The purpose of this report is to enlighten the reader about the case issue of the company Nike company for advertising the Balaclava in such a demeaning way that negative influences from the image are created in the market. The report evaluates the ethical dimensions of marketing a Balaclava. It also explains the ethical impact on the stakeholders along with the ethical choices that a company attain while displaying such an image in the market. From the case study given, it can be clearly seen that the company Nike is at fault for advertising the product in a wrong way due to which the customers were influenced to initiate negative actions in the market. Further, more details about the report are discussed below:
There are various reasons that are needed to explain regarding the ethical implication in the case. All these aspects are discussed below:
Exploring the ethical case: In the current environment, it is very important for the organizations and society to look at the various aspect that come under the question of ethics. People have started losing their morale due to which societies are becoming more complex and filthy as well. So, it can be said that whenever a situation comes that affect the ethics and dignity of the society, or gives the wrong message to people than the community should explore the case and take initiative to prevent the society from getting influenced (Ferrell, and Fraedrich 2015). In the given case of Nike, the company produced the product in the market with the wrong image due to which the customers felt that it is provoking the youngsters to attain gangster like identity in the market. It is important to look at such issue because if no one will consider such cases then companies will never attain the sensitivity to display only meaningful and ethical images in the market. So, it is important to explore this question in the market because it will make the organization to follow the ethical track and give teaching to other companies as well (Trevino, and Nelson 2016).
Role of business in society: According to the companies present in the market, they believe the only role that they are obliged to perform in the market is initiate profit making actions and benefit the society by paying taxes. Companies like Nike, Apple, Reebok are multinational companies that are world famous brands (Pearson 2017). Any verdict given by the officials of such organizations or advertisements highly affect the interest of the customers in the market. Getting a certain position in the market gives the advantage to the companies to speak for the right and make people follow the guided direction as well. But the companies think that their role in the business is only limited to profit earning motive and not upgrade the interest of the society. So, it can be said that the role of business in the society is to earn money and work in such a way that all the ethics related to the case are compiled and as such interest of no person is harmed in the society (Rossouw, and Van Vuuren 2017).
Key Stakeholders: The key stakeholders related to the case are society comprising of youngsters and gangs as well along with the company Nike. These are the key stakeholders who are affected by the promotion strategy of the company for Balaclava. The key stakeholders (society) are highly affected with such image and promotion technique of the company (Chell, et. al., 2016). The image displayed on a black model wearing balaclava with other military outfit makes the people think that the product provokes the people to initiate wrongful actions in the society. The main use of the product is to keep people warm in the cold weather condition but the product was marketed in a different way (Crane, and Matten 2016). The image circulated about the product in the market was showing that the image is not talking about the product and influencing them to purchase balaclava from the company, but the image was influencing the people to attain similar kind of personality in the market by making use of the product. The image was more attracting the stabbers and robbers to make use of this product to have a hideous look and not use it for covering the body from cold (Weiss 2014).
Ways in which ethical choices affect the market: There are many companies present in the current environment that is failing due to unethical decisions in conducted by them in society. Like in the case of Facebook Company, the company hid the information from the customer regarding their personal information due to which they faced negative consequences as well. Whereas in the case of IKEA, the company adequately complies with the ethical responsibility and CSR activities due to which customer get satisfied with them in the market (Hoffman, Frederick, and Schwartz 2014).
From the above-mentioned analysis of the Nike and its advertisement about the brand balaclava, it should be noted the company promoted the brand in a negative way due to which ultimately they had to stop manufacturing the product in the market. So, it should be recommended to the company that they should make use of effective promotion strategies with which the customers can relate. But these promotion strategies should be initiated under strict control and guidance of the ethical rules and code of conduct. The company Nike has a strong brand image and a voice with which they can circulate the right type of information in the market, so the company should make use of the platform wisely and initiate ethical activities in the market (McCloskey 2017).
Conclusion
Thus, in the limelight of above-mentioned events, the fact should be noted that the company Nike initiated wrongful actions in the market as the image provoked people to become a part of gangs and adopt negative actions in the market. The image portrayed negative influences to the customers in the target market. The above-mentioned report evaluated ethical implications of the case and the ways in which it affected the customers in the target market.
Ethics is one of the most important aspects related to the business process that explains the right type of ways with which companies should initiate actions in the target market. Business ethics is the type of ethics that is that is applied in the business to solve the basic problems and help the management to function their activities on the right track. Business ethics is related to the use of ethical principles, values and practices in the internal process that can help them to satisfy the customer and earn good profits in the market. There are many theories present in the society that talks about business ethics in the environment. There are basically two major categories of ethics that are normative and descriptive theories (Davies 2016). Normative ethical theory talks about the branch of philosophy that investigates the question relating to how companies act morally in the target market. This type of theory explains that ethics behind the case is analysed in the market on the basis of action initiated in the environment. In the normative theory of ethics, the ethical actions are judged. Further, another major theory is the descriptive theory that explains rules and guidance of traditional moral theories and ethics that should be initiated in the society. It is important for the companies following this type of theory to look after the rules and regulations before initiating the activities in the market. This theory opposes the theory of normative ethics as this theory talks about the rules and guidelines behind the action a normative theory talks about the value received from the action in the target market (Swanson, and Frederick 2016).
