NIKE’S ETHICAL ANALYSIS Student’s Name Institutional Affiliation

Identification of Ethical and Legal Issues Nike, Inc. aims at profit-maximization in all spheres of its operations Well-being of employees is not its primary goal Employees are viewed as the means for attaining higher market capitalization This approach violates the ethical principles of all major moral theories The existing job contract between Nike, Inc. and its employees in the developing countries does not consider all labor rights to be protected under the international law At the present moment, Nike, Inc. aims at profit-maximization in all spheres of its operations (Mallen Baker, 2014). Correspondingly, the well-being of employees is not the company’s primary goal. Employees are considered only the means for attaining higher market capitalization in the future. Nike’s approach directly violates ethical principles of all major moral theories. The existing job contract between Nike, Inc. and its employees in the developing countries does not consider all labor rights to be protected under the international law. Therefore, the company should revise its contract relationships with employees and make them mutually beneficial.

Violation of Utilitarian Principles Nike, Inc. adopts a utilitarian philosophy It concentrates on the short-term profits The long-term effects on the market capitalization are not addressed Long-term utilitarian principles are violated Although Nike, Inc. adopts a utilitarian philosophy, it does not apply it consistently. The company concentrates exclusively on its short-term profits. The long-term effect of various actions on the market capitalization is not properly addressed. Therefore, the long-term utilitarian principles are considerably violated. The company does not optimize its actions from the inter-temporal perspective.

Violation of Social Contract Theory Nike’s moral obligations depend on its contract with other parties including employees Nike, Inc. aims at violating these obligations for obtaining additional profits Nike, Inc. wants to impose its rules on employees It follows only those rules that generate higher revenues and profits Nike’s moral obligations depend on its contract with the other parties including employees. However, Nike is ready to violate these obligations for obtaining additional profits in the short run (Sun, 2010). The company wants to impose its rules on employees in order to increase its rate of return. At the same time, Nike, Inc. follows only those rules that are beneficial for the company and can increase its expected revenues and profits.

Violation of Kant’s Categorical Imperative Nike, Inc. should act in a way that may become a universal law Employees should be viewed as the ultimate moral ends rather than means Nike, Inc. considers employees as the means for attaining financial goals This strategy cannot become a universal law According to Kant’s categorical imperative, Nike, Inc. should act in a way that may become a universal law (Kreeft, 2009). Employees should be viewed as the ultimate moral ends rather than means for attaining other objectives. Nike, Inc. considers employees the means for attaining financial goals such as profit maximization. This strategy cannot become a universal law, and it directly violates Kant’s categorical imperative.

Stakeholders Affected by the Gap The first group that is directly affected is employees Their rights are violated The second group is consumers They are unsatisfied with the company’s irresponsibility The third group is competitors They may obtain some long-term gains from Nike’s mistakes The current gap affects several groups of stakeholders. The first group that is directly affected is employees. Their rights are violated on a permanent basis. The second group is consumers. They are unsatisfied with the company’s irresponsibility in relation to its employees. The third group is competitors thay may obtain some long-term gains from Nike’s mistakes.

Action Plan to Bridge the Gap Taking into account the interests of all stakeholders The highest guarantees and widest opportunities for employees System of bonuses for the most skillful employees Compensation for all employees whose rights were violated The Action Plan that may improve the situation is as follows. First, it is necessary to take into account the interests of all stakeholders. Second, Nike, Inc. should provide the highest guarantees and widest opportunities for employees in comparison to all other companies of this industry. Third, it is reasonable to introduce a system of bonuses for the most skillful employees. Fourth, the compensation for all employees whose rights were violated should be provided.

Checks and Balances Required Nike, Inc. should balance its interests with those of employees The company’s business performance should remain profitable Employees’ rights should be protected The increase in employees’ benefits should correspond to the increase in productivity The successful implementation of the Action Plan requires the system of checks and balances. Nike, Inc. should balance its interests with those of employees. The company’s business performance should remain profitable after the implementation of the Action Plan. The employees’ rights should be protected. The increase in employees’ benefits should correspond to the increase in productivity of labor.

Benefits of the Action Plan Nike, Inc. may strengthen its market positions Employees will receive decent compensations and guarantees The interests of all parties will be balanced The company may reach a long-term sustainable development The suggested Action Plan contains a number of benefits. Nike, Inc. may strengthen its market positions. Employees will receive decent compensations and guarantees. The interests of all parties will be balanced. The company may reach a long-term sustainable development. High profitability and corporate culture are the main components of the long-term business success.

Next Steps Monitoring of all changes in the employees’ needs Equal rights and opportunities for employees in all countries Constant development of corporate culture Integration of financial and ethical issues It is reasonable to implement further steps in order to maximize the general effect. All changes in the employees’ needs should be monitored on a regular basis. Equal rights and opportunities for employees in all countries should be provided. Constant development of corporate culture should be maintained. The proper integration of financial and ethical issues should be achieved.

Conclusion Nike, Inc. violates the ethical principles of all main moral theories It should implement a number of reforms outlined in the Action Plan It will have considerable benefits for all the parties involved Nike, Inc. should constantly improve its corporate culture in order to demonstrate the necessary development At the present moment, Nike, Inc. violates the ethical principles of all main moral theories. It should implement a number of reforms outlined in the Action Plan. It will have considerable benefits for all the parties involved. In particular, the company may maintain the necessary level of profitability while its employees will enjoy a large variety of benefits. Nike, Inc. should constantly improve its corporate culture in order to demonstrate the necessary development and progress.

References Kreeft, P. (2009). Socrates meets Kant. San Francisco, CA: Ignatius Press. Mallen Baker. (2014). Corporate social responsibility – Companies in the news. Mallenbaker.net. Sun, W. (2010). How to govern corporations so they serve the public good: A theory of corporate governance emergence. New York, NY: Edwin Mellen.