Unit III -Nike Ethical Delimma-Case Study-MBA 6301-15K-7-C

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Feb 20, 2024

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Running head: NIKE’S ETHICAL DILEMMA 1 Nike’s Ethical Dilemma Caroline A. Austin Columbia Southern University

NIKE’S ETHICAL DELIMMA 2 Nike’s Ethical Dilemma Phil Knight, the CEO of Nike had addressed the issues that plagued Nike. He explained that Nike is a marketing company and the product is the most important marketing tool (Willigan, G. E., 1992). If this is true then why did Nike outsourced their product overseas and treated the third world country employees as slaves in a mafia style ownership. This behavior was so bad that it tarnished their reputation which changes the view point of their customers that it then affected their product. He ensured that Nike would make improvements in their overall operations and address any issues that would cause controversy. “Really” you might not be saying this if you had not gotten caught abusing employees in third world countries. Being under a micro scope is hard to get away from when you are facing wage controversies in subcontracted Asian factories (Landrum, N. E., 2008). Nike, in its quest to make their product should have kept their ethics in check so that any wrong doing would not have been publicized, which changed the focus and view point of everyone around the world. A video of Nike’s sweatshops was published for the world to see by Jim Keady in 2011, showed the deplorable conditions that the Nike employees lived. Jim Keady felt that Nike had to be exposed for their cruelty and ethical violations. After the story came out of Nike’s unethical behavior towards the poor workers just the thought of buying a Nike product puts a sour taste in anyone’s mouth. The controversies rallied a cry for justice from all over to put a stop in this inhumane treatment of poor workers in overseas third world countries. In anyone’s view point, Nike should have never behaved this way in the first place not of these violation of human rights would not have been reported. Nike would have gone on to produce their product without any scrutiny.

NIKE’S ETHICAL DELIMMA 3 Many years ago, Nike began its outsourcing for its marketing campaign and opened up factories in several countries, such as Korea and Taiwan. It also started expanding in China, Vietnam and Indonesia. Because Nike had been so successful it became an early target for its labor practice that tarnishes its reputation. Nike had set up factories in these countries so that they can cut cost and it was an easy way to avoid federal regulations. Despite these reasons, Nike was reported as having sweat shops that was in violation of human rights. The reports were being published about Nike paying employees as low as $1.25 to $2.40 a day (Radin, T. J. & Calkins, M., 2006). The workers were earning slightly more than it cost to buy three meals a day and were under strict rules about their bathroom and water breaks (Radin, T. J. & Calkins, M., 2006). The treatment in which these employees suffered was intolerable and broke every ethical rule in the world. The study in 1997 was released by Nike to resolve wage controversies in subcontracted Asian factories (Landrum, N. E., 2008). Nike’s CEO Phil Knight had to face ethical questions and decisions that may or may not be beneficial for the company. Some decisions can be very difficult in order to illuminate problem or solve problems. Nike had been so successful that it neglected its ethical code of conduct, its standards and that it abused its employees in an intolerable way, which the conditions were harmful and unhealthy towards the employees. Many would pass out or fall from exhaustion and were so depressed they felt they had nothing else important in their lives that they felt trapped with nowhere to go because of their dependency of earning a paycheck. Nike’s decision to choose their product and profits over their ethical beliefs was a stupid move on their part. When it was noted or reported that Nike was paying low wages and had poor working conditions, the response from Nike was to implement a code of conduct. The news media

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