Eth/316 Corporate Globalization and Ethical Dilemmas
Corporate Globalization and Ethical Dilemmas
ETH/316
6/24/13
Corporate Globalization and Ethical Dilemmas
As companies expand into new markets and globalization becomes more and more a part of world economics, cultural dilemmas are sure to surface. Different cultures have developed different sets of values, laws, regulations, attitudes, and ethics. Communication styles, ways of conducting business, and etiquette can vary drastically from culture to culture. Something as simple as a common hand gesture can have a completely opposite meaning from on nation to another. Due to these cultural differences, organizations must be very careful when expanding their enterprise into new countries. One organization that has faced a number of cultural and ethical issues as a result of global expansion is Nike. Nike is amongst the most well-known brand names in the world, selling shoes and athletic apparel to all kinds of people all over the world. Founded in Oregon in 1962 by Philip Knight and Bill Bowerman, Nike has grown exponentially to include over 700 retail outlets worldwide, and around 45 offices outside of the United States alone. Employing 30,000 people worldwide and generating tens of billions of revenue, Nike is a prime example of corporate globalization (Professional Ethics Articles, 2012). The success of Nike, however, has not come without controversy. In its efforts to rapidly expand and grow to a worldwide business, the corporation has had its share of ethical controversy, mostly stemming from its largely outsourced factory work. Asian countries like Pakistan, Malaysia, India, Indonesia, China, Philippines, and Thailand contain the majority of Nike’s factories (Professional Ethics Articles, 2012). This has presented Nike with a substantial amount of bad publicity and negative public response. There is a reason that Nike has chosen these countries to house its factories, and that reason is cost reduction. By utilizing cheap foreign labor, the company
ETH/316
6/24/13
Corporate Globalization and Ethical Dilemmas
As companies expand into new markets and globalization becomes more and more a part of world economics, cultural dilemmas are sure to surface. Different cultures have developed different sets of values, laws, regulations, attitudes, and ethics. Communication styles, ways of conducting business, and etiquette can vary drastically from culture to culture. Something as simple as a common hand gesture can have a completely opposite meaning from on nation to another. Due to these cultural differences, organizations must be very careful when expanding their enterprise into new countries. One organization that has faced a number of cultural and ethical issues as a result of global expansion is Nike. Nike is amongst the most well-known brand names in the world, selling shoes and athletic apparel to all kinds of people all over the world. Founded in Oregon in 1962 by Philip Knight and Bill Bowerman, Nike has grown exponentially to include over 700 retail outlets worldwide, and around 45 offices outside of the United States alone. Employing 30,000 people worldwide and generating tens of billions of revenue, Nike is a prime example of corporate globalization (Professional Ethics Articles, 2012). The success of Nike, however, has not come without controversy. In its efforts to rapidly expand and grow to a worldwide business, the corporation has had its share of ethical controversy, mostly stemming from its largely outsourced factory work. Asian countries like Pakistan, Malaysia, India, Indonesia, China, Philippines, and Thailand contain the majority of Nike’s factories (Professional Ethics Articles, 2012). This has presented Nike with a substantial amount of bad publicity and negative public response. There is a reason that Nike has chosen these countries to house its factories, and that reason is cost reduction. By utilizing cheap foreign labor, the company
References: Connor, T. (2001). Still waiting for Nike to do it. Retrieved from http://www.globalexchange.org/sweatfree/nike/stillwaiting Dosomething.org. (2013). 11 facts about sweatshops. Retrieved from http://www.dosomething.org/tipsandtools/11-facts-about-sweatshops Professional Ethics Articles. (2012, Sept). Nike Case Study. Retrieved from http://professional-ethics-articles.blogspot.com/2012/09/nike-case-study.html http://spotonlists.com/crime/top-10-reasons-why-child-labor-is-bad/. (2013). 10 reasons why child labor is bad. Retrieved from http://spotonlists.com/crime/top-10-reasons-why-child-labor-is-bad/