Nike: From Sweatshops to Leadership in Employment Practices
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business ethics: Ethical decision making and cases: 2011 custom edition (8th ed.). Mason, OH: South-Western Cengage Learning. Assignment 5: “Nike: From Sweatshops to Leadership in Employment Practices” Read the “Nike: From Sweatshops to Leadership in Employment Practices” case. You are to write a four to six (4-6) page paper that answers the following questions: 1. Discern how a more effective ethics programs and a more viable code of conduct could have mitigated the ethical issues faced by Nike. 2. Describe an ethics training and communications program that may have kept Nike from encountering the ethical issues it did in this scenario. 3. Determine and discuss how Nike could have benefited early on from ethics auditing. 4. Create a high-level outline for what the ethics auditing process should look like at Nike. 5. Include at least three (3) references, no more than three (3) years old, from material outside the course The format of the paper is to be as follows: o Typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format. o Type the question followed by your answer to the question. o In addition to the four to six (4-6) pages required, a title page and a reference page is to be included. The title page is to contain the title of the assignment, your name, the instructor’s name, the course title, and the date. The reference page is to be APA format. Note: You will be graded on the quality of your answers, the logic/organization of the report, your language skills, and your writing skills.
Nike: From Sweatshops to Leadership
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Discern how a more effective ethics programs and a more viable code of conduct could have mitigated the ethical issues faced by Nike.
Nike is one of market leaders in the athletic footwear and apparel. In the 1980’s the company enjoyed unprecedented growth, and then started shifting manufacturing operations to Asia and Latin America (Ferrell et al., 2011). In the 1990’s the company suffered bad reputation from human rights violations, environmental problems and labor unrest in some third world countries where the company operated. The company’s response was denial and damage control rather than wide spread reform, but over time the company started monitoring operations in East and South Asian facilities. Protests and threat of deal cancelations in the U.S further damaged the company’s reputation, but the company has made changes over time to improve the code of conduct (Ferrell et al., 2011).
A code of conduct would have prohibited inappropriate behavior among the subcontractors, as there was no emphasis on the ethical behavior. Through establishing a viable code of conduct, Nike employees would have clarity on what was expected of them and what was considered unethical practice (Nisen 2013). Equally, the management would have been more accountable to the stakeholders as the code of conduct provides guidelines on ethical practices in the company’s facilities. There is less liability on the part of the company from poor performance of employees on ethical practices, while unethical managers are held accountable for their choices because of a code of conduct
A better code of conduct and ethics program would have been effective in improving relations with stakeholders (Nike, 2011). Employees are integral to the success of the company and as internal stakeholders their concerns should be taken into account when formulating ethics training programs. Nike has adopted more worker friendly policies to improve the wellbeing of employees, where inspection in labor standards has been critical to the success of the company’s code of conduct. Similarly, the company now views the community as a valuable asset to the company, and Nike has initiated programs to reduce environmental degradation and promote health (Nike, 2011). Essentially, the management’s commitment to the company’s stakeholders improves relations and should have a priority in the 1990’s when the company faced criticism.
2. Describe an ethics training and communications program that may have kept Nike from encountering the ethical issues it did in this scenario.
Nike needs to adopt policies related to ethical practice in operations that should be adhered to by the management and employees of the company. As a multinational company with operations in diverse countries, the company can learn about child labor laws, labor relations and environmental protection through relying on researchers. This would enable the company to operate with minimal resistance because of respect to local culture and languages, while also aligning the businesses are aligned with that of the parent company. The company needs to have the essential information in various languages and understand how communication and culture affects business activities (Cheney et al., 2011). Additionally, the company should hire workers who are also fluent in English in the country of operations, who can speak both native languages and communicate properly in English.
Upon selecting and hiring people to work in the company’s facilities, there is a need to start training on ethics and communication. This is meant to improve the company’s practices, with role play being critical for the employees to understand different situations. Training on role play should continue till when they understand what constitutes ethical and unethical practices or behavior. However, cultures are different, and it is necessary to point out on divergent perspectives on what is considered ethical in America and the host country (Cheney et al., 2011). Equally, the employees should be sensitized on the impact of breaching polices. Hence, they need to sign an acknowledgement stating that they agree to the set terms and fully understand what the policies mean. Overall, ethical training should be done continuously using computers and information technology, and the training should be ongoing to be relevant to changes in policies adopted.
An ethics training and communication program sensitizes employees on the accepted social standards and need to adhere to policies and regulations (Ferrell et al., 2011). This sets ground for employees to comply and follow ethical practice in an evolving workforce. Rather than rely on separate communication and ethics plan, it is better to combine the two plans as this ensures that training reinforces information gained. Furthermore, learning in regular operating environments ensures that training and communication impart knowledge on participants. By taking time to train employees on ethics, the workers are more comfortable carrying out their duties in an environment that fosters integrity and there is increased compliance than when there...