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Ethic Case Study

The document presents five case studies highlighting ethical challenges faced by global businesses in the digital era, including racial discrimination at Zara, child labor in tech supply chains, data privacy violations by TikTok, labor violations at Apple, and IKEA's carbon emission reduction strategy. Each case emphasizes the importance of cultural awareness, ethical supply chain management, data ethics, and sustainability in maintaining brand integrity and reputation. The discussions and takeaways suggest that companies must adopt proactive measures and digital tools to address these ethical issues effectively.

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2 views3 pages

Ethic Case Study

The document presents five case studies highlighting ethical challenges faced by global businesses in the digital era, including racial discrimination at Zara, child labor in tech supply chains, data privacy violations by TikTok, labor violations at Apple, and IKEA's carbon emission reduction strategy. Each case emphasizes the importance of cultural awareness, ethical supply chain management, data ethics, and sustainability in maintaining brand integrity and reputation. The discussions and takeaways suggest that companies must adopt proactive measures and digital tools to address these ethical issues effectively.

Uploaded by

Kiêm Tùng Trần
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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REAL-WORLD BUSINESS ETHICS CASE STUDIES

IN THE DIGITAL AND GLOBALIZED ERA


Case Study 1: Zara and Allegations of Racial Discrimination
In recent years, the global fashion brand Zara has faced multiple allegations of racial
discrimination. In Brazil, former employees reported that Black customers were unfairly
stereotyped as potential thieves. In 2015, a similar incident occurred in New York where staff
were instructed to use the term “special order” whenever Black customers entered the store. In
2019, Zara also faced backlash in China for a controversial ad campaign featuring a Chinese
model with visible freckles, which many locals interpreted as mocking Chinese beauty standards.
📌 Discussion Questions:
●​ How can a global business like Zara avoid cultural insensitivity in its international
marketing campaigns?
●​ In a digital age where brand images can spread instantly worldwide, what systems should
multinational companies implement to monitor ethical risks in real-time?
📌 Lesson Takeaways:
●​ Cultural awareness and ethical marketing are essential in global operations.
●​ Businesses must localize campaigns while maintaining global brand integrity.
●​ Digital monitoring tools and cultural advisory boards can help identify and manage
potential controversies.
Case Study 2: Big Tech Companies and Child Labor in Africa
In 2019, a legal complaint in the U.S. accused tech giants Apple, Alphabet (Google’s parent
company), Tesla, Microsoft, and Dell of contributing to child labor exploitation in cobalt mines
in the Democratic Republic of Congo. Cobalt is a key component in rechargeable batteries used
in smartphones, laptops, and electric vehicles. Some companies responded with investigations or
statements affirming their commitment to ethical sourcing, while others remained silent.
📌 Discussion Questions:
●​ What ethical responsibilities do global tech companies have in managing labor practices
within their supply chains, especially in developing economies?
●​ How can businesses leverage digital tools like blockchain to enhance supply chain
transparency and accountability?
📌 Lesson Takeaways:
●​ Ethical supply chain management is a non-negotiable in global business.
●​ Integrating digital technologies for traceability ensures fair labor practices.
●​ Failing to manage ethical risks can damage a company’s global reputation and
stakeholder trust.
Case Study 3: TikTok and Data Privacy for Minors
In 2021, former UK Children’s Commissioner Anne Longfield and law firm Scott + Scott filed a
lawsuit against TikTok and its parent company ByteDance for illegally collecting personal data
from children under 13 in the UK and under 16 in the European Economic Area (EEA). The
claim cited violations of GDPR and accused the company of misleading parents about how
personal information such as phone numbers, location data, and video content was collected and
shared with unidentified third parties.
📌 Discussion Questions:
●​ In the digital business era, what ethical guidelines should companies follow when
collecting personal data, especially from minors?
●​ How can businesses strike a balance between personalization in digital marketing and
protecting consumer privacy?
📌 Lesson Takeaways:
●​ Data ethics has become central to business success in the digital age.
●​ Companies must implement transparent, age-appropriate data policies.
●​ Regulatory frameworks like GDPR shape ethical standards for data handling globally.
Case Study 4: Apple and Labor Violations in China
Apple suspended business with Pegatron Corporation, an iPhone assembly partner, after
discovering violations involving student workers. The company falsified records to classify
students as regular workers and assigned them excessive hours in inappropriate roles. Apple
responded by halting contracts until Pegatron addressed the violations and fired responsible
managers.
📌 Discussion Questions:
●​ How does Apple’s action demonstrate ethical leadership in global business operations?
●​ In highly competitive digital markets, how can maintaining strong ethical standards be
turned into a strategic advantage?
📌 Lesson Takeaways:
●​ Ethical leadership reinforces long-term brand value and trust.
●​ Proactive ethical practices protect businesses from legal, financial, and reputational risks.
●​ Upholding human rights in supply chains is both a moral obligation and business
imperative.
Case Study 5: IKEA’s Carbon Emission Reduction Strategy
Swedish group Ingka, which owns most IKEA stores globally, successfully reduced carbon
emissions by adopting green energy solutions, using electric vehicles, and enhancing
energy-saving measures. Since 2009, the company has invested €3.8 billion in renewable energy
initiatives, reflecting a major shift towards sustainable business models in the digital economy.
📌 Discussion Questions:
●​ Why is environmental responsibility crucial for multinational corporations in the digital
and sustainability-driven era?
●​ How can digital tools help businesses track, measure, and reduce their environmental
impact more effectively?
📌 Lesson Takeaways:
●​ Sustainability is integral to modern business strategy.
●​ Digital technologies such as IoT and AI can optimize resource use and monitor
emissions.
●​ Aligning business goals with environmental and social values strengthens corporate
reputation and competitiveness.

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