Nike Company Ethical Issue - Essay Example

According to Timothy Ryan, a director for the American Center for International Labor Solidarity, the collapse of the factory was due to a lack of regulations by the governments while Nike is constructing its factories. Prior to the collapse, Nike workers noticed cracks in the building but they were informed to report to work the following day. This was an indication of negligence on the part of the management. The management team in Bangladesh and at the parent company in the US experienced bitter regret due to the death and injuries that occurred within Nike premises.

Nike, a company that was established in 1964 as Blue Ribbon Sports and later rebranded as Nike Inc in 1971, undertook various strategies to deal with a negative public image that arose out of the collapse of the building. The accident resulted in a bad relationship between the company and the families who were affected. The employees on their part lost motivation and feared working for the company. Nike undertook the ultimate action of checking all its factories globally and maintenance was initiated in most factories. The company also started extensive corporate social responsibilities such as joining Michelle Obama’s ‘Let's Move campaign that aims at reducing child obesity. In this way, it regained a certain amount of value. Currently, Nike has a strong value for ethics and continues to provide proper working conditions. The situation could have been made better if the company employed more workers from the affected families and freely provide them with needed skills as well as giving them higher salaries.