This website uses cookies to ensure you have the best experience. Learn more

Nike Ethical Issues Essay

1448 words - 6 pages

Ethical Case Analysis:



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. ...view middle of the document...

These workers are faced with long grueling hours, some as long as sixty five hours per week, this according to the NY Times. Employees at this particular factory were located in Vietnam. (Greenhouse, NY Times) Working all those hours and only bringing home $10 USD a week. The employees endure this type of treatment because they are desperate for the little money they earn. This brings me into my next point of concern, low wages.
Nike contracts all their manufacturing to developing or third world countries. Even though the countries wages are lower than our own here in the US, Nike fails to provide wages to workers at a rate in which they can sustain themselves and their families. Because of this, cheap labor is exploited and many workers are treated poorly. Some workers earning these low wages were children as young as early and preteens.
Deplorable working conditions have lasting effects on employees. Many employees experienced skin and breathing problems in those factories. Just because you are operating in a country that is not up to the standards of the United States, does not make it ethically okay to subject your employees to conditions that are unacceptable.
Current Analysis
One can speculate as to why Nike would be involved in such a Hodge podge of ethical dilemmas. Could it be because they are not operating in the US and feel as though they should not abide by the ethical standards and OSHA requirements set forth in our country? Is it that the upper management has something to gain personally from outsourcing its labor to under developed countries? Should our government step in and be able to regulate how the factories and workers are treated on foreign soil?
I do believe Nike was socially responsible for its actions. When the allegations came to light in the public eye, there was a lot of backlash regarding them. Nike joined a task force called fair job labor association to review the allegations made against them. This was to help ensure that Nike was abiding by the ethics code in the shoe and clothing industry. Since the allegations came out in 2008, Nike has helped improve the conditions in its manufacturing plants by improving the ventilation systems, reducing the use of many toxic chemicals, as well as improving safety features for those who work in the plants.
By joining a task force that helps promote fair labor practices, Nike is taking responsibility for its actions and showing the global market that is does take an interest in those working in the factory. This helps to alleviate any hesitation consumers may have with purchasing products made by Nike.
The Sarbanes-Oxley Act of 2002 can help Nike monitor the compliance of the factories in foreign companies because it can help Nike monitor the wages paid to its employees more closely to ensure they are being paid fairly. As well it can help the company identify any significant changes in internal controls and related factors.
Government Regulations

Other Papers Like Nike- Ethical Issues

Guest Model Of Hr Essay

3439 words - 14 pages environmental impacts involve ethical issues, non-wasteful and recyclable packaging (David, 2011). Task 2.3 Significance of stakeholders’ analysis: Only need to look at stakeholders group A and the minimum of effort is required. Group B may be able to influence stakeholders, as they are more powerful stakeholders will be adequately informed; To ensure no major problems arise, contact will be made ​​in this group. Group C partners

Garmin Financial Analysis

6003 words - 25 pages that GRMN has good short-term liquidity and won’t have any issues meeting its short-term debt. The working capital ratio indicates whether a company has enough short- term assets to cover its short-term debt. We can observe that GRMN’s net working capital ratio has been steadily increasing as of Q2. This is a good indication that the company is able to pay off its short-term debt. The current liabilities to inventory ratio indicates

Case Studies - Csr In Pakistani Perspective

7465 words - 30 pages approach is taken as building social posture of the company in others words social image and neglecting the other three important indicators of CSR. The only information made available in order to interpret CSR index by the company is related to social posture. Management practices, environmental issues and key corporate governance issues are not being highlighted by Shell in its practices. Pakistan State Oil (PSO): PSO is the oil market leader

Lafarge S.A

2924 words - 12 pages deployed by the team explained that “To deal with demand for redeployment services, the support team took things step by step, meeting each person for a number of interviews. One of the most important part of the setting up of the team was that this was done well before the closure of the old plant which would have provided the team ample time required to study the issues and proffer solutions with great amounts of success. Another case of


665 words - 3 pages Financial statements are the most common tool used for making business decisions. They consist of the balance sheet, income statement and statement of cash flows. The analysis tools used affect all aspects of a company not just a few. A systematic review of the resources a company used to achieve its mission is cost control. Cash flow should be kept at necessary levels for operations is one of the major benefits of cost control. It is a very

