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The ethical problem that we can be found in the video which need to be considered is
the reptiles (crocodile) are being cruelly killed of demand for luxury fashion products. In a
horrifying undercover investigation has revealed that crocodiles are cut open alive for the skin
that can be used for $40,000 Birkin handbags and luxury $2,000 watch straps.
The crocodiles are being forced to live in dirty, dark pits before they are dragged out
by workers and placed on a table and killed. Their skins are made into the handbags and
watchstraps, which are known for having price tags in the thousands of dollars and are used
by western country celebrities including Gwyneth Paltrow, Victoria Beckham and Ashton
Kutcher.
At just three years old the crocodiles are 'harvested' before their skin is sent to Hermes
leather manufacturer. After they are shot in the head with a bolt gun, their necks are sawed
open, sometimes with a box cutter to divide the blood vessels.
Huge operation: the company Padenga operates one of the largest Nile crocodile farming
operations in the world in Kariba, Zimbabwe
Cruel: Animal charity PETA has exposed how the reptiles are put through unimaginable
suffering at a leather farm in Texas before they are brutally killed for fashion industry
giant Hermes
Torture: After they are shot in the head with a bolt gun their necks are sawed open,
sometimes with a box cutter, to sever the blood vessels
Popular brand: The Birkin handbags, made by Hermes from the skin of the crocodiles, are
a favorite for celebrities including Victoria Beckham
Horrifying: They are moving in ice bins alongside the carcass of the other dead crocodiles
Stacked up: Their skins are stored in a huge freezer before they are shipped off to leather
manufacturer across the United States or in France
Awful: Until the age of three, when they are harvested, they are kept in hurry conditions
with dirty water
Skin treatment: The tale of one of the dead crocodiles is surfaced of a blood-filled ice bin
Seller: Hermes is a fashion company based in Paris and is known for selling pricey luxury
goods
How the unethical action does relate to Milton Friedmans point of view?
1. The deviation from a profit-only focus does not mean that profit will fall-in-fact,
the profit might rise.
a. Directors cannot act in any way to increase profits and that corporations should
engage in socially responsible activities as it can be shown that they at least
have an indirect positive effect on organizational performance
2. Profit is now recognized as an incomplete measure of corporate performance,
and therefore an inaccurate measure for resource allocation.
a. Directors as agents of the business have to play within the rules of the game,
this still leaves room for unethical behavior
3. Friedman explicitly expected that performance would be within the law and
ethical custom
a. Companies to be truly ethical, they should engage in a reasonable level of
socially responsible activities as this maximizes the wealth of all stakeholders.
2. Employees safety