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.