According to the research findings the companies should adapt such policies and measures which will not only benefit them but will also promote the welfare of all the stakeholders who are related to the activities of the companies in other words ethical practices cannot be compromised for individual gains…
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The intention of this study is business ethics as the ethical principles that should be maintained by a company. The company has to maintain the work ethics properly. There are some laws and companies are bound to maintain those. The companies have to make sure that no fraudulent is taken place in the organization and the reports (financial and non-financial) should be transparent as these are used by the stakeholders of the company. The company has to make sure that the human resources of the company are maintained effectively and the dignity of the company employees is maintained properly. There are many companies in the world who are not maintaining the ethics properly and as a result they are criticized throughout the world. A company which is not maintaining the business ethics properly they are opposed by the human rights commission or the local political bodies, also the employees get demoralised as they are not treated properly, as well as the operating efficiency of the employees decrease. There are three normative theories that exist currently which focuses on the human life aspects related to the business relationships. Nike Inc is a publicly traded company based in United States. It is the major supplier of apparel and sports shoes, along with this is a large supplier of sports equipment. The company is the market leader of the industry. The company is a fortune 500 company. There are four main subsidiaries of Nike. These are Umbro, Cole Haan, Coverse Inc, Hurley International. There are more than 30000 people are working with Nike at present. The multinational company is doing business in 45 countries and the manufacturing factories are mainly located mainly in Asia (Nike, 2010, p.4-7). In Asia they can get the low cost labours, as a result their operating cost getting lower and they can generate more profit. For the unethical business practices of Nike they are criticised throughout the world. Apart from the criticisms Nike is a company which has competency in innovations. With the innovative process of production, marketing process the company becomes the market leader of the industry in which they operate. 3 Main ethical dilemmas Nike is not maintaining the business ethics in its operations. Nike used to manufacture the products in the third world countries where they can get the low cost labours. They are paying much low wages to the workers than the standard; also they are forcing the labours to work overtime as well as they are employing the child labours. For these unethical practices Nike is facing many lawsuits throughout the world by the Human Rights Commission and other local government bodies. 3.1 External analysis For doing the external analysis of a company PESTLE analysis is an important tool which is widely used by the analysts. The pestle analysis of Nike is as follows Political factors: Nike is a company whose area of business is worldwide. So it has to face different political conditions throughout the world. The main area of operation of Nike is U.S.A. and the euro zone. Inside Euro Zone it is easier for the company to do trade as there is no need to consider the exchange rates as the currency is common there. There are also the pressure groups who are trying to ban the methods of manufacturing Nike use. As Nike is not use effectively the work force of the country so they are facing political pressure throughout the world. Economical Factors: As Nike is the company doing the business worldwide, they have to face different economic conditions throug
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Ethical audit report case study: Nike.
This paper concentrates on analyzing the business ethics of Nike by making use of data collected from Nike on a global basis. In the global market place companies like Nike are expected to set a global standard. The company Nike faces ethical dilemmas in relation to advertising and employee work standards adopted especially in Asia.
Tesco Plc was established by Jack Cohen in the year 1919. It deals in products such as groceries, financial services, consumers’ goods and telecommunications. The company has over 492,000 employees and over 3,729 stores globally (Tesco Plc, 2011) (For further information on Tesco Plc – please see Appendix A).
Nike holds a strong and profitable market share across all markets, proof of which is that the American market leader Warren Buffet has .7% of his portfolio dedicated to the company which gives the stock the seal of trustworthiness.1 Nike has a stellar reputation for its products, with high quality and careful branding creating demand from the public.
Nike operates in the textile industry, which has its own unique set of environmental problems such as: large fossil fuel and raw material consumption; increased water deficits; pollution of land, air, and waterways .
Over the years Nike has structured its production and market strategy to promote this very fact. The brand’s well known and iconic slogan “Just Do It!” also works to further this view and perception of the brand. Nike promotes the fact that skill is better than inherent strength.
Besides, the operating environment for several business organizations has to contend with the upshots of climate change and the global fiscal crisis. The recognition of this reality together with the development of response strategies constitutes responsible business.
Financial leader Warren Buffet has 0.7% of his portfolio dedicated to stock in Nike, Inc. (Warren, 2009), allowing the assumption that the stock is a trustworthy investment. While the reputation of Nike products is one of quality, with a branding the results in a coveted
There are two major perceptions on the external audit report. First, the audit report affirms whether the financial reports are fairly presented, true, qualified or adversely reported. Second, the audit report must be enhanced in order to keep abreast of the new
In 2008, Nike had employed over 34, 400 workers in its facilities across the world. Furthermore, its affiliated companies and contractors are estimated to employ 650, 000 people in various contracted facilities across the world. Of these workers, over 75% are employed
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