Nike's Marketing Ethics: Balaclava Case Study and Stakeholder Impact

This report examines the ethical issues surrounding Nike's marketing of the Balaclava product. It begins with an introduction to business ethics and responsible management, emphasizing the importance of ethical practices in maintaining social decorum and long-term profitability. The report focuses on a case study of Nike's Balaclava, which faced criticism for its potential association with gang violence. The analysis includes an examination of Nike's marketing strategy, stakeholder impact, and the ethical questions raised by the product's promotion. The report delves into stakeholder theory, exploring how decisions can affect customers, suppliers, and investors. It then introduces two key ethical theories, utilitarianism and absolutism, to evaluate the morality of Nike's actions. Utilitarianism is applied to assess how the Balaclava's marketing might affect the overall satisfaction of stakeholders, and absolutism is used to analyze the inherent rightness or wrongness of the campaign. The report concludes with recommendations for Nike to revise its marketing strategies and ensure ethical business practices. References are included to support the analysis.

Business Ethics and Responsible
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
(a) ...............................................................................................................................................3
(b) Ethical theories and its demonstration...................................................................................6
PART 2............................................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business ethics is termed as necessary tool in business functioning to maintain morale &
ethical practices into society and its aspects. Responsible management is a major necessity to be
responsible about what is currently doing, regarding production of any goods or services with
measures outlined to maintain social decorum into the society (Forray and Leigh, 2012).
Business ethical initiatives have resulted in maintaining effective decorum of work in an
organisation to retain social interest on larger way to maintain profit generation for the longer
duration. This report will cover case study on Nike who was practised wrong marketing way to
promote their newly launched outfit named as Balaclava, which in reality pretends about gang
violence. Nike is a leading sports outfit brand, who have this product, with statement that it
would protect person from cold environment.
This matter not cover under favourable business practices. Report will put emphasises on
measuring of an ethical measures to do marketing of Nike's product and why it be considered as
an ethical question. This report will also reveals over matter of what makes person as an ethical
leader or manager.
PART 1
(a)
To,
The senior manager
This case study is based on Nike, which is a highly renowned sports outfit and wearing
brand who launched new product named as Balaclava on 12 July. But, jut after launching, this
product has started facing criticism, not of the product, but also about its been marketed to major
customer. Nike told that given outfit presumes like military based outfit to rise their sales at
greater proportionate. But, this I not in reality, as some people says that this Balaclava looks like
gang war outfit which can creates negative impact on people who may buy it (Murray, 2015).
Later, it proves right that Balaclava is acts like outfit which is creating role of gang war violence
and its critical influence. This is a matter of serious ethical question, do Nike is doing with
intention or they are not aware about such practices, because of transparent business functioning
or operation. This practice of Nike is sensitive, but also promoting any unknown danger to the
society. In response, Nike claimed that they have made this face outfit to protect person from

cold season, but if it is, then marketing of Nike is in wrong way, which simply highlighted that
product perceives about gang war or related to violence sense. Marketing is required to be pursue
with fair practices about how product can be promoted and also what ethical measures can be
taken to fulfil its right purpose. In one opinion, marketing is necessary to be perform with right
intention and purpose and also it must be centric towards actual products or services to maintain
its suitability and durability for longer stage. In this practices of using face outfit which covers
entire face of young black model, it seems like person of any gang war group (Kennedy, 2017).
It doesn't predicts ethics in any of the context and also have no preferred value to be delivered. In
given image, there is positive ethics and related dimension, but in simplest way, it is threaten
values and morale of the society by bringing negative message about this practices.
As, this issue is generally predicts over threatens to structure and belief over ethical role
play into the social platform. In given picture, there is not ethical dimension, but on contrary,
image predicts about gang war look to youngsters. Matter of concern is required to know either it
is legal to implement this advertisement or breakdown silence on this issue to maintain peace in
the society. It is resulted that, marketing is required to be pursue with right intention of product
and creates best knowledge of what it will delivers to their people. It self ask several questions
such as, Do marketing is in right direction or centric towards aim for which products is launch.
Empowerment of morale and values are necessary to be undertaken for conducting marketing
work or activities to promote product at the utilised and higher level (Matten, 2016).
This is explored as an ethical question, because, it is against of social and morale power
of the society and also this pic can impact business functioning of Nike. Face outfit advertising
to youth, which looks like gang war person is not any ethical practice in any case. Nike needs to
rethink that, are they doing fair practices or instead of creating any burden on society and defame
youth in their aspiration. If talking for societal aspect, business is a long term practice, whose
goals is to produces goods and services mainly centric towards society development and its
aspects. Nike is required to make clear that business is an activity with defined purpose and of
clear and true nature.
Stakeholders concepts
The key stakeholders of the Nike are its customer's, supplier, investor or vendor, who can
be easily impact by decision making and power utilisation at a greater level. Nike believes in

