Business Ethics

Critical Analysis of Ethical Issues and Dilemmas that Arise from International Business Practices with a Focus on Nike and the Anti-sweatshop Movement

PART I : CRITICAL ANALYSIS OF ETHICAL ISSUES AND DILEMMAS ARISING FROM INTERNATIONAL BUSINESS PRACTICES

The media is cracking down on large corporations that exploit workers and call it fair globalization . Investigative reports on the subject are common . This is not a case of , any press is good press ' as is the mantra of many publicists . Instead , too much negative media coverage adds up to brand backlash that can no

longer be ignored by the average consumer . In fact , in a MORI poll commissioned by the Co-operative Bank suggests that at least one third of consumers are `seriously concerned with ethical issues . One author (Mason , 2000 ) elaborates by noting that within the past year , over half of us have bought a product or recommend a company on the basis of its reputation (p . 27 . The bottom line is that consumers purchase products that they can feel good about owning

If a Nike swoosh conjures up images of underpaid , overworked Indonesian teenagers , a customer is less likely to buy that product . According to Mason (2000 , Product attributes such as quality and value for money still dominate purchasing decisions , but most of the populations says that other factors are important too - particularly how companies treat employees and impact on the environment (p . 27 . Patagonia is one company that promotes and acts on creative environmental strategies . As a result , customers perceive more value in its products . Other companies have found that , if they foster cultures that are more conducive to their employees needs , it not only increases productivity at the workplace but also earns the organization feel good ' press that may draw new customers to their products and services

Of course , there is no doubt that ethical action and promotion is not high on the list for most large , global corporations like Nike . In fact this practice of building a brand around higher ethical standards has in the past , only been used by smaller niche businesses to gain ground with targeted consumers . As Mason (2000 ) notes , Freedom Food eggs won an estimated 18 in the UK egg market in just five years and Cafydirect a Fairtrade product has around 5 of the coffee market (p . 27 However , studies show that there is much more opportunity to grow within this market . The Co-operative Bank 's report (Mason , 2000 ) suggests that the potential for ethical products and services in the UK could be as high as 30 of consumer markets (p . 27 . It also refers to signs of a new move towards simplicity , a kind of 21st century anti-consumerism which could act against the big multinational brands

Some groups are protesting in a big way against unethical international business practices . Students are stepping up to the plate and demanding that university administrations publicly disclose the locations of factories that make the clothes with university logos on them . This Students Against Sweatshops program requires that...