Business Ethics Report: Evaluating NIKE's Moral Agency and Operations

This report delves into the business ethics of NIKE, a major multinational corporation. It examines NIKE's role as a moral agent, exploring its ethical practices, including justice, integrity, and confidentiality. The report highlights employee involvement and empowerment strategies, suggesting ways to enhance ethical conduct within the company. A significant portion of the report addresses NIKE's unethical practices, such as sweatshops, child labor, and poor working conditions, providing detailed examples and ethical dilemmas. Furthermore, the report proposes solutions for improving NIKE's ethical operations, focusing on worker safety, fair wages, and improved employee-employer relationships. It also emphasizes the importance of a code of ethics and eco-friendly practices, concluding with a call for increased corporate social responsibility and ethical behavior to maintain a positive brand image and ensure long-term success.

Business Ethics

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 2...............................................................................................................................................3
a. Role of company as Moral agent.............................................................................................3
b. Employee involvement and empowerment..............................................................................4
c. Unethical practices by NIKE...................................................................................................5
d. Improve the ethics of their operations whilst meeting objective and ensuring good
employer/employee relationships................................................................................................6
e. Code of ethics...........................................................................................................................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................11
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INTRODUCTION
Business ethics is the study which comprises the environment of business in
consideration with the polices, morals and ethic related problems (George, 2011). These are the
standard values of an individual or a group in an organization. Ethics are concluded as the
standards or rules which are use to govern the daily decision policies of the business. The present
report is based NIKE which is a large multinational corporation situated in UK. Company
presents a large and diversified variety of athletic products. The major range of dealing products
are athletic footwear, apparel, sports equipment and recreational products (Nike news. 2016).
The below written report deals with business ethic and also assess the role of the
company as moral agent. Furthermore it will help in presenting the current ethical issues which
can affect the business organization. In addition report will help the company to improve their
ethics and also ensure the employee-employer relationship.
TASK 2
3.1 Role of company as Moral agent
Every organization should have morale and accordingly it perform business in order to
create competitive edge in the marketplace. Business are responsible towards many things like
environment, local community and workforce who are associated with business. The support
from corporation to all this party tend to give upward direction to business so as to ensure long
survival of the same with increased rate of return. However, some of the corporation might adopt
negligence approach towards ethical conduct but they has to affect from its negative effect in
long run. It is because local community do not allow corporations to pollute environment as it
affects their health to a great extent. Owing to this, every corporation give return in term of
corporate social activities and employment as well as other related practices by working
ethically. NIKE act as moral agent in the business environment. Company sets some ethical
practices which are as follows:
 Justice practice: Company collaborate with their employees and make the justice for the
any wrong deed practiced in the workplace.
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 Integrity practice: NIKE practice integrity which courage the right work despite of the
majority population. Integrity practice supports the employees to get involve in morally
right workings (Trevino and Nelson, 2010).
 Confidentiality and privacy practices: the company ensures the security of the
information generated by the employee's personal and customer's personal data.
 Self-control practices: NIKE create an environment where they practice self-control
among the internal and external forces. The self-controlled and discipline workforce can
enhance more productivity and profitability for the company (Weiss, 2014).
 Revolution in motion: NIKE have bring a revolution in the footwear industry. Company
is again and again involved in the creating innovation in their products which are
attracting customers.
3.2 Employee involvement and empowerment
NIKE can enhance the ethic in the workplace by the involvement of employees and also
by empowering them in decision-making process (Hoffman, Frederick and Schwartz, 2014).
Company can develop these practices by entertaining some basic activities. Some of those
activities for both employee involvement and empowerment are discussed below:
 Development of employee's involvement: employees participation bring the motivated
staff to actively react to the current job and also to improve the future production by the
company (Shaw, 2016). This also enhance the employee's potential of working which
made the way easy to reach the goal faster. For initiating employee's involvement, NIKE
can create an environment where employees can make informal communication and can
also have the direct communication with the higher authorities of the company. This
direct contact will help the company in developing the employee's participation (Tseng
and et.al., 2010). Similarly, NIKE can also arrange general meeting where employees can
put their ideas in front of the top management of the company. Under this meeting
company can inform the employees about the supreme goal of the company and can also
disclose there innovations with the employees. In addition NIKE can organize social
event like sports events or get-together parties for employees. This initiate will bring
employees involvement in the company.
