Business Ethics of Nike Inc.

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1.0 Introduction Ethics, also known as moral philosophy that can be defined in basic term as what is right or wrong in humans’ morality. The definition of business ethics on the other hand, can be defined according by Wikipedia (2011), ‘a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.’ It is important to implement an ethical approach in a business company, as it has various responsibilities to look upon to, such as to shareholders, employees and the community. Therefore, by embracing this positive concept of ethics as…show more content…
2.1 Stakeholder analysis A stakeholder of a corporation is an individual or a group which either is harmed by, or benefits from, the corporation; or whose rights can be violated, or have to be respected, by the corporation (Crane and Matten, 2007, pp.58). Based on the stakeholder model, there are seven groups involved (refer appendix 1.0). Hence, in this report only two groups out the sevens would be discussed based on the Nike labor rights abuse issue. 2.1.1 Employee Chevron Texaco (2003) claims that ‘employees are vital stakeholders who are critical to helping our company meet its obligations to investors, partners, customers and governments’. As we all believed that, every individual in an organization should be treated with similar level of respect and integrity. Whether there’re differences level or status of employment, gender or even ethnicity should not be an issue in getting a fair treatment in an organization. Due to the continuous sweatshop and the inhumane treatments towards the employees, it certainly shows that company itself has neglecting the appropriate role that should be taken by the company. The situational faced by the workers in all the factories are likely to be said work-related stress. As employees are forced to work for long hours, with low wages and in bad working conditions will cause of depression, drop in work performance, fatigue, headaches and other related health issue which will disturb their performance.

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