Nike faced criticism over labor practices in its Southeast Asian factories. While Nike initially denied responsibility, it later acknowledged issues and took steps to address them such as establishing a code of conduct. However, watchdog groups remained skeptical of Nike's efforts to improve conditions. The negative publicity damaged Nike's brand image and reputation as a leader in corporate responsibility.

1. NIKE CASE STUDYPRESENTED BY

3. SHAHBANI

4. AZMIE

5. AZLINA

6. MEEN

7. Company mission

8. Company mission“ To be the world’s leading sports and fitness company”

9. Company historyThe SWOOSH logo is a graphic design created by Caroline Davidson in 1971. She was paid $35 by for the logo design.

10. The 1st shoe with the NIKE SWOOSH was introduced in Spring 1972. NIKE pronounced NI-KEY, is the winged goddess of victory according to Greek mythology.

11. Company history1962: Philip H Knight founds Blue Ribbon Sports (BRS) to import Japanese running shoes.1963: BRS takes its first delivery of 200 shoes from Onitsuka Tiger Co.1964: BRS becomes partnership between Knight $ William Bowerman.1966: The company’s 1st retail outlet opens.1968: Company is incorporated; the Bowerman Cortez design become a big seller.1971: BRS begins manufacturing its own product overseas & the Swoosh trademark and the Nike was introduced.

12. BOWERMAN CORTEZ DESIGN

13. NEW CORTEZ DESIGN

14. CASE SUMMARY

15. CASE SUMMARYDEVELOPING AN EFFECTIVE PUBLIC RELATIONS STRATEGY. This case is about how NIKE been confronted by watchdog group regarding their subcontractor workers issues in Asia.

16. NIKE has responded and took a proactive action to ensure the best practices in Human Resources Management, Environment protection and safety policies. MOVIE REVIEW

17. MOVIE

18. QUESTION REVIEW

19. QUESTION 1What could Nike’s Corporate Responsibility team do to improve Nike’s public image?

20. QUESTION 2Why did Nike’s attempt to address it critics prove unsuccessful?

21. QUESTION 3What damage, if any, has been done to Nike? Did Nike react appropriately? Did it overreact?

22. QUESTION 4Many of Nike’s competitors subcontractor production to Asian factories that are similar to the factories used by Nike, why was Nike singled out by human rights and labour right activist?

23. QUESTION 5What responsibility does Nike have to the workers in the factories of its subcontractors? What wage rates should it require them to pay their workers?

24. QUESTION 6According to its corporate Web site (www.nikebiz.com) Nike seems to be more forthright in delineating what it believes to be more corporate responsibility issuing, for example, an annual Nike responsibility report? Is Nike now doing enough for its contract workers?

25. CASE DISCUSSION

26. QUESTION 1What could Nike’s Corporate Responsibility team do to improve Nike’s public image?

27. Q1: AnswerCONDUCTING PRESS CONFERENCES & ISSUING PRESS RELEASE OUTLINING THE STEPS THAT NIKE HAD TAKEN TO ENSURE COMPLIANCE WITH ITS CODE OF CONDUCT. ESTABLISHING & POSTING PROGRESS ON IMPROVING LABOUR CONDITIONS ON THE CORPORATE WEB SITE.

28. RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.Q1: AnswerCONDUCTING PRESS CONFERENCES & ISSUING PRESS RELEASE OUTLINING THE STEPS THAT NIKE HAD TAKEN TO ENSURE COMPLIANCE WITH ITS CODE OF CONDUCT. ESTABLISHING & POSTING PROGRESS ON IMPROVING LABOUR CONDITIONS ON THE CORPORATE WEB SITE.

29. RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.Q1: AnswerCONDUCTING PRESS CONFERENCES & ISSUING PRESS RELEASE OUTLINING THE STEPS THAT NIKE HAD TAKEN TO ENSURE COMPLIANCE WITH ITS CODE OF CONDUCT. ESTABLISHING & POSTING PROGRESS ON IMPROVING LABOUR CONDITIONS ON THE CORPORATE WEB SITE.

30. RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.Q1: AnswerCONDUCTING PRESS CONFERENCES & ISSUING PRESS RELEASE OUTLINING THE STEPS THAT NIKE HAD TAKEN TO ENSURE COMPLIANCE WITH ITS CODE OF CONDUCT. ESTABLISHING & POSTING PROGRESS ON IMPROVING LABOUR CONDITIONS ON THE CORPORATE WEB SITE.

31. RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.Q1: Answer NIKE SHOULD TAKING ACCOUNT OF BUSINESS IMPACTS & THE DESIRES OF STAKEHOLDERS, TO PROVIDE AN OPEN & PROGRESS INCORPORATING RESPONSIBLE PRACTICE INTO OPERATIONS.

32. TO MONITOR THE IMPLEMENTATION THE CODES OF CONDUCT & TO FOCUS ON THE ROOT OF THE PROBLEMS.

33. RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.Q1: Answer NIKE SHOULD TAKING ACCOUNT OF BUSINESS IMPACTS & THE DESIRES OF STAKEHOLDERS, TO PROVIDE AN OPEN & PROGRESS INCORPORATING RESPONSIBLE PRACTICE INTO OPERATIONS.

34. TO MONITOR THE IMPLEMENTATION THE CODES OF CONDUCT & TO FOCUS ON THE ROOT OF THE PROBLEMS.

35. RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.Q1: Answer NIKE SHOULD TAKING ACCOUNT OF BUSINESS IMPACTS & THE DESIRES OF STAKEHOLDERS, TO PROVIDE AN OPEN & PROGRESS INCORPORATING RESPONSIBLE PRACTICE INTO OPERATIONS.

36. TO MONITOR THE IMPLEMENTATION THE CODES OF CONDUCT & TO FOCUS ON THE ROOT OF THE PROBLEMS.

37. RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.QUESTION 2Why did Nike’s attempt to address it critics prove unsuccessful?

38. Q2: Answer NIKE IGNORE THE PROBLEMS & DENYING THEIR RESPONSIBLITY TOWARD TEHIR CONTRACTOR MANUFACTURING.

39. NIKE UNABLE TO BALANCE BETWEEN BUSINESS OBJECTIVE AND LABOUR PRACTICES ISSUES.

40. THE WATCHDOG GROUP ARE NOT CONVINCE WITH IMPLEMENTATION OF THEIR CODE OF CONDUCT AND HUMAN RESOURCES MANAGEMENT ISSUES.Q2: Answer NIKE IGNORE THE PROBLEMS & DENYING THEIR RESPONSIBLITY TOWARD TEHIR CONTRACTOR MANUFACTURING.

41. NIKE UNABLE TO BALANCE BETWEEN BUSINESS OBJECTIVE AND LABOUR PRACTICES ISSUES.

42. THE WATCHDOG GROUP ARE NOT CONVINCE WITH IMPLEMENTATION OF THEIR CODE OF CONDUCT AND HUMAN RESOURCES MANAGEMENT ISSUES.Q2: Answer NIKE IGNORE THE PROBLEMS & DENYING THEIR RESPONSIBLITY TOWARD TEHIR CONTRACTOR MANUFACTURING.

43. NIKE UNABLE TO BALANCE BETWEEN BUSINESS OBJECTIVE AND LABOUR PRACTICES ISSUES.

44. THE WATCHDOG GROUP ARE NOT CONVINCE WITH IMPLEMENTATION OF THEIR CODE OF CONDUCT AND HUMAN RESOURCES MANAGEMENT ISSUES.Q2: Answer NIKE IGNORE THE PROBLEMS & DENYING THEIR RESPONSIBLITY TOWARD TEHIR CONTRACTOR MANUFACTURING.

45. NIKE UNABLE TO BALANCE BETWEEN BUSINESS OBJECTIVE AND LABOUR PRACTICES ISSUES.

46. THE WATCHDOG GROUP ARE NOT CONVINCE WITH IMPLEMENTATION OF THEIR CODE OF CONDUCT AND HUMAN RESOURCES MANAGEMENT ISSUES.QUESTION 3What damage, if any, has been done to Nike? Did Nike react appropriately? Did it overreact?

