This paper is a based on a case study of Nike. The paper will be discussing legal and ethical analysis and how the impact the operational/ ethical issues of the organization, the paper shall also be discussing the contribution factors and how the company’s corporate culture may have helped to minimize the unethical behavior or actually contributed to/caused the unethical behavior. The paper is also going to provide ethical decision factors, which are going to address or going to be considered in resolving the legal/ethical issues identified within this case. And finally the paper is going to provide an action plan for each of the legal/ethical issues along with recommendations that company can take to help prevent these issues in the future.
Nike is one of the famous franchises in the world that sells sportswear for all ages. But is mostly famous for their athlete shoes and apparel and Nike is also one of the major manufacturers of sport equipment as well. The slogan for Nike is “Just Do It”. Nike was founded in January 1962 in Oregon, United States by Philip Knight and Bill Bowerman. Nike has somewhere around 700 or more retail outlets spread all over the world, and has approximately 45 offices only outside the United States. And it employs 30,000 people all over the world. Nike had a revenue excess of $16 billion in 2007. Nike’s factories are mostly located in Asian countries like Pakistan, India, Malaysia, China, Indonesia, Philippines, Taiwan, Vietnam and Thailand. In 1980 the company had a 50% market share only in the United States shoe market and then the company decided to go public and it did by the end of that 1980’s December. Through the 80’s Nike decided to expand its product line so that the line would include many other sports like tennis, golf, baseball, cricket, badminton etc. all over the world.
If we view the organization from a social responsibility perspective, enlightened organizations like Nike view internal and external environment as their stakeholders of the company that is the management of the company believes that the stakeholder can affect the processing of the company. It must be remembered that every stakeholder has a very different criterion of responses because they all have a different interest in the company.
The primary stakeholders of the company would be the shareholders, business partners, the employees, and the customers/ consumers. What the shareholders and the investors want from the company is that the company achieves its profits, the employees of the expect work satisfaction, pay along with good supervision and the customers are concerned with quality, safety and availability of services when they require it. And when any primary stakeholder group is not satisfied the organization progress becomes questionable. From these the active stakeholders would be the employees, investors and the shareholders, whereas the passive stakeholders would be the customers and the customers want to get high dividends for their investment. (Stockdale & Crosby, 2004)
The secondary stakeholders of the company would be the community (which includes special interest groups). Most companies like Nike exit under only a charter and licenses and operate within the limits of safety laws, environmental protection and other laws and regulations. The socially responsible organizations like Nike consider the effect of their actions upon all stakeholders. What all of these want from the company is that company is ethically and socially responsible and when this secondary stakeholder group becomes dissatisfied, the reputation of the company gets tarnished (for example, the debate of sweatshops tarnished the reputation of Nike).
What the stakeholders want from the company is that they want their needs to be maximizing their value in the company. For example, if both the customers and the employees along with the stockholder interests are addressed then both of the...