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Date Submitted: 01/26/2014 08:34 AM
Nike Case Study Analysis
By Ellie Boggs, Alexis Chan, Lauren McLean and Lauren Van Neste
Overview
As the industry leader, Nike was targeted by fair labor activists and watchdog groups for
low standards in its factories overseas; despite other competing companies having similar
issues, Nike took the brunt of the criticism. While at first only mild media attention was paid
to the issue, that attention steadily increased into the 1990s and became a fullblown crisis
when the general public began to take voice outrage over Nike’s labor practices. An
example of this public outcry can be seen in the creation of “International Nike Day of
Protest” (October 1997), which involved demonstrators from 28 states and 12 countries.
Nike then reevaluated its business and communication strategy, and created a Corporate
Responsibility Division – seen as a simplistic public relations ploy – and focused on
employee morale improvement. None of Nike’s attempts to regain public trust succeeded
because most of the changes were seen as public relations moves, not real and significant
change.
Problem
The problem is that Nike broke various labor laws while doing business in Southeast Asian
countries. In 1989, Nike’s fair labor practices came under fire by labor activists and
watchdog groups, which continued into the 1990s. The most significant error that Nike
made during this reputation crisis was never attempting to make its efforts transparent.
Thus, all subsequent efforts to remedy the situation fell flat.
Alternative solutions
1. Radical transparency after making brand repositioning statement.
2. Demonstrate goodwill towards community through CSR campaigns.
Evaluation of alternatives
1. Radical transparency after making brand repositioning statement
Nike could begin by issuing a statement to the media, via press conference, about
changing its labor practices and its new policy of radical transparency. Nike will not take...