Nike's Unethical Business Practices

In: Business and Management

Nike Inc.
Nike’s Unethical Business Practices

Nike’s Unethical Business Practices
Love those Nike shoes your wearing? Have you ever thought how they were made, who made them, and at what price they were made at? I bet you probably don’t. I bet that you see those Nike shoes at the store, and think to yourself, “oh I like those shoes, I have to have them,” and then buy them. What you don’t know is that those pair of shoes you just bought were probably made in a third world factory by employees who are probably working in harsh working conditions. These factories are not owned and operated by Nike, but contracted by Nike. Nike chooses to locate the majority of their production in such countries because of the abundance of cheap labor. Nike contracts factories around the world in effort to get the best product for the cheapest price made, without concern for contracted factory employee. Nike has not been concerned about what goes on in these factories only that the product is made, because Nike is not in the business for Human Rights, they’re in the business of athletic shoes sales.
The Ethical Dilemma
Nike has been accused with human rights violations. The charges that were made against Nike include the following: the use of child labor in factories, unsafe working conditions including exposure to toxic chemicals and the use of machinery without the proper safety precautions, pay below minimum wage and forced overtime hours. The contracted factories Nike uses to produce its shoes have not operated in a way as to promote human rights. This becomes an ethical dilemma for Nike. The ethical dilemma Nike faces is whether or not to continue to benefit from cheap labor practices or spend more money to allow the contracted factories to improve its working conditions. Although Nike is profiting from the cheap labor cost of production, the contracted factory is employing...

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