Nike Advertising Case Study: Ethical Implications and Recommendations

This project report examines the ethical dimensions of Nike's advertising campaign, specifically focusing on the controversy surrounding its balaclava advertisement featuring a black model. The report delves into the ethical issues of racial discrimination and the potential for the ad to be interpreted as promoting gang violence, analyzing the impact on various stakeholders including customers, employees, and suppliers. It explores the role of business in society, emphasizing the importance of ethical conduct and responsible management. The report provides recommendations for Nike to improve its ethical practices and enhance its brand image. Furthermore, the report applies two ethical theories, utilitarianism and deontological ethics, to assess the morality of Nike's actions and advertising strategies. The utilitarianism theory highlights the negative consequences of the advertisement, while the deontological theory emphasizes the inherent wrongness of the actions, irrespective of their outcomes.

Business Ethics and
Responsible Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Ethical issues...............................................................................................................................1
Role of business in society..........................................................................................................2
Stakeholders affected..................................................................................................................2
Ethical impact on company.........................................................................................................3
Two ethical theories. .................................................................................................................4
PART 2............................................................................................................................................7
Ethical programmes....................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Ethics refers to moral philosophy of an individual behaviour that make difference
between wrong and right concept. Ethics increase the quality of life standards. Business Ethics
refers to applied ethics and professional ethics that examines ethical principles and morality in
business environment. Responsible management showcase sustainability and consist of ethical
business values. The Project Report is based on Case study 2 of Nike and its advertising. The
project report will showcase the perspective of a middle manager that outline the ethical
dimensions of marketing the balaclava is used by the image of black model. The project report
will highlight why the Case study of Nike and advertising explore as an ethical question. The
Project report will explain the role of business towards the society. The Project report will further
explain who were the key stakeholders and in what way they got affected. The project report will
include research into examples that ethical choice also impact other companies. Then the report
will provide the necessary recommendation for the Nike Advertising. Lastly the report will
demonstrate two ethical theories to reflect the Case Study.
PART 1
Topic - Case 2 Nike and advertising
Ethical issues
Racial discrimination
Racial discrimination this is highly cost effective issues for the business. According to the
Equal Employment Opportunity Commission (EEOC) report they describe that the cost of
discrimination is arises in UK. Nike has introduced the Nikelab NRG breylium Balaclaev x MM
W on July 12. Nike have been criticised about their advertising strategy they use the black model
for sale of balaclava. The model have covers the whole face only the single eyes open. So this is
described the racial discrimination because they use the black model and cover the all body. So
people thinks that company has support the racial and they also describe the comparison between
black and white. The advertisement is described the wrong message to the society which is
breach against the ethical values of the business. It is not feel good if someone comments on
physical attributes of the person like in this advertisement it is all about skin colour. So people
cannot support this advertisement and they give the negative reaction on the product. The End of
the result company has removed from sale and also removed from the online platforms. With the
message of this product cannot available (Kennett-Hensel, and Payne, 2018).
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Gang violence
The sportswear brand Nike has been criticised after they launch the branded balaclava
through advertising of gang inspired. This advertising is created the negative impact on the
human thoughts and young people that company is target the young people to enter in the gang
crime. So this is created the negative impact on the customer mind (Tajalli, and Segal, 2019).
So the Nike head person countered has spoke that they cannot support and encourage any
negative and criminal issue of the gang culture. That this product is the part of the Nike
collections. There have not any negative meaning this product is launch in the worldwide and
people follow as fashion trend to this product.
Role of business in society
The main role of the business in society has to make the quality product to satisfy the
customer needs. And also provide the best product according to the customer preferences. Nike
has enhanced their business and create positive impact on the society. So company can follow
the different government rules such as equality act, health and safety act racial discrimination
act, this all act help to company for enhance their business in society. That create the positive
impact on the society. When company has followed the all government laws and consider the
different values, norms, attitudes of the society that create the customer satisfaction.
Stakeholders affected
Customer
Customer were affect because they thought that company support the racial. So customer
cannot buy the product. Also, those customers who want to buy the products they face the
delivery problem and unavailability of product. Also, Most of the range of product is sold out.
That is the reason customer disappoint and they are not satisfied (Tajalli, and Segal, 2019).
