How Business is Conducted on a Social And Ethical Sense - Research Paper Example

How Business is conducted on a Social and Ethical Sense Introduction In the broadest sense of business ethics and doing business in an ethical and socially sensible manner, ethics refers to the observance of ethical and moral norms in the conduct of business. Some of the practices that will be practiced and encouraged by a business doing its business in an ethical and social manner include doing honest business, practicing truthfulness and the prohibition of stealing among its different stakeholders. Business ethics covers the moral nature of company practices and actions. For example, it has remained a global debate that it is unethical for multinational companies to use the resources of underage employees (child labour) or pay workers salaries that are minimal in the production facilities in developing countries. This paper will explore the business practices of two companies, including Dove and Abercrombie & Fitch, in order to explore whether the two companies do their business in ethically responsible ways, and whether their strategy has been effective. The paper will also explore whether the presentation of women is ethical, and whether the approach could offer a model for advertising to women. Q.1. Ethical responsibility of A & F for providing clothes for all women The statements of the CEO of Abercrombie & Fitch were met with a lot of criticism and reactions, mainly because he made the statements that his company would only market clothes for the people with good-looking figures, and not other groups. The most sensitive of the statements made included that the company does not offer women’s shirts’ sizes beyond large (L), and gave the reason that the company was not out to supply its clothes for fat people. The emphasis of the statement was that fat people did not have the right to wear the clothes produced by the company. The reasons given for the statement included that only people with cool bodies could be considered winners, in that they have managed to keep a lean body figure. On the other hand, the emphasis was that fat people are losers that have failed to keep their weight in check, and therefore they did not deserve to wear the clothes made by the company. The comments were taken seriously, by the company’s customers and potential customers, and that became evident from the uncontained reduction in sales revenues over a short duration. The negative response from the public compelled the company’s CEO to apologize publicly for making the statements, and after that the sales of the company began to flourish again (Reuters para 5). Despite the turnaround from the business ethics crisis, the case has remained a major source of worry for the company, including that it has remained a point of contact for negative publicity. The negative publicity and the impact of the discrimination of some classes of customers demonstrated to the company that it had to target more customer segments. More importantly, it came to the company’s attention that doing business in an ethically and socially supported manner was not option, and that it would work as a strategy to bring more customer segments and style preferences to the stores. The ethical responsibility of A & F for providing clothes for women of all shapes and sizes can be explored using the utilitarian model of business ethics. The utilitarian model defines the boundaries as those directing businesses and its stakeholders to reach decisions, depending on whether they present positive consequences for all (DesJardins 24). The implications of the principles modeled by the ethical directive are that an idea that serves the good of all people, and not just one person is ethically and socially responsible. Based on the utilitarian model of business ethics, making the statements and providing clothes for only ordinary sizes of women was not made for the good of all the consumers of clothes, and also the target market for A & F. For example, the strategy of only offering clothes for women who are fit in size implied that it was impossible for a fit woman to take their fat sister or mother with her for shopping. More importantly, by branding fat people as lazy and losers, the company was wrong because being fat can be attributed to a variety of uncontrollable factors, including genetics, age and hormonal changes. In Kant’s philosophy, the ethical responsibilities of an individual or business are grounded on whether they could be generalized for society as a universal law. Kant also emphasized the fact that all people should be regarded as ends in their own, and not means to an end, and that understanding the viewpoint and the interests of the other are at the core of ethics and social responsibility (Reuters para 3). On the basis of Kant’s thinking, the statements and policies of A & F do not meet the threshold for business responsibility and ethical practice because its conduct cannot be generalized as a law in society (DesJardins 37). This position was reached on the basis of the reasoning that becoming fat is either a choice or involuntary, and that it is a biological process that the individual cannot take full responsibility for. In the case that it would be considered to have acted ethically, it could be regarded that the people that are born with genetics of growing fat should not get new clothes in reputable stores like A & F. Such a position is not acceptable in society; therefore it serves as proof that A & F had the responsibility to provide its clothes, designs and styles for the women of all sizes. The strategy of A & F and its evolution Firstly, A & F’s discriminative business strategy is not a smart business model because it did not appeal to all groups of customers, including the fit and the fat. The failure of the business strategy, in