Business Ethics : Nike

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Nike grew from a small concern to a true global sporting goods, wear and equipment icon. This global success came about as a result of a series of innovative management decision making and an understanding of the global market arena Nike was a major player in. Outsourcing strategy of productive capacity to cheaper markets, provided the leverage Nike needed to develop their brands to the level they grew to and continue to do so to date. Nike`s phenomenal growth across continents, however, eventually developed serious concerns and issues to do with ethics in the manner in which they did business. Initially, what was a smart business acumen strategy of outsourcing labor in cheaper markets as a goal in itself shortly in the 1990`s became the Achilles heel of the giant sporting goods company. The company run into problems as it came to light that some of the places they deemed cheaper markets actually contravened labor and international human rights regulations such as child labor, poor remuneration and undesirable working environments and conditions. Organizations such as ILO, UNICEF and other movements unearthed these contraventions and infringements of regulations and rights which resulted in serious reputational damage to Nike and its brand. These organizations discovered ill treatment of workers e.g in Korean factories, child labor in Pakistan factories and much to reputational detriment was the discovery of health and safety concerns in Vietnam were work was done without
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