Businesses do not operate in isolation. Instead, their success is largely dependent on the various stakeholders such as suppliers and clients that exist within the same sphere, and businesses should therefore account for the actions of these two defined stakeholders – namely suppliers and clients.
This thesis statement gives rise to an ethical dilemma, namely holding an organization accountable for the actions of independent bodies over which the organization cannot exert direct control or influence.
It was found that in the early 1970s, Nike was outsourcing to foreign suppliers who were running sweatshops with unacceptable working conditions – such as verbal abuse, overworking employees, child labor and minimum wage salaries. This unethical situation was the core of an attempt to minimize costs. Nike’s director responded by stating …show more content…
If one applies Aristotle’s Virtue Theory of ethics, it can de derived that it is ethical to hold an organization accountable for the actions of their suppliers.
According to Aristotle, every person is born with natural dispositions, which are either in excess or deficiency. However, through the application of rational thinking, one will be able to act within one’s mean – the midpoint between excess and deficiency. Thus when an organization informs themselves about which supplier to outsource to, the organization should not act in deficiency – and be ignorant – or in excess – and be too particulate – but rather act within their means – and be thorough with their information search. Because this requires a significant level of involvement between the organization and their suppliers, the organization has no reason to not account for the actions of their
This thesis statement gives rise to an ethical dilemma, namely holding an organization accountable for the actions of independent bodies over which the organization cannot exert direct control or influence.
It was found that in the early 1970s, Nike was outsourcing to foreign suppliers who were running sweatshops with unacceptable working conditions – such as verbal abuse, overworking employees, child labor and minimum wage salaries. This unethical situation was the core of an attempt to minimize costs. Nike’s director responded by stating …show more content…
If one applies Aristotle’s Virtue Theory of ethics, it can de derived that it is ethical to hold an organization accountable for the actions of their suppliers.
According to Aristotle, every person is born with natural dispositions, which are either in excess or deficiency. However, through the application of rational thinking, one will be able to act within one’s mean – the midpoint between excess and deficiency. Thus when an organization informs themselves about which supplier to outsource to, the organization should not act in deficiency – and be ignorant – or in excess – and be too particulate – but rather act within their means – and be thorough with their information search. Because this requires a significant level of involvement between the organization and their suppliers, the organization has no reason to not account for the actions of their