47. Q3(a): What damage, if any, has been done To Nike? Nike initial response was to ignore the problem and suggested that any problems were the responsibility of Nike’s subcontractor

48. Q3: AnswerThe above action has lead to the following damages:Nike Image Shattered More “Negative News About Nike’s LaborPractices” EmergedSeries of “Anti-Nike” Demonstration, Tarnishing Nike’s ImageNike Logo and Tagline are Associated With Bad Labor and Ethic PracticeOut of Court Settlement Confirms Nike’s Bad Labor PracticeNike’s Management Reputation

49. Q3: AnswerThe above action has lead to the following damages:Nike action is seen as a irresponsible and inhumane

50. Instead of rushing to mitigate the crisis of workers exploitation, Nike choose toe deny the existence of the crisisNike Image Shattered More “Negative News About Nike’s LaborPractices” EmergedSeries of “Anti-Nike” Demonstration, Tarnishing Nike’s ImageNike Logo and Tagline are Associated With Bad Labor and Ethic PracticeOut of Court Settlement Confirms Nike’s Bad Labor PracticeNike’s Management Reputation

51. Q3: AnswerThe above action has lead to the following damages:More “Negative News About Nike’s Labor Practices” EmergedActivists took advantage to embarrassed Nike even moreNike Image Shattered Series of “Anti-Nike” Demonstration, Tarnishing Nike’s ImageNike Logo and Tagline are Associated With Bad Labor and Ethic PracticeOut of Court Settlement Confirms Nike’s Bad Labor PracticeNike’s Management Reputation

52. Q3: AnswerThe above action has lead to the following damages:Many campaigns boycotting Nike’s products were organized especially throughout US/ Europe

53. This may “directly/ indirectly” affected Nike’s customers’ purchase decision as Nike experience reduction in Net ProfitNike Image Shattered More “Negative News About Nike’s LaborPractices” EmergedSeries of “Anti-Nike” Demonstration, Tarnishing Nike’s ImageNike Logo and Tagline are Associated With Bad Labor and Ethic PracticeOut of Court Settlement Confirms Nike’s Bad Labor PracticeNike’s Management Reputation

54. Q3: AnswerThe above action has lead to the following damages:Nike Image Shattered More “Negative News About Nike’s LaborPractices” EmergedNike Logo and Tagline are Associated With Bad Labor and Ethic PracticeNike “swoosh” logo and tagline are becoming the symbols of “bad labor and ethic” practicesSeries of “Anti-Nike” Demonstration, Tarnishing Nike’s ImageOut of Court Settlement Confirms Nike’s Bad Labor PracticeNike’s Management Reputation

55. Q3: AnswerThe above action has lead to the following damages:Nike reached an agreement to settle the lawsuit out of court ( Kasky vs. Nike) by agreeing to pay US1.5 million to the Fair Labor Association

56. The action indirectly shows that Nike is “guilty” and “responsible” for the work conditions and employees wellbeing of its subcontractor.Nike Image Shattered More “Negative News About Nike’s LaborPractices” EmergedOut of Court Settlement Confirms Nike’s Bad Labor PracticeSeries of “Anti-Nike” Demonstration, Tarnishing Nike’s ImageNike Logo and Tagline are Associated With Bad Labor and Ethic PracticeNike’s Management Reputation

57. Q3: AnswerThe above action has lead to the following damages:Nike Image Shattered More “Negative News About Nike’s LaborPractices” EmergedSeries of “Anti-Nike” Demonstration, Tarnishing Nike’s ImageNike Management failed to live up to the expected standards of an ethical corporate citizen as per what Nike projecting its image in its advertisementNike Logo and Tagline are Associated With Bad Labor and Ethic PracticeNike’s Management ReputationOut of Court Settlement Confirms Nike’s Bad Labor Practice

58. Q3(b) Did Nike react appropriately? (c) Did it overreact?The team answer is No, Nike fail to react appropriately.The team finds Nike is actually “under-react”.

59. QUESTION 4Many of Nike’s competitors subcontractor production to Asian factories that are similar to the factories used by Nike, why was Nike singled out by human rights and labour right activist?

60. Q4: AnswerMajorities of the human rights and activists are US-based .

61. Nike is associated as a US brand/ product.

62. Nike is associated with “luxury” products.

63. Nike is also seen as the leader among its competitors

64. Q4: AnswerMajorities of the human rights and activists are US-based .

65. Nike is associated as a US brand/ product.

66. Nike is associated with “luxury” products.

67. Nike is also seen as the leader among its competitors

68. Q4: AnswerMajorities of the human rights and activists are US-based .

69. Nike is associated as a US brand/ product.

70. Nike is associated with “luxury” products.

71. Nike is also seen as the leader among its competitors

72. Q4: AnswerMajorities of the human rights and activists are US-based .

73. Nike is associated as a US brand/ product.