Ethical Dilemma in Nike Balaclava Marketing: A Middle Manager's Report

This report analyzes the ethical dilemma surrounding Nike's Balaclava marketing campaign. The assignment begins with a report to senior managers from a middle manager, outlining the ethical concerns of the marketing campaign, which was perceived to promote gang culture. The report then delves into the implications of two ethical theories (Virtue and Deontological) in relation to the marketing case. The second part of the assignment focuses on the qualities of an ethical leader and the practices of an ethical manager in accordance with business ethical standards, particularly emphasizing the importance of corporate social responsibility (CSR). The report explores the impact on stakeholders, including shareholders, customers, society, media, and government, and suggests revisions to Nike's CSR framework and marketing strategies to mitigate ethical risks. The conclusion reinforces the significance of ethical leadership and responsible business practices, offering recommendations for integrating ethical values and CSR into marketing and overall business operations.

CORPORATE SOCIAL
RESPONSIBILITY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
a) Report to senior managers at Nike by middle manager over ethical dimension of marketing
of Balaclava.................................................................................................................................3
b) Implication of 2 ethical theory view marketing case of Nike.................................................5
PART 2............................................................................................................................................6
Ethical leader and practices of ethical manager in as per business ethical standard...................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Corporate social responsibility is kind of self-regulation practices and policies which
encourages ethical business practices and strategies. Managing ethical business practices is
essential for the organisation to protect interest of stakeholders against unethical practices which
can impact corporate reputation of firm. The present study is based on case of Nike for
marketing of Balaclava. The assignment will outline report to senior manager outlining the
dilemma on the basis of key stakeholders of company. The discussion of report will be supported
by two ethical theories which will assist in resolving dilemma of the case. Thus, second part is
reflective writing which will cover qualities and practices which makes supports ethical leader
and manager.
PART 1
a) Report to senior managers at Nike by middle manager over ethical dimension of marketing of
Balaclava
Marketing is the essential business process which helps the firm in creating relationship with
key stakeholders by creating value of products and services. Marketing campaign of Nike have
always been encouraging and supportive to youth over individual passion and career. The
company aim at targeting youth to be responsible and motivates but the marketing of Balaclava
led to Dilemma for the firm because the product appears gang inspired look and therefore
encouraged youngsters to engage in gang violence. The launch and marketing of Balaclava was
with the motive of providing people something to wear in cold weather.
The reports outlined the product launch us not unethical but the marketing is the point of
concern because it comprises pictures in which Balaclava is worn by black young model (Nike
under fire for marketing of 'menacing' balaclava, 2018). The marketing pictures are promoting
gang culture because apart from Balaclava the garments of model are similar to military special
forces wellbeing which supports gang culture and criminal activities. However, ethical
dimension of marketing of Balaclava that it is actually giving risk of gang violence and culture
which can be disastrous for society. The product has no way to identify individual identify which
is encouraging people for involving in criminal activities. In accordance with ethical dimension
Dubey and et.al., 2017, stated about Corporate social responsibility according to which it is
important for the firm to act responsible towards society and needs of stakeholders. CSR policies
and practices promotes business to go beyond requirements of law and focusing contribution to