Relating the theory of ethics with the case of Nike, it should be noted that the theories utilitarianism and social justice perfectly apply and explain the case as well. From the perspective of utilitarianism theory, it should be noted that the theory has to initiate wrongful actions in the society. Utilitarianism refers to theory that talks about the ways in which a person or an organization initiate actions in such a way that benefits are received to the society on a whole. If the outcomes of an event are positive then it is ethical in the eyes of law (Michaelson, et. al., 2014). Irrespective of the rules and regulations implemented in the society if the actions bring positivity in the society along with happiness then that action is considered good in the eye of law. According to this theory, the stabbers, gangs, thieves etc. are the winners in the society and the common people are the losers in the society. The advertisement is formed in such a way to help people hide their identity using such products in the market. However, the actual utilization of the product is to help people during the cold season (DesJardins, and McCall 2014). The product did not provide expected utility due to which it is wrong according to the theory of ethics. I would never suggest this type of business advertisement idea to any person or company as this image negatively provokes the people in society. Also, it should be noted that there is as such no claim that can be posed against the utilitarianism theory of ethics in the society as the theory is in support to the right type of people present in the society.
Further, the theory of social justice is based upon the notion that human rights and equality are the prime functions that every person and business process should initiate. The way in which human rights are manifested in the everyday lives of people at every level of society. A number of movements are working to achieve social justice in society (Wang, and Calvano 2015). This theory of social justice does not offend any other theory or action as it only talks about justice in the activities that one should initiate. Some of the issues of social justice are physical or mental ability, age, race, gender, education, nationality, creed etc. Further, relating the theory to the case of Nike, it should be noted that the company did not perform actions that were in favour of the society on a whole. Instead, the actions depicted the wrong message to the customers in the target market. People willing to purchase the product due to cold also boycotted the product because the product depicted that it was supporting the gangster community present in the society. The rights of a normal community and society have been ignored. Applying this type of approach in the business might change the perception of company Nike as the company used this image to earn money from society (Wallace, and Sheldon 2015).
According to my perception, ethical role of a manager is to manage the actions of the company in such a way that all the ethical actions are implied in the target market. It should be noted that there is no specific definition of an ethical leader, a leader is a person who proactively looks at all the circumstances and finds out the best way with which he complies with the organization’s as well as community’s objective. I think that in the current environment, it is very important to become an ethical leader because most of the companies are conducting wrong actions, so initiating ethical actions can provide success to the company.
According to me, an ethical leader initiates activities, for example, making excellent selections, concerning for the individuals, being extrovert, and benchmarks of individual respectfully. The core of morals, obviously, performs the main privileged thing, particularly under difficult circumstances, and that includes having the capacity to reason well about what the essential activity really is in their business process. To have the capacity to work well under diverse circumstances, a leader should attain information from various sources about the environment while taking into consideration that they do not try to hurt individuals and endeavour to treat individuals well in the decision-making process or when choices are being decided (Flanagan, et. al., 2017). In order to have the capacity to make use of sound judgment ethically, an ethical leader should mindfully develop his or her own arrangement of procedures or qualities. A personal set of accepted rules or ethics will help in overcoming the problem of business ethics as well. Leader gauges enable the employees to think from the set of choice in light of an authentic method of reasoning (May, Luth, and Schwoerer 2014).
For me, personal ethics refers to the ethical code of conduct that a person should follow in their lives in order to become successful in future prospects. It is important for a person to maintain their personal ethical leadership in the environment. Therefore, if a leader is adequately following personal ethics then he will definitely become a good ethical leader in the environment. Talking about the conditions that bring unethical organizations and practices in environment, it should be noted that companies and leaders initiate unethical practices only when they become greedy for profit in the target market. When profit comes in the mind of leaders then they become selfish and do not care about ethics behind the case are initiate unethical actions in the environment. I believe that an ethical manager is good in person as well as professional life as he follows ethics in their day to day life. An ethical leader always aims to satisfy all the people present in the society (Ciulla 2017).
Leaders in both extensive and internal endeavours confront troublesome ethical situations or events every day as they initiate any activity for the business process. Since organizational choices naturally involve observation of activities on moral grounds, so in any case, it is vital that administrators perceive the moral components that are implemented in their everyday activity capacities of the business. They should be ready to provide reason through moral decisions made, similarly as they would reason through any administrative issue confronting them (Strobel, Tumasjan, and Welpe 2015). Commonly, ethics encumbered circumstances include issues that are plainly right or wrong when made a decision by the leader or association’s officials or set of principles. Moreover, most organizational decisions and activities are real, in spite of the fact that there are events when a specific choice go far away from the lawful limits and be illicit. Settling on a choice to overstep the law or to do something that cannot help contradicting implicit rules or set of qualities is plainly exploitative. It is not hard to know what the best activity is in such circumstances (Blay, et. al., 2018). Thus, according to me, ethical leadership and decision making are very important for the business and these actions should not harm the interest of any person. It is important for a leader to follow the rules and guidelines and at the same time satisfy all the stakeholders on a whole.
References
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