Nike Unethical Practices

1287 WordsJul 25, 20116 Pages
NIKE Introduction The declaration by Philip H Knight that he would discontinue financial aid to the University of Oregon was a major issue that attracted the attention of the world media. That Mr. Knight had chosen to cut links with his alma mater was an issue that was greatly analyzed not just because of the business compulsions that hid behind the decision, but because the issue was important to understand the attitude of multinational companies towards business ethics. custom essays Analysis Nike was under international pressure from various communities and non-governmental organizations on the issue of practicing unethical business tactics to enhance profits. For example Nike, which outsources most of its manufacturing tasks to…show more content…
The company on the contrary maintained that it was only outsourcing its manufacturing operations to the Asian firms and that the situation in these companies was not under its direct control. However, the public debate and alienation directed against the company was mounting slowly and soon the company managers felt the need to revamp the image of the company in order to arrest the sliding morale of the company's executives. This was particularly necessary because prominent media houses started specifically attacking Nike's policy to not to interfere in the affairs of its franchisees. Nike, which had a good reputation among youngsters, also started gaining reputation as a badly managed company that exploited the economic weaknesses of the South Asian regions. No explanations of the company that it could not interfere with the local operations could convince the US public which believed that the company could enforce ethical work culture if it so desired. Even the high profile advertisements that the company used to its advantage started to get negative appeal in the US markets and that is when the company decided that it had to do something about the deteriorating work conditions in its co-concerns. Nike was initiated into action to promote good work culture when a furore was created on the issue of child labor in Pakistan. Nike immediately compelled its associates to prevent child labor in its factories. This was an important step that let the company
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