Nike Dilemmas

In: Social Issues

Submitted By adyneocps
Words 1725
Pages 7
Nike Dilemma: Still waiting for them to "do it"!
Another corporate giant having its fare share of controversies over the years is Nike. Nike employs approximately 26,000 people worldwide. In addition, approximately 650,000 workers are employed in Nike contracted factories around the globe. More than 75% of these work in Asia, predominantly in China, Thailand, Indonesia, Vietnam, Korea and Malaysia (Nike 2006). In 1998 Nike came under fire for the sweatshop conditions of the workers in the Nike factories in China and other third world countries. The evidence showed that the workers were regularly subject to physical punishment and sexual abuse and exposed to dangerous chemicals. (Nike Accused of Lying About Asian Factories 1998). Sub standard working facilities, bare minimum wages and risks to health of labourers mark NIKE factories in Asia. The firm was also accused of practicing child labour in Pakistan.
So the question now is, why did it happen, and more importantly, has anything been done since to correct it.
So why did it happen?
Well that is quite clear. The reason why most firms outsource their activities to lesser developed countries is to exploit cheaper labour and production costs. Nike has a brand reputation worldwide, and in-fact is a market leader in the sales of athletic shoes. The constant focus is to formulate ways and strategies to reduce production costs, and one way of that is fewer wages to the workers. The high unemployment levels in the third world countries, as well as the desperation for people to be employed, in any kind of work, allows multinationals like Nike , the perfect platform to indulge in malpractices without getting into too much trouble. A look at some of the ethical issues concerned with Nike's human (or inhuman!) right violations would give a better understanding of the concern.
Ethical Dilemma:
Any firm which expands its…...

Similar Documents


...Nike - Social and Ethical Issues Nike has become one of those global companies targeted by a broad range of campaigning pressure groups and journalists as a symbolic representation of the business in society. In Nike’s case, the issues are those of human rights and conditions for workers in factories in developing countries. In the face of constant accusations, Nike has developed a considered response but the criticism of Nike still continues. Nike produces footwear, clothing, equipment and accessory products for the sports and athletic market. It is the largest seller of such garments in the world. It sells to approximately 19,000 retail accounts in the US, and then in approximately 140 countries around the world. Just about all of its products are manufactured by independent contractors with footwear products in particular being manufactured in developing countries. The company manufactures in China, Taiwan, Korea, and Mexico as well as in the US and in Italy. The Global Alliance report on the factories in Indonesia gave the following workforce profile: 58% of them are young adults between 20 and 24 years old, and 83% are women. Few have work-related skills when they arrive at the factory. Nike has around 700 contract factories, within which around 20% of the workers are creating Nike products. Conditions for these workers have been a source of heated debate, with allegations made by campaigns of poor......

Words: 1737 - Pages: 7


...Ethical Case Analysis: Nike Introduction Nike was established in 1972 by Bill Bowerman and Phil Knight. These two men were visionaries. The goal for Nike was to carry on Bowerman’s legacy of innovative thinking by helping every athlete reach their goal or by creating lucrative business opportunities that would set the company apart from any competition. This included providing quality work environments for all who were employed by Nike. However, Nike has long been eluding allegations of employing people in the developing and under-developed economies, at low wages and poor working conditions for a long time. Nike tried many different measures of correcting its image as well many public relations measures to help salvage the image the public had of them after images of Nike employees working in sweatshops were released. In this essay, we will look at Nike’s international business operations and analyze the ethical issues and dilemmas they are faced with as a result of manufacturing their goods on foreign soil. Areas of Concern Some areas of concern for Nike include poor working conditions, low wages, child labor, as well as health concerns in the factories. These are all areas of concern where ethics is involved. Ethics is the generic term for the science of our morals. The executives at Nike have been accused of many ethical dilemmas. For example, poor working......

Words: 1448 - Pages: 6


...Nike, Inc. and Sweatshops Over the years Nike has been called out for their unethical practices in shoe making. Nike does not actually make shoes but has subcontractors who do and Nike just sells them with their logo on them. The blame of being unethical in this came with the sweatshops is held with both Nike and the subcontractors. This is because Nike has an amoral style of management in regards to utilizing foreign production facilities, more commonly known as sweatshops, for cheaper labor to produce their products. The term amoral management appears to encompass both ends of the morality spectrum; moral management conforms with the highest standards of ethics and professional behavior whereas immoral management is a complete disregard for ethical principles that imply an active opposition to ethical behavior. Amoral management lacks the moral awareness of being moral management, either intentionally or unintentionally, and pretends to be more focused on acting lawful not necessarily being lawful. The focus of this case is the ethical dilemma Nike is faced with because of their ongoing use of sweatshops to manufacture their shoes with low cost so as to maximize the company’s profits. When Nike was first introduced they were an American made product but soon sought to outsource their labor to meet growing demands. It was not until Kathy Lee Gifford discovered that her clothing line was being made in sweatshops did anyone really start to take interest in the company......

