University Essay: BUSM3199 Nike Ad Campaign Ethical Analysis

This essay provides a comprehensive analysis of the ethical considerations surrounding Nike's advertising campaign featuring Colin Kaepernick. It begins by outlining the campaign's context, including the controversy and the slogan "Believe in something, even if it means sacrificing everything." The essay then delves into four prominent ethical theories: Friedman's theory, Freeman's stakeholder theory, Carol's CSR pyramid, and utilitarian/virtue ethics. The analysis examines how each theory views the campaign's ethical implications, considering the impact on stakeholders, the pursuit of profit, and the broader social and political context. The essay concludes by synthesizing these perspectives to offer a nuanced judgment on the campaign's overall ethical standing, considering its impact on brand reputation, consumer behavior, and societal values. The essay also discusses Nike's corporate social responsibility initiatives, highlighting its commitments to environmental sustainability, innovation, and community investment. The essay argues whether the ad campaign is ethical or not based on the ethical theories mentioned above.

Running head: IS NIKE AD CAMPAIGN ETHICAL?
Is Nike ad campaign ethical?
Name of the student
Name of the university
Author’s Note

1IS NIKE AD CAMPAIGN ETHICAL?
This essay focuses on the ad campaign as conducted by the brand Nike. Nike ad
campaign ethical or not? Yes it is ethical. In order to understand such controversial issue we will
undertake four different profound theories and try to understand their perspectives and according
we will arrive at a conclusion. The brand releases full ad featuring Colin-Kaepernick. The slogan
states “Believe in something even if it means sacrificing everything”. The ad was launched at the
30th anniversary of “Just do it” campaign. Colin-Kaepernick was ban from the NFL carrier and
was never to be familiar with the NFL playground again. Although Colin-Kaepernick was a
successful player despite the slogan brought about a controversial issue within the era of 2016.
Nike should stop the practise of making such advertisement as it is leading to a number of social,
economic and political issues. Nike is taking it as a marketing strategy and undertaking such
decision. However, the firm should understand the bullying nature that is taking place because of
such advertisement campaign. Nike is a reputed brand and it addressed as an asset of the
economy because of the qualitative brand that it has built over the number of year’s performance.
After the incident ironically the brand Nike renewed their existing $1,000,000,000 billion
dollar uniform deal, as it was actually supposed to expire in the era of 2020 (Greenberg et al,
2018). As of extension now the deal will end in 2028, they have renewed it in late 2016, March.
The vice-president of the Nike Company starts that “We believe that Colin is one of the most
inspirational Athletes of this generation, who has leveraged the power of sport to help move the
world forward”. Nike had a vision that the sell will increase as of such advertisement it was their
vision. Some experts form the domestic country states that it is a marketing strategy. Colin-
Kaepernick was kicked out of the contract with the San Francisco 49ers in the era of 2017. Till
now Colin-Kaepernick has not been signed by any other team and seems to be jobless. He has
been acting as an activist. However, after he post in the social media the slogan. The day after

2IS NIKE AD CAMPAIGN ETHICAL?
that Nike’s share began to fall to huge extent as never before and created a history. Nike’s share
dropped by 3.2%. It was the vision of the Nike brand such that soon after the online sales of the
brand increased by 25% within the market (Keshkar et al., 2018).
According to Friedman theory, a person’s consumption decision and savings decision is
based upon the permanent changes in terms of income rather than temporary changes in the
income level. Friedman believed in the free market system, where the market gives people what
they want and at a price in which they desire, irrespective of what a particular business group
ought to want. Accordingly it is estimated that the choice of Nike to undertake such marketing
campaign is because of the consumer desire.
Nike understood that the majority of consumer market will be in favor of the advertising
campaign and such that their products will be within the business frame. Taking into
consideration the Friedman theory, it seems like the brand Nike understood the demand of the
people that is existing or will take place. Such that after the incident the brand undertook such
advertising campaign. Moreover, according to theory proposed a company’s only objective
should stand towards increasing profit for the stockholders (Johnson et al., 2017).
Taking into consideration Friedman theory it seems like the brand is only concerned about
creating profits for the company. It is nature of the business prospects that without profit no firm
can survive. Hence, Nike understood, it was their vision that the market is going to be at peak
when people will slowly start to support the campaign. However, Nike was successful till some
point, their number of buyers and supporters increased. Much of the celebrities brought in
products and merchandise and donated it to the needy ones. However, the company was able to

3IS NIKE AD CAMPAIGN ETHICAL?
create profit at a very high level. Lastly, it can be stated that yes, it is legal for the brand to
undertake such promotional campaign.
According to Freeman theory, as proposed by the author Dr. F Edward Freeman, a company
should care for the interest and profit of the stakeholders irrespective of any other alternative
facts. It states that a firm must undertake actions to fulfill the need and profit of the stakeholders.
It is the shareholder that runs the company, it is their contribution towards the company. A
company is financed by means of the shareholders. A business firm should function only on
objective of earning profit irrespective of various alternative economic factors. There are a
number of problems that forms within the economy and a number of problem also get resolved.
However, on a day to day basis a number of social, political problems takes place that directly
hampers the purchasing power of the individual. Irrespective of all the social and political
problems a firm should only focus on the profit earing motive, this will only lead to the success
of the concerning business firm (Sweezy et al., 2018). Where there exists a competitive market
situation, the profit earning motive ensures that resources are being allocated efficiently. If there
exists no profit earning situation this directly means that the labor and capital utilized within the
business firm is unproductive and misdirected. Taking into consideration the above mentioned
theory it is claimed that no, it is not illegal for the reputed brand like Nike to undertake such
marketing campaign as the business firm has only focused on the earning profit criteria.
However, this is addressed as a marketing strategy that the brand Nike undertook such measure
to hire Cape otherwise the brand would not had any intention to cause harm to its own reputation
and to the goodwill of the firm. Nike is a highly productive and qualitative company, it has a
presence of huge brand equity which is not a task of one day (Besley et al., 2017). It is because

