NIKE INCORPORATED.docx

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NIKE INCORPORATED

BACKGROUND:
Nike is one of the famous franchises in the world that sells sportswear for all
ages. But is mostly famous for their athlete shoes and apparel and Nike is also one
of the major manufacturers of sp[rt equipment as well. The slogan for Nike is “Just
Do It”. Nike was founded in January 1962 in Oregon, United States by Philip Knight
and Bill Bowerman. Nike has somewhere around 700 or more retail outlets spread all
over the world, and has approximately 45 offices only outside the Unites States. And
it employs 30,000 people all over the world. Nike had a revenue excess of $16 Billion
in 2007. Nike’s factories are mostly located in Asian countries like Pakistan, India,
Malaysia, China, Indonesia, Philippines, Taiwan, Vietnam and Thailand. In 1980 the
company had a 50% market share only in the United States shoe market and then
the company decided to go public and it did by the end of the 1980’s December.
Through the 80’s Nike decided to expand its product line so that the line would
include many other sports like tennis, golf, baseball, cricket, badminton, etc. all over
the world.

OBJECTIVES:


To determine the ethical challenges arise in the organization.



To determine the legal challenges Nike is faced with.

STATEMENT OF THE PROBLEM:
The organizations these days are also faced with ethical dilemma within the
company. Ethical challenges arise in the organization when a situation each
alternative choice or behavior in undesirable because of potentially harmful ethical
consequences. Right and wrong is not clearly identifiable in the situation. The ethical
challenges (that is the sweatshop debate) that confront the global business of Nike
are as follows, the issue of child labor and the sweat shop problem has been one of
the legal challenges Nike is faced with. Another challenge that is faced by Nike is the
workers are given a very low wage and do overtime in countries like Vietnam, China
and Indonesia under a subcontract, Nike is poor working conditions, squalid working
conditions and forced labor in the factories that manufacture their products, and
lastly challenge that is faced by the company is the environmental damage that is
done to the society by air and water pollution, noises and change in the climate due
to the pollution etc. (Stockdale & Crosby, 2004)
ALTERNATIVE SOURCES OF ACTIONS:


Compensation



Training and development

Advantages
In the first alternative source of action, compensation can be define as what
the employees of the company receive in exchange for their contribution to the
company. When they are managed correctly that is the employees whether they are
executives or not, it helps the company to achieve its targeted goals and objectives
and the company is able to obtain, maintain and retain a productive workforce.
In the second alternative source of action, if the company wants to achieve its
desired goals and objectives and if it wants to receive the benefits, then the human
resource managers and specialists must assess the needs, objectives, content and
learning principles that are connected with training.

CONCLUSION:
The Nike Incorporated has their solution by making these steps in the following:
i.

The management of Nike should look at the employment practices; they
should make sure that the company is following the policies on recruitment,
training, health, safety and welfare.

ii.

The management of the company should also oversee that the environmental
practices. To make sure that the company follows procedures that are
responsible in terms of waste disposal and avoidance and energy inputs.

iii.

Conduct and design a training program for the employees. Training and
development efforts enable the employees to assume expanded duties and
greater responsibilities. It also remember that training and development
programs are not universal solution to every need of the company. Effective
job designs, selection, placement and other activities of the HR department
are also very important.

iv.

Create such a program that would help the management in dealing with
problematic behaviors of the employees. The company use uses cross
functional teams to develop products and services and solve the issues that
arise.

v.

Set targets and identify performance measure standards. With the help of
performance management, Nike will be able to develop skills of people to
achieve their capability to satisfy their ambitiousness and also increase profit
of a firm.

I therefore conclude that the management of nike should understand that why ethical
responsibility is needed within the company because it is the obligation of
organization’s management to make decisions and take actions that will grow the
welfare and interest of the society and as well the organization. It would include
activities and commitments that are related to human rights, governance and ethics,
development, working conditions of the employees, community involvement,
customer satisfaction, relations with the company’s suppliers and customers and
lastly respect for diverse cultures and different people.

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