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Nike Case Study

NikeCase Study

NikeCase Study

Question1

Thereis no point of inflicting Western values in this society. Developedcountries have a tendency of manipulating citizens of developingcountries, to buy their products just because they are on promotion.Some of these products do not throw in any value to the culture ofthe citizens rather the product is just a way of driving in theWestern Capitalism (TeamSweat, 2011). Ultimately, most people indeveloping countries have a tendency of buying products from Westerncountries, which are not only destructive, but also plays a criticalrole in isolating them from their culture.

Nikehas established its social responsibility in various ways. Forinstance, Nike always ensures that their customers get the bestservices available. In practice, the company has a culture ofcustomer satisfaction. In addition, the company is sociallyresponsible in case of any dissatisfaction from any of theirstakeholders that include investors, customers and more importantlytheir suppliers.

Thedecisions of the company should also be ethical especially when itcomes to making decisions that concern its members and employees(Newell, 2015). This builds the trust of the employees, leading to anincrease in productivity.

Question2

Despitethe fact that Nike has established well its athletic brand, thecompany is faced with certain ethical issues. First, the company hasreceived criticisms for paying its employee`s low wages. Since the1990s, Nike Company does not seem to address its long-known issue oflow payment to its factory workers. Apparently, the states thatmanufacture the most of Nike products pay the lowest wages. Otherethical issue facing Nike Company is child labor. Since its peak,Nike’s success has been attributed to ethically questionablebusiness practices where its production was outsourced tounderappreciated, underage, and underpaid factory workers. The amountof money saved by the company from child labor was used to financeits advertisements. Poor working conditions for factory workers arealso another ethical issue facing Nike Company. Besides paying itsworker`s low wages, Nike Company does not provide good workingcondition for workers in their factories. Finally, the company hasoccasionally received allegations for environmental pollutions.

Question3

Afterthe 2011 video, the organization management could not sit back andwatch the giant firm go down due to the various allegations it wasfacing. Notably, the company had suffered a period that wascharacterized by losses and dwindling public image. This called forthe immediate attention. Subsequently, the company has put upmeasures that regulate environmental degradation and pollution(Pradhan, 2014). The company increased the minimum wage for theirfactory employees, and currently pays them for overtime. Moreover,Nike has agreed to join the Fair Labor Association, a non-profitorganization that oversees a code of behavior in companies. Theorganization is comprised of employees’ representatives, humanrights activists, and companies. The Company has set strict rules andregulations about child employment in all of their factories.

Question4

Myopinion on Nike is different after viewing this video. Nonetheless,the video would not change my buying behavior with respect to Nikeproducts. In my own perspective, the most important thing is how theyhandle me as their customer and the quality they offer to theircustomer.

References

Newell,A. (2015, June 19). How Nike Embraced CSR and Went From Villain toHero. TriplePundit.Retrieved from:http://www.triplepundit.com/special/roi-of-sustainability/how-nike-embraced-csr-and-went-from-villain-to-hero/

Pradhan,P. (2014, February 15). Nike Strives to Overcome Sweatshop Abuse.Borgenproject.Retrieved fromhttp://borgenproject.org/nike-strives-to-overcome-sweatshop-abuse/

TeamSweat.(2011, July 28). Nike Sweatshops: Behind the Swoosh. Youtube:Retrieved from https://www.youtube.com/watch?v=M5uYCWVfuPQ