Words: 1073 - Pages: 5


...Nike Fortune 500 Company Analysis Park University MG495 Abstract This paper will discuss the successful, multi-national, athletic, and Fortune 500 company, Nike. Nike is one of the most recognized companies today and has created products and an image that companies all around the world dream to achieve. Through a straight forward mission statement that encompasses their vision, Nike is able to show how devoted they are to satisfying their customers' needs and going beyond that to ensure their customers only receive quality products and services. Nike’s extensive history, dating back to the 1950’s only adds to its impressive reputation in the athletics industry. It’s properly researched, developed and managed marketing strategy has given Nike the advantage over its competitors and has helped to ensure the company will lasts for years to come. The company was founded on the premise that it wanted to be the industry leader and develop products to help athletes perform at the highest standards. From the very begging Nike has done everything to achieve and maintain that balance and it still is the industry leader today. Nike History Bill Bowerman was a track coach for Oregon in the 1950’s. He was always seeking new ways to get a competitive advantage amongst his competitors. He tried everything from experimenting with running surface compounds, hydration, nutrition, and just about anything else you could think of to gain an advantage. He tried pitching it to all of......

Words: 2858 - Pages: 12


...Nike Outline I. INTRODUCTION Paragraph No. A. Nike Described + Thesis: Many people can prove that Nike is a company 1 that continues to push the boundaries of design and performance, promoting freedom and choice, but these same people leave out the obvious facts that show how this company exploits third world countries by using cheap labor. II. History of Nike Inc. A. Founders B. Co-founding business 2 C. Business Success 3 III. Anti-Nike A. Cheap labor 4 B. Definition of sweatshops 5 C. Locations of sweatshops 6 D. Working conditions 7-8 IV. Nike Defended A. Ruined reputation 9-11 B. Target of organizational protests 12-13 C. Significant progress 14 V. Conclusion 15 1 We all know the slogan, "Just Do It," that Nike developed to sell its products. But just do what? Nike is a company-- young and yet mature--developed and respected by popular athletes both past and present, whose icon remains a "swoosh" printed both large and small on many different forms of apparel. The "swoosh" constitutes a dream of being the best because it is associated with the best. Steve Prefontaine, Michael Jordan, and Tiger Woods are all icons that helped Nike promote its excellence by all three being exceedingly successful in their respective sports ("Our History" ½). Many people can prove that Nike is a company that continues to push the boundaries of design and performance, promoting freedom and choice, but these same......

Words: 2018 - Pages: 9


...Introduction The Nike Corporation is rightfully considered one of the most successful international corporations. Despite its status of the leading athletic shoe and apparel producer, the company’s image has been marred with frequent accusations of exploiting underpaid employees in places like China, Indonesia, Thailand and Vietnam (Fung, O’Rourke, Sabel, & Cohen, 2001). Although a great deal of responsibility does fall on the company’s management, it is also the governments of host countries who should be blamed for allowing sweatshops operation in their states. Nike has a subcontract with the host countries and the stated reports of Nike weren’t Nike’s doing. Media has been spinning for a while reports about Nike taking advantage of children, who, admittedly, have been working overtime and under hazardous conditions while receiving less than minimal wages. La Botz (2001), for example, reports that Nike was committing acts in some Asian host countries that would not be legally allowed in the United States. It was found that Nike was committing acts in the countries where its subcontracting manufacturers were housed that would be considered illegal in the United States (La Botz, 2001). Those illegal acts included child labor, labor laws, and physical working conditions. This example proves that while expanding globally, any responsible corporation needs to carefully calculate what legal, ethical, social, and environmental impact it might have in a host country. Nike......

Words: 690 - Pages: 3


...Buy Nike and feel good A company's social responsibility is the biggest keyword for companies these years. The demand has never been greater than it is today, compared to, if you look at the way it once was. Consumers today do not only think of where their shirts are made, but also on the environment. Companies have never thought as much as they do now on their supply chain, and most important, protecting the environment. Nike´s CSR slogan is “innovate for a better world”. In the 1990´s Nike had several accusations of child labour, and it was something everybody talked about. At this point Nike´s brand was totally ruined, and they had got a bad reputation. It took Nike many years to actually realize how important it was to take responsibility for what was happening in the big supply chain, which is at its lowest at this point. They went from just focusing on improve their labour, but also be very focused on their design. Nike´s design had to been changed; and they got to cut down the waste of chemicals when they are producing products. In the video, Mark Parker, says “Innovate for a better world”, and that is not just something you say to get more customers, it is because they want to reach their positional, to improve their products, so the athletes can perform much better, and most important, saving the world. Every new design Nike is producing today is thought through so the environmental impact is minimal. You can say that Nike is no longer a shoe producer; today they...

