Monitoring Buisness or Ethics

In recent years heated debates have arisen in lieu of business practices in foreign countries. Some argue that businesses are taking advantage of third world countries while corporations are contesting that they are helping developing countries by incorporating more jobs into those countries. The question that is derived from businesses that move into foreign countries it that of; whether or not there should be an organization or coalition of people that monitor a business’ ethical practices, should that be left to the business itself, or should that even be a concern of a business entity? The answer lies in a compromise of the two where ethical business standards are maintained while business profit potential will not be harmed significantly. Two opposite sides of the spectrum lie in Milton Friedman’s essay “The Social Responsibility of Business Is to Increase Its Profits” and the guidelines for the Worker Rights Consortiums’ model code of conduct. The medium can be found in Philip H. Knight’s statement regarding the University of Oregon and his support for the Fair Labor Association, “Nike did not invent the global economy, but has been determined to

In so much as Nike is a model ethical company, it is not, but in as far as seeing ow becoming more ethical can lead to a positive economic growth it is a good model. Knight affirms Freidman in his attempts to make more profit, but shows that Friedman was not completely correct in maintaining his idea that a company has no social responsibility. Friedman did not see that practicing business in an ethical manner maintained a positive image of the company, which in turn translated itself into a positive cash flow for the business. The WRC also needs to be more realistic in seeing that its standards are ideal, but not practical. Knight understands that some ethical standards must be maintained and his profit potential did not decrease, because as expenses from maintaining these standards increase, so does revenue.

Moving on to Knight and the WRC, the main quarrel is that the WRC has an impossible living wage to maintain. The living wage as stated by the WRC is as such, [A living wage is a “take home” or “net” wage, earned during a country’s legal maximum work week, but not more than 48 hours. A living wage provides for the basic needs (housing, energy, nutrition, clothing, health care,

minimum age requirements for his footwear workers to 18. Knight continues by saying that

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