I'm currently studying ethics. Id like to note here, i hate grey subjects. I'm an engineer i like answers that are right or wrong. Trying to determine if a business decision is right or wrong is like trying to decide if a panda is black or white... I'm sure memebase fans will get that reference...
Example: Nike
Fact: Nike outsources their labour to sweatshops in countries where labour is cheap. Is this ethical? Should the first world buy these products?
Obviously there is the argument that a global company is taking advantage of these people due to the lack of laws regarding safe work and minimum wages in these countries. These practices increase the quality of life gap between socioeconomic groups both within these countries and between first and third countries.
Then there is the argument that millions are given gainful employment in these countries who otherwise would not be employed. It also allows Nike to increase profits and give greater returns to shareholders.
The government deems this practice as legal and thus if you follow deontological ethics, it is ethical, even though our government would never allow our citizens to work under the same conditions.
Does good ethical decisions make good business choices? Not always.
What if the ends justify the means? In what sense? Does a good financial return justify using child labour?
When do shareholders see poor morality as a poor investment?
I think most investment bankers would sadly answer "when the share price is trending negative."
No comments:
Post a Comment