Nike engages with a wide range of stakeholders on a daily basis, including social society, industry, government, consumers, and shareholders stakeholders are very important to nike's strategies, success, and the introduction of new products. Nike wasn't the only or worst company to use sweatshops but it was the one everybody knew transparency doesn't change ongoing reports of abuses , still-low wages, or tragedies like the one in. This hub examines the nike sweatshop debate, and addresses the following: 1) summarizes nike's case focusing on key points 2) describes the legal, cultural, and ethical challenges that confront nike as a global business. Chose as a case study, the famous nike sweatshops scandal that occurred during the 90's i chose nike as a case study because it is the largest global company in the sports shoe and apparel industry with a.
This chapter discusses some of the key issues and decisions relevant to understanding corporate and business ethics issues include how to govern large corporations in an effective and ethical manner, what behaviors are considered best practices in regard to corporate social performance, and how different generational perspectives and biases. Nike, in its 2010-11 sustainable business performance summary, promised to research the impact of wages on overall quality of life and to look into what nike's own role in wages. Whether you run a company that sells widgets, windmills, or wine tasting services, you have many responsibilities that extend beyond making money and paying bills. Key stakeholders are those individuals or groups whose interest in the project must be recognised if the project is to be successful - in particular those stakeholders who will be positively or negatively affected during the project or on successful completion of the project 2 on-key stakeholders are those individuals or groups whose needs do.
The ten-step method of decisionmaking high-impact issues stem from ¾ role play key stakeholders to see what they see as facts. Nike inc and sweatshops stakeholder analysis who makes up internal (primary) & why are they concerned internal stakeholders have an inherent vested interest in the company because actions of the company directly and personally affect them. In 1999, nike introduced its own code of conduct in vietnam, modeled after several ilo (international labor organization) conventions, to establish and protect workers' rights and strengthen accountability and transparency in nike operations in vietnam. Nike: the sweatshop debate mgt/448 may 31, 2010 instructor: adrianne ford nike: the sweatshop debate the purpose and intent of this paper is to describe the legal, cultural, and ethical challenges that face the nike corporation in their global business ventures.
Key stakeholders in nike sweatshops and impact on operational ethical issues interpersonal behavior in the workplace: trust nike inc, the sports apparel multinational company has been under suspicion and scrutiny for their practice of the unfair treatment and negligent labor habits in their offshore factories. This article discusses the phenomenon of sweatshops in the developing countries that are a result of the intense price competition in the global marketplace the fact that the working conditions of the workers who make these cheap products are often brutal is the key aspect that is highlighted. The reputation of sweatshop labor is old, and nike has been generally applauded for years for changing their labor practices and sustainability efforts - and yet for some people that 'sweatshop labor' stigma remains due to it being one of the first high growth and respect brands called out for the issue. Top 10 stakeholder issues report of 2015 each year, future 500 releases a top 10 report of what we predict will be the most critical issues driving stakeholder engagement in the coming year it consists of a breakdown and analysis of the key issues based on interactions with a broad range of stakeholders - funders, activists, companies and. Nike has come a long way since it was founded in 1972 on a handshake between an athlete (phil knight) and a track coach (bill bowerman) since the early years we have applied many learnings in developing and operating a complex global supply chain.
The firm has identified the various stakeholders and their issues and gathered the available data everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives management reviewed and refined the alternatives, and then chose a course of action. With already a huge competitor in nike, these kinds of actions can only help nike and hurt under armour under armour cannot afford to take hits in the current market when ethical issues came out about how under armour tried to influence a young athletes decision (lance stephenson) on where he should attend. Stakeholder groups to understand the impact of stakeholders, you need to know who they are and how they relate to your business along with owners, customers, communities, employees, business partners and suppliers are key groups. Starbucks is effective in its corporate social responsibility efforts, although more effort is needed with regard to the stakeholder group of coffee farmers, as well as the issues of youth rates and tax avoidance in some regions.
Nike and the negative controversy with sweatshops abstract the following will discuss the ethical and social issues in the nike, inc and sweatshops case it will also discuss why nike should be held responsible for what happens in factories that it does not own, and whether nike has a responsibility to ensure that factory workers receive a. Analysis and how the impact the operational/ ethical issues of the organization, the paper shall also be discussing the contribution factors and how the company's corporate culture may have helped to minimize the unethical behavior or actually contributed to/caused the. Ethics and corporate social responsibility 1) who are the stakeholders affected by sweatshops the stakeholders affected by sweatshops are the workers. The latest claims refute the longstanding assertions by nike and other high-end garment and footwear manufacturers that they are improving conditions in their outsourced sweat-shop operations.
Nike is known for their use of sweatshops in china with child labor, low wages, overtime hours, and bad working conditions to produce their products at a low cost, to then be sold at a high price in the us. In this lesson, you will learn about the impact of business decisions on stakeholders and the various difficulties in making appropriate ethical decisions that result in fair outcomes for all.
Recognizes that most serious, high-risk, high-impact issues stem from management's actions or inactions effective in dealing with highly complex situations, including cross-cultural international business issues. Nike learned that their stakeholders were concerned with more than buying low cost products their customers were also concerned with ethical and fair treatment of their workers because nike was unwilling to face the ethical treatment of its employees, the company lost its loyal customers and damaged its reputation. Key takeaways key points a corporate stakeholder is a person or group who can affect or be affected by the actions of a business internal stakeholders are entities within a business (eg, employees, managers, the board of directors, investors.