This report provides an analysis of Nike's controversial advertisement, focusing on the ethical implications of their marketing campaign. It examines the context of the advertisement, which featured a balaclava and was criticized for potentially stereotyping black youths and associating them with gang violence. The report delves into the impact on stakeholders, including customers, employees, shareholders, and local communities. It applies ethical theories such as Rights & Justice and Egoism to evaluate the situation and proposes recommendations for Nike, including careful message crafting, expert advertisement teams, and ethical CSR activities. The report also discusses the qualities of ethical leaders and managers, emphasizing the importance of ethical leadership within organizations to address and manage ethical issues effectively, ensuring fair practices and maintaining a positive brand image in the market. The analysis covers ethical dilemmas, stakeholder perspectives, and the application of ethical theories to provide a comprehensive assessment of the case.