Is Puma Inc. an Ethical Company?
Business ethics simply can be defined as the application of business values in the business practice of a company (Seawell 2010, p. 2). For a multinational company, business ethics is one of the critical aspects need to be taken into account in business decision-making processes. Failure to give attention on ethics may bring consequences on company’s reputation (Meyer & Jebe 2010, p. 159). The company is expected not only to pursue its own profits but also contributing to the environmental and social welfare of the community where it operates (Svensson & Wood 2008, p. 308).
Puma Inc. (Puma) is a multinational sporting goods company which designs and develops footwear, apparel and accessories. The Puma and its subsidiaries have operated in more than 50 countries (Puma 2012, p. 156) and employed more than 11,000 people worldwide (Puma 2013). The company’s supply chains are supported by 540 factories (Puma 2012, p. 44), which is mostly in Asia (Puma 2012, p. 43), and its products have been distributed to more than 120 countries (Puma 2013). The company is the seventh ranked athletic apparel company in the world in term of revenue in 2011 (Schulz 2012).
As a multinational company, Puma strive to be the most desirable and sustainable sportlifestyle company in the world (Puma 2012, p. 9) and contributes in creating a more sustainable future for the generations to come (Puma 2012, p. 15). To meet these goals, the company claims that it has referred its business decisions to the four values of PUMAVision (fair, honest, positive and creative), implemented PUMAVision’s programs, which are PUMA.Safe, PUMA.Peace and PUMA.Creative, (Puma 2012, p. 10) and set its own code of ethics as well as its supplier’...
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Svensson, Goran & Wood, Greg 2007, ‘A Model of Business Ethics’, Journal of Business Ethics, vol. 77, pp. 303-322.
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Cohen, S., Grace, D. (2010). Business ethics: Canadian edition. Don Mills, Ontario: Oxford University Press.
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business ethics: Ethical decision making and cases: 2011 custom edition (8th ed.). Mason, OH: South-Western Cengage Learning.
The Johnson & Johnson Corporation have withstood various problems that would have crippled other firms which can only be accounted with the cohesiveness of the corporation members and the internal structure of the corporation. Despite the corporation’s problems over the years their statement of values is an integral part of their corporation culture and how the firm continues to conduct business. “For us, the credo is our expression of managing the multiple bottom lines of products, people, planet and profits” Larsen (as cited by Hartman et al., 2014, p. 165).
Trevino, L. K., & Nelson, K. A. (2011). Managing business ethics: Straight talk about how to do it right. New York: John Wiley.
Trevino, L., & Nelson, K. (2011). Managing business ethics - straight talk about how to
UA concentrated on the outside-in (market responsive) approach to carry out its strategies. It is reported that it sourced unique synthetic materials and employed on field product development. This enabled it to create the performance apparel segment in the athletic apparel market.
Under Armour has a mission statement that clearly states what they wish to accomplish and how they will do it. “To make all athletes better through passion, design, and the relentless pursuit of innovation”, this is a powerful statement that makes consumers and the competition aware that this organization will strive to help athletes everywhere reach their potential (Mission, 08).
Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and cases: 2011 custom edition (9th ed.). Mason, OH: South-Western Cengage Learning.
There are as many brands as there is ants in the world, but the two brands that pop out are adidas and nike. Those two brands have been going head to head for ages to see who is the better brand. It’s been tested, compared, and debated which brand is better. Whether it’s the quality of the materials or the cost of it, the debate is ongoing. Both brands have been fighting for the top ever since they were both created and I don’t blame them it’d be fantastic to be the best brand in the world. When Nike and adidas are contrasted, it becomes clear that the Adidas brand are better for the overall consumer and enhances sport performance than Nike.
This project concentrates on the Nike Sports shoe; Nike is one of most significant shoe manufacturing company worldwide. Sportswear manufactured by Nike is known for quality and is most liked brand of athletes. (Daniel, 2011)
Treviño, L. K., & Nelson, K. A. (2007). Managing business ethics: Straight talk about how to do it right Fourth ed., Retrieved on July 30, 2010 from www.ecampus.phoenix.edu
manufacturing products overseas, specifically in Bangladesh. The focal point of the article was how Nike was attempting to achieve the lowest possible manufacturing costs while still maintaining worker safety and producing high-quality products. Both consequences and benefits of manufacturing in foreign companies was discussed in the article. In addition to how manufacturing costs affect the financial outlook of the company, the article addressed how having factories in less-developed countries has an impact on public opinion of Nike.
The PUMAVision looks forward to a world that is more secure, more serene and more inventive for the ages to come. Through the projects of PUMA.Safe, PUMA.Peace and PUMA.Creative, Puma is giving genuine and viable articulations of their vision. Puma have conducted several projects that addresses their company vision.
Nowadays, there are so many famous sportswear companies that exist in the market globally, which make people have more product varieties that they can choose. In addition, most of those companies have become very important for its host countries, in terms of supporting their economic development. Yet, the existence of those companies can also possibly bring some problems to the host countries, as well as negatively affect the countries’ people (Pettinger, 2008). In order to explain it better, the existence of Adidas in Indonesia is used in this report to give more information about what makes Adidas becomes a successful company in the world, as well as providing problems that Adidas has in Indonesia.