Words: 720 - Pages: 3


...Nike: The Sweatshop Debate Nike is a well-known global corporation. Recognized for its catchy “Just Do It!” slogan and the world-class athletes that represent the brand. Nike was established in 1972 by Phil Knight a former collegiate track star whom enthusiasm has lead the company to become the leading provider of athletic shoes and apparel in the world. Although, Nike is a multiple billion-dollar company they have faced several challenges in the way they conduct international business. Nike produces their products in factories all over the world. Many of these factories are located in the world’s poorest countries with low minimum wage standards and poor employee rights. Nike has been criticized for the selection of their factory locations; some people even refer to these outsourced places as “sweatshops.” This has caused legal, cultural and ethical challenges for Nike. Critics have protested that Nike has failed to follow the child labor laws in the countries they have entered, hiring under age children and making them work for long hours with little pay. For example a Korean subcontractor hired by Nike was hiring children as young as 13 years old, paying them 10 cents an hour and working them 17 hours a day. The countries that Nike subcontracts to such as the Vietnams, China and Indonesia are cultural poor. Most people are just happy to have a job and Nike is thought to have taken advantage of this fact. “Nike’s wealth, its detractors claimed, was built upon the......

Words: 637 - Pages: 3


...Nike and the Negative Controversy with Sweatshops ABSTRACT The following will discuss the ethical and social issues in the Nike, Inc. and Sweatshops case. It will also discuss why Nike should be held responsible for what happens in factories that it does not own, and whether Nike has a responsibility to ensure that factory workers receive a “living wage”. It will also discuss if the wage guidelines of FLA or WRC seem most appropriate. Finally it will discuss if it is ethical for Nike to pay endorsers millions while its factory employees receive a few dollars a day. There are a number of ethical issues that surround the Nike, Inc. and Sweatshop case study. The most important ethical issue is the accusation of their products being made by children in foreign countries receiving a low wage for a day’s work. Ethically Nike should not tolerate underage child labor and should have taken all necessary action to make sure it is not happening. In 2001, Nike came around and says they should have handled the accusations regarding the sweatshop issue better and should have been monitoring their subcontractors closer to make sure this issue was not happening. They wanted to ensure their business was still successful in the years to come, and took the steps necessary in order to regain the public’s confidence again. A social issue regarding the case is when Nike refused to make the personalized shoes for Peretti when he requested the...

Words: 728 - Pages: 3


...Nike HR Roadmap Page 1 Introduction The Nike Corporation started back in 1957 when the two gentlemen Phil Knight and Bill Bowerman met at the University of Oregon. In 1962 a company in Japan helped market the althetic shoes under the Nike name and logo. Phil night decided to start selling shoes out of the trunk of his car. This was a simple beginning process for the company. From there the company took off. Nike Corporation started off in a very humble way that made them take off to one of the top selling brand of athletic shoes. In this paper we will look at the whole corporation overview and mission. Body There are many reasons that the Nike corporation became successful. Runners really liked the bottom of the running shoe which became a very big seller with its waffle like design. Runners and walkers especially like Nike shoes because of the support that they have on them. "Nike is the active program, our shareholders, our customers reflect the world of family care and provide services to Nike through the Director of Corporate Citizenship." Nike has one mission statement: To carry out the legacy of innovative thinking left by the founding members by developing products that enable athletes of all abilities to maximize their potential while beating competition and creating value for shareholders. Nikes headquarters are located in Beaverton, Oregon in Portland and the company operates in more than 160 countries all over the world with......

Words: 1557 - Pages: 7

Nike Ethical Dilemmas

...NIKE - ETHICAL ISSUES AND DILEMMAS INTRODUCTION Nike has been dodging accusations of employing people in the developing and under-developed economies, at low wages and poor working conditions for a considerable period of time. Having tried course correction and public relations as a measure to salvage the bad image generated by the sweatshops that Nike is accused of running, Nike has undertaken massive efforts to overcome these hurdles. Herein we will analyze Nike's international business operations with a critical eye over the ethical issues and dilemmas that this organization has faced while manufacturing its goods in foreign lands. PROBLEM AREAS There are a number of areas that are seen as weak points or links in this Nike case. We shall first highlight the problem areas and then dive into the ethical theories that are supposed to govern them. According to the Wikipedia dictionary, ethics is defined as a general term for the science of morality. While this branch of study can be further sub-divided into various categories, we have to remember that what is appropriate in a given situation may not be so among different circumstances and the decision of right or wrong is relative to its surroundings. Elaborated here are the issues and problems that stand out due to their ethical nature as issues or dilemmas faced by Nike and its operations towards its employees and customers as mentioned in the case study: Poor Working Conditions - In Nike factories, the laborers were......