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 Development of empowerment among employees: Empowerment means that the to
recognize the power of the employee and assign the best suitable job (Brenkert, 2010).
For empowering employees, management of NIKE plays a vital role as they oversee the
work of the employees. First management ensures that the employees are well-educated
about their job and also aware about the issue-solving strategies then only they assign
them with the power of decision making. For developing empowerment, NIKE can
involve practicing welfare programs and development programs. Under which
management authorities can train their employees about their jobs and also about other
practices of the company. These programs includes the goodness of employees which is
proven to be an ethical practice by the company. Innovation in techniques of company
can bring empowerment among the employees (Grassl and Habisch, 2011). Company can
establish specific responsibilities and roles for the employees so to initiate coordinated
and clear work at the workplace. By appreciating the efforts of the employees, company
can enhance the employee empowerment. NIKE can make the efforts to celebrate the
achievements of the employees of their company. Management can also develop the
empowerment by assigning right job for right and efficient employee (Fassin and
Buelens, 2011).
4.0 Unethical practices by NIKE
NIKE although being a brand name have involved themselves in some unethical issue till
the time. Some of the issues are as follows:
 Ethical Dilemma: 2013 Indonesia, the worker are forced to work overtime. They had to
work for 60 hours per week and if refused to work then they were punished for the same.
NIKE had hire Indonesian military officers who for the employees to work over time in
minimum wages of that time. The workers of Converse shoes ( Owned brand of NIKE)
had also claimed that the supervisor was involved in unethical practices by slapping the
labor, throwing shoes and by using abusive language at the workplace for the workers.
 Issue of Sweat Shops: The sweat shops is the place where employees of NIKE company
do not get the hygienic and safe working environment. This type of environment cause
worker's to get faint from heat, exhaustion, poor nutrition and fumes during their working
time period. Women employees of NIKE were also the victim of the unethical practices.
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While wearing regular shoes at the workplace women were punished to run around the
factory area in the hot sunny day. Women found harm and hurt of the practice and were
admitted to the hospitals. NIKE was involved in this sort of unethical issue and made the
people revolutionary against themselves (How Nike Solved Its Sweatshop Problem,
2016).
 NIKE entertaining Child Labor: In Pakistan, NIKE was found guilty for practicing
child labor. There was an strict law meant against child labor and slavery in Pakistan.
Officers of Pakistan founded that more than 200 children were working the NIKE factory
where some children were below the age of 5 years. Many people and organizations of
the country and worldwide have protested against the company. The student groups had
also organize the campaigning event which also showed their protect against NIKE's
child labor practices.
 Darker side of NIKE: The other unethical issues practiced by NIKE involves the
shifting of jobs from parent nation to overseas which enhance the unethical issues and
also made the millions of labor unemployed in the nation. Some other acts of NIKE were
harassment of labor at workplace by supervisors and socially injustice.
Furthermore, other organization also having unethical practices which affect their operation to a
great extent. For instance, British Petroleum affected environment due to its oil spill disaster in
many times. Here, company lost many of its employees and wild as well as sea and marine life
get affected due to continuous oil spill. However, British Airways broke down the rule of
government related to competition policy. It was involved in unethical practices like price fixed
which create negative environment of market, Therefore, unethical practices of several
corporation has direct impact on their image. This might has negative impact of firm for longer
time for which banks many also face issues in granting loan or finance.
4.2 Improve the ethics of their operations whilst meeting objective and ensuring good
employer/employee relationships
The company can improve their ethical practice in meeting the objectives and also in
managing healthy employee and supervisor relationship by solving their unethical controversies.
To rectify the deeds, company can follow below given practice:
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Company was before involved in the issue of sweat shop which is against the health and
safety practices. Company should set guidelines for healthy and safety measures where an safe,
secure and hygienic environment should be provided to the employees for working (Ma, 2010).
