Nike Business Ethics

2700 Words11 Pages
Nike Ethical Dilemmas

Ethical Audit Report

Table of Contents

Nike Ethical Dilemmas 1

Ethical Audit Report 1

Executive summary 2

Purpose of the Report 2

A Snapshot of Nike’s Business Ethics 3

Ethical Dilemma’s Facing Nike 4

Nike’s Best Ethical Practices 7

Conclusion 8

References 9

Executive summary

As globalization increases the scope of the Multinational Companies (MNCs) to penetrate the market both for cost effective labour and markets also has far reaching consequences. The question of business ethics and social responsibilities also extend to the suppliers, contractors and the work force that encompasses these new areas of operation and therefore it is
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“In September 2001 Knight and Nike’s Board of Directors created a Corporate Responsibility Committee of the Board. The committee’s responsibility is to review, report and make recommendations to the full board regarding Nike’s alignment with corporate responsibility commitments. Issues to be addressed include labour compliance initiatives, environmental practices, community affairs programs, human resources, diversity issues, and philanthropic efforts. These structural changes in the governance of Nike provide evidence of positive ethical deviance at the company level” (Arnold & Hartman, p23-24)

Nike has shown the way forward and “hopefully its future monitoring data will also set new standards. While the reporting of monitoring data has come a long way in a few short years, it still has a long way to go” (Jackson 2007)

Ethical Dilemma’s facing Nike

In 1997, the Vietnam Labour Watch (VLW) accused Nike of violating numerous labour laws of that country. According to the report, Nike did not pay the minimum wages, did not provide proper working conditions, and did not take adequate health and safety measures. And neither did it act on reports of child labour and sexual harassment in its factories.

Nike stated that their Code of Conduct has been in place since 1991 which states their values, intensions and expectations which should act as a guide to decision making in all
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