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Furthermore, such a code would not necessarily increase costs. Nike could force their suppliers to institute the code and absorb the costs. Although Nike has been a valuable flashpoint for sweatshop critics, a strong code of ethics would remove much of the criticism. The critics could still target Nike, but they would lose credibility in the process; there are other companies they could target at lower risk.
Implementation Plan
Step 1: Identify Desired Outcomes (CEO, VP-CSR, legal team, PR team)
Step 2: Draw up Code of Ethics (VP-CSR)
Step 3: Transmit Code to production sites (CSR team, HR team, Production team)
Step 4: Code enforcement (Production team, CSR team)
Step 5: Code communication, internal & external (CSR team, PR team)
Alternative Choice
The second best choice is to ignore the issue. Ultimately, the company knows that its ethical position is better than its ethical reputation. The bottom line therefore can be used as guidance for action. In this case, Nike's business has not been...
Nike can continue on its present course and return its traditional high returns to shareholders. If they avoid direct confrontation with the protesters, they will avoid the worst of the negative outcomes.
Conclusion
Nike ran into some problems because they lacked a decent ethical plan for their suppliers. Moreover, they had little concept of how to deal with ethical controversies. As a result, the company suffered significant damage to its reputation. Nike moved slowly to deal with their ethical issues, but is now in a position to end the issue once and for all. To do this, Nike should institute a strong and comprehensive policy regarding the ethical practices of their suppliers. They have a VP of corporate social responsibility to help develop and implement the policy. Nike's troubles may not be entirely over -- they will remain a valuable flashpoint -- but if they take ethical issues more seriously and formalize a means to avoid controversies and deal with the ones that do come up, they will avoid repeating the worst of their past.
Nike: 1. The facts of the situation are that Nike has faced considerable criticism for its use of foreign contractors, because those contractors operate in low-wage countries. Unions and activists -- the former at least has a dog in the fight -- are behind the PR problems for Nike. However, Nike has begun to pay more attention to its practices, resulting in a much better reputation for ethics. There are many
This acts as a hedge in business swings both regionally and with respect to major customers. The company's sales are split between North America (35.2%), Europe (20.4%), Greater China (9.1%), Emerging Markets (10.7%), Central and Eastern Europe (6%), Japan (4.6%) and "other businesses" (13.3%), the latter including for example its Cole Haan clothing line. This diversification has allowed Nike to enjoy strong performance even with the economic downturn, as
5% of total liabilities. Their retained earnings, on the other hand, total $5.073 billion. The heavy use of retained earnings is partially explained by their view of themselves as a growth company. While they pay a dividend, Nike prefers to re-invest much of its profits back into expansion. They do not feel that the market has matured sufficiently to stop their aggressive growth strategy. Another consideration in their capital structure
(1998). "The Trouble with Nike" Motley Fool. Retrieved November 17, 2008 at http://www.fool.com/Features/1998/sp980324TroubleWithNike.htm Parker, Mark. (2006). "Nike's Strategy for Winning the Footwear Game" Nike F1Q Conference Call Transcript retrieved November 17, 2008 at http://seekingalpha.com/article/17559-nike-s-strategy-for-winning-the-footwear-game Corporate author, Nike. (2008). "Company Overview" Nikebiz.com. Retrieved November 17, 2008 at http://www.nikebiz.com/company_overview/ Cox, Beth. (1999). "Nike Decides to Just Do it on the Web" InternetNews.com Retrieved November 17, 2008 at http://www.internetnews.com/ec-news/article.php/67101 Barron, Kelly. (1996). "Nike to Enter Premium
NikeIntroductionNike is one of the world�s largest suppliers of athletic shoes and apparel. The company�s mission is �to bring inspiration and innovation to every athlete in the world� (Nike Mission, 2022). Nike is one of the world�s most successful businesses, and it has built its success on a commitment to meeting the needs of its customers. However, Nike also recognizes that it has a responsibility to the broader society in
Nike Executive Summary Nike’s decision to tap into “woke culture” and turn the out of work former NFL quarter Colin Kaepernick into a brand ambassador has been a controversial one since the sportswear company launched its Colin ad campaign in 2018. This paper discusses the strategic issue underlying Nike’s controversial campaign and shows how it was intended to leverage “woke culture” and gain competitive advantage in an industry that had largely stayed