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Organizational Ethics Issue Resolution Paper

A normal ethical issue faced by many organizations these days is the issue of child labor. This issue has been raised by many organizations working for safeguarding the rights of children. Some of the very famous multinationals have come under the accusation of practicing child labor in order to save costs. One of the very famous companies termed to be practicing child labor is Nike. It is been alleged to have opened manufacturing stations in third world countries to cut costs and employee children of a lesser age than the legally allowed age. Stakeholder Analysis

Companies usually make sure that all the stake holders of the b...

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...usiness are satisfied with the achievements and the results the business is providing them. Stake holders are people that have taken a risk to help a business initiate and then carry on in a normal fashion. An organization’s stake holders are the most important and vital factor that decides whether the organization would succeed in the long term or fail (McCormick and Connors, 2003). Stake holders are also people who take major decisions for the organization and have the right to question any process of the organization.

They have their say in every action that an organization performs plus they are also involved in the strategic planning of the organization. The second step to solve an ethical issue like the one prevailing in Nike is the stake holder analysis. Every aspect, decision or problem has its stake holders. In the case of Nike the stake holders for practicing child labor are the customers that are buying the product for a high price as it s manufactured at a very low cost. Apart from that the government of the country where child labor is being practiced is also a stakeholder as they are violating the rules and policy of the country.

The children themselves that are working and are under aged are the stakeholders, hence it is very important to study all the stake holders associated with the ethical dilemma. This is due to the fact that the decision of the issue would obviously affect the stake holders in many ways. In these cases it is the duty of the stake holder to make sure that he or she studies all the relevant risks and benefits associated with any activity going on in the business. Values Identification Organizations tend to solve all issues and problems related to ethics as soon as possible.

Some time managers or decision makers do not emphasize on following the sequential order of identifying the problem and then solving it (Ruggiero, 2003). Delaying it creates a lot of problems for any organization because firstly any ethical issue that comes on the top hits like a bomb on the organization’s reputation. The results affect the bottom line of the organization, which are sales and costs. In the case of Nike the organization has faced a lot of criticism and a negative reputation at many countries.

The organization has also faced a decline in their sales since the identification of this issue of child labor. It is very important to identify the values of the stake holders plus all the aspects that surround the ethical dilemma in detail. Value Identification is the third step in solving an ethical issue. This step also evaluates the value of the ethical issue as in how much it can cost to solve the problem and what are the benefits it would provide the organization.

In the case of Nike they have already faced a decline in sales and a bad reputation in some of the major international market they operate. The company is currently in the process of solving this ethical dilemma. References: McCormick P. T. , Connors R. B. (2003) Facing Ethical Issues: Dimensions of Character, Choices & Community. Paulist Press. Ruggiero V. (2003). Thinking Critically About Ethical Issues, 6 edition. McGraw-Hill Humanities/Social Sciences/Languages

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