Nike an Ethical Issue I

Topics: Ethics, Business ethics, United States Pages: 3 (1077 words) Published: December 12, 2011
Nike an Ethical Issue

Nike an Ethical Issue
Nike is a company that was created on an agreement and a handshake between two men. That handshake between Bill Bowerman and Phil Knight became the foundation of how Nike does business. Integrity and commitment to the highest ethical standards make up the code of business ethics for Nike. A company like Nike that has a code of ethics and a foundation of how business is conducted should not have any problems with ethical issues as far as the way they do business; however there is an ethical issue in regards to Nike. Ethical Issue

Nike has been accused of using child labor in the production of their soccer balls. This ethical issue has taken place in Pakistan. There are laws in Pakistan against child labor and slavery, but the Pakistan government does not take the necessary action to stop it. The United States constitution states that child labor is an illegal and inhumane practice and any United States company found guilty practicing and encouraging it will be prosecuted. The General Agreement on Tariffs and Trade and the World Trade organization prohibits member nations like the United States, from discriminating against the importation of goods made by children. In essence it seems as if this practice is condoned. One of the reasons the practice of using child labor goes on is the fact that these third world countries are in such dire need and these children are helping in the support of their families. Pakistan has a per-capita income of nineteen thousand dollars per year. This equates that a typical person lives off of five dollars a day. Nike does not launch production directly in Pakistan. It is subcontracted through a local firm, which has to abide by Nike’s international rules and regulations when producing its goods. Nike has the duty to monitor the subcontracted firm. Nike an Ethical Issue

Nike also has based its operations in Vietnam, China, Indonesia, Bangladesh, and India. It...
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