Case Study : Managing Ethical Organization

1377 Words Nov 26th, 2014 6 Pages
Anthony Steptoe
Case Assignment 2
November 26, 2014
Case Review: Managing Ethical Missteps—Sweatshops to
Leadership in Employment Practices

• Why did Nike fail to address corporate social responsibility early on? The Nike brand was created in 1972, and renamed to Nike in 1978, and has since grown to be the largest worldwide seller of athletic goods, with approximately 168 Nike stores in the United States and a presence in about 160 countries. (Ferrell, O.., 2003) During the time Nike brand was created corporate responsibility was not considered a major deal yet and there were several actions taken to help increase profits by cutting corners to ensure profit was made for the company. One way, which was adopted by so many other companies today, using cheaper labor force through outsourcing to other groups of people or area where the jobs were needed and little pay could be paid. Also during this time there were no monitoring programs developed to ensure quality, inventory etc… Not having monitoring programs made it impossible for the leaders and production workers know what exactly product was needed and what was available. With not having an established and external form of corporate governance within their external supply system, many of the factories without guidance and knowledge left accountability and oversight open to their own interpretation, the external suppliers, and not Nike. That brings another issue to the reason why Nike failed to address…

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