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 …show more content…
It also states that it is based on respect, integrity and especially howemployees should be motivated. Ethical issues Ethics is a rule that tells the difference between right and wrong. It helps to know the behavior of the employees in a company and encourage us to do the right and good thing. This is all about the way Nike should do the right thing in an ethical way. Ethically, people in the position to make decisions in Nike should bejust, not biased, state of being equal and be thoughtful of the right of the individuals and their workers. Nike faced ethical dilemma within the company, this ethical dilemma means a moral problem with choice of two or more options. It occurs in their business when they have to take a decision to make weighs values and morals against profitability and also when identified solution is very undesirable because of harmful ethical effect. Though right and wrong is not stated in the situation but let’s look into the ethical challenges faced by the company business. The unethical behavior of Nike (what …show more content…
Nike was rated to be one of the leading companies that practice child labor and sweatshops. Sweatshops is a workshop that employee works and are being paid with a very low wages for a long hours even under a very poor working environment. Nike has this workshop all over the world and report shows that Nike employees in Vietnam, Indonesia, Korean and some other Countries not mentioned earned below 25 cents per hour.Supervisors hit the workers and use abusive words, sometimes workers cannot use the bathroom or drink water without taking permission from the supervisor. It is widely found for workers to faint. In short, their working experience is a slavery
Labor Practice Paper Angelia Henry PHL/320 May 2, 2016 Bridget Peaco Labor Practice Paper Merriam-Webster online defines a sweatshop as a shop or factory where employees work long at a low wage that is under poor and unhealthy conditions (Merriam-Webster On-line Dictionary, 2016). Sweatshops are factories that violate two or more labor laws to include wages, benefits, child labor or even working hours (Ember, 2014-2015). Companies will attempt to use sweatshop labor to lessen the cost to meet the demands of customers. When we think of sweatshop, we always want to look at third world countries and never in our own backyard. In 2012, the company Forever 21 was sued by the US Department of Labor for ignoring a subpoena requesting the information on how much it pays its workers just to make clothes (Lo,
Abolishing Sweatshops Forever 21, Apple and Nike are some of the most popular companies in the US. Chances are these brands appear in daily life and have a big impact on what gets worn and used. These popular brands all have net worths of over ten billion dollars, with Apple being estimated at $900 billion dollars. With these enormous revenues and their ever popular products these companies seem like they have it all; the one thing they don’t tell you is that they use sweatshops and exploit their workers in horrible conditions.
Slavery seems like an outdated term. Despite international efforts, however, the 21st-century form of slavery exists; child labor. These workers are exploited by the factories that they work for by serious problems such as unregulated working conditions. There are multiple companies that have factories that violate humane working conditions, one of the most prominent culprits being Nike. According to Global Exchange, an international human rights organization, 96% of all Nike shoes are made in three Asian countries -Indonesia, China and Vietnam.
The Big Short Management and Leadership Theoretical Component Management – The process of dealing with or controlling things or people. Leadership - The action of leading a group of people or an organization, or the ability to do this. Management and Leadership are two very different things. “A manager is appointed in a position of authority which enables him to insist on people doing as he/she instructs.
David Montero explains that in Sialkot, Pakistan there is a business, Saga Sports, that creates the Nike soccer balls by hand, the problem Nike has with the company is that they employ children to work in unjust conditions. “In November, Nike severed its contract with Saga Sports, its chief supplier, saying Saga's poor management exposes Nike to the threat of child labor and other labor violations,” (Montero). The chief executive of Nike is trying to reduce the amount of children that produce their goods in unfair conditions. The executive wants consumers to know that they are buying products that were manufactured the proper way of not having children make these items in appalling conditions that could threaten their health. The evidence suggest that working conditions is another reason that the United States consumers should not buy products that are made by
Introduction Sweatshops make up the behind the scenes of most wealthy companies; however, this common practice is especially unethical for the employees. The United States General Accounting Office defines a sweatshop as a business that regularly violates both wage or child labor and safety or health laws. Sweatshops offer unfair wages for unreasonable hours, while also maintaining extremely poor working conditions. Employees, whom are sometimes even children, are vulnerable and desperate for a job.
