* CORPORATE SOCIAL RESPONSIBILITY
* Sociology Case Study: Nike
1. Friedman Approach:
Friedman believes that the only responsibility of the company is the increase of its profits for itself and its shareholders so long as it engages in free and open competition without deception and fraud. NIKE CASE: To shave cost, Nike outsources all manufacturing and cost savings go to marketing which aims at increasing sales revenue; achieve maximization of profits. No responsibility so long as Nike operates legally. However, as Nike went under scrutiny due to their unethical labor practices, their earnings fell drastically by 69%. Does that equate that Nike have to go beyond their minimal responsibility e.g. improving working conditions - in order to maximize their shareholders’ wealth?
2. Stakeholder Theory:
Stakeholder theory requires that the corporation recognizes and respect the vital interests’ of each of its surrounding stakeholders. This results in corporations proposing stakeholders’ rights and assigning related duties to recognize and respect these rights. NIKE CASE: Nike failed in recognizing and respecting the rights of employees (working in poor conditions and forced to work overtime just to ), environment (sewer system in the workers’ quarters, rats infested), local community (burn piles of shoe rubber dumped by Nike shoe factory that gives off toxins), government (flouting Indonesian labor laws and paying below subsistence wages).
Challenging Nike’s solutions:
Can truth truly be reflected through these solutions Nike provided? Question objectivity when EY is hired by Nike (accounting firms’ practice of misreporting figures or doctoring earnings according to agents’ requirements) Young’s translators hired by Nike could pose a problem of accuracy. As much as he is authorized to ‘go anywhere, see anything, talk to anybody’. (Coach Keady and Educating for Justice) Recommendations:
The power of media and journalism (reflect people’s...
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