good relationship with suppliers, because they very well knows that supplier's can easily effects
pricing of the products, hence, in response, stakeholder management is a necessary concept to be
undertaken to keep them in support of this business entity. Given practice can impact over Nike's
stakeholder by demotivating, break down their vision & trust and creating higher level flux into
long term relationship with them. When talking in a critical way, stakeholders regulation is in
way of loosing their supporter and well-wishers (Crane, 2018). If Nike would lose their
stakeholders, it will be critical and difficult for them to maintain working relationship with them
to enhance business and also increased suitability & profitability.
In that situation, analysis of stakeholder is necessary and persistent for long term success
of the Nike along with building effective financial support or regulation. To maintain stakeholder
for longer duration, Friedman stakeholder theory is one most recommendable theory to know
how to retain them for business operation and self-centric purpose of Nike. It is necessary for
Nike to define their action planning, objectives and implementation of policies to reduce
informal practices which relates to unethical functioning of any business entity. Stakeholder
analysis can be understood through interest/influence matrix which tells about actual need of a
communication along with potential resistance to change.
Illustration 1: Shareholder Matrix

Sources: Shareholder Matrix, 2018
“Interest” indicates the concern about the change, on other hand
“Influence” indicates an ability to resist and stimulates the concern. Importance says that
priority is being given to the need and interest of each and every stake entity and influence
reveals about power which stakeholder has to facilitate an achievement of an activities or
objectives. This ethical dilemma has destroyed brand name of Nike on global level along with
bigger effects to brand image of this sports outfit or out wears.
If talking other than Nike, Adidas is a best option, which has undertaken various effective
and ethical practices while doing advertisement of sports outfit (Blaim, 2012). To create good
image of their own product, they undergoes various ethical and sustainable practices such zero
pollution, removal of child labour and involves societal aspects to advertise their own product to
maintain brand image and also assistance to retain customer loyalty at a longer stage.
When talking over negative choice of unethical measures, What practice Nike has done
was impractical and has no legality in actual business practices. It was viewed that problem was
with product, but greater trouble was created by marketing activities done by Nike to raise the
higher and higher profitability. After viewing this, Adidas top level manager has reveals certain
guidelines which were straight against of these practices and enables structure, in which it was
clearly revealed that such practices would not be tolerable by authority of Adidas. Nike must
take valuable lesson to undergo with formal work based practices and avoid any such practices to
avoid burden or legal case on business functioning.
Recommendation: It is recommendable that, Nike should call for structure of community
whose purpose is to take decision making on this case for suitable course of action on given
matter. They must go for revising of their marketing strategies in order to get suggestible reason
why this case happens and also how it can resolved to make Nike brand image more profit based
and restive to operate for longer duration and empowerment for success of Nike's business
operation (Ismaeel, 2015).
(b) Ethical theories and its demonstration
Nike is a world known brand providing a wide range of fashion products such as shirts,
shoes, hoodies etc. Recently in July, company has launched Nike Lab NRG Beryllium Balaclava
x MMW for the youths due to increasing trend of menacing among the youths which is evident

in the streets. This product is a full face covering that extends down the neck and across the
upper chest of wearers. This range is developed for keeping the people warm in the cold weather
conditions. The company has to withdraw this product from the market after facing critics and
backlash from various people on social media and internet. This is because people thought that
the firm is promoting the gang as the cloth is similar to the military special forces and a black
guy is wearing the product in a T-shirt. People though that the marketing of Nike for promoting
the cloth is focused on youngsters aiming for a gang-inspired look which is popularised by drill
music videos. This was a ethical problem for the company as they have the consider the various
factors before marketing their products.
Business ethics is the branch of philosophy which deals with the moral principles and
standard of right or wrong in the organisations (Cunliffe, 2015). The business ethics prescribe the
character and conduct of the organisations in terms of obligations, rights, rules, benefit to
society, fairness, etc. In the context of this case, Two ethical theories are discussed below:
Utilitarianism: It is the version of consequentialism theory which states that the
consequences of any action is the standard of right and wrong. This theory considers the interests
of all beings as equal. This theory also states that the actions are good if the obtained results are
satisfying a large number of people who are affected by the actions. For example: If a manager
creates a vacation schedule for employees after considering the time preferences from the
employees then it will results into maximizing the pleasure and satisfaction of all the employees.
In context of Nike, the new product i.e. Beryllium Balaclava x MMW for the youths is not a
suitable product for the people to use (Doh and Quigley, 2014). This is because the product can
be used by criminals and gang boys in harming the people as it covers the whole mouth. This
will create dissatisfaction among the customers of firm as the safety of the people can be ignored
through this product. Whereas this product can be modified accordingly so that the people can
use the product in cold situations. Through the modifications, this product can leads to the
satisfaction among the customers as the modified product is not representing the gang or military
special forces. Also, the recent stabbings in the London is also a major cause for not accepting
this products as this product can be used by the killers and criminals for covering their identity
and face while doing the unethical work.
Absolutism: This theory states that there are no set of principles or set of universal
aspects which allows the people to judge other people or organisation. Persons who follows this

