Matchless Clothing Company buys clothing assembled by Nantra, Ltd., a foreign firm that employs young children for long hours and low pay. Nantra's nation does not enforce its child labor laws. Human International Politics (HIP), a political activist organization, discovers Matchless's connection to Nantra and plans to reveal this information. Before HIP does so, however, Matchless publicly releases the information itself and announces that it is severing its relationship with Nantra. Matchless publicizes its action in its advertising, and the company's sales and profits increase, apparently as a direct result. Has Matchless acted unethically in any way? From an ethical perspective, is Matchless's conduct in this situation more important than whatever its motive might be?

Question

What will be an ideal response?

Answer 1

Matchless has not acted unethically in publicly releasing the information itself or in severing its relationship with Nantra. Ethical behavior can sometimes generate sufficient good will to warrant practicing it out of a desire for increased profits. By the same token, unethical behavior can sometimes generate enough bad publicity to warrant avoiding it out of the same desire. A business firm's activities that are perceived as ethical and receive wide publicity can benefit the firm's owners in the short run-and even in the long run if the firm's enhanced public image continues to attract more consumers to its products. There is nothing unethical about making a profit. It is the behavior that generates the profit that can be questionable. Business ethics thus has a practical element. A business firm should act in its best interest. A firm interested in profits should also be interested in the public's opinion. As for a motive beyond the incentive to make money, it can be difficult to determine, especially in the complicated world of business ethics. Thus, conduct is probably the more effective measure of ethical behavior, and consequently more important than motive.