...Sweatshops in Bangladesh: An Ethical Dilemma Kristy Kennedy Legal, Ethical & Social Issues EAMBA 24 February 15, 2014 On April 25th of this year, a garment factory in Bangladesh collapsed, killing hundreds of workers. Fearing a backlash of negative publicity, U.S companies that outsource to garment factories in Bangladesh are questioning whether they should continue operations there; association with unsafe factories could tarnish a company’s reputation. Nike, for one, has already addressed their concern over the working conditions in Bangladesh and is minimizing their outsourcing operations there. An article in Forbes, “Sweatshops In Bangladesh Improve The Lives Of Their Workers, And Boost Growth”, discusses the negative consequences that would follow if companies abandon garment factories in Bangladesh. The 4 million workers in garment factories in Bangladesh could face a worse fate without the income from this job. The average “sweatshop” worker in garment factories in Bangladesh makes $2 a day. 77 percent of Bangladeshis make less then $2 a day. Moreover, if companies abandon these factories, they will slow the economic development needed to achieve improvements in safety for factory workers. Calling for improvements in safety standards in these factories does not take into account the impact it will have on these workers. Increases in costs due to new safety measures will likely result in a lower income for workers already struggling to “feed, clothe, and...
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...define right and wrong conduct. Professional philosophers use the term ‘ethics’ to refer to the systematic study of these rules or principles, but the companies shall accept the more common definition and focus on the principles themselves. Ethical rules embody the idea of morality or, in other words, notion of what is morally right and good, as well as those things considered to be morally wrong and bad. Ethical rules and conduct attempt to be provide guidelines for human behavior that will preserve a society’s. a group’s or an individual person’s notion of morality. 1.0.2 Why Ethical Practices Are Important? Ethics involves trust and fairness. Ethics is a code of demeanor that dictates an individual's or group's actions. Numerous triumphant business owners comprehend the significance of ethical practice for the reason that failure is plausible devoid of it. The consequence of a business that employs ethical practices are customer loyalty, and finding a corporation that you can reliance is forever in demand. Additionally, ethical deeds and corporate social accountability can attract significant benefits to a business. Moreover, people who work in business will be protected by their high ethical performance. Business would reap many rewards in the form of high morale and improved activity by treating the employees with dignity and integrity. It’s beneficial to all situations for the firm, its employees and society. Nevertheless,...
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...Global Business Ethics-Nike’s Sweatshops Ann T. Dale MGT/216 Global Business Ethics-Nike’s Sweatshops Nike is a worldwide sports name in wear and equipment. So, why is Nike’s ethics in question? Has greed and publicity become their motto at any costs? Nike spends multimillion dollars a year hiring well-known athletes to advertise their products yet cannot seem to stay out of the media’s eye of their contracting or subcontracting techniques of their products to be built in third world countries. In 1996, Nike has been charged by critics with engaging in a variety of unethical employment practices in countries that exercise little or no control over the conditions of labor or whose governments are corrupt and can be bought off (De George, 2006, chap. 20). In dealing with business issues, a company needs to be aware (what are the issues), articulate (justify and express decisions), and application (reach a decision, train and explain ethics to employees). Ethical behavior has to start at the top of a company and work its way down. Here we will compare ethical perceptions across cultures about the ethical situation, discuss the ethical issues that became evident due to globalization, and discuss the risks and consequences associated with the Nike ethical dilemma. Compare Ethical Perceptions Across Cultures About the Ethical Situation Trevino and Nelson (2007) defines business best stating the “definition of ethics—the principles, norms, and standards of conduct governing...
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...INTRODUCTION ETHICAL ISSUES IN INTERNATIONAL BUSINESS Employment Practices Management Focus: Making Apple’s iPod Human Rights Environmental Pollution Management Focus: Unocal in Myanmar Corruption Moral Obligations Management Focus: News Corporation in China ETHICAL DILEMMAS THE ROOTS OF UNETHICAL BEHAVIOR Personal Ethics Decision Making Processes Organizational Culture Unrealistic Performance Expectations Leadership Management Focus: Pfizer’s Drug Testing Strategy in Nigeria PHILOSOPHICAL APPROACHES TO ETHICS Straw Men Utilitarian and Kantian Ethics Rights Theories Justice Theories FOCUS ON MANAGERIAL IMPLICATIONS Hiring and Promotion Organization Culture and Leadership Decision-Making Processes Ethics Officers Moral Courage Summary of Decision-Making Steps SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Google in China Learning Objectives 1. Be familiar with the ethical issues faced by international businesses. 2. Recognize an ethical dilemma. 3. Discuss the causes of unethical behavior by managers. 4. Be familiar with the different philosophical approaches to ethics. 5. Know what managers can to do to incorporate ethical considerations into their decision making. Chapter Summary This chapter focuses on how ethical issues can...