Employees
Employees of the Nike face the problem related to products. Employee has
manufacturing the product they doing there best in making the product that satisfy the customer
needs and wants some external problem is affect the processing system which can leads the
employee problem on the production process.
Suppliers
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All Nike products are manufactured by the independent suppliers under the contract.
Suppliers also face the difficulty because company cannot generate the profits on the Balaclava
product that Nike cannot pay the money on timely. So that suppliers are not happy and they are
not satisfied with the payment system. Also, company had faced the problem due to product has
removed from sale that is increase the liability also increase the cost of operations.
Ethical impact on company
Ethical
Nike has not clearly follow the ethical issues. When they launch the new product
advertisement they use the black model for sale of balaclava. That creates the negative impact
on the company sale. Also, customer has criticised the advertisement strategy they thought that
company has support the racial and they make comparison between the humans. So customer are
not happy with this advertisement. For this problem company has removed the product on the
sales. For this situation company can follow the different government rules such as racial
discrimination act, equality act, health and safety act (Vitolla, Rubino, and Garzoni, 2016).
These act is help to company for increase their position in the market as well increase the trust in
the society. That creates the positive impact on the company.
Sustainability
Nike uses the different marketing approach to increase the sustainability of the company.
Nike has take initiatives to change the climate also improve the climate through reduce the
global warming and puts the pressure on help to create the healthy environment. Nike has play
the wide role in changing the climate by the two reasons that is corporate social responsibility
and business performance.
Corporate social responsibility
Nike has operated the 700 factories and their millions employees, Nike has provided the
different benefits to their employees and their communities. Company also suffered the loss
when they launch the product because they support the racial. So customer are not buy the
product which is directly impact on the company performance and employees wages. Also,
company face some allegiance related to the labour and factory conditions. So the Nike has
improved their performance and focus on the sustainability of the company. Sustainability means
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that company has achieved the targets and achieve their mission and vision. So the company has
managed the tools such as sourcing and manufacturing Sustainability index. This tool helps to
company for increase the performance of the company also increase the factory conditions
provide the better training to the employees provide the health and safety also provide the
benefits which help to increase the performance of the employees. This tool help to improve the
environmental conditions. Nike targets that they improve the 100% conditions of factory By the
end of 2019 (Vitolla, Rubino, and Garzoni, 2016).
RECOMMENDATION
 Nike can focus on the Sustainability of the company. So they must follow the
government rules that improves the employee relationship and increase the business
performance. Also follow the consumer protection act that increase the customer
satisfaction.
 Nike should use the tool to manage the social responsibility. They use the sourcing and
manufacturing Sustainability index this tool helps to company for improving the
employee satisfaction on the work place. Nike provides the health and safety also provide
he benefits that improves the performance of the company (Kennett-Hensel, P and Payne,
2018).
Two ethical theories.
Utilitarianism Theory of Ethics
Utilitarianism refers to an ethical theory that determined right from wrong through
focusing on outcomes. The Utilitarianism theory defined in terms of well being related concepts.
It is one of the best known theory and most influenced moral theory. The core idea behind this
theory is to evaluate whether actions are morally right or wrong depends on its effects. The
Utilitarianism theory of ethics is applicable on Case study of Nike and its advertising. The
consequence of an action is only standard of wrong or right (Act and Rule Utilitarianism, 2018).
Through this Case study it is been clearly seen that consequences of the product Balaclava of
Nike is not good. The marketing strategy of product Balaclava of Nike is not based on ethical
and morality principle as it was demonstrated and advertise in wrong way in market.
The Nike choose black male model to advertise its product Balaclava which indirectly
supports to racism. The advertisement of Balaclava of Nike is an indicator of prejudice and
discrimination of the black peoples. This is an issue of inferiority complexity among the black
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people that they need to hide themselves because of their brown skin. The advertisement of
Balaclava is a race based on the belief that fair colour people race is superior to the brown ones.
