Loveleena Rajeev (2009) supposed that “the lack of business ethics in the market, is the reason the world economy is presently in crisis”. Ethics, in its simplest definition is the perception of right and wrong. Our urbane and civilized world is anchored in ethical values, where without it, the society will be in chaos and disarray (Smith & Smith, 2009). It follows that business ethics “are moral values and principles, that determine our conduct in the business world” which refer to all aspects and phases in commerce (Rajeev, 2009). In a sense, it should not have been a contentious matter as the conduct of business is simply about delivering and/or exchanging advantages with the firm making profits from it, however, the emergence of “greed has led the present business scenario towards unethical business practices, legal complications and general mistrust (Rajeev, 2009)”
The need for ethical behaviour especially in business leapt from this mire of distrust. Thus the framework of ethical business practices outlines “a code of conduct that facilitates, if not encourages, public confidence in their products and services (Smith & Smith, 2009). This structure provides guiding principles in getting through ethical dilemma posed in the conduct of business to encourage fair practices and unbiased results, always putting the best interest of the concerned sectors in mind.
One such company which found itself in the middle of an ethical scandal is one of the world’s largest shoe manufacturers, Nike, Inc. The controversy was nicknamed Nike’s sweatshop as it pertained to the offshore production houses of the company which was alleged to have poor labour practices and exploitation of manpower.
Nike was born from the coming together of Phil Knight and Bill Bowerman which in its early stages imported sports shoes from Japan. In two decades, this shoe manufacturer was able to conquer about half of the world market after it