This report examines the ethical concerns arising from Nike's advertising campaigns, specifically focusing on the controversy surrounding the Balaclava product. The analysis explores the ethical implications of the advertisements, which were perceived by some as promoting a terrorist look. The report identifies key stakeholders, including investors, employees, suppliers, and customers, and assesses the impact of the advertising on each group. It also delves into relevant ethical theories, such as utilitarianism and Kantianism, to evaluate the ethical dimensions of Nike's marketing decisions. Furthermore, the report discusses the qualities of ethical leadership and how organizations can foster an ethical environment. The study recommends strategies for Nike to improve its marketing practices, enhance stakeholder relations, and maintain a positive brand image by emphasizing ethical considerations in advertising and decision-making.