Nike Case Study

1. The challenges are numerous for companies dealing with suppliers in the apparel industry. QUestion such as just how much resources to allocate to ensure that suppliers act morally when doing business with their companies? How much to expend on systemic changes that will be mutually beneficial to both company and host country? What stands to take when unethical practices come to the fore? All these require action that will affect the companies bottom line; Profit. For Nike, the issue of corporate social responsibility has increased to the point where a new organization goal has been declared: To effect positive, systemic change in working conditions within the footwear, apparel and equipment industries. With this Nike intends to demonstrate its willingness to becoming a good cooperate citizen transcending borders and cultures. Surely it will impact the companies mode of operation, not only will the requisite audits be done, but the recommendations from the findings will be published and acted upon. This will come at a cost for Nike, as it will drive labor cost up, which will in turn drive the cost of the end product upward. But, the opportunity to impact a foreign country or society positively will increase the value of Nike's Goodwill and the likelywood for more countries wanting to do business with Nike. The international manager is faced with challenges of ensuring the the company is responsible, transparent, and at the same time profitable. The consumer is king: In a competitive market place, consumers demand quality apparel, at a reasonable low price, while demanding that the multinational corporation act morally responsible. For Primark, the experience of the backlash in the home country seem to have given life to better ethical practices. As a member of the Ethical Trade institute, it seems as if the audits of practices by the suppliers were not been done or if being done the findings ignored. The tarnished reputation and the lost of revenue...