Nike Ethics Case Study - 1215 Words

All businesses are profit oriented. To stay in this line continuous implementation of new strategies for expansion is inevitable. An expansionary policy is necessary to promote brand recognition, increased revenue, prolong the life cycle of products, increase customer base and loyalty. Economies of scale from mass ordering and mass production are opportunities Nike sorted to exploit. However, this is not with problems as might lead to loss of control, and moral concern like was the case with Nike raising concern relating ethical principle in business. In this paper, we shall be answering questions related to the complexities of expansion amid a globalize world drawing inspiration from â€Å"The Promise and Perils of Globalization: The Case of†¦show more content†¦Adopting a limited growth strategy for a growing market of non-perishable good would have been the wrong thing for Nike to do reason while and expansion strategy was the best. First, large business has the advantag e of economies of scale. Nike buys in bulk and can, therefore, benefit from discounts. Depending on the profit margin, a large turnover is synonymous to a greater profit. In as much as diversification of products is an important risk reduction and management tool, diversification of markets should not be taken for granted. For instance, continuous growth guide against decline, market diversification against influences from competitors and inflation effects. Managing a big business is not an easy task. Nike became so big such that the use of subdirectory resulted in the failure of direct control of some of its activities. The result of this is increasing in production cost and maybe also a drop-in quality of product and services. After all the denial by Nike that it was not in a position to influence its supplier the viral criticism from New York Times, The Economist and many other presses in 1994 led to Nike request its suppliers in Indonesia to stop applying for exception from to the legal minimum wage and nine years later Nike decided to raise the legal minimum wage for workers of its supplier above that set by the State. Next, in line Nikes, theShow MoreRelatedEthical Issues Within The Workplace1375 Words   |  6 Pagesresponsible organizations like Nike consider the effect of their activities upon all stakeholders. What is asked that the business is ethically and socially accountable and when the stakeholder assembly converts disgruntled, the character of the business gets smudged as the argument of sweatshops smeared the character of Nike. The circumstance that is being discussed is the concern of Nike doing the right thing; to be ethically answerable. Ethics can be demarcated as the code of moralRead MoreSocial responsibility and Ethics in International Business Essay1392 Words   |  6 Pagesexploiting emerging opportunities and tackling their accompanying challenges relies heavily on how deeply they understand the dynamics of their operating environment† (as cited by Abebe, Elmuti, Minnis, 2005, p. 1024). Social responsibility and ethics Global expansion has developed a strategic imperative for nearly all large organizations and their managers. They have a great deal on their hands in developing, monitoring and changing their strategies. Becoming international is an important factorRead MoreNike CSR Analysis1581 Words   |  7 Pagesï » ¿ CSR Analysis and Impact on Operations Nike has a Code of Business Conduct and Ethics that includes its commitment to the environment and is a signatory of the UN Global Compact. Nike has created a team of sustainability managers led by an independent director. 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This paper will further elaborate on the global strategy employed by Nike Company as it outsources its goodsRead MoreBusiness Ethics Of International Business : Culture, Consumers And Employees1152 Words   |  5 PagesChallenges in International Business: Culture, Consumers and Employees Introduction General business ethics applies in the case of international business. However, international business ethics poses a particularly different difficulty- from domestic business- as a result of the scope of diversity that managers have to deal with: cultural, economic and legal, etc. Although the contents of business ethics are to an extent informed by the legal framework (including laws and regulatory policy), it is importantRead MoreCross Cultural Perspective – Nike Corporation Essay1121 Words   |  5 PagesCross Cultural Perspective – Nike Corporation In this essay, I will attempt to present an analysis of the ethics and social responsibility issues that an organization can face when it is a global organization. One of the most recognized organizations globally would without a doubt have to be the Nike Corporation. Several years ago the Nike Corporation came under fire for using child labor in Pakistan and Cambodia to make their soccer balls. Because Nike came under fire for this unethical and inhumaneRead MoreCase Study : Managing Ethical Organization1377 Words   |  6 PagesSteptoe BUSI-472 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 createdRead MoreEssay on How to Evaluate Companies?1061 Words   |  5 Pagesthe factors that must be taken into consideration when evaluating a firm are the following : business ethics, corporate social responsibility, reputation on leadership, governance and the company’s culture (Ethisphere, 2013). These factors in fact are the indicators used by the movement Ethisphere which identifies The World’s Most Ethical (WME) Companies. To define each criterion, business ethics primarily deals on the company’s best practices in terms of adopting an effective program and complianceRead MoreSocial Responsibility in Stakeholder Theory1509 Words   |  7 PagesTable of Contents 1. Introduction 2 2. Social responsibility in stakeholder theory 3 2.1 Why social responsibility? 3 3. Limitations 4 4. Case study examples: Starbucks amp; Nike 4 5. Conclusion 5 6. References 6 7. Appendixes 9 Appendix A 9 Appendix B 10 1. Introduction This report focuses on social responsibility issue focusing on stakeholder theory. Social responsibility will be introduced and defined based on stakeholder theory. Next, analysis on the importance and limitationsRead MoreCase Study - Nike Sweatshops Inc. Essay1486 Words   |  6 PagesManagement | Case Study Analysis: Nike, Inc. and Sweatshops | | | | | Ethics refer to what is defined as right or wrong in the morality of human beings and social issues are matters which could directly or indirectly affect a person or many members of a society. In this case study, Nike has been accused of subjecting employees in their subcontracted factories overseas to work in inhumane conditions for low wages. The CEO and cofounder of Nike lamented that â€Å"The Nike product has become