social welfare. Nike is solely involved in socially responsible practices where focus of firm is on
protecting environment, inspiring communities, innovating sustainability, making responsible
products and standing for equality. According to Yakovleva, 2017, it is been discussed that
responsible management and CSR are closely linked and therefore work innovation movement
needs to focused on creating meaning to stakeholders
Role of Nike in society aim at encouraging good values and motives in order to boost
individual morale of engaging with firm. Ethical practices of Nike are denoted in its product
lunch and marketing campaign which aim at just doing it, involving int sports, helping others,
seeking for career, etc. (Purpose move us, 2019). The marketing case can be argued with act and
purpose of Nike behind launch of Balaclava. The dilemma of case can be argued on the
marketing actions of firm because in this firm has no motive of promoting gang violence, the
product was launch with sole purpose of giving people something unique as per trending culture
of rap and drilled music videos. The situation is not responsible with regard to stakeholders and
their interest with Nike but it can be argued with the help of ethical duty right where
consequences of certain action can not re not predictable and not even controllable. The situation
is not favourable with regard to stakeholders because it influenced social environment and
therefore to manage its impact Nike can relaunch its marketing campaign with some useful
information to create awareness and prevent unethical activities. Further, to protect interest of
stakeholders Nike can revise is CSR framework with regard to social environmental performance
with more specific code of conduct for acting on certain situation.
Stakeholders who are influenced by marketing case are, shareholders, customers, society,
media and government. Shareholders are the investors of the firm but with negativity of
campaign interest of individual influenced because it will also impact their cooperate reputation
among external stakeholders. Apart from this media and government has issued complaints,
critic against marketing efforts of which is another disastrous measure for Nike and Goodwill.
Customers are key asset of firm but violence and increasing crime has degraded individual
interest in Nike and its products which affected sales of business for a long run.
In accordance with entire scenario and ethical dilemma of the case the it can be
recommended that company should revise its socially responsible practice business practices
specially which are directly related to external stakeholders. For example, Nike can relaunch
Balaclava with proper labelling and information of using the garment properly. Moreover, the

advertisement should be more focused on inspiring people to use it for extreme whether
condition. Further, Nike should on focus responsible management practices which needs to on
security, community awareness about products, product stewardship and process safety. The
launch which will be directly related to external stakeholders will be first analysed by internal
stakeholder which will reduce the risks of harm to society and interest of stakeholders. Apart
from this firm should focus on business ethic management where Nike will aim at being
responsible towards society, developing relationship with customer in order to promoting good
actions of firm for society.
In accordance with interest of stakeholders and marketing case scenario, it can suggest that
firm should focus in incorporating ethical values when marketing any product because it is the
activity which helps the firm in building relationship with buyers. Moreover, marketing is crucial
aspect with the help of firm connects with different stakeholders and there acting responsibly and
ethically with regard to basic values can be help for Nike in manging corporate reputation. apart
from, this firm should focus on setting code of conduct with regard to corporate social
responsibility which aim at managing social concerns and welfare of society. Socially
responsible practices can act as base for Nike in managing able performance after marketing
case. Training of staff on the basis of CSR framework can also be beneficial for the firm in
managing growth and successful marketing because with the help of this Nike will be able to
focus on stakeholder engagement, safety, skill development, health and hygiene, welfare, etc.
According to Wang and et.al., 2016, it can be recommended that firm should focus true
sustainable marketing which aim at product innovation, new production process, better
packaging, appropriate labelling, ethical advertising and lowering carbon foot prints.
b) Implication of 2 ethical theory view marketing case of Nike
Ethics plays a vital role in deriving right and wrong of the situation and therefore
responsible management of firm is related with Business ethics (Barry, 2016). It reflects working
practices and understanding of company over the right and wrong doing. Implication of ethical
theory helps in understanding situation more critically and is the best way of resolving dilemma.
As per Virtue ethical theory person and its morals for carrying out action is more important
regardless of consequences and duties. The ethical conduct according to theory suggest person
motive of performing certain action is more important regardless of duties and consequences.
Marketing team of Nike launched Balaclava with young black model in order to create impact on

