Nike Managing Ethical Organization - 1288 Words

Nike: Managing Ethical Missteps- Sweatshops to Leadership in Employment Practices Founded in 1972, Nike is one of the world’s leading distributors of sporting equipment and apparel. The company faces stiff competition from brands such as Reebok and Adidas and must keep their prices low to remain competitive. Nike’s business model involves keeping production costs low as possible by outsourcing to foreign countries and using their high profit margins to invest in research and design of better sporting goods and apparel. Following the outsourcing business model to increase profits, Nike contracted out their manufacturing to Chinese and Southeast Asian factories. However, many of these foreign countries, such as Pakistan,†¦show more content†¦Profit was immensely more important than corporate social responsibility during that time period, as there was very little public concern for workers in Asian factory sweatshops. However, in 1996 there was public outrage when it was reported that television star Kathy Lee Gifford’s clothing line was produced by children in Honduran sweatshops. When Nike’s manufacturing practices were also publicized, the company’s first reaction was to repair the damage to its reputation rather than correct their manufacturing problems in foreign countries. Nike reasoned that these foreign workers were not Nike employees and they felt no responsibility for them. Eventually, Nike began to pay attention to the concerns and demands of its stakeholders, and society in general. An intensive public relations campaign was launched, which involved celebrity endorsements, press conferences, news releases, visits to college campuses and advertising. Nike’s response to concerns about contract manufacturing In 1998, Nike was forced to lay off 1,600 personnel due to the drastic losses suffered by the company. Exposed and criticized for the unsafe and unfair practices of their outsourced manufacturers, Nike was forced to take action to correct the labor abuses and prevent reoccurrence. It was unacceptable for Nike to concentrate solely on high profits at the expense of abused foreign workers, who in Vietnam, for example, were paid 20 cents an hour. In today’s society, theShow MoreRelatedEthical and Social Responsibility Issues at Nike1612 Words   |  6 PagesIntroduction Globalization has a profound impact on the ethical and social responsibilities of large organizations. This is primarily true for large organizations with dominant market positions within their respective industries. These companies, due in part to their size and scale, are often garnering a substantial portion of their revenue from countries outside the United States. Growth rates in many emerging countries such as Brazil, Russian, India, and China create large opportunities for theseRead MoreEthics in Business: Overview of Nike Essay599 Words   |  3 Pagesprofits. However companies occasionally fail to remain ethical in their activities, because they are too concerned with profits. Nike Inc. is a worldwide company that is very famous for their designs and apparel wear, also it is a multination corporation that is engaged in the design and marketing. However Nike has pros and cons in some of their actions have been questionable. History of Nike Before there was a Nike Inc., before there was the swoosh Nike was founded by Bill Bowerman a nationally respectedRead MoreLeadership Practices in The Post-Bureaucratic Era1575 Words   |  7 PagesCaza (2004),Mackey (2011),Bansal(2005) and Driscoll and Starik (2004) to present ideas on the contribution of different types of organizational policies towards a sustainable environment.Following the trend in adopting the sustainability concept,organizations also face challenges in implementing it thus in section two,I would explore the difficulties met by corporates in applying sustainable business policies and the criticisms on the practices,by drawing on Fernando,Dharmage and Almeida (2008),Wray-BlissRead MoreNike Ethics Case Study1215 Words   |  5 Pagesfrom mass ordering and mass production are opportunities Nike sorted to exploit. However, this is not with problems as might lead to loss of control, and moral concern like was the case with Nike raising concern relating ethical pr inciple in business. In this paper, we shall be answering questions related to the complexities of expansion amid a globalize world drawing inspiration from â€Å"The Promise and Perils of Globalization: The Case of Nike†, a working paper presented by Richard M. Locke and AlvinRead MoreNike Term Paper2510 Words   |  11 Pages.... 1 2.1 2.2 Human Resource Background ..................................................................................... 3 Human Resources Management .................................................................................. 5 HRM of Nike Inc. Subsidiaries........................................................................ 5 2.2.1 2.2.1.1 Human resources management and the environment ....................................... 6 2.2.1.2 Acquiring human resources ..........Read MoreEthical Issues Faced By The Local Workers Essay1829 Words   |  8 Pagesproblems currently are managing the evolving ethical problems faced by the local workers. The major issues facing corporations is how to approach and manage the ethical problems in a corporate social responsible manner. Corporate responsibility is defined as the idea of social responsibilities supposing that the corporation has not only economic and legal obligations but also certain responsibilities to society that extend beyond these obligations (McGuire, 1963). Ethical behaviour is linked toRead MoreOrganizational Culture Aspects Essay3411 Words   |  14 PagesPhysical manifestations such as ethical codes or written rules are some ways the organization reflects its values. General Electric, Lockheed Martin, Haliburton Company, Corporate Express, ACH Foods and Whole Foods are corporations that strive to be ethically oriented. Drive for success is dictated by management and decision making by the leaders inside the company. We will discuss ways many organizations have different cultures and beliefs on how they plan on managing their corporation with hopes toRead MoreNi ke - Organizational Audit3209 Words   |  13 PagesOrganizational Behavior Audit for Nike Inc. TABLE OF CONTENTS 1. Company Overview 2. Body of report 2.1. Introduction to Organizational Behavior [general OB attributes] 2.2. Individual Behavior, Values, and Personality 2.3. Perceptions and Learning in Organizations 2.4. Workplace Emotions, Attitudes, and Stress 2.5. Employee Motivation: Foundations and Practices 2.6. Individual Decision Making 2.7. Team Dynamics 2.8. Communicating in Teams and Organizations 2.9. Power and Influence inRead MoreNike Sweatshop1886 Words   |  8 Pagesï » ¿Interpersonal Behavior in the Workplace: Trust Nike Inc., the sports apparel multinational company has been under suspicion and scrutiny for their practice of the unfair treatment and negligent labor habits in their offshore factories. They have been criticized for human rights abuse, child labor law violations, as well as minimum wages and trade union relations violations within a number of Asian countries. They subsequently misguided the public in an attempt to make one believe there is noRead MoreThe Social Responsibility Of A Social Service899 Words   |  4 Pagesalone. Society does its best to provide the individual with all the comforts amenities and facilities of life. So it is duty to do service for others. Nowadays more and more organizations are engaging in positive way often referred to as corporate social responsibility. It is important to doing a social service all organizations. CSR aims to embrace responsibility for to reassure a positive effect on the environment and stakeholders containing consumers, employe es, investors, communities and others