Nike Business Ethics
Nike Ethical Dilemmas
Ethical Audit Report
Table of Contents
Nike Ethical Dilemmas 1
Ethical Audit Report 1
Executive summary 2
Purpose of the Report 2
A Snapshot of Nike’s Business Ethics 3
Ethical Dilemma’s Facing Nike 4
Nike’s Best Ethical Practices 7
Conclusion 8
References 9
Executive summary
As globalization increases the scope of the Multinational Companies (MNCs) to penetrate the market both for cost effective labour and markets also has far reaching consequences. The question of business ethics and social responsibilities also extend to the suppliers, contractors and the work force that encompasses these new areas of operation and therefore it is imperative for companies to formulate their corporate strategies keeping in mind their competitive advantage. Nike had its share of problems when globalization first emerged when its business strategies with regard to the poor conditions of the work force in the sweatshops in Asian countries was questioned. Today with a new business strategy in place Nike hopes to deal with its obligations to its vast global labour force, the natural environment and also its bottom line. “Nike’s vision for Sustainable Business and Innovation is clear: to help NIKE, Inc. and its consumers thrive in a sustainable economy where people, profit and planet are in balance.” (NIKE, Inc.CRS Report 2007-09)
Purpose of the Report
This report will discuss some of the ethical dilemmas that have plagued Nike and how the corporate footwear and apparel leader has changed its business policy to change its working environment in response to the vast fall in brand image following the reports of the conditions of its Asian workers. “Ongoing commitment can derive from either economic self-interest (i.e., a solid business case) or from ethical grounding (i.e., the moral importance of sustainable development). Oftentimes, of course, both of these apply” (Amato et al
Ethical Audit Report
Table of Contents
Nike Ethical Dilemmas 1
Ethical Audit Report 1
Executive summary 2
Purpose of the Report 2
A Snapshot of Nike’s Business Ethics 3
Ethical Dilemma’s Facing Nike 4
Nike’s Best Ethical Practices 7
Conclusion 8
References 9
Executive summary
As globalization increases the scope of the Multinational Companies (MNCs) to penetrate the market both for cost effective labour and markets also has far reaching consequences. The question of business ethics and social responsibilities also extend to the suppliers, contractors and the work force that encompasses these new areas of operation and therefore it is imperative for companies to formulate their corporate strategies keeping in mind their competitive advantage. Nike had its share of problems when globalization first emerged when its business strategies with regard to the poor conditions of the work force in the sweatshops in Asian countries was questioned. Today with a new business strategy in place Nike hopes to deal with its obligations to its vast global labour force, the natural environment and also its bottom line. “Nike’s vision for Sustainable Business and Innovation is clear: to help NIKE, Inc. and its consumers thrive in a sustainable economy where people, profit and planet are in balance.” (NIKE, Inc.CRS Report 2007-09)
Purpose of the Report
This report will discuss some of the ethical dilemmas that have plagued Nike and how the corporate footwear and apparel leader has changed its business policy to change its working environment in response to the vast fall in brand image following the reports of the conditions of its Asian workers. “Ongoing commitment can derive from either economic self-interest (i.e., a solid business case) or from ethical grounding (i.e., the moral importance of sustainable development). Oftentimes, of course, both of these apply” (Amato et al
References: Crane A & Matten D (2007) Business Ethics. Second Edition. Oxford University Press. Connor M (2010) Nike: Corporate Responsibility at a “Tipping Point”January 24, 2010 in Business Ethics [online] available at http://business-ethics.com/2010/01/24/2154-nike-corporate-responsibility-at-a-tipping-point/ accessed on 8, November 2011. Dutton G (2008) How Nike is Changing The World, One Factory At a Time Ethisphere March 26, 2008 [online] available at http://ethisphere.com/how-nike-is-changing-the-world-one-factory-at-a-time/ accessed on 8, November 2011. Edge B (2005) Foreword: Restoring public trust in Ethics and Auditing Tom Campbell and Keith Houghton (Editors) ANU E press Australia [online] available at http://epress.anu.edu.au/ethics_auditing/pdf/prelims.pdf accessed on 8, November 2011. Hickman M (2006), The Ethics Audit from The Independent June 8, 2006 [online] available at http://www.independent.co.uk/environment/the-ethics-audit-2006-481531.html, accessed on 8, November 2011. Jackson R Improving (2007) Labor Standards - The Importance of A Long-Term Relationship in Ethical Corporation Magazine 10, November 07 [online] available at http://www.ethicsworld.org/ethicsandemployees/viewsandanalysis.php accessed on 8, November, 2011. Nelson J (1996) Business as Partners in Development: Creating Wealth for Countries,Companies and Communities (London: The Prince of Wales Business Leaders Forum, 1996, p. 47.) NIKE, Inc