society over the use and look of product with no motive of harming beliefs or disrupting stability
of society (Lucas, Van Wee and Maat, 2016). The marketing case can be argued with the help of
this theory where marketing team of Nike focused on people views over gang inspired look in
popular drill music viewed and rap. The launch was to give youngster an option to prevent cold
and look different as per trending culture. The marketing was not done with any moral action of
promoting gang violence or crime and also was not expecting this in return which is also
supported by business ethical and responsible practices of firm in past. Morality action of Nike in
marketing Campaign can be support by its aim of making product responsible by improving and
understanding working condition and keeping employees engaged. Marketing efforts if
organisation is focus in inspiring people like marketing campaign of organisation aim at
promoting idea that Kids just need a chance to play and run with other children for experiencing
own wins and believe in themselves.
Deontological ethical approach is normative which states that action morality of any
individual on right and wrong of action on the basis of rules and not on the basis of consequences
(Deontology, 2019). Ethical actions as per deontology are the based on moral and ethical action
like, do not cheat, lie or steal. In accordance with ethical code of deontology it can be said that
marketing is certain action of firm which is done to build relationship with stakeholders. In this
product of firm was a designed pattern of cloth which can be used by people in cold weather
conditions. The firm use Black young model for campaign with the motive of managing
Equality. Further, the garment worn by model were of military pattern which was chosen to
enhance the look when advertising Balaclava which is not violating of law. With the launch of
advertisement and products youngsters started misusing Balaclava for gang violence and crime
which is not at all encouraged by firm. Action of Nike was with the good motive of providing
something for uncertain whether condition to society. However, misused of Balaclava is
unethical for company is not responsible.
PART 2
Ethical leader and practices of ethical manager in as per business ethical standard
Ethical leading is the core practice which supports success of person as well as organisation
because it denotes individual understanding over right and wrong of the situation on the basis of
morals, action and consequences. In my opinion ethical leading practices are based on building
community, serving people who are working with leader, manifesting honesty, respecting others,

demonstrating justice and managing quality when working (Bell, Dyck and Neubert, 2017). In
my opinion it is important for the leader to work in coordination keeping in mind pros and cons
of possible scenarios in order to protect interests of stakeholders involved in certain practice.
However, as an ethical manager my focus will be on social justice because it is the practice
which helps an individual in manging responsible practices with regard to business ethics which
helps in protecting interest of stakeholders. Individual morals play a crucial role in acting
responsible in changing business environment and therefore it is important for managing to have
control and stand of right over own actions (Engelbrecht, Heine and Mahembe, 2017). There are
many uncertain business situations which leads to ethical dilemma like marketing case of
organisation like Nike where firm had no motive of promoting gang violence but ended up being
critiqued to action of youngster. In accordance with these types of business situation I feel it is
important for the people to have understanding over right and wrong to promote clear
justification for unusual circumstances. Thus, for managing successful ethical managing within
organisation my focus will be on managing ethical and responsible business practices with the
help of corporate social responsibility framework. CSR practices encourages responsible
practices which supports ethical business operations by focusing social performance,
environment and corporate performance of enterprise.
CONCLUSION
The report summarized about marketing case scenario of Nike where firm experienced
ethical dilemma where deriving wrong and wright according to action and consequences played
a significant role. The study outlined report by middle manager to scenario manager for
reporting abut interest of stakeholders and recommendation for managing consequences of
marketing case which encourage gang violence and culture in society. In addition, the report
outlined view over case with the help of two ethical theories that is deontology and virtue.
Thus, it concluded by outlining about ethical leader and practices needs to followed by manager
to be ethically responsible in changing business environment.

REFERENCES
Books and Journals
Barry, N., 2016. Business ethics. Springer.
Bell, G.G., Dyck, B. and Neubert, M.J., 2017. Ethical Leadership, Virtue Theory, And Generic
Strategies. Radical Thoughts on Ethical Leadership. 113.
Dubey, R., and et.al., 2017. Sustainable supply chain management: framework and further
research directions. Journal of Cleaner Production. 142. pp.1119-1130.
Engelbrecht, A.S., Heine, G. and Mahembe, B., 2017. Integrity, ethical leadership, trust and
work engagement. Leadership & Organization Development Journal. 38(3). pp.368-379.
Wang, H., and et.al., 2016. Corporate social responsibility: An overview and new research
directions: Thematic issue on corporate social responsibility.
Weaver, G.R. and Treviño, L.K., 2015. Methodologies of business ethics research. Wiley
Encyclopedia of Management, pp.1-5.
Yakovleva, N., 2017. Corporate social responsibility in the mining industries. Routledge.
Online
Deontology. 2019. [Online]. Available through: <
https://ethicsunwrapped.utexas.edu/glossary/deontology>.
Nike under fire for marketing of 'menacing' balaclava. 2018. [Online]. Available through: <
https://www.theguardian.com/business/2018/aug/20/nike-under-fire-for-marketing-of-
menacing-balaclava >.
Purpose move us. 2019. [Online]. Available through: < https://purpose.nike.com/>.