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Unethical behavior of Nike

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  1. 1. Presented by:<br />Charisse A. Caminong<br />MGT110/ BY02<br />Prof.Quiogue<br />
  2. 2. Company Background<br />Founded by Phil Knight and Bill Bowerman in 1964<br />Used to be called Blue Ribbon Sports<br />In 1971, they introduced the concept of Goddess of Victory-Nike and in 1972 officially launched the company.<br />Headquarters located in Beaverton, Oregon and employs 36,000 employees globally.<br />Known for the tagline “Just Do It” and their Swoosh logo.<br />Biggest shoe company in the world.<br /><br />
  3. 3. Incidents:<br />Refusal to compensate its workers with fair wages.<br />Continual use of unsanitary and unsafe conditions in its factories.<br />Child labour.<br />Violation of overtime laws.<br /><br />
  4. 4. Historical Background of the Case<br />By 1990’s, there were already disturbing stories about Nike factories in countries like Vietnam, China and Indonesia.<br />In 1997, workers from Indonesian factories went on strike because of low and unpaid wagesas well as violation of overtime laws.<br /><br />
  5. 5. 1998, Chinese workers protest about low wages and dangerous working conditions.<br />Indonesian workers earn $2.46 a day, Vietnamese workers earn $1.60 while Chinese workers earn $1.75 a day.<br />In Vietnam, 1300 workers protest for a raise of one cent per hour.<br /><br />
  6. 6. Social Impact<br />Jobs were taken overseas that could be in America which led to controversies and problems for Nike.<br />It is morally unethical to sell shoes worth $150 when the person who made your shoes was only paid a dollar.<br /><br />
  7. 7. Consequences<br />Many people and organizations criticized Nike.<br />Campaigns have been taken up by many including colleges and universities against Nike.<br />Some people are discouraged and started boycotting Nike products because of its bad publicity. <br />A 27% drop in their stock price and slower sales growth.<br /><br />
  8. 8. Personal Insights<br />I think Nike should increase the wages of its workers since the company is earning a lot of money.<br />It should also live up to its social responsibility and start improving the policies of the firm.<br />They should closely monitor the management in their contracted factories to ensure that their workers are not abused.<br />
  9. 9. They should immediately solve problems regarding their company to avoid criticisms from different labour unions and organizations.<br />Nike should always keep in mind that ethics is very important in business because it will affect the perception of the stakeholders.<br />The company should also continue to improve the working place of the employees and regularly check the conditions of the workers in the factories.<br />