wrong to hide the truth in order to save someone.Emotive approach: This approach is based on the morality concept which is personal in nature and it only shows emotions of the person. If any person feels the act is good then in his view, it is an ethical act (Noddings, 2013). According to this approach, the whole ethical act dependent on the personal view point.Moral -rights approach: This approach is fully determined on the behaviour which is related to the fundamental human rights, equal treatment under law etc. This whole approach is based on the ethical point where the individual has the right to object and reject the directives which harms their beliefs. Justice approach: This approach is based on the moral values in which ethics decisions do not discriminate the people on the basis of gender, age, race, nationality etc. This type of discrimination is considered unethical. In this approach, all people should be treated fairly, impartially and equitably. b) Comparing and contrasting of an absolute and relative ethics There are two types of ethics which are absolute ethics and relative ethics. The comparison between these two ethics is as follows: Inabsoluteethics,certainthingsarealwaysrightorwrongwithoutconsideringthe consequences and situation. Whereas, in relative ethics, it more considered their outcomes and believes the right and wrong is based on the consequences and situation. In absolute ethics, an absolute command is a command that is true all the time, in all places and all situations (Mueller and et.al., 2012). On the other hand, relative command is relative in nature because it related to the circumstances and situation. Certain things in absolute ethics are neither judged right and wrong in all situations while in relative ethics, it is easy to apply in relative ethics. Relative ethics is flexible and consider everyone's opinion because it is based on the people view point. But, absolute ethics are deontological which does not pay any heed to the the outcome of the consequences and situations. In absolute ethics, the general belief is that there is a universal moral standard whereas in relative ethics, they believe there is no universal moral standard exist (Broad, 2014). In absolute ethics, they believe there is a different between what is right and wrong. On the other hand, relative ethics believe there is no difference between what is right and what is wrong. In absolute ethics, the belief is there is a truth and code of conduct which should be obeyed by 4
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the people as well as should aware of it. However, in relative ethics, the belief is based on the only single moral standard which applies to the person (Kemp, 2016). They also think different people have different ethics so there no single moral standard. Absolute ethics are easier to apply because they have one moral value whereas relative ethics are difficult to apply because judgements are always subjective and influenced by the people opinions and ideas due to different mindset of the people. Absolute ethics can't change with different situations and it not possible; they do the right thing always. On the other hand, relative ethics changed according to the circumstances because there are no universally ethical principles. Absolute ethics means that there is only one universal moral which should be final. For example, management is needed to be kindly with their subordinates but do not do the wrong thing(Velasquez and et.al., 2015). Relative ethics hold the relativistic morals which vary with different circumstances and it is not accurate all the times. For example, top management can neglect the rules and regulations which can harm the business. c) Explanation of ethical issues which can affect the operational activities of Nike The ethical issues which can affect the operational activities of Nike are as been explained. Ethical issues are a set of moral values which need to be addressed which accomplishes the business effectively. To improve the people's living standards, the organization should conduct its operations by consideringcertainresponsibilities(Homburgandet.al.,2013).Ethicalchallengesariseinthe organization when in a circumstance every alternative choice or behaviour is unenviable because of potentially harmful ethical issues. The ethical challenges that meet the global business of Nike are as follows: Nike is giving very low wage to their workers and also workers are doing overtime under a subcontract which is one of the challenges which is faced by the company. Another challenge which is faced by Nike is poor working conditions and forced labour in the factories which produces their products (Nike,2016). The major challenge which is faced by the business organization is the environmental damage which is done through air, noise and water pollution and the climatic changes. The role of the government also plays a vital role in these challenges which are faced by Nike. The government rules and regulations are different in various countries and by this, it makes producing of products very crucial challenge for the international companies like Nike. The chosen company has to follow the laws and the regulatory framework of the UK (García-Sánchez and et.al., 2013). The host 5
