Ethics at Nike

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Nike’s Corporate Social Responsibility MGMT 6213 – Ethics in the Workplace Wendy Bailey / Thomas Sullivan October 30, 2011 Nike’s Corporate Social Responsibility Nike, Inc., a Fortune 500® company, is a leading producer of sporting equipment, athletic shoes, and athletic apparel. The company employs over 30,000 people worldwide with an additional 500,000 through a complex series of subcontracting agreements. Throughout its history, Nike has undergone a transformation from a competitive business seeking the lowest cost manufacturers, to one that focuses on its corporate social responsibility in every aspect of their operations. This paper will outline unethical claims against Nike, provide a defense of those claims, demonstrate Nike’s evolution, and outline a triple threat recommendation for future success. Allegations of Ethical and Corporate Social Responsibility Lapses Throughout the paper, the author outlines how Nike is sourcing its products in factories and countries where low wages, poor working conditions, and human rights problems are rampant. Evidence is widespread and involves underpaid workers in Indonesia, child labor in Cambodia and Pakistan, and poor working conditions in China and Vietnam. (Locke & Siteman, 2003) In addition, the author argues that Nike is essentially ignoring these problems and is not being a good corporate citizen. In its factories in Indonesia, Nike subcontractors are paying lower than minimum wage to its workers. In fact, the subcontractors were petitioning the Indonesian government for exemptions so they could legally pay less. In addition to the low wages, allegations surfaced claiming poor working conditions and a wide range of human rights and labor abuses. These problems also stretched to Nike’s Korean suppliers where workers were “terrified” of their South

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