There was a revelation of sweatshop working conditions in these countries and this challenged Nike’s business opportunities. From then onwards, Nike had a number of ethical issues; for instance in Vietnam there was the violation of working hours and minimum wage. In addition, there was the use of child labor in Cambodia and Malaysia in addition to forced labor. Nonetheless, the company took full responsibility by recognizing their inherent social responsibilities. According to Dutton, “The company took immediate steps to correct the situation, implementing a code of social responsibility throughout its supply chain that improved working conditions for some 800,000 employees at 700 factories in 52 countries” (Dutton, 2012).
Nokia keeps on accepting enquiries and evaluation demands about social and ecological execution from their operator clients. Nokia react to those solicitations through our typical client account management interface. Government: Nokia is working their business in around the world. Nokia dependably comply with the management standards and direction and pay charge vat according to government rules. Nokia make a mammoth work everywhere throughout the world and it is management essential desire from an
Evaluate Nike’s response to societal and consumer concerns about its contract manufacturing. It is a shock for the media as they did uncovered that Nike’s the industry leader, has a twisted problem within its own company, and the topic itself had spread rapidly to the worldwide in no time because Nike’s company did not take an immediate measurement to face the problem. Since the mid-1990s, critics about Nike labour rights had arisen rapidly in a massive amount, not only from the public, there are critics of from the mainstream media, and from human and labour rights violations bodies as well, such as child labor. In order to counter and response the criticism, Nike has to take a quick and suitable decision, in goal to rectify the problem, but as well as to redeem its reputation. Therefore Nike’s new priorities is making sure that their factories were not taking advantages of its workers anymore, and to ensure for a competitive wage and a safe work environment is provided for each worker.
Nike Company must be honest and pays the wages fairly to the workers. With low payment it becomes not fair to the workers who work hard every day. The others are freedom of association and excessive overtime among others method to address the problem. Nike said it is moving more of its production to factories that meet a core set of standards. A Nike spokesman did not immediately respond to a question about why Nike didn't disclose information about factory wages in the new report.
For instance, Customers will prefer to purchase Nike’s shoes as they are much lighter and comfortable compared to their previously produced shoes that resulted in toxic chemical involvement. With the introduction of new technologies such as NIKE FLYKNIT that produces 80% less waste and 19% lighter shoes, customers will feel safe and convinced to purchase their goods now. Not only customers but even pressure groups like Greenpeace and Nike’s investors would also feel comfortable to engage with an ethically operating company. If Nike did not make amendments because of its previous mistake, it wouldn’t have gotten better suppliers or support from investors. And to make things worse, customers would have boycotted Nike or spread a negative image about the company.
Nike’s operational practices were not ethical or effective and were delaying its success by causing negative publicity which led to reduced sales and loss of profits forcing Nike to change its operational strategy drastically in order to be compliant with labor and civil rights unions. One of the many operational challenges Nike had to face was the addition of a stringent monitoring system in all of its international sweatshops. Another challenge was to hire a well-rounded firm to certify and guarantee ethical inspections and accurate data are consistently produced at all international
Case Study #1 Case 1: In the past, Monsanto has had many ethical issues like high performance standards that can cause employees to make unethical and illegal decisions and not owning up to hazards around them. However, Monsanto has been striving to enforce their code of ethics and has spent more time trying to become more socially responsible to the environment. For Monsanto to create an ethical culture, he would have to be proactive in anticipating, planning and acting to avoid potential ethical crisis’ (Thorne, Ferrell, & Ferrell, 2008). New regulations, an enforced code of ethics and striving to be more socially responsible has led Monsanto to enhance their relationships with stakeholders. Monsanto wrote a pledge to inform all of their
UNETHICAL BUSINESS CASE STUDY ON NIKE Summary This project is focused onthe unethical behaviors of Nike. The essay will be exploring the ethical situation of Nike, the unethical behaviors, as well as the company’s role in reducing and correcting its unethical issues.Nike is no doubt one of the world’s leading footwear and apparel company, but continues to outsource its manufacturing to factories in Asian countries like China, Thailand, Bangladesh, India, and South Korea. In using these countries, Nike continues to realize huge profit margins due to the availability of cheap labor in these countries. This practice has led to a number of ethical issues over the years for the company, bringing the social responsibility standing regularly under
One of the ethical issues of the Nike was abusing the employees and using the child labor in overseas factories. Employees were abused physically and mentally. The physical abuses of employees were slapping, kicking and scratching until some people bled. Management mentally abused employees by calling them monkey, dog, and pig. The employees were making $0.50 an hour and they were keeping their mouths shut.