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Nike Unethical Practices

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Nike Unethical Practices

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NIKE
Introduction
The declaration by Philip H Knight that he would discontinue financial aid to the University of Oregon was a major issue that attracted the attention of the world media. That Mr. Knight had chosen to cut links with his alma mater was an issue that was greatly analyzed not just because of the business compulsions that hid behind the decision, but because the issue was important to understand the attitude of multinational companies towards business ethics. custom essays Analysis

Nike was under international pressure from various communities and non-governmental organizations on the issue of practicing unethical business tactics to enhance profits. For example Nike, which outsources most of its manufacturing tasks to other companies, had to face stiff public censure for possibly encouraging labor practices that provided very little compensation to the workers. Most of Nike’s shoe and apparel manufacturing units are situated in the Asian region where the labor costs are far less when compared to rates in the US. Additionally, the workers in the Asian region are less organized, are constrained to work at lower wages in order to overcome poverty and familial pressures, and so were easily available even if the conditions in the factories were pathetic according to US labor standards. The main issue that often came in for public criticism was that Nike used the services of ladies who could be paid much less in the Asian job markets. Similarly, the peculiar societal culture in the Asian region ensured that large numbers of ladies were available to take up the jobs offered by Nike's business associates in these countries. Another serious allegation which rocked the business prospects of the company was that Nike's business counterparts in Pakistan used child laborers to make footballs. The fact that child labor is banned and considered unethical in the developed nations was a major factor that turned public opinion against the company. The factories...