They couldn't present themselves as the way they are in reality to the society. They feel inferior
due to fear of not acceptable by the society. The conduct of advertisement is illustrating wrong
ethical value to the public. The advertisement indirectly depict that brown skin colour people
should not be acceptable by the society they need to hide themselves before they face the
virtualise reality of the society. The advertisement is depicting the injustice with the black
peoples (Tajalli, and Segal, 2019). The advertisement of Balaclava of Nike is highlighting that
the black people has no rights to live freely in the society. The ethical principal based on
Utilitarianism theory is supporting the case study as the effect of the action which is wrong
conduct of advertisement by Nike of its product balaclava and its spread wrong message to the
society. This advertisement is a matter of morality and ethical principles. The Nike use the
wrong code of ethics in its advertisement of Balaclava. This Case study is based on
Utilitarianism theory of the ethics because the actions of Nike and advertising is wrong as this
can be seen based on their effects. Some people also raise their voice against advertising of
Balaclava of Nike due to model also wearing another garment similar to military wear. This led
people to say that Nike were marketing to youngsters and its aim is to demonstrate the gang
inspired look. The people are saying that this advertisement is encouraging the serious issue of
the criminal and depicting the gang culture among the youngsters. Nike also protest itself by
saying that they use different models for their multiple markets, the products were a part of wider
Nike training collection. Some people also defended Nike and advertising of Balaclava by saying
that Nike is just simply showing off a piece of gear but the ethical principle of Utilitarianism is
concluded that the way the advertisement of balaclava of Nike is being portrait is wrong and
tends to disrespect the ethical and morality principles of a business (Gröschl, and Gabaldon,
2018).
Deontological theory of Ethics
The Deontological theory is normative one that claims that morality of action should be
based on whether the action is itself wrong or right conduct under the series of rules rather than
just based on the consequences of the actions. The Deontological theory put emphasis on
relationship between duty and the morality of the human actions. The deontological theory of
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ethics is based on Non consequential view of people and their morality based decision making.
The Deontological theory judges an action is wrong or right based on a moral code.
It would be fair to apply deontological theory on Case study of Nike and advertising. The
outcomes are not desirable than the actions are morally wrong. Advertisement of Nike of
Balaclava is the matter of consolidation because it targets on the society stereotype of dark
skinned peoples. It supports that fair skinned people are inferior to dark skinned people. The
advertisement of Balaclava is wrongly demonstrated in front of public because Nike uses a
young Black colour model to worn Balaclava MMW. The Nike defend themselves by saying that
they styled on different models and their collection are available in multiple markets. The viral
image of black model consist of balaclava headpiece and straps worn around the shoulders of
model. The Advertisement of Balaclava indicates the discrimination based on Racism (Dixon,
and Finnane, 2018) The advertisement highlights the skin colour of the model that the black
colour people should hide themselves by wearing the headpiece because they can't face the
society as the way they are in reality. The advertisement is conveying wrong message to the
society which is breach against the ethical values of the business. It is not feel good if someone
comments on physical attributes of the person like in this advertisement it is all about skin
colour. This advertisement of balaclava MMW is depicting race of an individual in negative
terms. Racial Discrimination is wrong on the basis of principle of morality and the Deontological
theory of ethics also says that an action would be wrong if it doesn't follow moral values. On the
basis of Ethical principles the Nike should follow the practice of Equality in order to support
business ethics and to create responsible management in their Organisation.
Another criticism arises when the model wear another garment similar to military wear.
This make people to say that Nike is marketing to youngster whose aim is to demonstrate a gang
inspired look to the youngsters. The gang culture refers to modern urban street gangs that have
evolved into tribal people. The Nike also defend itself by saying that the image is simply
showing a piece of clothing. But on the basis of ethics principles of deontological it can be
agreed that the Nike must approach their advertising message should not convey any possible
offensive element towards the society (Gröschl, and Gabaldon, 2018). This also discriminate
against rappers because they generally wore gang inspired clothing. The reason of criticism is
that the youngsters should focus on their career rather than just adopt and support the gang
culture behaviour. The gang culture also leads to boost terrorism mentality among the youngster.
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On the basis of deontological ethical principle the Nike should convey good message which
helps to showcase the moral values to the young ones and to the future of the society rather than
spreading wrong message through the advertisement of Balaclava MMW.
PART 2
Ethical programmes
As an ethical leader I can use the different ethical programme in the organization that improves
the performance of the employee.