Analysis Of Operation Blue Star And Its Effects On The Gandhi Dynasty

934 words - 4 pages The period of time including and following Operation Blue star is considered a dark time in India and black spot in Indian history. It is a time Indian would rather forget, yet still to this day debate about. Was Indihar Gandhi correct in instating operation Blue Star, inflicting damage to the Golden temple, and being responsible for the killing of anywhere from 492 (official reports) to 1500 (estimates run as high as) civilians, which lead to an

Regretful Decisions

930 words - 4 pages Regretful Decisions There are many individuals in a child’s life that helps mold them into a well-rounded adult. In most cases, this guidance comes from the child’s parents or other older, but in Sonny’s case, this guidance was expected from his older brother. In the short narrative, Sonny’s Blues, Sonny’s life was adversely affected by the decisions that his older brother made. The decisions that his brother made include leaving Sonny to stay

Jail Responsibilities

589 words - 3 pages Jail Responsibilities Monique Priorello September 23, 2012 One of the main responsibilities of a jail is to give the officers the correct “Police Correspondence” courses. This is because these courses give the officers the effective basic training that they need to do things such as; Writing of Memoranda, Police Reports, and Civilian Letters. What needs to be done first is make sure that there are NO errors. This means in


638 words - 3 pages Starbucks Nefertiti Wright Sangita Patel October 15, 2012 STARBUCKS 2 STARBUCKS - 1 - [no notes on this page]I. Job description a. Baristas II. Job specifications a. Duties III. Form of departmentalization STARBUCKS 3 Starbucks Starbucks have been named in the 100 best companies to work for. Starbucks has many job opportunities for people, which require the right job specifications. The employees create uplifting experience

Fight Club

917 words - 4 pages Fight Club is a story of the narrator’s struggle to gain control over his life. He is in search for an identity in the form of manhood. His masculinity is so repressed because of the absence of a father figure in his life. Because of this he creates Tyler, his alternate personality. Tyler is nothing like anyone the narrator has met, he is self assured and completely free. The narrators alternate personality Tyler Durden is the ultimate alpha-male

The Powers Of The Health And Safety Representative

254 words - 2 pages The Powers of the Health and Safety Representative A health and safety representative has the power to: Identify Workplace Hazards The health and safety representative has the power to identify workplace hazards. This power is usually exercised by conducting workplace inspections. Obtain Information from the Employer The health and safety representative is entitled to the same information available to a joint committee member. Under the Act

Related Essays

Nike Case Study

1688 words - 7 pages obligation towards even its lowliest workers” is a very convincing one on many levels—social, ethical, and financial. Companies, such as Nike, make large profits and benefit tremendously from workers’ low wages in their international manufacturing companies. After reviewing Exhibit 1 (Nike Inc. Financial History 1989-1999) and Exhibit 4 (Summary of Revenue and Expense Profile of Minimum Wage Workers by Demographic Type) it would appear that

Ethical Decision Making Essay

1178 words - 5 pages profits or to cut corners on quality to meet a deadline are examples of some choices regarding ethics business owners may face (Poznak Law Firm, 2003). The use of extremely low-wage foreign workers, like in the Nike organization case, is a current concern and the subject is a complex one.  There are many valid differences of opinion regarding what constitutes ethical behavior and how ethical decisions should be made and the subject is a complex

Apple Corporation Essay

774 words - 4 pages headline news with accusations of human rights violations. Such allegations erodes corporate image in the eyes of consumers. Apple Corporation has fallen under public scrutiny for the treatment of its factory workers in China. These allegations have forced Apple Inc. to bring forth solutions to answer the question. What are the social and ethical responsibilities of Apple Corporation, and how can these strategies be employed to restore

Paying College Athletes Essay

6552 words - 27 pages are so concerned about protecting the ‘integrity’ of the game by not allowing players to make even a token amount of money off it. However, they turn around and sign million-dollar contracts that pay them handsomely, as well as deals to put Nike swoops on jerseys and corporate names on stadiums” (Shay 2012). Is that hypocrisy or what? The moral conclusion pursuant to ethical egoism analysis depends on which side of the fence you are on – a