principles needs to understand that who are they to judge. The judgement must be based on the
set of rules which are essential for meeting the required results of good or bad. Therefore, a set of
rules must be made before judging a person or organisation which are necessary to pass the case.
Through this theory, people needs to understand that the people or organisations must be judged
based on the result of their actions (Hibbert, 2018). In the context of Nike, this theory is helpful
for the firm as they wants to provide hot clothes to the people who are living in cold areas.
Mainly the product was developed for protecting the face of people from the cold as well as to
face the cold effectively without having any cold or cough due to the cold situations. The people
who judged the company based on the marketing needs to think about the benefits of product
based on which the product is developed by the company. But people judged the cloth from
exterior looks rather then considering the importance of cloth for the people living in cold areas.
Through these two theories, it can be said that the product of the Nike was developed for
meeting the needs and requirements of the people living in cold areas. Instead people ignored
this fact and shown their outrage regarding the wrong use of the product which is ethically wrong
for them. Also the company needs to determine the wrong use of the product before marketing or
developing their products so that any such situation can be avoided in the future time period.
PART 2
Leader is the person, who is engaged in every business company or entity to conduct
work based activities ethically and professionally with defined codes of conduct & ethical norms
& goals. Being an ethical leader means defining as well as exhibiting moral, ethical courage
along with setting true example for everyone in the country. Being a true leader, it is important to
identify and analyse strengths & weakness of each and every team member's to overcome any
kind of issue associated with organisational entity (Weiss, 2014). In a reflective style, I can
recommend myself as an ethical leader, as I have various potential and capabilities to hold work
and complete it with given point of time along with assisting team member in process of
locating their goals and objectives for longer and higher stage. Also, as an ethical manager, my
dedication, goal oriented behaviour and being have spirit of working effectively makes me
productive and ethical leader at the bigger context. As a manager, I am well focused towards
towards my goals and objectives along with task to be perform or led an initiative to work co-re
lately with defined purpose. It is my core responsibilities to manage work or given task in order

to increase my huge performance and potential to work on morale of being worked along with
increased suitability and durability for own business and manage assigned team.
To manage the work accordingly, personal ethics are requirements here, in order to keep
my ethical pressure for long tenure of work. Setting of morale vision & mission are necessary to
undertake effective roles and responsibilities of an ethical manager. Mainly, I used to follow high
ethical standards to manage others and my defined business (Patzer, 2013). In my
point of view, leader means high moral & inspired business personnel who motivates any
common person to gain its
confidence and enables the higher level of motivation to others. For me, leadership is deep
visionary and empowering responsibilities to undertake work based roles and establishment to
work with defined goals & targets for long term of business functioning. I generally use to
manage high standards by doing daily practices along with higher level working vision and
mission associated with defined objectives and targets.
Apart from this, unethical practices comes from situation, when a leader or manager is
not dedicated towards their defined goals and objectives or they are doing any work with wrong
intention. Also, they mostly do it with purpose of earning money or welfare of connected person
or entity.
For example: When have discussion about an unethical leader, there has been one name
“Stephen Elop” former CEO of Nokia phones, who was responsible for breakdown of this
mobile giant. In 2016, Elop has undergoes unethical deal with Microsoft to sell an entire Nokia
to become CEO of an entire combined unit. Elop has sold its entire share of the Nokia to
other tech different company also and led this mobile giant Nokia to struggle to survive into the
market.
The condition says that, this was happened because of untrue and unethical cause of
ineffective functioning or achieving high money and responsibilities to pursue. This also happen,
when person is even not aware about their defined values, vision, mission or strategic objectives
connected to one individual goals and purpose objectives (Scherer, 2012). Apart from this,
unethical practices and organisational work can be best explained through use of toxic triangle,
which consist of destructive leadership, susceptible followers and conducive environment. In
context with Elop, who was one of unethical leader has reached all level of being act as
destructive leadership with enabling negative environment into business premises. This has put

negative impact on values and morale missions of Nokia which is a major reason for end of this
mobile giant.
Brief summary: It is important to have leader and manager who must have reflection of
being inspire as effective role model or aspiration for longer duration or cause. Along with this, it
has been proven right to be centricity with business goals and objectives to fulfil long dreams
and objectives for longer business stage and scenario.

CONCLUSION
From the above report, it has been concluded that business ethics has become necessary
to undertaken various work based ethics and work regulation in order to maintain effective and
morale working regulation or decorum. It has been recognised as necessary to uphold responsible
management to be act as responsible person in context of work with defined motives and along
with set of morality and work based regulation. Being act as an ethical manager, it has been
empowered through use of moral idea, opinion and point of view to bring confidence and enables
as an role model to work with some legal and critical measurement for longer stage. Lastly, it is
suggested that role of dedication and empowerment is necessary to uphold long term surviving
goals and objectives of any business entity.

REFERENCES
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Online
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