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Discern how a more effective ethics program and more viable code of conduct could have mitigated the ethical issues faced by Nike.
According to (Ferrell, Fraedrich, & Ferrell, 2011). NiKe reduces their costs by having their athletic footwear products, clothing, equipment and accessory products for sports made in countries where they can pay lower labors costs than in the United States. Nike pays workers in Asian countries, such as Indonesia and Vietnam, about 20 cents per hour. By reducing labor costs they can make more profits. Nike has had to face issues concerning human rights and conditions for workers in factories in developing countries such as labor violations. Nike could have mitigated to solve these ethical issues by taking care of their employees’ welfare and gaining trust. This would have been beneficial in making a good relationship between Nike Company and their customers. Because the primary stakeholders of the company are employees and customers who have ability to influence the business for the company can be survive, Nike should consider the rights of their employees to have a safe working environment and competitive wages. “Nike also has implemented a code of conduct for all of its suppliers, and has been working with the Global Alliance to help review its factories” (Ferrell, Fraedrich, & Ferrell, 2011, p. 387).
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business Ethics: Ethical decision making and
cases (8th ed.). South Mason, OH: South Western Centagage Learning.
* The Legal Environment of Business, P.16, from http://highered.mcgraw-hill.com/sites/dl/free/0073524913/537900/Chapter_02.pdf.
* PabloDion. (2008, November). Nike – Social and ethical issues. Write work, from http://www.writework.com/essay/nike-social-and-ethical-issues.
For this particular case Nike face lots of ethical ad social issues. Many global companies like Nike, Inc. are seen as role models both in the market place as well as in...
According to (Ferrell, Fraedrich, & Ferrell, 2011). NiKe reduces their costs by having their athletic footwear products, clothing, equipment and accessory products for sports made in countries where they can pay lower labors costs than in the United States. Nike pays workers in Asian countries, such as Indonesia and Vietnam, about 20 cents per hour. By reducing labor costs they can make more profits. Nike has had to face issues concerning human rights and conditions for workers in factories in developing countries such as labor violations. Nike could have mitigated to solve these ethical issues by taking care of their employees’ welfare and gaining trust. This would have been beneficial in making a good relationship between Nike Company and their customers. Because the primary stakeholders of the company are employees and customers who have ability to influence the business for the company can be survive, Nike should consider the rights of their employees to have a safe working environment and competitive wages. “Nike also has implemented a code of conduct for all of its suppliers, and has been working with the Global Alliance to help review its factories” (Ferrell, Fraedrich, & Ferrell, 2011, p. 387).
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business Ethics: Ethical decision making and
cases (8th ed.). South Mason, OH: South Western Centagage Learning.
* The Legal Environment of Business, P.16, from http://highered.mcgraw-hill.com/sites/dl/free/0073524913/537900/Chapter_02.pdf.
* PabloDion. (2008, November). Nike – Social and ethical issues. Write work, from http://www.writework.com/essay/nike-social-and-ethical-issues.
For this particular case Nike face lots of ethical ad social issues. Many global companies like Nike, Inc. are seen as role models both in the market place as well as in...