Nike Inc. Case Study

Brief introduction about the company.

Nike is one of the famous franchises in the world that sells sportswear for all ages. But is mostly famous for their athlete shoes and apparel and Nike is also one of the major manufacturers of sport equipment as well. The slogan for Nike is “Just Do It”.  Nike was founded in January 1962 in Oregon, United States by Philip Knight and Bill Bowerman.

Nike has somewhere around 700 or more retail outlets spread all over the world, and has approximately 45 offices only outside the United States. And it employs 30,000 people all over the world. Nike had a revenue excess of $16 billion in 2007.

Nike’s factories are mostly located in Asian countries like Pakistan, India, Malaysia, China, Indonesia, Philippines, Taiwan, Vietnam and Thailand. In 1980 the company had a 50% market share only in the United States shoe market and then the company decided to go public and it did by the end of that 1980’s December. Through the 80’s Nike decided to expand its product line so that the line would include many other sports like tennis, golf, baseball, cricket, badminton etc. all over the world.  ( Internet source ).

1. What are the ethical and social issues in this case?

Ethics can be defined as the code of moral principles and values that help to oversee the behaviors of the employees or teams with respect to what is right and what is not.

In order to provide high company’s profit and low production costs Nike outsourced all its operations in the developing countries and even in the countries of the third world.

The major outsourced factories were in Indonesia, Thailand and China.

In this case we can say that the ethical issues regarding Nike is that the company was directly and indirectly sourcing sweatshops and turning blind eyes to all the harsh working conditions that were facing the employees, wage inequality, health care disparities, ect.

Every company must prove that is good corporate citizen and practice the good working...