Application of Ethical Principles; Utilitarian, Moral Rights and Justice Models to an Australian Case Study
Title: Application of ethical principles; utilitarian, moral rights and Justice Models to an Australian case study
As demand and competition increases, companies have reduced their cost and increased their profits by turning to countries with less expensive labor. Roberts (2013) revealed that workers at the Indonesian Nike factory are being forced to work for less than minimum wage and being threatened through the hiring of military personal. Harrison (2010) when obtaining goods it is important for retailers to consider ethical principles, as a company’s reputations depends on their image and values (Harrison 2010). Ethical principles; Utilitarian, Moral right and Justice will need to be considered to help decide the merchandise fate.
Utilitarian encompasses producing greatest good for all (Harrison 2010). To uphold this principle the manager could increase merchandise prices as suggested in the article, however according to a study in Paulins and Hillery (2009, 171) “customers seem unwilling to pay higher prices for the clothes produced in ethical environments”. Raising prices would result in financial risks for the retailer and loss of work. As a result utilitarian will not be used as it will not bring about good for those involved.
Moral rights emphasizes that individuals have rights (Harrison 2010). Nike is exploiting this by manipulating workers to sign as a result taking away their freedom (Framework for thinking ethically) “which is being able to pursue one goal without interference from others” (Arnold 2003, 89). The manager could boycott selling the merchandise however the article are only claims, the manager will need to investigate through the use of tools; Fair factories clearinghouse, to conclude if any of the fair trade principles are being violated, and if the workers’ rights are being exploited (Paulins and Hillery 2009) boycotting will not ensure workers’ rights.
Justice “is designed to protect the interest of all involved “(Ferrell
As demand and competition increases, companies have reduced their cost and increased their profits by turning to countries with less expensive labor. Roberts (2013) revealed that workers at the Indonesian Nike factory are being forced to work for less than minimum wage and being threatened through the hiring of military personal. Harrison (2010) when obtaining goods it is important for retailers to consider ethical principles, as a company’s reputations depends on their image and values (Harrison 2010). Ethical principles; Utilitarian, Moral right and Justice will need to be considered to help decide the merchandise fate.
Utilitarian encompasses producing greatest good for all (Harrison 2010). To uphold this principle the manager could increase merchandise prices as suggested in the article, however according to a study in Paulins and Hillery (2009, 171) “customers seem unwilling to pay higher prices for the clothes produced in ethical environments”. Raising prices would result in financial risks for the retailer and loss of work. As a result utilitarian will not be used as it will not bring about good for those involved.
Moral rights emphasizes that individuals have rights (Harrison 2010). Nike is exploiting this by manipulating workers to sign as a result taking away their freedom (Framework for thinking ethically) “which is being able to pursue one goal without interference from others” (Arnold 2003, 89). The manager could boycott selling the merchandise however the article are only claims, the manager will need to investigate through the use of tools; Fair factories clearinghouse, to conclude if any of the fair trade principles are being violated, and if the workers’ rights are being exploited (Paulins and Hillery 2009) boycotting will not ensure workers’ rights.
Justice “is designed to protect the interest of all involved “(Ferrell
References: Abiodun, A.J., and O. J. Oyeniyi. 2011. Ethical Dilemmas in management: An African Perspective. Journal of Business Systems, Governance and Ethics. 6 (2): S36-44. http://www.jbsge.vu.edu.au/issues/vol06no2/JBSGE-06-2.pdf#page=40 (Accessed March 22, 2013). Arnold, D. G. 2003. Rising above sweatshop. Eds. L.P. Hartman and R.E. Wokutch.Westport: Praeger publishers A Framework for Thinking Ethically. http://www.scu.edu/ethics/practicing/decision/framework.html (accessed March 22, 2013). Ferrell, O.C., and L. G. Gresham. 1985. A contingency framework for understanding ethical decision making in marketing. Journal of Marketing 49: S87-96 Harrison, A. 2010. Business environment in a global context. Oxford: University press Paulins, V.A, and J. L. Hillery, 2009. Ethics in the fashion industry. New York: Fairchild books Roberts, G. 2013. Nike workers claim military paid to intimidate them. ABC News January 15. http://www.abc.net.au/news/2013-01-15/nike-accused-of-using-military-to-intimidate-factory-workers/4465058 (Accessed March 16, 2013) Waddell, D., Jones, G., and George, J., Contemporary Management, 2nd edition, North Ryde, N.S.W. McGraw-Hill Australia 2011.