Essay Foreign Direct Investment Tactics Of Nike, Inc.

1398 Words Mar 14th, 2015 null Page
As the world’s largest clothing and apparel brand, Nike, Inc. is constantly under pressure from shareholders, and competitors alike to compete on a global stage. With this, comes pressure to derive strong sales growth through superior products quality, strong brand strength, and a sustainable corporate and ethical image. In order to stay on top, growth is not enough. Nike must also keep costs in line and continue to grow their bottom line – maybe even faster than the top. This focus leads companies like Nike to invest in foreign operations in less-developed countries like South Korea, Taiwan and Vietnam where labor and production costs are dramatically cheaper. The result is clear: profits grow, keeping shareholders happy; the company grows, keeping employees happy; and the foreign countries have jobs and economic wealth created, i.e. all parties are happy – or are they? This analysis will examine the foreign direct investment tactics of Nike, Inc. through the lens of Professor Thomas Donaldson and his views on international business ethics. First, let us examine the two tenets explaining ethical behavior involved in international business. Donaldson identifies two extreme viewpoints on this issue: Relativism and Imperialism. Relativism is the belief that no culture’s ethics are any better than another. The concept of ‘when in Rome, do as the Romans do’ is often used to justify behavior. However, as Donaldson notes, relativism is morally blind. Doing business in another…

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