Essay Nike- Ethical Issues

1454 Words6 Pages
Ethical Case Analysis:

Nike

Introduction

Nike was established in 1972 by Bill Bowerman and Phil Knight. These two men were visionaries. The goal for Nike was to carry on Bowerman’s legacy of innovative thinking by helping every athlete reach their goal or by creating lucrative business opportunities that would set the company apart from any competition. This included providing quality work environments for all who were employed by Nike. However, Nike has long been eluding allegations of employing people in the developing and under-developed economies, at low wages and poor working conditions for a long time. Nike tried many different measures of correcting
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By joining a task force that helps promote fair labor practices, Nike is taking responsibility for its actions and showing the global market that is does take an interest in those working in the factory. This helps to alleviate any hesitation consumers may have with purchasing products made by Nike. The Sarbanes-Oxley Act of 2002 can help Nike monitor the compliance of the factories in foreign companies because it can help Nike monitor the wages paid to its employees more closely to ensure they are being paid fairly. As well it can help the company identify any significant changes in internal controls and related factors.
Government Regulations The International Labor Organization (ILO) sets the standards for working conditions around the globe. ILO’s main target is governments however; many of the standards recognized today affect the behavior of corporations. The UN Global Compact sought to create a partnership between the UN and many transnational companies to promote ten essential principles in the areas of human rights, labor, the environment, and anti-corruption. (Anderson, International Regulation of Transnational Corporations, p.5) These principles include the right to equal opportunity, right to security, right to workers, as well as the respect for independence and human rights. For Nike, I think these

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