[153] „Armstrong`s termination as a Nike brand advocate was probably facilitated by the inclusion of a „moral clause“ largely formulated in the cyclist`s contract with Nike. Morality clauses are generally formulated in such a way that a mark can immediately terminate an approval contract without penalty if the athlete acts in a certain way that would damage the reputation of the mark. Darren Heitner, Lance Armstrong`s Nike Disassociation makes Nike a stronger brand, Forbes (October 17, 2012, 10:22), www.forbes.com/sites/darrenheitner/2012/10/17/nikes-disassociation-from-lance-armstrong-makes-nike-a-stronger-brand/. In the late 1940s and 1950s, film studios used clauses more often to challenge political speech than immoral behaviour. [22] For example, moralization clauses were used to lay off controversial talents known as the Hollywood Ten. [23] These ten influential actors and screenwriters were imprisoned by major film studios and blacklisted for publicly denouncing the activities of the House Committee on Un-American Activities (HUAC) during its investigation into communist influence in Hollywood at the height of the McCarthy era. [24] „Fearing a widespread boycott amid a decline in the market share of consumer leisure spending, studios used the moral clause, a customary clause in talent contracts for 25 years, to end the outrageous Hollywood ten and distance themselves.“ [25] The disputed activity and its perceived effects on the studio`s image were cited as grounds for dismissal. [26] This is a well-developed morality clause. A morality clause allows the employer to unilaterally terminate an employment contract when the employee demonstrates certain defined behaviours. The actual language of moral clauses can vary considerably from industry to industry. Moral clauses or moral clauses return to the era of movements #MeToo and Time`s Up. A model morality clause in an acting talent agreement may be as follows: [123] According to the NHL standard player, 2 (e), each NHL player undertakes to „behave on and off the ice to the highest standards of honesty, morality, fair play and sport, and to refrain from behaving that harms the best interests of the club, the league or professional hockey in general.“ Collective agreement between the National Hockey League and the National Hockey League Players Association, around 245 (2005), available at www.nhl.com/cba/2005-CBA.pdf.
A morality clause allows an employer to dismiss an employee for conduct in service that violates the ethical expectations of the employer set out in the employment contract. Employers find morality clauses attractive because they provide additional grounds for the dismissal of a worker subject to an employment contract. A morality clause allows an employer to immediately prohibit certain behaviours, eliminating the conundrum of slogans such as „cause only“ and drawing the employee`s attention to behavioural expectations.