University Case Study: Nike's Business Ethics and Labor Practices

This case study delves into the ethical considerations surrounding Nike's labor practices, specifically focusing on the treatment of workers in its overseas factories. The analysis begins by examining the ethical dilemma of imposing Western values on a society where the workers' livelihoods depend on their employment, bringing in concepts of social responsibility and integrity. The assessment of Nike's ethical standards is explored, along with the key ethical issues the company faced, including low wages, improper waste disposal, worker abuse, and child labor. The study then details Nike's efforts to improve the situation, such as forming a department to improve worker lives, raising the minimum age of workers, increasing monitoring, and implementing codes of ethics and standards through the Fair Labour Association. The case study concludes with a reflection on the impact of the findings on consumer behavior, including a personal opinion about Nike's ethical standing and how it might influence purchasing decisions. The paper includes references to support the claims made about Nike's practices and responses.

Running head: BUSINESS ETHICS 1
Business ethics
Name
Institution

BUSINESS ETHICS 2
These workers state the "only thing they have is their work." This statement suggests
that without this work, they would have a lower standard of living. Should we inflict
western values on this society? Bring in the concepts of social responsibility, integrity and
other business ethics practices.
The people that work at Nike live in poverty, and the amount of money they earn is hardly
enough to sustain themselves and their families. Although it is important to have values, this
should not be done at the expense of human survival. In order for the workforce at Nike to be
able to uphold these values, the change should be made from the management. The workers will
follow their lead. Having values like integrity and social responsibility is important in any
workplace, but in this case, such actions would result in them being unable to fend for
themselves. For the workers at Nike to have the western values that are required of them, the
management should make a change where they treat the workers with more respect and do not
subject them to a life of poverty where they have no option but to work unethically to earn a
living.
From Nike's standpoint, is this a fair assessment of their ethical standards? Explain
some of the ethical issues that Nike is facing in the case.
After the report was done about the violation of labor laws by Nike, they acknowledged that
the working conditions of the workers were bad and that the assessment done on their overseas
factories in Asia were fair and that they had found evidence of physical and verbal abuse to the
workers in some of their factories. They did not deny the accusations and instead made an effort
to improve the working conditions for their workers in those countries. The ethical issues that
Nike faced were paying the low workers’ wages despite the fact that they would work overtime,

BUSINESS ETHICS 3
improper disposal of waste, which resulted in children getting chest infections, abuse and
mistreatment of workers, and child labor (Braddock, 2011).
Explain what Nike has done to improve this situation since this 2011 video. Include the
use of codes of ethics and other ethical standards implemented within the organization.
 They formed a department that was tasked with the responsibility of improving the lives
of their factory workers in Asia by ensuring that they get fair wages for their work and the
environment they live in is not polluted by waste disposed by the factory near their homes.
 They raised the minimum age of the workers, increased monitoring, and ensured that the
air in all their factories was clean and met the US OSH standards.
 They created the Fair Labour Association, which established a code of conduct and
independent monitoring and also pushed for workers’ rights such as minimum wage and the
maximum number of work hours.
 They increased the transparency of their operations by disclosing the conditions and pay
of their workers and disclosing its standards and commitments (Nisen, 2013).
Is your opinion of Nike any different now after viewing this video? Would this change
your buying behavior with respect to Nike products?
My opinion about Nike has changed because I was unaware of the labor laws they violated
and the mistreatment that their workers in South Asia faced. Although the products of the
company are of good quality, I would rather support a company that has integrity and treats all
its workers with respect. Nike has made efforts to correct how they treat their workers but is yet
to fully implement them. Since there are other sports brands that sell apparel that is just as good
as Nike’s, I doubt I will be buying Nike’s products from now on.

BUSINESS ETHICS 4
References
Braddock, J. (2011). Nike faces allegations of worker abuse in Indonesia. World Socialist
website. Retrieved from https://www.wsws.org/en/articles/2011/09/nike-s08.html
https://www.youtube.com/watch?v=M5uYCWVfuPQ.
Nisen, M. (2013). How Nike Solved Its Sweatshop Problem. Business Insider. Retrieved from
https://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5?IR=T