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.
Nike Company and the Ethical Production Issues
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.
Ethical Issues at Nike
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.