governments have laws considering against information and labelling, employment, wages and salaries, consumer protection and regarding their health and safety of the workers. The most visible changes in the legal political factors evolved and increase of international trade agreements and the emergence of international trade alliance between different countries for instance, European union. The ethical issue which is affecting the culture of organization and damaging the moral motivation of employees can be discrimination issue. This issue plays a major role in the organization which is creating discrimination between men and women. In this issue, inequality between men and women is done through bullying in which old employees harass the new trainees(Noddings, 2013). There is a difference in salaries which are given to employees on the basis of men and women. The other ethical issues can be increasing of prices without valid reasons because taking advantages of the customers is an ethical. The company should also refrain from doing any corrupt practises for example, selling low quality products while bribing government officials. Somehow, the false dealings and corruption will tarnish the image of the Nike and give negative impact on sales. Other ethical issue includes marketing issues such as selling of goods and services which can harm the environment(Zikmund and et.al., 2012). There are the products which are harmful to the environment so they should be avoided by the manufacturer. These marketing issues can affect the environment as well as the ethics of business. d) Explanation of the business objectives which are affected by ethical considerations To achieve the aims and objectives of the business, ethical considerations are to be needed. Ethical considerations is very essential in organization when business are done on the moral values, the business will be profitable and meet the expectation of its stakeholders. For example, there is a child labour in the Nike of United Kingdom where the production plant is in America, the workers are paid below the minimum wages and also subject to miserable working conditions. This is considered as unethicalbecauseworkersarebeingpaidwithminimumwages(Sebastianiandet.al.,2013). According to the labour law, all the workers should be paid with equal wages and if the workers are paid below the minimum wages is to be termed as unfair. Business decisions have to concern about ethical considerations and if not then it will affect the business reputation to such an extent that Nike have to exit the market.Other examples of business objectives which are affected by ethical considerations were the sweatshops which are used by Nike. The sweatshops affect the environmental policy, quality standards of company as well as the profitability and the market share(Mueller and et.al., 2012). To overcome from these ethical issues, Nike has started CSR reports in which company continues to post its commitments, standards and the audit data.Other business objectives of Nike which are affected by ethical considerations are as follows: 6
Treat Employees Fairly: Ethical considerations propose their respective company should pay a living wage with benefits to their employees. The company should implement adequate safety standardsandshouldmaintainasecureworkplaceirrespectiveofthelocalconditions (Noddings, 2013). The business objectives of Nike should replicate ethical policies when considering about company reputation and employee job satisfaction.Engage in Sustainable Production Practices: Ethical considerations need Nike to minimize their negative effects on the immediate environment. This can be obtained through reducing their environmental footprint as much as possible (Chapman, 2016). Even when regulatory framework of UK and its legislation are lenient, they are negatively affecting local communities with their products in which their production procedure is unethical.Integrity in Business Relationships: Integrity in business is major aspect of the business which builds an ethical relationship in the organization. The integrity in business includes respect for contracts, the fair relationships between suppliers and customers should be developed etc. (Jondle and et.al., 2014). If the business doesn't treat well the integrity of the business then they will directly affect the ethical considerations of the business. EthicalConsiderationstotheProducts:Thecompanieswhicharefollowingethical considerations don't harm the products as well as the consumers (Hair Jr and et.al., 2015). Ethical consideration should surpass the business reasons in which the company produces low quality product at low price where consumer’s protection law is weak. This will affect the business objectives of Nike through ethical considerations. e) Evaluating the implications for the business and its stakeholders to operate ethically To developed any business, the organization needs the stakeholders so that business canrun successful and operate ethically. The stakeholders contribute to the development of a business and they take active parts in the development of the business. There are various stakeholders in an organisation such as owners, customers, employees, government etc. Every business has various stakeholders and Nike also has a number of stakeholders which are staff, customers, store managers etc. which helps in the business (Voegtlin and et.al., 2012). Nike would have to provide satisfactory working conditions to their employees and should consider health and safety as an employees' first priority. The company should also provide their employees with fair wages and salaries to motivate them for further work. When the business is going properly then both the organization and its stakeholders are affected in positive way. This is because if the growth of the business is good then there is possibility of expansion of the business which will be profitable to both organization and stakeholders (Weiss, 2014). If the employee’s performance will be better in term of productivity then it will enhance the cordial 7
