Business: Factory and Nike

Topics: Factory, Social responsibility, Ethics Pages: 2 (559 words) Published: September 28, 2014
2. Why should Nike be held responsible for what
happens in factories that it does not own?
Does Nike have a responsibility to ensure that
factory workers receive a “living wage”? Do
the wage guidelines of FLA or WRC seem
most appropriate to you? Why?
3. Is it ethical for Nike to pay endorsers millions
while its factory employees receive a few
dollars a day?
4. Is Nike’s responsibility to monitor its subcontracted
factories a legal, economic, social, or
philanthropic responsibility? What was it 10
years ago? What will it be 10 years from now?
5. What could Nike have done, if anything, to
prevent the damage to its corporate reputation?
What steps should Nike take in the
future? Is it “good business” for Nike to acknowledge its past errors and become more socially responsible?
6. What are the goals of the

Jonah Peretti decided to customize his Nike
shoes and visited the Nike iD website. The
company allows customers to personalize their
Nikes with the colors of their choice and their own
personal 16-character message. Peretti chose the
word “sweatshop” for his Nikes.
After receiving his order, Nike informed Peretti
via e-mail that the term “sweatshop” represents
“inappropriate slang” and is not considered viable
for print on a Nike shoe. Thus, his order was
summarily rejected. Peretti e-mailed Nike, arguing
that the term “sweatshop” is present in Webster’s
dictionary and could not possibly be considered
inappropriate slang. Nike responded by quoting
the company’s rules, which state that the company
can refuse to print anything on its shoes that it
does not deem appropriate. Peretti replied that he
was changing his previous order and would
instead like to order a pair of shoes with a “color
snapshot of the 10-year-old Vietnamese girl who
makes my shoes.” He never received a response.1
Before Nike could blink an eye, the situation
turned into a public relations nightmare. Peretti
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