4IS NIKE AD CAMPAIGN ETHICAL?
of their vision and confidence in decision making power that has lead the brand to arrive at such
position. Lastly, it is stated that no, it is not illegal for the business firm to undertake such ad
campaign. The sole purpose of the business firm was to earn profit and Nike has exactly done the
same thing.
According to carol CSR pyramid theory every business firm should have a concern towards the
CRS (Corporate Social Responsibility). CSR takes place in terms of economic, legal, ethical, and
discretionary aspects. The firm should have an economic responsibility as such that society
undertakes a business unit as a body that produces commodity and incurs profit, society thinks
that the business firm need to be stable and the only way is by incurring profits (Ehie et al.,
2016). Society permits the business firm to incur profit and in return the company benefit the
shareholders.
Those firms who are not able to complete this economic criteria fails to survive. Every firm
should understand their economic responsibility that relies in their hand. Speaking about legal
responsibilities, the rules and regulations that are formed taking into consideration the local
government structure should be maintained by each and every business firm. The business unit
should operate in according to the business law. Moreover, fulfilling all their stakeholders
required criteria. Providing commodities that at least meet the normal consumer criteria.
Speaking about the ethical responsibilities, a business firm should act in an ethical manner even
in times when law does not provide guidance or dictate course of actions. To some extent the
brand has been able to capture the interest of the black people in America (Meynhardt et al.,
2016). On the other hand the brand fails to acquire support of the white people in America.

5IS NIKE AD CAMPAIGN ETHICAL?
However, Nike has done the exact same thing, the brand understood the society needs and
developed the ad campaign but half majority of the American consumers were not in favour that
is a separate issue.
However according to the Utilitarian, Virtue Ethics Theory, one should understand the morale
and the social ethics that relies within an individual. Nike has thought of the earnings and profit
but has failed to satisfy the normal citizens. The brand has created chaos within the economy as
such that the people of the company began to carry protest with slogans. Very often the brand
has been undertaking such advertising campaign and hampering the wellbeing status of the
normal citizen (Veisi et al., 2016).
Taking into consideration this specific theory yes, it is illegal for Nike to carry on such
advertising campaign as it not only hurt the social status of the citizens but also the normal being
of the government. Donald Trump also played a role in dealing with the circumstance and said
that such body need to throw out of ground (Colin-Kaepernick). The company should understand
the need to not hamper the reputation and ego of the concerning people just to earn profit. Profit
earning motive criteria is not the key objective. America being a home country for the brand, the
firm should understood that sentiments of the individual are being hurt to great extent such that it
is bringing about conflict between the white and the black people (Herschel et al., 2017).
Whereas, different marketing activity can be undertake to increase business sales but
undertaking social, political issue with a hope to increase business should be avoided. Some
belief that it is a marketing act where many believe that the brand might have lost his mind. Nike
should understand such circumstances and should understand the need to stop such practises.
Promotional activity can be undertaken by some other means, there is no need to carry
promotional activity by applying political issue. The brand in fact should stood in front of the

6IS NIKE AD CAMPAIGN ETHICAL?
nation by means of TV, radio, social-network and should apologize to the nation for such act. As,
the economy believes that such ad campaign should not be carried out. It is the sole right and
responsibility of each individual operating firm in every region of the universe to have a concern
towards the CSR (Park et al., 2015). Although the business firm has contributed a lot towards the
CSR by number of investment schemes. In the recent trend the brand Nike is focusing on the
environmental impact while doubling the manufacturing rate. By means of innovation in product
the business firm is shaping the future of the American citizen by means of new ideas and
qualitative products. Nike is like a goodwill for the America but fails to exercise positively
(Baden et al., 2017). A number of CSR commitments are being made by the business firm, they
are as follows:
 Claim to be carbon free and commitment towards reducing carbon footprint.
 Developing new palette made from sustainable materials.
 Manufacturing process includes innovation in technology.
 Close loop products.
 Workplace is categorised as diverse in nature innovation in cultural trends.
 Investing and motivating employees to invest within the boundaries of communities and
market where the brand Nike operates.
Lastly, it is concluded that yes it is legal for the brand to carry on such advertising
campaign. It seems like Nike has been always focusing on the profit earning criteria and on
the satisfaction of the shareholders and investors of the company. Nike focuses on the ad
campaign as of their vision that firm is going to make good market position in the near future
and their revenue will increase after undertaking such promotional step. It was one of the
Nike marketing strategy that their position within the market is going to be at peak after some

7IS NIKE AD CAMPAIGN ETHICAL?
point of time. As a result much of the supporters also came into existence who were in
support of the brand Nike. Taking into consideration the above discussion it is believed that
no it is not illegal for Nike to undertake such ad campaign.
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