Nike Ethical Issues

1380 Words 6 Pages
In a narrative format, discuss the key facts and critical issues in the case. Using valid peer-reviewed sources on the Internet, update any dated facts in this case with more current information.

Nike has had bad publicity in the past with the workforce, low wage, abuse of workers, and scrutiny over not being concerned about the environment. The list of challenges they have faced relates to social responsibility, however, they stated they were guilty of those actions they, and asked how do we improve. Those efforts helped them better their publicity for the good and have made huge difference in the way the company is controlled and works behind the scenes now (Ferrell, Fraedrich, & Ferrell, 2011).

Nike has recently joined a new initiative
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Nike was noted in the case study and in the public view for poor working conditions, widespread harassment, abuse, labor right violation, low wages, indiscriminate hiring and firing, and problems with factory conditions between their company and the workers. Sweatshops exist in countries such as China, Vietnam, Indonesia, and Mexico. Nike violated minimum wage and overtime laws in Vietnam as late as 1996. Hired cheap overseas labor employed in the free trade zones.

The University of Wisconsin was the first school to officially cut ties with Nike over its treatment of displaced Honduran workers. Cornell University followed suit. Nike issued a statement in response to the situation in Honduras, in which the employees of two subcontracted factories were laid off. Nike had previously declined to pay the workers severance fees, and has long said that it could not be held responsible for what its subcontractors did while (Doctoroff, 2010.) Nike settled to pay $1.5 million to the workers and agreed to implement training and development programs. The University of Wisconsin commended Nike for their gesture (Doctoroff,
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They restructured the whole team structure (Vogel, 2012). In 2010, Nike launched environmentally friendly and technologically advanced jerseys. Also, there was a software application developed that enabled designers to make sustainable choices right at the start of the product creation process. Nike can continue to review, evaluate, and audit their processes to continue to improve their corporate responsibility. Through surveys and audits it will help them to recognize their weaknesses, seek ways in which they can improve, and expand upon their

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