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relationshipbetweenemployeesandallthestakeholders.Ifthereisabusinessethicsinthe organization then the employee’s gets motivated and try to do their work better.Other than revenue, the organization needs to consider its impact on people and environment. If the employees will be more focussed then this will be cost effective for business. If consumers will behave ethically, company will provide ethically sourced goods to them which enable the firm to gain competitive advantage(Kemp, 2016). If organization works with the support of government, then they will develop a sustainable business which will help the organization.Advantages and disadvantages for businessand its stakeholders to operate ethically are as follows: Advantages: When the organisation is working ethically then the business has a competitive advantage. Due to this, consumers will remain loyal to the brands in the economic crises also (Velasquez and et.al, 2015). Customers will also get benefited by the ethical code which has been followed by the organization because company is removing contamination in their products.It also benefits the society by the recognizing the social responsibilities. Disadvantages: The business ethics will affect the organization profits because it will restrict the organization's freedom. Business ethics like living wage, health and safety standard will reduced the the cost savings of the company by which stakes also have to suffer. Due to business ethics, financial cost of the company will also get affected (Mueller and et.al., 2012). CONCLUSION Business ethics is an important aspect in expanding and flourishing their businesses in society which provides healthy environment to their employees. There are some approaches which benefit the organization as well as satisfy the customer base. By comparing both the absolute and relative ethics, it concludes that both ethics are opposites and can't be applied to one theory. If the business objectives meet with the ethical considerations then the business will not get affected. 8
REFERENCES Journals and Books Bakhtiyari, K. and et.al., 2014. Ethical and unethical methods of plagiarism prevention in academic writing.International Education Studies.7(7). pp.52-62. Broad, C. D., 2014.Ethics and the history of philosophy: selected essays.Routledge. García-Sánchez, I. M. and et.al., 2013. The cultural system and integrated reporting.International Business Review.22(5). pp.828-838. Hair Jr, J. F. and et.al., 2015.Essentials of business research methods.Routledge. Homburg, C. and et.al., 2013. Corporate social responsibility in business-to-business markets: how organizationalcustomersaccountforsuppliercorporatesocialresponsibilityengagement. Journal of Marketing.77(6). pp.54-72. Jondle, D. and et.al., 2014. Modeling ethical business culture: Development of the Ethical Business Culture Survey and its use to validate the CEBC model of ethical business culture.Journal of business ethics.119(1). pp.29-43. Lucas, K. and et.al., 2015. A method to evaluate equitable accessibility: combining ethical theories and accessibility-based approaches.Transportation. pp.1-18. Mueller, M. and et.al., 2012. Absolute and relative kinetic changes of high-sensitivity cardiac troponin T in acute coronary syndrome and in patients with increased troponin in the absence of acute coronary syndrome.Clinical chemistry.58(1). pp.209-218. Noddings, N., 2013.Caring: A relational approach to ethics and moral education.Univ of California Press. Sebastiani, R. and et.al., 2013. Ethical consumption and new business models in the food industry. Evidence from the Eataly case.Journal of business ethics. 114(3). pp.473-488. Voegtlin, C. and et.al., 2012. Responsible leadership in global business: A new approach to leadership and its multi-level outcomes.Journal of Business Ethics.105(1). pp.1-16. Weiss, J. W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-Koehler Publishers. Zikmund, W. and et.al., 2012.Business research methods.Cengage Learning. Online Chapman, A., 2016.Ethical leadership, decision-making, and organizations.[Online]. Available through: <http://www.businessballs.com/ethical_management_leadership.htm>. [Accessed on 1 March 2016]. Kemp,A.,2016.Absolutevs.RelativeMorality.[Online].Availablethrough: <http://adamkemp.newsvine.com/_news/2006/04/23/175591-absolute-vs-relative-morality>. [Accessed on 1 March 2016]. 9
Nike. 2016. [Online]. Available through: <http://about.nike.com/pages/company-profile>. [Accessed on 1 March 2016]. Velasquez,M.andet.al,2015.WhatisEthics.[Online].Availablethrough: <https://www.scu.edu/ethics/ethics-resources/ethical-decision-making/what-is-ethics/>. [Accessed on 1 March 2016]. 10
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