Words: 2054 - Pages: 9


...Nike is one of the largest public sportswear and equipment suppliers, with the leading edge in athletic sneakers, apparel, and sports equipment in the world. Nike has been ranked the most powerful sports brand by Forbes magazine, in early 2011. Nike started out as a small distributing company for Asics and now has become a global success. In 1964 Bill Bowerman, the coach of the track and field team for the University of Oregon, as well as one of the runners Phil Knight, started distributing running sneakers for the company “Onsitsuka Tiger” (now known as Asics), in the back of Phil’s car. With profits increasing and popularity growing, by 1967 Blue Ribbon Sports was opening their first retail store in Santa Monica, California. During 1971, Blue Ribbon Sports started to expand, and Phil Knight and Bill Bowerman started preparing their own footwear line. The infamous swoosh was developed in 1971 by Carolyn Davidson. This was the start of Nikes journey to becoming the most powerful sports company in the world today. The first shoe released to the public was a soccer shoe named Nike, which was released in the summer of 1971. Early 1972 the first line of Nike shoes was released. In 1978 Blue Ribbon Sports officially renamed itself Nike. The waffle design was Nike’s first self-designed product. Bill Bowerman and Phil Knight started experimenting with different out soles to increase traction and efficiency. The waffle trainer was a hit. By 1980 Nike captured 50% of the United......

Words: 1694 - Pages: 7


...Nike is a successful company that has been in business since 1972. Throughout the decades, Nike has built up its brand to one that is respected and sought after. Nike has grown its brand name through the acquisitions and partnerships of many other brands (Hurley, Umbro, Cole Haan, and Converse) to provide to its customer different products that suit every athletic need. In order for Nike to gain success in its growth, the company follows the four functions of management: planning, organizing, leading, and controlling. External and internal factors play unique roles into how the company carries out each of these functions. In contingency to the functions, factors such as globalization, technology, innovation, diversity, and ethics affect how the company manages the business. This paper identifies how Nike successfully manages their business through the four functions of management and the various factors that affect them The four functions of management at Nike can be affected by various factors such as globalization, technology, innovation, diversity, and ethics. Globalization affects planning because Nike is a global company and needs to set objectives for growth in markets inside many countries. Nike announced on January 9, 2012 that they are building a 600,000 square foot headquarters in Shanghai, China to centralize their employees in China, which would allow them to develop a greater focus and competitive advantage in the China market (Nike, 2012). With such an......

Words: 1283 - Pages: 6


...Iconography Explained Nike's Heritage NIKE, pronounced NI-KEY, is the winged goddess of victory according to Greek mythology. She sat at the side of Zeus, the ruler of the Olympic pantheon, in Olympus. A mystical presence, symbolizing victorious encounters, NIKE presided over history's earliest battlefields. A Greek would say, "When we go to battle and win, we say it is NIKE." Synonymous with honored conquest, NIKE is the twentieth century footwear that lifts the world's greatest athletes to new levels of mastery and achievement. The NIKE 'swoosh' embodies the spirit of the winged goddess who inspired the most courageous and chivalrous warriors at the dawn of civilization. (from Nike Consumer Affairs packet, 1996) The Swoosh The SWOOSH logo is a graphic design created by Caroline Davidson in 1971. It represents the wing of the Greek Goddess NIKE. Caroline Davidson was a student at Portland State University in advertising. She met Phil Knight while he was teaching accounting classes and she started doing some freelance work for his company. Phil Knight asked Caroline to design a logo that could be placed on the side of a shoe. She handed him the SWOOSH, he handed her $35.00. In spring of 1972, the first shoe with the NIKE SWOOSH was introduced.....the rest is history! (from Nike Consumer Affairs packet, 1996) A brief history of Nike The Nike athletic machine began as a......

Words: 3267 - Pages: 14


...Cathy Buckland Nike MKTG305-1202A-05 Marketing Management Project Type: Unit 4 Individual Project April 15, 2012 Abstract To get the word out many companies have turned to television and actors and actress for advertising. Nike has made its way through many changes and it has been able to focus on its marketing mix through television ads as well as using billboards, and magazines. Nike Introduction Targeting the market is what every company faces in order to increase sales and in order to keep their company in business. Nike has proven to be able corner and stay one step ahead of the market even in a trying economy it uses athletes, actors and actresses to keep its company going. The brand in today’s market Nike currently has a 47% control of the market with its athletic shoes with sales in the U.S. at 3.7 billion dollars. Nike also targets the market in well over 100 countries which include Europe, and Asia Pacific. Since Nike is such a large producer of many different products its targeting market varies. Nike athletic shoes have been very popular with both the younger crowd as well as adults. Its products are designed with quality this along with the ability to use marketing strategies has continued to keep this company at the top of the list. Nike has used athletes such as Michael Jordan, and Lebron James to promote their products. The strategy allows for the consumers to wear products that they believe in because of the superstar wearing......

Words: 1412 - Pages: 6