respect to the smartness of the business model and approach is evident from the fact that the publicity of the strategy led to a reduction in the sales and profitability levels of the company during the months that came after the ethical practice crisis (Reuters para 3). Due to the reduction in sales and revenues, which was an indicator of the reduction in the customer base of the company compelled the CEO to reconsider his statements and made an apology. Starting from the time of the apology about the statements, the company showed gains in its sales and revenues levels (DesJardins 41). Unfortunately, the revisits made to the negative statements and the publicity it created around the business of A & F triggered reductions in customers and that has compelled them to adopt an accommodative strategy that offers cloth sizes and designs for all women and customers in general (Bradford para 2). The strategy is aimed at increasing the company’s reach among different customer segments (Reuters para 5). Qn. 2. The ethical responsibility of Dove’s advertising, in its presentation of all women Dove’s campaign on the varieties of beauty for women was and is still ethical because it aimed to create the maximum happiness for all women, irrespective of their size and age. The ethical nature of the campaign can be proved using the impact of traditional advertising for women’s beauty, which labeled only 2 percent of women as beautiful (Brodbeck and Evans para 6). The problem is that such a discriminative outlook subjects many women, due to their age and size to destitution. However, in pursuit of happiness for all women, according to the utilitarian model, the company included the differences in shapes and sizes for women as the reference looks for beauty. The ethical nature of Dove’s strategy can also be proved using Kantian’s model of thinking because defining beauty according to the shape and size of 2 percent of all women is not admissible as a general principle for society. More importantly, it should be noted that the degrees of beauty range from ranking to another, and with reference to the characteristics of women being sought. Further, the response that resulted from the public can be used as an indicator that the advertising was ethical, because it appealed to the varied interests and ethical standards of the larger percentage of society and population (Brodbeck and Evans para 3). The new trend set by Dove’s advertisement The trend set for other companies to follow is that the campaign was received very well by broadcast and press media, which reinforced its message and its reach among the public. The media platforms reached include popular shows like Oprah Winfrey, among many others. In response to the campaign, more than 24 articles were authored in response to the campaign, and among them, 17 were positive and supportive about the company. The impact of the campaign send a message to other companies and marketers, implying that restricting beauty to a given definition of size and shape was limiting among women consumers, and able to have counter-effects in the market (Brodbeck and Evans para 3). The responsibilities of progressive companies 1. Winning in a responsible manner and in a way that demonstrates a society-wide purpose, for example the case of Dove; it challenged the traditional boundaries of beauty. 2. Meeting the standards set and expected by consumers 3. Occupy a good position in CSR and ethics, for example by reducing its environmental impact 4. Collaborate with other stakeholders 5. Engage in business practices that guarantee sustainability 6. Review business strategies and practices in response to changing business environment (Confino) Qn. 3. Comparison in the appeal of the two companies The appeal made to women for both companies is a total contrast. The comparison between the two appeals of the two companies is that they are targeting female consumers, and they were targeting certain segments of women in society. The differences between the appeals of the two campaigns includes that one adopts an inclusive outlook, but the other adopts a discriminative one. There is also the difference that one directly appeals to the beauty of all women, but the other shuns the unattractiveness of fat women. The outcomes of the two include that one was appealing to the whole population and the other was viewed negatively by almost all its target consumers. Conclusion Broadly, ethics for a company spans conduct that is acceptable in society. A & F holds the ethical responsibility of providing clothes for all its female consumers, including the fat and the fit. The business strategy of A & F was discriminative, and it affected the company negatively, until the CEO apologized and a new strategy was developed and the company retraced its business course. Dove met its ethical responsibility, and the evidence includes that the response to the campaign was positive. For example, it appealed to the creation of benefits for all female consumers. The two companies compare, in that they are targeting female consumers. The differences include that one is discriminative and the other is more accommodative of all women. Works Cited Bradford, Harry. "Abercrombie & Fitchs Reputation Takes A Hit After CEOs Fat Comments Resurface [CHART]." The Huffington Post, 16 May. 2013. Web. 04 Oct. 2014. Brodbeck, Melinda, and Evans, Erin. “Dove Campaign for Real Beauty Case Study”. Public Relations Problems and Cases, 5 Mar. 2007. Web. 04 Oct. 2014. Confino, Jo. “Paul Polman: The power is in the hands of the consumers”. The Guardian, 21 Nov. 2011. Web. 04 Oct. 2014. Desjardins, Joseph. An Introduction to Business Ethics. 5th Ed. New York: McGraw-Hill, 2014. Print. Reuters. "A Desperate Abercrombie Will Stop Shunning Plus-Size Shoppers." The Huffington Post, 06 Nov. 2013. Web. 04 Oct. 2014. Read More