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...By definition a sweatshop is a “negatively connoted term for any working environment considered to be unacceptably difficult or dangerous. Sweatshop workers often work long hours for very low pay in horrible conditions, regardless of laws mandating overtime pay and or minimum wage”. Many corporations in the United States use sweatshop labor in countries over seas such as China to produce their products at a lower cost. As entailed in the letter from a man born in China, many citizens on these countries resort to factory labor to support themselves to escape other sources on income such as prostitution. Without these corporations usage of oversea sweatshops these employees would be forced to return to self-demeaning jobs such as these. However, does the mere fact that overseas factory labor is allowing these people to support themselves and their families provide moral justification for the poor work conditions, and low wages that sweatshop labor provides? German philosopher Immanuel Kant would argue that there must be changes made in the politics of sweatshops to improve there conditions. Using his idea of the “Categorical Imperative” and treating people as “valuable in themselves” Kant would not completely take away the opportunity for these people to support themselves working in factories but make it a more humane system. Utilitarian philosophy would identify the good that these sweatshops are providing for the people overseas, and recognize the harm that could be caused to...
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...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 provided...
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...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 protected them by hiring a man to go to these countries and assess the situations in each country. His findings were that the countries fed their employees and with some minor issues the countries were not doing anything out of realm from that country. In their turn, host governments should also share responsibility for the spread of sweatshops in their countries. For example, according to...
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...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 doings...
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...FCC was created to monitor the actions of AT&T. In 1974 The Antitrust Division of the U.S. Department of Justice sued AT&T. If the FCC had not stepped in and demanded more competition we may not have the likes of Sprint, Verizon, and T-mobile in today's marketplace, making it more expensive for the consumer. LEARNING ACTIVITY 2 Determining ethical boundaries can sometimes be a challenge, since ethics is both based on individual beliefs as well as societal standards. Would receiving a holiday gift from a client be considered bribery? Would it be wrong for a person in a position of power, like a mayor, to ask a bank manager friend for a personal loan? On a more practical level, is it unethical for a cashier to provide a coupon to a customer who did not have one at the register? Is it unethical for someone to complete a timesheet recording eight hours of work, when they left 45 minutes early? Select a case study of an ethical dilemma in the workplace. You may use an example from this week’s readings, your professional experience, or a website. Please answer the following questions: 1. What is the ethical dilemma? Describe the individuals...
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...Many of the ethical issues and dilemmas in international business are rooted in the fact that political systems, law, economic development, and culture vary significantly from nation to nation. Consequently, what is considered normal practice in one nation may be considered unethical in others, resulting in bad reputations for UK businesses if found to be linked to business that would be reflected as unethical in the UK. It is important for a multi-national business to behave ethically in order to succeed because the long-term implications of being unethical could result in the business having a negative image. Unethical is considered to be lacking moral principles; unwilling to adhere to proper rules of conduct. If a business is unethical consumers are less likely to buy from the business if their products come from a business whose factories, for example, use child labour or providing misleading information. As a result of this a negative image is developed and the businesses sales will decrease, as the consumers will purchase their products from other businesses whose products are produced in a more ethical way. The decrease in sales will mean that the businesses profitability will also fall. Moreover, due to the negative image the business will also struggle employing workers, as people may not want to work for a business that has an unethical image. One example of a business that has been affected due to being unethical is Nestlé, as in the 1970’s they were causing infant...
