Business Ethics Case Analyses: Urban Outfitters
Individualism in business ethics can be involved with the eye of the business, such as income and development, but these interests must be pursued within the boundaries of the statutory law. Although Urban Outfitters was focused on the profit and the growth of the business by consciously keeping up with the trends for the upcoming year they didn’t stay within the boundaries of regulations.
Urban Outfitters created the Navajo line with the ambition to provide popular trends for his or her consumers. In return the company would create more income, benefiting the stockholders invested in the company. Unfortunately their ambition made the business blind to reason plus they falsely advertised their products as “vintage” and originally sold at trading posts by American Indians.
These false advertisements violated the Federal Indian Arts and Crafts Act. It is made by These acts unlawful to sell arts or crafts that falsely suggest American Indians produced them. This act makes Urban Outfitters unethical in the eyes of the Individualist only. If the business had stayed within the boundaries of the law and received a license from the tribe in trade for a share of their profits, they could have avoided the lawsuit. The theory in business ethics, Utilitarianism is focused on maximizing the happiness of most stakeholders in touch with their company.
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John Stuart Mill says that joy and pleasure will be the only things of intrinsic value and a company must bring about joy in all things and do so impartially. Urban Outfitters was accountable for supplying happiness to three main stakeholders: corporate and business management, consumers, and investors. When Urban Outfitters falsely advertised the Navajo range these were not providing honest business with their consumers.
The company was falsely advertising the authenticity of their products leading to their corporate and business management to receive a lawsuit from the Navajo Nation. This lawsuit caused their investors to lose money when the income of the ongoing company dropped 48 percent from 75.9 million to 39.3 million. In the eyes of the Utilitarian, the business was performing unethically because they were not providing joy for his or her stakeholders.
Kantianism is a theory based on doing what is right. Essentially the company is wanting to do what is right since it is right. Virtues are “the characteristics that allow what to function properly” and are also called “making good virtues.” These virtues allow a person to operate well in culture.
Four important virtues to have in business are, courage, honesty, and temperance and justice. Vices will be the opposite of virtues and inhibit individuals human rationally and relations with others. Types of vices are lying down, trickery and manipulation. Although Urban Outfitters was acting courageously when they used the Navajo name on the clothing in try to match the trends of the entire year they didn’t do so honestly.
