A business decision is guided by business ethics, which consider moral principles. An enterprise’s performance is evaluated by its ethical standards, which serve as a foundation for decision-making. Businesses with high ethical standards are able to attract new customers, boost customer loyalty, build good morals within their organizations, and cope with the negative news they might face. Businesses that adhere to high ethical standards can attract new customers, increase loyalty from existing customers, cultivate good morals within their organizations, and protect themselves from bad news. In order to develop strong business ethics, one must be honest, possess high integrity, be accountable to oneself and others, be polite, loyal, follow the law, strive for excellence, and be leaders.
A company’s ability to succeed depends on both the quality of its goods and its moral fiber. One such example is Coca-Cola. The beverage sector is dominated by the well-known and well recognized brand Coca-Cola. The company has been in business for more than 130 years and has a solid reputation. All employees of the Coca-Cola Company are subject to the Code of Business Conduct (the “Code”), which provides guidelines for conducting business in an ethical and responsible manner. All directors, executives, and workers must abide by the Code, which outlines the values that underlie business operations. Choosing Passion, Diversity, Integrity, Accountability, and Quality serve as the Code’s guiding principles. Always acting in line with their corporate principles.
Producing goods that are safe for both humans and the environment is essential. The Coca-Cola Company is one example of this, which cut the amount of sugar in Coca-Cola since it is bad for individuals. By 2030, Coca-Cola aims to prevent environmental damage so there is no more packaging trash. By creating recyclable packaging. To decrease our use of environmentally hazardous plastic.
The communities in which they operate are important to them, so they work hard to be responsible members of those communities. By conducting business ethically, donating to charity, and participating in public policy discussions, they do their part to help. They are also responsible for the manufacture, packaging and sale of Coca-Cola and other commodities, in accordance with their articles of incorporation.
They follow these values daily, which are values that are rooted in their culture and guide them in daily behavior:
- Leadership and courage in creating a better future.
- Use collective intelligence to collaborate
- Being truthful is integral to integrity.
- Keeping our commitments requires accountability
- Celebrate diversity and individuality
Further, their identity and way of doing things are founded on a set of guiding principles.
- Protect what they have by staying alert.
- Responsible
- Demonstrate justice toward others.
- Contribute to quality and value
- Respecte.
They put these values at the core of all they do. If they wish to succeed, they must conduct themselves morally and properly. The Coca-Cola Company seeks to promote a moral and accountable culture. Participating in political activities and dialogue is equally vital. The Coca-Cola Company’s main goals are to preserve morals and behave ethically in business. Since they have a long history of operating honestly, they expect the same of their employees. To ensure that staff members uphold the Code of Business Conduct, a Chief Compliance Officer and the Global Ethics Office have been established. Everyone in the community is accountable for their deeds and is expected to know and follow the Code.
The term sweatshop first appeared in the United States in 1867. It originally referred to the system of “feeding materials, receiving goods, and processing at home” implemented by American clothing manufacturers, and later referred to the contract labor system in which the foreman hired someone to do it for him. In both practices, the daily wage for workers is not the lowest. But because workers who work collectively in formal factories are avoided, their piece-rate wages can be squeezed to a minimum, hence the name sweatshops.
The New York Times reports: “In the 1990s, (Nike) executives subcontracted the production of sneakers to manufacturers in developing countries in an effort to boost the company’s bottom line. Unfortunately, several subcontractors worked in very poor conditions. , Nike was subsequently criticized for these “sweatshops”. Among them, the more typical one is the detailed report of CBS’s news program “48 Hours”, which tells that a young female worker under a Vietnamese subcontractor works 6 days a week. The hourly wage is only 20 cents, and the working environment is poor and lacks protection from toxic substances. The report also points out that the minimum living standard in Vietnam is 3 US dollars, which is not possible to earn unless you work long hours. Nike does not Violate the law, and neither did its subcontractors, but some reports like this raise questions about whether “sweatshops” are ethical. Doing so may be legal and help the company boost its own profits, but by Western standards Are subcontractors who are apparently brutally exploiting their employees ethical? Nike’s critics see it as unethical, and Nike has been drawn into a spiral of protests and consumer boycotts.” 1By This shows that Nike did have a “sweatshop”. Most of the people were against it, and Nike even faced a firm boycott from some members of the public.
From the perspective of stakeholders and social responsibility in management, Nike’s experience has proved a basic business principle: the pursuit of profit maximization should not only be constrained by law, but also by ethics. Because Nike’s “sweatshop” has damaged its reputation and alienated a key group of stakeholders – customers. Generally speaking, if a company can satisfy the interests and claims of customers and employees, its financial performance will get better and better, its stock price will rise, and this will also satisfy the interests of shareholders. That is, to ultimately meet the needs of shareholders, managers must first pay close attention to their customers and employees. If customers are satisfied, they will continue to buy from the company and the company’s sales performance will also be maintained. If employees’ needs are met, they will work harder, productivity will increase, costs will drop, and financial performance will improve. Some companies, like Southwest Airlines and Starbucks, make it their mission to create a good work environment for their employees and to provide satisfactory service to their customers. Needless to say, these companies are getting strong financial performance and soaring stock prices, and as a result, they are meeting the needs of their shareholders. Nike should pay attention to the interests of customers and employees, create a good working environment for employees, encourage employees to work hard, and improve work efficiency.
From the perspective of management functions and management elements, “the process of management is the process of planning, organizing, commanding, coordinating, and controlling.” Planning is a major function of management and a process. Managers rely on this process to determine goals and choose to achieve them. The strategic plan of the target; the organizational structure is the basis for the implementation of the strategic plan. If an organization wants to achieve high performance, on the one hand, it needs the correct implementation of the company strategy, and on the other hand, it needs the support of the correct organizational structure; where decisions are made, who reports to whom, and the process of organizing various parts to coordinate actions to achieve common goals. From the plan, it is wrong for Nike to blindly use sweatshops in order to expand production, and extend employee working hours, management Operators should be aware of errors in time and take corrective measures, further develop more detailed plans, and rationally arrange working hours to achieve higher performance.From the organizational point of view, Nike’s organizational management structure is mainly and has been using the matrix organizational structure. This structure has the advantages of both divisional and functional organizational structures; it has the advantages of functional and product (project) functional divisions. , because the advantages and disadvantages of functional division and product functional division are complementary; horizontal linkages are strengthened, professional equipment and personnel are fully utilized, and the flexible sharing of human resources is realized; Professionals help each other and inspire each other. Nike’s board of directors is composed of two parts: management directors and independent directors, which reduces management opportunism, and has no external related directors, which helps management to make independent decisions.