Follow laws and regulations
As ethical leader I will follow the rules and regulation of the company. I will take actions
that how to manage the employees in the work place. Also, shows the customer and shareholders
that company actively engaged with the ethical issues. I will recognize the different ethics that
influence consumer such as follow the different government rule including the consumer rights,
social justice etc. that is the reason of buy the product and increase the sale of the company
(Dahlmann, and Grosvold, 2017).
Care about the people before profits of the company
As a leader I will focus on the employees more. Because employers is the main key of the
company. When people are doing work properly that directly effect the profits of the company.
So that is the reason to more focus on the employee. I will provide the healthy environment also
provide the different benefit and training programme which increase the motivation among
employees. I will adopt the different approached to improve the employees work such as
performance appraisal, promotion, job rotations etc.
Communicate
Communication is the main component to interact with their employees. Being an ethical
manager I will communicate with the employees and ensuring the employee that they have any
problem to consult with me and discuss the situation (Bramwell, 2016.). So that is the help
reduce the conflicts and also improve the relation among the employees. So the employees have
more focus on the work and production process.
Decision making
Being an ethical leader I will make the best decision related to the performance of the
business. I will provide the good feedback when employee doing the best performance even
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provide the suggestion related to the work so members were shows the trust and they share the
problems and ideas which is help to improve the internal or external growth of the employees
(Bokhari, 2017).
Define clear code of conduct
As an ethical leader I will clearly define the code of conduct this is help to improve the
employee understanding about the culture and different behaviour of the employees. Also,
conduct the different meetings to increase the relationship and good behaviour among the
employees. It is the essential that I will provide the training to the employees about the ethical
issues this training is help to improve the employees' behaviour towards the work they enjoy
their work and improve the performance. In the training programme I will include the ethical
behaviour in performance metrics and employee reviews that provide the help to solve the
problem of the employee (Abend, 2016).
CONCLUSION
The conclusion is being made through the project report of Business Ethics and
Responsible management that the Business ethics plays crucial role in maintaining the business
standards and to maintain their brand image in the market. It is been concluded that every
business should follow ethical and morality principles. Through the Case study of Nike and
advertising it is been concluded that Nike has made wrong demonstration while doing
advertisement of Balaclava MMW. The advertisement is not appropriate on the basis of ethical
and morality principles. It is concluded that the advertisement supports Racism discrimination
because they use young black model to promote their product. The advertisement is enforcing
the stereotype of the peoples that have dark skinned colour. The report also concluded that the
deontological theory of ethics is based on morale principles whereas the Utilitarianism theory of
ethics is based on consequences of the action. The report also convey the message that Business
ethics is necessary for improving brand image of an organisation in the market. The report
concludes that every business should follow proper code of conduct and should follow principles
of morality while doing promotion of their products through advertisement.
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REFERENCES
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conceptual framework. SSRG International Journal of Economics and Management Studies
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Dahlmann, F. and Grosvold, J. 2017. Environmental managers and institutional work:
Reconciling tensions of competing institutional logics. Business Ethics Quarterly. 27(2). pp.263-
291.
Dixon, K. and Finnane, G. 2018. S is for stakeholders, not shareholders: The shift in board
responsibility. Governance Directions. 70(6). p.322.
Gröschl, S. and Gabaldon, P. 2018. Business Schools and the Development of Responsible
Leaders: A Proposition of Edgar Morin’s Transdisciplinarity. Journal of Business Ethics. 153(1).
pp.185-195.
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Pillay, R. 2015. The changing nature of corporate social responsibility: CSR and development–
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Tajalli, P. and Segal, S. 2019. Levinas, weber, and a hybrid framework for business ethics.
Philosophy of Management. 18(1). pp.71-88.
Teoh, S.Y. 2017. The moderating effects of owner-managers' personal values on the relationship
between corporate social responsibility drivers and practices (Doctoral dissertation, Universiti
Utara Malaysia).
Vitolla, F., Rubino, M. and Garzoni, A. 2016. Integrated corporate social responsibility: Driving
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Online
Act and Rule Utilitarianism, 2018. [Online] Available through: <https://www.iep.utm.edu/util-a-
r/ >.
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