In 2017, Nike, one of the world's largest and most well-known sporting goods companies, faced a number of ethical issues related to labor practices, environmental sustainability, and corporate responsibility. These issues had a significant impact on the company's reputation and bottom line, and Nike has taken steps to address them in the years since.
One of the most significant ethical issues faced by Nike in 2017 was the use of sweatshops and other unethical labor practices in its supply chain. Nike has a long history of facing criticism for its treatment of workers in developing countries, and in 2017, a number of reports and investigations highlighted instances of low pay, long hours, and hazardous working conditions in Nike factories. In response to these allegations, Nike has implemented a number of initiatives to improve labor practices in its supply chain, including audits of factories, training programs for workers and managers, and partnerships with labor organizations.
Another major ethical issue faced by Nike in 2017 was its environmental impact. The company has faced criticism for its use of non-renewable resources, as well as for its production of waste and emissions. In response, Nike has implemented a number of initiatives to reduce its environmental footprint, including using more sustainable materials in its products, reducing energy and water usage in its factories, and investing in renewable energy.
In addition to these issues, Nike has also faced criticism for its lack of transparency and corporate responsibility. In 2017, the company faced allegations of tax avoidance and failure to disclose information about its supply chain, which led to calls for greater accountability and transparency from consumers and investors. In response, Nike has taken steps to improve its transparency and accountability, including publishing regular reports on its sustainability efforts and engaging with stakeholders through various channels.
Overall, Nike faced a number of ethical issues in 2017 that had a significant impact on the company's reputation and bottom line. While the company has taken steps to address these issues and improve its practices, it remains under scrutiny from consumers, investors, and other stakeholders who are concerned about labor practices, environmental sustainability, and corporate responsibility.
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On the other hand Nike faces ethical dilemmas due to its operations and these dilemmas will continue to exist in the world economy. Businesses are also experiencing consumers by using a growing need to buy everything at a lower price. The evidence suggest that working conditions is another reason that the United States consumers should not buy products that are made by Micro Environmental Factors Of Nike 1368 Words 6 Pages This is due to Nike gets its merchandise generally from foreign manufacturers. Many people assume that global brands like Nike are always ethical, but that is not always the case. The compiled pollution releases toxic chemicals into our air, water, and soil, resulting in the creation of greenhouse gases and diminution of our water resources. It was attributed to the unfavorable working conditions they endured. In 1999, Nike's Fair Labor Association was established to protect workers' rights and monitor the Code of Conduct in Nike factories.
These sweatshops are places where workers are compensated with extremely low wages for long shifts in appalling working conditions. Could it be that by responding to some customer concerns about the social and environmental impact of their purchases that Nike may have opened up another avenue of future profitability? As child labour is considered as inhumane and illegal, Nike was negatively impacted in terms of its brand loyalty and consumer trust, and while the organisation acknowledged this issue, CSR-related ethics were not met. In addition, I think the essay focuses on mitigation part of the climate change, I would also encourage to discover how Nike is adapting impact of climate change to its supply chain. Low Cost Manufacturing Nike has a company who use the low cost manufacturing for production footwear. Five named Executive Officers received over £1m in total compensation in the same year, which Ethical Consumer considers to be excessive pay. And in Q1 of 2014, Nike reached a major step by introducing a water-free dyeing facility in Taiwan.
As society wants companies to create better paying jobs and protect the environment, some organisations want to acquire more profit by engaging in activities that are not tolerated by society Parboteeah and Cullen, 2013. Nike Code Of Ethics Summary 1252 Words 6 Pages UNETHICAL BUSINESS CASE STUDY ON NIKE Summary This project is focused onthe unethical behaviors of Nike. In business, the actual minimum working hard age is definitely depicted since 18 inside footwear community. The dilemma occurs when Nike may have to admit to its mistakes but doing so would cost them greatly, hence the truth may have to be manipulated and then disclosed, which does not conform to ethical standards. Find the range in inclusive sizes XS-3XL. Our editors curate highly rated brands that are first assessed by our rigorous ratings system. As well as this, Nike is still lacking in terms brand loyalty and consumer trust, something which has provided brands like Adidas a competitive advantage.
Nike vs Adidas: Who's More Ethical and Sustainable?
If it wanted, it could have stopped the torture by breaking off the deal with New Balance, leaving no choice with them but to stop the torture and use ethical measures for production. Nike uses some eco-friendly materials, including organic and recycled cotton and polyester, and has water reduction initiatives in its supply chain. I appreciate the approach to sustainability discussed which began with increased scrutiny into the process of manufacturing and then seeped into the materials themselves. European Management Journal, 20 5 , 562-573. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Should Nike even play this role? While Nike can invest in employee welfare, it is not a norm in the country that runs their factories.
But words alone sometimes do not mean action. While the sweatshop issue is far from over, critics and activists have praised Nike. ETHICAL DILEMMAS Nike has faced ethical dilemmas in operations and manufacturing for a while now. Merino sheep are bred to have wrinkled skin to produce more wool. Nike made reference to using Leather Working Group LWG certified leather in its Impact Report 2019, but no clear information was provided about what percentage was certified 100% LWG gold standard. Through this theory one can justify the placement of profits or revenue generation as the high attained goal of an entity.
Using recycled cotton and polyester, Nike can also reduce the number of off-cuts being produced, thereby furtherly reducing the level of waste created Nike, 2017. If enough customers demand change, brands that genuinely care about their impact will have no choice but to respond in kind. Nike and many other companies adopting sustainability has been long overdue. In turn, Nike should primarily on a sustainable strategic management plan that involves both social and environmental aspects. Conclusion If you have read to this point, we hope you have seen why Nike is considered unethical.
Nike Still Plagued by Accusations of Unsafe and Unfair Labor Practices
Journal of Labour Research, 27 2 , 265-274. There has to be a joint movement where all the forces agree to work towards a common and standardized direction. Companies are also facing consumers with a growing desire to buy commodities at a lower price. And to preserve this leather, they use dangerous chemicals. But despite the renewed reputation as an honest manufacturer, Nike recently ran afoul of human rights and labor activists once again. If you really need something and a product from Nike or Adidas is the best option, You can also reach out to brands who you think need a little nudge in the right direction.
With such public accusations which everybody in the world is exposed to, the company needs to take severe actions to save its name. The big question I pose for you, is how can we now create a movement within the apparel industry and get other key players to set high sustainability standards? Nike was operate multiple factories around the worlds. Nube turns recycled plastic into responsible and fashionable activewear, designed and made in the US. How stakeholders view stakeholders as CSR motivators. To recover, the company had no choice but to improve the factory conditions and labour rights. Organic Basics offers high-quality sustainable fashion basics for men and women in organic materials.