Ethical Ethics Of Nike

731 Words3 Pages
Nowadays, it has been acknowledged that having an ethical business could determine the future business success. According to the 2015 Edelman Trust Barometer, consumers purchase a particular product because of their trust on the company produced it (Edelman Berland, 2015). Therefore, more company has instilled their ethical values to operate their business. Nike’s corporate as one of multinational enterprises (MNEs) has also implemented its code of conduct and code of leadership standard. The purpose of this policy is to ensure the ethical practices in their business. The company has revised these conducts since Herbert’s 1996 (cited in DeTienne & Lewis, p.361) criticized Nike as a giant pyramid which repress its labours. This critique was…show more content…
These continuing pressure impacted on the negative image and decreasing revenue of the company. Consequently, the ethical practices of Nike’s corporate have argued until now. Thus, this essay will discuss whether Nike has transformed as an ethical company or not by evaluating sweatshop utilization, environment and corruption issues in this company. The use of sweatshop in multinational companies has become a common practice around the world. The main reason is because it could maximize profit by overseas manufacturing with lower labour costs. According to Skarbek et al (2012, p.556),the sweatshop is a factory in the developing country which employ the low wage labors in the poor working environment to produce goods for multinational enterprises. The proponent of sweatshop claimed that based on consequentialist approach, sweatshop has given a positive impact on the welfare of developing countries included workers and even future generations…show more content…
They underlie their opinion by a deontological approach which supports the equal treatment towards others as a response of our behaviour. In order to fulfil the dignity of workers in Nike supply chain, the company established code of conduct in 1992 and their amendments in 1997 and 1998. These ethical values were included recommendations for minimum wages, maximum working hours of 60 hours per week, minimum age for workers of 16 years old and 18 years old to work in a hazardous environment, prohibition on forced labor and minimum safety and environmental standards. However, some reports of sweatshop misconducts are still continued. For example, in 2011, there was a report of sweatshop abuse in Indonesia, where employees were still getting harsh treatment from their supervisors. This condition was also backed up by military power and lacked of monitoring from Nike. The use of regime power could also be seen in Russia, Vietnam, Sri Lanka, Thailand and
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