Nike: from Sweatshops to Leadership in Employment Practices

Assignment # 5 – Nike: From Sweatshops to Leadership in Employment Practices

Diamara DeSouza

March 16, 2014

Ethics and Advocacy for HR Professionals – HRM 522

Dr. Jack Huddleston

1. Discern how a more effective ethics programs and a more viable code of conduct could have mitigated the ethical issues faced by Nike. For most companies business decisions are based on profit factors. In order for companies to operate they must raise the capital needed to remain in business and most companies are in business to make a profit. Companies have fundamental laws they must follow which are enforced by federal and/or state agencies. Like individuals, organizations are expected to abide by the laws applicable to them or be subject to the consequence which can include fines and/or prison. There are companies that are willing to take great risks as they focus on business operations and profit strategies. Those risks may challenge the laws set forth to not only protect the company but also employees, the public, the environment, and the economy.

Nike embraced its responsibility as an industry leader and implemented ethical programs aimed to improve work conditions, fair pay, and environmentally friendly manufacturing practices after being charged with several unethical practices. When the company was faced with the issue of unsafe work conditions they were not prepared. The company sub-contracted its manufacturing and production work to local independent factories in Vietnam, Indonesia, and China. Nike chose to be disconnected from the business practices. We could assume the company was less interested in how the work got done and mostly interested in the finished product. The company could have invested the time to enforce standard business practices for the contractors they worked with. The standard business practices could have addressed work conditions, child labor regulations, harassment, and fair wages. Although Nike may have...