In 2017, Nike, one of the world's largest and most well-known sporting goods companies, faced a number of ethical issues related to labor practices, environmental sustainability, and corporate responsibility. These issues had a significant impact on the company's reputation and bottom line, and Nike has taken steps to address them in the years since.
One of the most significant ethical issues faced by Nike in 2017 was the use of sweatshops and other unethical labor practices in its supply chain. Nike has a long history of facing criticism for its treatment of workers in developing countries, and in 2017, a number of reports and investigations highlighted instances of low pay, long hours, and hazardous working conditions in Nike factories. In response to these allegations, Nike has implemented a number of initiatives to improve labor practices in its supply chain, including audits of factories, training programs for workers and managers, and partnerships with labor organizations.
Another major ethical issue faced by Nike in 2017 was its environmental impact. The company has faced criticism for its use of non-renewable resources, as well as for its production of waste and emissions. In response, Nike has implemented a number of initiatives to reduce its environmental footprint, including using more sustainable materials in its products, reducing energy and water usage in its factories, and investing in renewable energy.
In addition to these issues, Nike has also faced criticism for its lack of transparency and corporate responsibility. In 2017, the company faced allegations of tax avoidance and failure to disclose information about its supply chain, which led to calls for greater accountability and transparency from consumers and investors. In response, Nike has taken steps to improve its transparency and accountability, including publishing regular reports on its sustainability efforts and engaging with stakeholders through various channels.
Overall, Nike faced a number of ethical issues in 2017 that had a significant impact on the company's reputation and bottom line. While the company has taken steps to address these issues and improve its practices, it remains under scrutiny from consumers, investors, and other stakeholders who are concerned about labor practices, environmental sustainability, and corporate responsibility.
Nike Still Plagued by Accusations of Unsafe and Unfair Labor Practices
These consumers will naturally push Nike to develop the newest, coolest, best products and will push other retail brands to do so as well. We love these sustainable brands listed above, but they may not meet your specific needs right now. And in Q1 of 2014, Nike reached a major step by introducing a water-free dyeing facility in Taiwan. As well as this, Nike is still lacking in terms brand loyalty and consumer trust, something which has provided brands like Adidas a competitive advantage. Despite these issues for children, Nike has claimed that children are paid a lower wage due to laws in Vietnam, which allows for a training wage less than minimum pay. The report identified that Asian factories were subjected to the worst cases of physical and verbal abuse, and that many of the employees worked more than 60 hours per week. These stakeholders are important because they affect how Nike operates in terms of its permits, limits and legal actions in certain markets for its sports shoes, equipment and apparel.
Read more about living wages for garment workers here. This lack of transparency is problematic as the welfare of animals and workers is unknown. This has allowed it to regain public trust and become a leading brand in the sportswear sector. How stakeholders view stakeholders as CSR motivators. As a result of globalisation with markets along with production techniques, an increasing number of Multi-National Companies MNC are having to get over ethical difficulties in the different counties they are operating in Dunn and Creeks, 2011.
Our editors curate highly rated brands that are first assessed by our rigorous ratings system. In the beginning the company was known as Blue Ribbon Sports RBS. It is only in the establishment associated with campaigns containing led to organisational changes, rationally and ethically, in both the us and BRITISH ISLES Powell and also Skarbek, 2006. Share this: Facebook Facebook logo Twitter Twitter logo Reddit Reddit logo LinkedIn LinkedIn logo WhatsApp WhatsApp logo NIKE — ETHICAL ISSUES AND DILEMMAS INTRODUCTION Nike has been dodging accusations of employing people in the developing and under-developed economies, at low wages and poor working conditions for a considerable period of time. Thereby, by not necessarily strategically shifting its solutions, Nike faces the risk of dropping sales and provide chain relationships, and should target implementing staff member contracts that has a bill connected with rights; as a consequence, obligating Nike pas cher to treat personnel fairly Teather, 2005. Subsequent to changes put in place, Nike has failed to prevent the physical and mental abuse to its employees in the workplace Daily Mail, 2011.
This article opened my eyes to the creativity that exists within the sustainability space. While Nike did establish strategies to overcome these issues, little was done to combat the high toxic levels occurring within the workplace and in the environment; thus, preventing the organisation from achieving CSR-related ethical goals Nike, 2017. Thus, Nike is considered as one of the largest shoe retailers worldwide Sage, 2008 , controlling approximately 36% of shoe market Locke et al. Also, their production plants are all located in developing or underdeveloped countries. I could not believe that those people were working hard making that company so much money and was getting nothing in return. The student protest is a movement against the labor in organized forms — the problem here is that the AFL-CIO in order to succeed needs coverage and publicity; but they do not get it because of their nature.
Behind the glamorous advertising of its premium sporting wears around the world. In a bid to overcome these ethical issues, Nike published a report regarding factories where employees manually manufactured products under horrific conditions Teather, 2005. As a class we watched the documentary and as I learned more about how Nike was running their business; I felt bad for the people that were working. Within excess of 600,000 representatives around the world, there is proof to recommend that Nike has violated a few laws according to working age Boggan, 2001. While Adidas is still ahead of some of the most notoriously harmful brands in the athletic apparel sector, it still has work to do in crucial areas like biodiversity and transparency.
Thereby, this homework is going to are dedicated to three ethical issues suffering by Dolomite Inc. Later, Nike announced a new policy for all sponsored athletes during pregnancy that guaranteed pay and bonuses for 18 months around the time of pregnancy. Over five years, Tiger Woods is expected to earn 80-90 million US dollars of Nike money. While they could manufacture these products in the United States of America, profitability of these products wins over providing the home country with employment and opportunities in the manufacturing segment. Having a skilled and valuable workforce appears to be of high importance for the organisation, and ensuring performance is compensated, high productivity can be guaranteed at all times Nike, 2017.
Nike and many other companies adopting sustainability has been long overdue. It is one of the world 's greatest producers of athletic shoes and apparel and manufacturer of sports equipment. Since 1996, Nike has been critiqued for manufacturing its products Indonesian, Mexican, Chinese, Vietnamese-based sweatshops. Moreover, with such a large market share, I see Nike as a corporation in a unique place to influence other firms in the industry. PROBLEM AREAS There are a number of areas that are seen as weak points or links in this Nike case. The first ethical issue involves the use of sweatshops — a factory whereby manual workers are employed at very low wages for long working hours and under very poor conditions Powell and Zwolinski, 2011. The only standard that Ethical Consumer thinks is good is LWG Gold.
The CSR and image benefits that accrue to the brand through sustainable practices are secondary, in my view, to the improved manufacturing efficiency and cost management that such practices offer. Our academic experts are ready and waiting to assist with any writing project you may have. Advertising Budgets — Nike has endorsed many athletes and celebrities like Tiger Woods and Michael Jordan paying them exorbitant amounts of money. Simon Birch, Sweat and Tears, The Guardian, 2000. Expensive products Despite being well known that its products are made in factories in other countries where labor costs are low, Nike is known for charging very high prices for the goods and their products.