Perfectly Legal, But Wrong

When “perfectly legal” is a lame excuse for doing the wrong thing

Academic Articles

Nike’s “Sweatshops,” Social Activists, and Business Ethics

Nike’s “Sweatshops,” Social Activists, and Business Ethics

The U.S. Supreme Court’s First Amendment cases that distinguish between commercial speech and political speech are explained, and the arguments in favor of greater protection for Nike’s statements about its overseas operations are evaluated in light of Donaldson and Dunfee’s integrative social contracts theory. The hypernorm of “necessary social efficiency” is invoked to claim that the arguments made by Nike and various “friends of the court” in favor of greater protection for corporate speech are problematic.

Greed is good. Greed is right. Greed works.
We make the rules, pal. The news, war, peace, famine, upheaval, the price of a paper clip. We pick that rabbit out of a hat while everybody sits around wondering how the hell we did it. Now you’re not naïve enough to think that we’re living in a democracy, are you, Buddy? It’s the free market, and you’re part of it.
— Gordon Gecko, Wall Street

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“Clean Hands and the CEO:” Equity as an Antidote for Excessive Compensation

At the top of the corporate pyramid sits the chief executive officer (“CEO”). Along with the board of directors, the CEO is primarily responsible for the success of the company. When companies fail due to a breakdown in governance or financial misconduct, shareholders lose. Other stakeholders lose as well, including competitors, employees, and ultimately the public at large.