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Blue Sky Coming: Nio and Reason-based Duty

Aaron Gleason

Arizona State University

OGL 345 – Module 3

September 10, 2022

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Blue Sky Coming: Nio and Reason-based Duty

There has long been a debate surrounding ethics, not only in business but in our

respective journeys through life. That debate questions whether the head should rule the heart

or should the heart rule the head. European philosopher Immanuel Kant strongly believed that

“head should take precedence” and that reason should always come before sentiment (Fryer,

2015, p. 88). Kant had three formulas of expressing the categorial imperative: the formula of

universal law, the formula of the end in itself, and the formula of universal acceptability. The

following paragraphs will be a review and comparison of Kantian Theory on ethics within the

global organization, Nio.

Kant’s first formula, the formula of universal law, is stated as such: ‘act only on that maxim

through which you can at the same time will that it should become universal law’ (Fryer, 2015,

p. 100). Essentially what he is saying with this formula is think about what our ultimate goal is

and our reason for this goal—maxim—and act on it only after we have asked what would happen

if our maxim was universal law and everyone adopted that same maxim. With this formula in

mind, we can take a look at Nio’s story and mission. Simply put, Nio shares “optimism for the

future of a global society” (About Nio, 2022, para 3). Nio’s mission states that they aim to shape

a joyful lifestyle and a more sustainable tomorrow. The company’s motto is “blue sky coming”.

This phrase comes from when the founder of the company walked outside and the pollution was

so bad in China it made the sky grey, he wanted to make an impact and “bring the blue sky back”

(Earth Day, 2021, para. 3). Nio has pushed many initiatives with the environment in mind. In 2020

they created the Blue Point Plan to reduce carbon emissions. In 2021 they began using recycled

materials leftover from vehicle production in a new line of fashion products. Further, on earth
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day 2022 Nio announced a strategic partnership with the World Wildlife Fund to create clean,

national parks and nature reserves through China (Zhang, 2022). Based on the Kantian formula,

this seems to pass the test.

Immanual Kant’s second formula is the formula of the end in itself. This formula is stated

as: “act in such a way that you always treat humanity, whether in your own person or in the

person of any other, never simply as a means, but always at the same time as and end” (Fryer,

2015, p. 104). Do not value someone just because they will help you achieve a goal, but rather

treat them as they have value in their own right. When we look at this formula and relate it back

to the way Nio acts as well as the product they manufacture, it is clear that this fits within their

overall mission and company values. Nio considers itself to be a user-centric organization which

means that everything they do comes with the users best interest in mind as the center point of

focus. Additionally, Nio does not refer to “customers” but rather “users” and even “partners”. In

a forum held for EV industry innovation Nio’s CEO, William Li announced that Nio thrives on

thinking from a users perspective and “user is the very first reason for us to found this company”

(NIO PR, 2016, para. 10). Again, with users in mind they are not only a means to an end, they hold

all of the value in their own right.

Finally, Kant’s third formula is the formula of universal acceptability. This formula assesses

the ethicality of specific actions and suggests that we should only do things that we believe other

people would find acceptable (Fryer, 2015)—only act in ways that you would be happy for

everybody to know about. Essentially, the rule of thought has been boiled down to “if you would

be uncomfortable if your actions were reported in the press, you can be fairly sure that they are

of doubtful moral status” (Crane and Matten, 2010, p. 16). This particular formula is a little more
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difficult to quantify while researching a company for one reason: if there are no uncomfortable

reports about your organization, it is to be assumed that they are falling in line to the formula of

universal acceptability. We have to look at the intention of Nio’s products and services. Can an

electric vehicle be universally acceptable?

It is reasonable to believe that through Nio’s business practices, products developed,

service and its mission and value they are conducting business in an ethical manner that

ultimately fulfills the Kantian formulas of duty.

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References

Crane, A. and Matten, D. (2010). Business Ethics (3rd edn). Oxford: Oxford University Press.

Earth Day, Blue Sky Coming & Earth Day. (2021). Retrieved from

https://www.nio.com/blog/blue-sky-coming-earth-day

Fryer, M. (2015). Ethics Theory & Business Practice. (1st ed). London, England. Sage

Publishing

About Nio. (2022). Retrieved from NIO.com https://www.nio.com/about

Nio PR. (2016, Jan 25). There is No Future if an EV Car cannot provide a better customer

experience. Retrieved from https://www.nio.com/news/there-no-future-if-ev-car-

cannot-provide-better-customer-experience

Zhang, P. (2022) NIO Reaches Strategic Partnership with WWF on Protecting National Parks.

Retrieved from https://cnevpost.com/2022/04/22/nio-reaches-strategic-partnership-

with-wwf-on-protecting-national-parks/