The ambiguity established through the M-Audit and CR are amongst the key problems encountered with Nike’s voluntary auditing system, which make it inefficient at measuring positive changes in working conditions in the long-run. For sustained improvements to be implemented in Nike’s global supply chain factories, an institutionalized downstream pressure must be implemented. NGOs’ creation of guidelines is important to guarantee uniformed labour standards across countries and states. However, without combined pressure from the State, the guidelines remain as advices. Henceforth, NGOs and States must collaborate in exerting increased pressure to Nike.
Behind the Swoosh is a documentary about sweatshop labor. As a class we watched the documentary and as I learned more about how Nike was running their business; I felt bad for the people that were working. I could not believe that those people were working hard making that company so much money and was getting nothing in return. Then again, I really was not shocked because I know that they are people that put a lot of blood, sweat and tears into a company and do not make enough money.
I agree with you that it’s insane that people who make Nike merchandise live in extreme poverty due to the miserable payment that they received, while Phil Knight, the owner of the brand has a personal fortune of $5 billion. It’s very unfair that these poor women in El Salvador are getting only 29 cents for each Nike jersey sold for $140 in America.
Ethics are moral judgments about right or wrong. In a business setting, being ethical means, they act in ways with good values in the society’s mind. Ethical business behaviour applies key moral principles such as honesty, justice, equality, dignity, diversity and human rights. Telstra behaves ethically to their suppliers.
We have seen this similar type of an event many times throughout the course of history, and it closely resembles the Proletariat versus the Bourgeoisie class conflict that we discussed in class and that Marx had also focused on. In this current situation, the factory workers would represent the Proletariats, who sell their labor for wages. While the Nike owners would represent the Bourgeoisie, who own the means of production and make their profits off of the labor of the workers. Given the current economic situations of the countries that Nike chose to outsource it’s labor to, it made it extremely easy for them to exploit the workers. The workers needed the jobs that Nike was offering and were willing to sacrifice their individuality to suffer
Nike is one of the most valuable companies in the world, grossing billion upon billions of dollars a year but pay low to near subsistence wages to their employees. To illustrate this exploitation let me give you this example: A nike employee makes a shirt that is will sell for twenty dollars but the employee only get ten cents from the sale of that t shirt. The is not adequately paid for their labor and because of this Nike is able to make more money and the worker is stuck working for a subsistence wage. The rich getting richer and the poor getting poorer, skyrocketing
Nike has managed to shift their Manufacturing unit into Asian country’s were the labor is cheap to be exact wages of USD1 an hour were so little as one-tenth of those given in the US. No wonder that a pair of shoes which were sold for $150 in 1991 is made by indoasian women who were 58 cents a day but the situation has started to change and due to that reason the company has managed to minimize cost of production and not only double triple the the revenue as comparing to the year 1996. Finally we come up with promotion and advertising campaigns which became a grand success not only because they introduced sportspersons , they also introduced innovative ideas and wise strategies and the image of the Product, due to this process we can say that Nike targeted a huge no of audience and created a Prestigious brand which will be easily available for average people . they also came up with great tag lines such as ‘there is no finish life’ , and in the 1980 they changed it into “ JUST DO IT “ these quotes of tag lines are considerd very simple but very attracting and extremely encouraging for the customers .
And, unfortunately, it’s more prevalent in America than many may believe. When defining what exactly a sweatshop is and what it consists of, there are many forms that it has taken over the many decades of America’s existence. The basic definition of a sweatshop is a factory in which its employees, many being children, are exploited; working long hours in extreme cases of hazardous and unhealthful conditions for little pay. Despite the fact this is a
This is due to Nike gets its merchandise generally from foreign manufacturers. To operate profitably, Nike need to get good value on products and supplies and, in turn, offer good value to its customers with accessible solutions. Publics: Many colleges and universities, especially anti-globalization groups as well as several anti-sweatshop groups