The company should provide safe residential facilities to the employees who are working as the
migrants. Before company was seen entertaining low wages working labor where employees
were not getting the compensation according to their work. Company should now ensures that
they are providing compensation according to the work done by the employee. In 2013 company
was seen forcing their labor for 60 hours work per week which is the more than enough work by
the employee. To rectify this company can now set their working hours according to legal
working hours set by the nation government (Giacalone and Promislo, 2013). Company should
also provide remuneration for the overtime working. NIKE can set rules for the supervisors that
they can not force the employees to work overtime. Company can provide legal mandated
benefits to the employees. NIKE can also provide them with the facilities like housing, meal,
transportation, health care, child care, paid leaves, vacations, no discrimination and social
security.
Company can make more use of Eco-friendly product which have good impact over the
environment. Company should follow the laws made by the government of maintaining the
balance in the environment (Dierksmeier, 2011). They can also conduct improving sessions for
minimizing the impact over the environment of the concern nation. In the past company's
supervisors were claimed as the abusive and violent leaders. For ensuring good supervisor and
employee relationship management can initiate the practices where they can develop employee
involvement and also empower their employees to the best (Provis, 2010). By this practice NIKE
initiate individual dignity in the workplace. They should also practice the no harassment
activities and provide the employees with the rights for free association. Company can form an
environment where employees can get involve in informal communication with the employers
which will help in enhancing their relationship. Company should make documents like code of
conduct which presents the information regarding the company's ethical polices which are to be
discussed by the internal and external environment of NIKE.
Furthermore, company should focus on its strategies and tactics in order to order to
behave ethically. It will further assist corporation to enhance overall rate of return with ethical
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conduct and meeting expectation of buyers associated with business. Similarly, business can
focus on employment law and accordingly child labour be prohibited strictly. It can be critically
evaluated that inclusion of such kind of unethical practices must not be allowed at workplace as
it affect performance of business by destroying its image. In addition to this, CSR activities
should be conducted by firm as it pollute environment by operating high-tech machinery etc.
Owing to this, HR of corporation must follow effective strategies to contribute towards making
environment clean and safe. At the same time personnel must be provided training to address
issues of customers and offer them quality products. They should be mis-guided by placing
wrong advertisement. Hence, appropriate information must be placed in advertisement and all so
as to ensure ethical conduct of business in the marketplace.
4.3 Code of ethics
Ethical code is the set of written document which is used as a guideline for the
management and employees of the company. These documents help the workforce of the
company to get their action to be more indulge ethical and primary standards. On the bases of
unethical deeds by the company, a suitable code of ethic is conducted below:
1. Ensure confidentiality: NIKE, to sustain the ethical code can ensure the privacy of their
employees and customers both. They can not entertain any misuse of private information
to go out of the company premises (Norman, 2011). Company can form standards which
can help them in taking strict actions against the person at fault. These standards can
ensure the confidentiality of the information and data of the employees.
2. Professional conduct: NIKE's employees can entertain high standard of professionalism
and responsiveness at the workplace. Company can use ethical marketing practice under
which they have to present real facts in front of the general public. They can also
organize time to time general meetings where they can inform their stakeholders about
the original current financial position of the company (Goodstein and Butterfield, 2010).
Any false or unethical practices can not be entertain by NIKE.
3. Quality of services: NIKE have involved themselves in many controversies which
affected the goodwill of the company. By serving the best quality product and services
can bring the fame name back. Quality of service also includes the ethical efforts made
by the company in context of their employees and clients (George, 2011).
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4. Moral and legal standards: The company should more entertain the moral and legal
standards which can allow the company to involve ethical practices in the workplace
(Trevino and Nelson, 2010). There are many unethical deeds of the company which are to
be rectified. For example, NIKE have made the unethical practice of child labor in
Pakistan where they used children below 5 year for factory work. Company can make
standards where they should not employee the labor below the age of 15 years. Even they
can make same strict regulation for every subsidiary company.
