Nike

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“Individual assignment
On
ICEVBM: Indian Culture Ethics & Value Based Management”

NIKE
Introduction-
The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1978. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan,etc. Nike is the leading maker of athletic shoes, equipment and apparel. Nike products cover a broad range of sports including basketball, football, running and soccer. Sneakers made by Nike are sold for $40-$200 per pair. Nike is one of the most-heavily advertised and best known brands in the world. Nike has signed exclusive and expensive marketing deals with some of the world's top athletes -- including Tiger Woods, Andre Agassi and LeBron James -- to promote its products. In addition, it operates NIKETOWN shoe and sportswear stores, NIKE factory outlets, and NIKE Women shops. NIKE sells its products throughout the US and in about 200 other countries.

QUESTION-1-
Describe an ethical failure by an organization on an important business decision and its adverse downstream consequences. Poor working conditions have been present for centuries. Often times little or nothing is done unless a tragedy occurs to persuade the public to rally for worker rights. This was definitely the case in the United States during the Industrial Revolution and even late in the 20th Century. These conditions have for most purposes disappeared in the United States, with the exception of some in the agricultural sector. However, internationally, mainly in poor third world countries, that is far from the truth. Large corporations from the United States have moved a large portion of their factories overseas to circumvent the strict working regulations within the United States. The third world countries such as Vietnam, China, South Korea, and Taiwan provide access to readily abundant cheap labour. These corporations could now reap the benefit of the United States consumer market, while keeping their costs extremely low in offshore production. The media has awakened the public to this fact and several prominent corporations have come under fire lately for the malpractices. No corporation has come under as much criticism as the culture icon of Nike. It was illustrated that conditions were sub-par in several critical areas of Nike’s factories overseas and minimal standards needed to be reached for all employees. ETHICAL FAILURE

Even though the organization has a diversified range for sportswear, the income of the business, however, is still heavily dependent upon its share of the footwear market which leaves it at a quite vulnerable spot if for any reason its market share erodes. It was charged with the violation of overtime and minimum wage rates in Vietnam, 1996, That was seen as having poor working conditions, and that it was also charged for exploiting cheap workforce overseas. Nike was also reported to have applied child labour in Pakistan and Cambodia to produce soccer balls. Nike has been repeatedly criticized for it's use of the school environment to advertise to children: "Nike Must Stop Exploiting My Students": "Last fall, a reporter from The Times asked me about the relationship between Crenshaw High School boys' basketball program and Nike in terms of what the corporations donates to the basketball players. To my knowledge as the principal, I told him, the company gave each member of the boys' team a pair of tennis shoes, just as Karl Kani, a smaller African American ownedbusiness, gave shoes to members of the girls' team.

The reporter informed me that there was probably much more to the relationship than 15 pairs of Nike tennis shoes. As it turned out, he was absolutely correct." Book covers, billboards in school corridors, calendars, and broadcasts --these are some of the places corporate America places ads for kids to see in school. Commercial messages also reach kids in...
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