Nike: From Sweatshops to Leadership in Employment Practice Introduction In the current global scenario, companies are meeting with critical challenges of conducting their operations in a manner that is ethically responsible towards the society and the environment…
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Different ethical dilemmas have arisen in the organization due to various undesirable situations and behaviors in the business which was considered threatening for the ethical image of the brand. But the company set an example by meeting the challenges successfully through major changes in their ethical management and auditing processes. The company now acts with fairness and equality and encourages the employee rights as a major strategy in their business objective formulation. Discern how a more effective ethics programs and a more viable code of conduct could have mitigated the ethical issues faced by Nike. Nike has faced major ethical issues in its business processes within the company. The global business of Nike has faced with critical ethical challenges mainly the sweatshop issue. The sweatshop problems and the allegations of using child labor were main ethical challenges confronted by the business. In countries like China, Indonesia and Vietnam, the company faced the issue of paying low wages and exploiting the labors into working overtime under the agreements in the subcontracts. The company was also condemned for poor and harmful working conditions in their manufacturing factories and for using forced labor for the production of their products. The business also faced severe allegations due to the environmental damages including air and water pollution and ecological hazards caused by its production processes. The government rules and regulations vary in different countries and Nike faced a major problem regarding the ethical compliance to the laws in its international manufacturing operations. In the different countries like Vietnam, China and Indonesia where Nike faced the major ethical issues, the governments played a major role in accelerating the ethical concerns. The host governments of different countries make regulatory laws and reforms regarding employment, safety of the workers, protection of consumers, wages and salaries and information. The governments in these countries where Nike was running its operations turned a blind eye towards the low wages and the poor working conditions of the laborers in the factories of Nike. The wages were insufficient compared to the minimum requirement for a living standard. Also, the governments did not have proper laws against the child labor and sweatshop issues. Describe an ethics training and communications program that may have kept Nike from encountering the ethical issues it did in this scenario. The company should have implemented multidimensional performance appraisal system in the company to reward and facilitate the employees for growth and development. The early adoption of effective ethics training and communication programs would have negated the problematic behavior of the employees by creating transparency between the management and the employees. These strategies would also include commitment to human rights, development of ethics, good working conditions for the labors, involvement of the communities, customer satisfaction and respect for diverse cultures and backgrounds. These would effectively make the employees more professional and help to maintain the ethical standard of the company throughout its international operations. The major ethical factors to be considered in Nike for designing and implementing an effective program for the business from the ethical perspective are: Ethical
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This case analysis is based upon the practices carried out by Nike that led to its negative position and cost it almost 50 % loss of shares in the stock market. It further talks about the challenges that Nike had to face and what it did to rescue its down going reputation. Apart from this certain recommendations have also been presented.
The company leads globally in the design and supply of athletic apparel and shoes, and sports equipment. In its 2008 fiscal year, the company recorded an excess of US$18.6 billion in its revenue and it employed over 30,000 people globally. According to The Oregon, Precision Castparts and Nike are the only Fortune 500 corporations headquartered in state of Oregon.
Sweatshops have been operating since the early 1880s when the “Spanish conquerors put the native population of the South American continent to work in sweatshop conditions in the manufacture of cloth, rough garments, and assorted textile goods.” (“Sweatshops”1). By the early 1900s, sweatshops had spread throughout the United States.
The expansion that followed was fast. This was due to the purchasing of other organic goods outlets in the areas they sought to expand (Jones and Hill 288). This trend has continued up to today. By 2004, Whole Foods had lengthened its operations outside the US, first, into England.
On the other hand, it leads to understanding of individual and group behavior, organizational dynamics, and interpersonal processes with the goal of improving the performance of organizations and the people in them. Strength of the Nike Company Nike Company finds Organizational Behavior important since it helps employees to interact more effectively in their work place.
According to this particular leader, nothing can change in overnight and thus everyone needs to keep patience. Every individual and organization can achieve their respective expected goals but they should needs to be persistent in adopting as well as executing different effective strategies.
However, this does not conclude the company’s good faith. Over the years, Nike has also been accused of violating human rights and thus, these issues have cropped up and led to the fall and loss of face for
ajor manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (Brian, 2002).The brand alone is valued at $10.7 billion, making it the most valuable brand among sports businesses.
Due to its presence in many countries, Nike has had to
Nike came into existence when Phil Knight met track coach Bill Bowerman in 1957. The two formed the Blue Ribbon Sports in 1962. Initially, the enterprise was importing high-tech sport shoes from Japan. In 1971, it began to subcontract its own shoe line and in 1972, the Nike brand was launched (Allen, 2006).
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