Nike: Managing Ethical Missteps

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Presentation transcript:

Nike: Managing Ethical Missteps By: Santino Viselli

Agenda Introduction: Nike Ethical Issue: Video Nike’s Corporate Social Responsibility Nike’s Reponses to Issue Future of Nike Discussion Questions Nike Today

Introduction Nike: Came from the Greek god of Victory Created: Import of Japanese Athletic footwear into the United States Founders: Phil Knight and Bill Bowerman in 1964 Officially became brand in 1978 Yearly Revenue: $23.4 Billion Worldwide leader of athletic goods

Video video

Ethical Issue Mid 1990’s Child Labor Low- non existent pay Poor working conditions Nike: No codes of Conduct for contracting work

As an HR professional working for Nike, how would allegations of this nature affect your decision to work for the company?

Corporate Social Responsibility Evolving since 1991 Environmental Sustainability Audit tools Factory Transparency Philanthropy Corporate Responsibility Committee

Strategy Defensive: “Its not our Fault” Compliance: “We’ll do only what we have to” Managerial: “It’s the business” Strategic: “it gives us a competitive edge” Civil: “We need to make everybody do it

As an HR professional working for Nike, what other suggestions would you feel comfortable making to boost corporate social responsibility?

Nike’s Response Public Relations Campaign Began to visit College Campuses Created a Code of Conduct for for all suppliers Marc Kasky- filed Lawsuit $2 million dollar- Misleading information

Future of Nike Fortune’s magazine 2010 “ The worlds Most Admired Companies” CR magazine, 23rd “Best Corporate Citizens” Continue to push internationally Continue to gain leadership through star athletes Universities and activist continue to pressure

Discussion Questions Why did Nike fail to address corporate social responsibility early on? How would you evaluate Nike’s response to societal and consumer concerns about its contract manufacturing. What are the challenges facing Nike in the future?

Nike today Nike Website

References Boke, D.M., & Khan, F.R. (2009). Story-Branding by Empire Entrepreneurs: Nike, Child Labour, and Pakistan’s Soccer Ball Industry. Journal of Small Business & Entrpreneurship, 22 (1), 9- 25. Ferrell, O.C., Fraedrich, J., & Ferrell, L., (2013) Ethical Decision Making and Cases, Business Ethics (9thed) Mason, OH: South- Western Cengage Learning, Pg 495-502. Nisen, M. (2013) How Nike Solved Its Sweatshop Problem, Business Insider Retreived from: http://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5.