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Nike Inc. by daniel3

Conducting an analysis with an ethical lens
Essay
7 Suggestions by amelia

Sustainability requires being the new standard for future athletes to protect the environment. The company needs a conducive work environment where every employee is remains happy with the decisions made. Nike can communicate its purposes in several ways, aside from writing and conveying the historical, ethical, emotional, and practical aspects of an organisation. The company should focus its actions and make its mission tangible to all stakeholders. Nike needs to unify a category plan for five pillars of belief: innovation, sustainability, product responsibility, environmental protection, community inspiration, and advocacy for fairness. The company needs to tell the stories behind it to consumers, professionals, the industry, and employees.

 

People

How does the issue affect specific people in your organisation? 

Internal and external stakeholders remain essential to Nike Inc. Employees play an integral part in Nike’s success. Their unique and innovative ways of working are the company’s most important assets. Nike makes a point of promoting a healthy and productive work environment in its code of ethics, as well as the well-being of all employees.

 

Nike received condemnation for using sweatshops in low-developed nations. It then developed a system to address these labour challenges. The company has a team of people who inspect hundreds of factories each year, assign grades based on labour standards, and work with management to resolve issues. Nike also permits the Fair Labour Association, a monitoring organisation created by human rights organisations, to conduct random factory inspections.

 

The international community, through purchasing products, becomes part of the ethical problem facing Nike in the form of widespread use of sweatshops. The sweatshops used by Nike’s key partners often employ local workers to take advantage of the cheap labour. These companies exploit the porous labour laws in these countries (Aßländer, 2021).

 

 

How does the issue affect safety, enthusiasm, engagement, hiring, turnover, compensation, or advancement?

Many workers take jobs that need little skill. These jobs prevent workers from developing enhancing their skills or advancing in the economies of in low-developed countries. This damages the company’s purpose. Instead of moving the world forward by promoting the wellbeing of employees, it is doing the opposite, making the lives of those working in sweatshops harder. The most vulnerable people to the afflictive encounters in the sweatshops are the poor, women, and children who are enticed by cunning job offers to work in the sweatshops. Nike brings more jobs to low-developed counties, paying better wages than most local industries. 

 

There have been damning statistics that close to 75 percent of Nike’s sweatshop workers are women (Crossley, 2021).  Dangers occur from the materials used in the sweatshops or the long hours worked, causing both mental and physical harm. There have been allegations of physical and verbal abuse taking place in Nike’s sweatshops (Teather, 2005). Up to 50% of their factories limit their employees’ bathroom and water usage. Employees have been forced to work over sixty hours each week and are punished if they refuse to work overtime (Daily Mail, 2011). 

 

What are your recommendations and solutions for a more ethical treatment of people? 

 

Nike must acknowledge its role as a global corporation and adopt a more "transnational" mindset, as well as appreciate the significance of being flexible and responsive to country-level operations. Nike must adopt a more geocentric approach, establish global standards for its operations, and build a stronger identification with the host countries' national interests. To avoid the exploitation of vulnerable populations, strong rules against multinational corporations must be implemented. Nike must transition from an internal-focused and protectionist attitude to a more integrated company model. Nike needs to establish more structured procedures and systems that its partners may embrace, along with more personal interactions with workers in the host nations. Training personnel in these official processes and procedures will remain a large process that Nike must continue.

 

The international community can also play a role in bringing to an end the widespread use of sweatshops by boycotting Nike’s products. Activists and protestors against the establishment of sweatshops have become rampant in the contemporary era. They have had an immense impact on the conduct of multinational corporations, making use of sweatshops in their offshore manufacturing. As recently as 2017, students and activists across the globe went on the streets to protest the continued use of sweatshops by Nike amid growing concerns about the return of sweatshops (Quartz, 2017).

 

Profit 

  1. Describe how important financials, profits, and shareholder value are to the organisation. What issues does this create? 

The ultimate aim of offshore manufacturing and the use of sweatshops by most multinational corporations is to minimise production costs while maximising stakeholder profits. Nike appears to care much about its status as the leading apparel company in the world and has employed any means possible, including the continued use of sweatshops, to pursue stakeholder interests at the expense of the employees’ welfare. The company posted net revenue above $37 billion in the financial year 2019/2020, keeping its position as the leader in the apparel and sportswear industry (Tighe, 2021). Despite the company developing greater social responsibility in recent decades, profitability and shareholder value remains the ultimate aim of Nike.

 

  1. How does the issue affect the organisation’s stance on either a) To serve just enough to make maximum profits or b) To profit just enough to prove the maximum service? 

Nike needs to make more profits although it should not be at the expense of the key stakeholders’ welfare or the employees’ wellbeing. Nike presents itself as a company that serves enough to make large profits. Cheap labour enables the company to sustain this arrangementIt reduces the cost of production, which leads to a lower price of products and increased salesEmployees and interest groups, including humanitarian groups and governments, appear to be of least significance in the order of precedence with the stakeholders within Nike Inc. Nike’s corporate social responsibility strategy only exists as a public relations response to the stakeholder pressure to have a company with a positive public image (Kim, Overton, Bhalla, & Li, 2019).