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...Nike Case Study Tracy Weispfenning Nike Case Study #1 MGMT 310 Jason Cussler January 31, 2014 Nike Falters in Ethical Practices Nike has faced many ethical dilemmas such as human rights abuses, labor violations, and negative impact on the environment where manufacturing plants are located. Their responses have varied from improving labor standards in each facility to implementing a recycling program for worn out shoes for the consumer, and creating a no waste recycling program at all levels of the Nike operations. In my opinion, Nike is on the right track but could do more in their response to these ethical challenges. Nike has responded to these ethical dilemmas in various ways. They’ve done a good job in anticipating the potential consequences, yet they have not involved enough people in the decision making process. For example, Nike did not take the allegations of human rights abuses and labor violations seriously in their overseas manufacturing plants until nongovernment organizations like Life magazine and The New York Times published articles on these violations. These articles created public awareness and exposed the lack of oversight and policies to ensure the human rights and labor guidelines were fair and enforced. After these articles were published, Nike obtained and implemented a new course of action for protecting workers rights, safety, and competitive wages. Nike should have been aware of these practices, monitoring and reviewing their...
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...advantages and opportunities for businesses once correctly done. Business ethics refers to “managing corporate citizenship and sustainability in the age of globalization” (Crane, A., Dirk, M. 2004). Ethics is broadly concerned with the values underpinning action or behaviour’s for the individuals, organisations or societies. Being ethical is an aim of corporate governance and should be supported by the framework of controls within an organisation, however it is often a very complex problem which requires an in-depth understanding of the many factors which contribute to employees’ decisions to behave ethically or unethically (Stead and Worrell, 1990). Ethics within a business are often the moral standards which are relied upon in order to reach a conclusion and make decisions; they are implemented in order to ensure that a certain required level of trust exists between consumers and various forms of market participants within a business. Public interest has been seen as one of the main drives for business ethics and it has become increasingly important for businesses to act in a way which goes beyond profit based motivations and exceeds the minimum ethical requirements for businesses. A business has the responsibility to manage or control the organisation in a way that it will not harm and will positively benefit as many people as possible and...
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...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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...Assignment 5: Nike” From Sweatshops to Leadership in Employment Practices” Nia Lawson Diggs Dr. Jack Huddleston Human Resource Management 522 Ethics and Advocacy for HR Pro March 13, 2012 Discern how a more effective ethics programs and a more viable code of conduct could have mitigated the ethical issues faced by Nike Nike leads the world in the manufacturing and distributing of its athletic footwear and accessories. Nike is the brain child of Phil Knight and his former track coach, Bill Bowerman. The duo formed a company that would eventually become the leader in the athletic industry with the sales and manufacturing of athletic wear. The Nike brand is widely recognized by its catch phrase and its logo. Their marketing campaigns specially “just do it” helped it revive its brand image. The swoosh sign is recognizable across most of the world. This alone attributes for Nike's worldwide success. Overall, Nike keeps improving its product which helps to keep the population engaged with its brand. If Nike had a more effective ethics program and viable code of conduct, ethical issues could have been avoided by Nike. In the early 1990s, sports shoe giant Nike became the target of arguably the most intensive and widely publicized of these anticorporate campaigns up to that time (Conaway, 2011). According to Ferrell, ethics programs that provide guidelines outlining board responsibilities encourage compliance encourage compliance at the highest...
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...Adam Michel Professor Kofler English 1120 7 March 2015 Social Injustice: Sweatshops If an unfair conflict was developing right in front of you, would you go out of your way to do something to stop it? What if it would be to your benefit to stay uninvolved? Many people would say yes, but would they believe strongly enough to continue to fight for what is right? In the mid 1990’s and early 2000’s, several warehouse abuse scandals tainted the reputation of large companies such as Shell, Wal-Mart, and Nike. Cases of employee abuse in factories and sweatshops in Asia and Africa have raised awareness of human rights violations and have inspired people all around the world to continue to fight together to end human rights violations. One case of human rights violations occurred at a Shell oil facility in Nigeria. “Shell is different from other oil companies because it stations its facilities in Nigeria, rather than in the United States, where the company was founded” (Kaeb, 324). By doing this, the company has a higher risk of human rights violation incidents because the distance makes it much harder to monitor what goes on in Nigerian factories and refineries. When the American public gained knowledge of employee abuse in Shell facilities in Nigeria, Shell responded saying that employee abuse is not simply an issue of cruelty within the company, but rather “within a nexus of corruption, poverty, poor public services and infrastructure, government instability, and other factors...
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