Case Study Of Nike Sweatshop's Ethical Dilemma

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Leadership Challenge Nike Sweatshop Ethical Dilemma Introduction Nike is a multinational company involved in the design, manufacture, and sales of sports apparel. Nike motivates and encourages athletes to attain their objectives by offering the right attires. The company is focused on extensive advertising and endorsement of various celebrities such as Tiger Woods to help in marketing their products. Therefore, Nike outsources its manufacturing processes to other countries that have easy access to raw materials and cheap labor. Further, customers appreciate Nike’s products because they are comfortable and creatively designed which makes Nike a favorite brand for the youth who focus on their health and fitness. Nike Company offers comfortable…show more content…
The company is one of the largest sports apparel manufacturing companies in the world. However, it faces stiff competition from Adidas, Reebok and Li Ning. Nike has over 700 shops located in 45 countries and sells its products globally (Harrison & Scorse, 2010). However, most of Nike’s factories are located in China, India, Taiwan, Malaysia, and Thailand and has various contract facilities across the world (Powell & Zwolinski, 2012). The company’s operating regions include North America, Central and Eastern Europe, China, Japan and Western Europe (Harrison & Scorse, 2010). The company’s primary brands include Nike, Jordan, Converse and Hurley. Further, the firm sells other products such as bags, gloves, sports balls, socks, protective equipment. Nike Inc. aims at targeting their customers through their online platforms, subcontracted companies and directly reaches out to the customers. Primary Stakeholders According to Abrhiem (2012), the stakeholders of a company comprise of the persons who are directly benefiting from its operations. Nike has four main stakeholders, namely, the shareholders, employees, the customers and the community in which it operates. The company continually safeguards the welfare of their interested parties and do not engage in any activities that would hamper their success. These codes of ethics provide the foundation for proper guidelines which the involved parties shall follow to maximize their welfare and that of the people.

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