5. Impartiality and objectivity- Employees are the main link between the customer and the
management. Company can organize programs where they can educate their employees
in maintain a healthy relationship with the customers (Hoffman, Frederick and Schwartz,
2014). NIKE can train their employees about how to convince buyer and how present
their products in front of the customer. Furthermore, objectives of business must be
communicated with personnel without any kind of partiality.
6. Meeting users' needs-Nike need to behave ethically by offering products and services in
accordance with requirement of business. At this juncture, research and developing
activities are used to incorporate views of users in producing proper products and
services.
7. Integrity-Integrity refers to association of different parties involved in business such as
employees, customers, shareholders and suppliers as well as other related parties. Here,
corporation ensures to take views of all parties in taking decision related to
implementation of any corporate strategy.
8. Proportionate burden-The burden of NIKE is shared among all workforce such as
middle level, lower and upper level management, Unethical practices are avoided so as to
enhance satisfaction level of personnel.
9. Resources-Here, company need to employ necessary resources on regular basis such as
raw material and finished goods. Along with that, other basic amenities should also be
provided to workforce through which they get comfortable environment and render good
quality to end users.
10. Frankeness and accessibility-Here, workforce must be provided authority share their
issues with management. Owing to this, organizational culture must be developed
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accordingly thereby personnel become frank and raise their queries to get their issues
solved.
CONCLUSION
The aforementioned report concludes the facts about the unethical practices of the
company in the environment. It presents the impact over the working of the company which
made them to settle the controversies. In addition the report will show the improvement which
are to be taken by the company so to ensure more ethical practices over the workplace which will
also create good relationship between employer and employees.
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REFERENCES
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Dierksmeier, C., 2011. The freedom–responsibility nexus in management philosophy and
business ethics. Journal of Business Ethics. 101(2). pp.263-283.
Fassin, Y. and Buelens, M., 2011. The hypocrisy-sincerity continuum in corporate
communication and decision making: A model of corporate social responsibility and
business ethics practices. Management Decision. 49(4). pp.586-600.
George, R. T. D., 2011. Business ethics. Pearson Education India.
Giacalone, R. A. and Promislo, M. D., 2013. Broken when entering: The stigmatization of
goodness and business ethics education. Academy of Management Learning & Education.
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Goodstein, J. and Butterfield, K. D., 2010. Extending the horizon of business ethics:
Restorative justice and the aftermath of unethical behavior. Business Ethics Quarterly.
20(03). pp.453-480.
Grassl, W. and Habisch, A., 2011. Ethics and economics: Towards a new humanistic synthesis
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Hoffman, W. M., Frederick, R. E. and Schwartz, M. S., 2014. Business ethics: Readings and
cases in corporate morality. John Wiley & Sons.
Ma, Z., 2010. The SINS in business negotiations: Explore the cross-cultural differences in
business ethics between Canada and China. Journal of Business Ethics. 91(1). pp.123-
135.
Norman, W., 2011. Business ethics as self-regulation: Why principles that ground regulations
should be used to ground beyond-compliance norms as well. Journal of Business Ethics.
102(1). pp.43-57.
Provis, C., 2010. Virtuous decision making for business ethics. Journal of Business Ethics.
91(1). pp.3-16.
Shaw, W., 2016. Business ethics: A textbook with cases. Cengage Learning.
Trevino, L. K. and Nelson, K. A., 2010. Managing business ethics. John Wiley & Sons.
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Tseng, H. C. and et.al., 2010. RETRACTED ARTICLE: Modern Business Ethics Research:
Concepts, Theories, and Relationships. Journal of Business Ethics. 91(4). pp.587-597.
Weiss, J. W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
Online
How Nike Solved Its Sweatshop Problem. 2016. [Online]. Available through:
<http://www.businessinsider.in/How-Nike-Solved-Its-Sweatshop-Problem/articleshow/
21122639.cms>. [Accesed on 8th April 2016].
Nike news. 2016. [Online]. Available through: <http://news.nike.com/>. [Accesed on 8th April
2016].
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