Ethics and Marketing

What does ethics mean in relation to business?
-Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.

Why is it important to a business?
-attract customers to the firm's products, thereby boosting sales and profits

-make employees want to stay with the business, reduce labor turnover and therefore increase productivity

-attract more employees wanting to work for the business, reduce recruitment costs and enable the company to get the most talented employees

-attract investors and keep the company's share price high, thereby protecting the business from takeover.

What is the issue in the article?

-decisions of Lance Armstrong and Nike for their  images

Why did Livestrong and Nike take the action they did?

-Since cancer-fighting charity became negative to people from illegal drugs, Lance Armstrong is seen in a negative light and thus Nike stopped sponsoring Lance Armstrong for brand image.

How do they hope this action will be beneficial to their business?
-People would become more positive about them