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Nike Report on Being Ethically Correct

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Nike Report on Being Ethically Correct
[Executive summary]
Nike Inc was involved in several controversies during the mid 1990’s which were revived in early 2000’s. The allegations have had the potential to adversely affect the brand image of the company. The company was criticized for operating factories in poor working conditions in low cost countries such as China, Vietnam, Mexico and Indonesia. Before these allegations were voiced, the following theories were applicable; a view that was noted by (Shaw, W, Barry, V & Sansbury, G 2009) was utilitarianism which was relevant to the individuals as the factory workers were given employment and a steady income, this was not offered in remote and poverty stricken parts of Asia. The egoism theory (Shaw, W, etal, 2009) which can be connected to both the organization, Nike Inc, and a western society. The has been adopted to these two parties due to their self-interests for one another, when concerning Nike is was about increasing revenue and nothing else. While the western society saw this as a direct attack towards them as their jobs were taken from them and that these new employees in Asia didn’t even have the same benefits as the western workers. This lead to worldwide dispute among communities in the western world, ranging from protests to destruction of a factory. Following these allegations, reports found that Nike had been violating minimum wage and overtime laws in countries like Vietnam. Post investigation, recommendations such as the use of the utilitarianism theory to the individuals as they knew no other and were happy to continue to work as long as they had a stable income to provide for their families. The duty of care (Shaw, W, etal, 2009) approach has been applied by Nike; as a business they have seen that they have a moral duty to its stakeholders [employees] which consists of being ethical and treating them with respect. The virtue theory allows a win-win outcome for all stakeholders in the Nike Inc case. This theory can be used when

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