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An understanding of nike inc and their application of business ethics

English US Executive summary With increasing competition between firms due to globalization, the success of any organization today heavily depends on how the organization relates with its customers and publics. Such relationships define how the public will treat the organization and its products. Ethics and social responsibility of companies and organizations has been a subject of interest in the recent past.

The rise in knowledge of consumer rights and consumer protection rights by the law has been the major cause for the establishment of public relations departments charged with managing relationship between a company and its employees, a company and its customers and a company and its neighbors.

These departments concentrate on protecting the image of the company through formulating measures and procedures to be implemented. Such procedures include following ethical practices. This paper seeks to establish business code ethics of Nike Inc. Nike Inc has had its image change from time to time with changes in its corporate social responsibility programs.

The company has seen the worst in terms of acute public criticism for its unfair trade practices. The chief defense companies in such situation provide as the cause of such occurrence is because of information difference between the company and the public with the company claiming that the public is misinformed or does not have sufficient information about company operations.

This paper will establish the relationship between Nike Inc and its employees, Nike and its customers and Nike and its publics and competitors. The paper will also strive to ascertain the degree of truth in such allegations through researching on the ways that the public relations department handled such issues. This success has attracted a lot of attention and focus on its business strategies. These criticisms may or may not hold any truth but they definitely have had an impact on the reputation of the company and how the company and its products have been perceived in the market.

Before a perfect understanding of the business ethics of Nike is established, it is imperative to establish a general understanding of ethics and corporate social responsibility in the society today. Today, many organizations seek to be on the good side of their publics. This pressure to conform to the rules of business practices emerges from the current consumer awareness on their rights and also the rights of people living in areas where a business is located.

Ethical regulations are increasing by the day with business losing most of their ground to consumer and public rights. Also, organizations are using any possible strategy to make profits through impressing the public by conducting themselves in the most descent manner such as preventing human right violations and environmental pollution.

Corporate social responsibility is the way that organizations use to effectively address these problems. The degree of their effectiveness in solving these problems cannot be clearly established as it depends on the problem and the approach used to solve it. Different groups have made it their job to ensure that businesses certain business code of ethics which is exercised through organizations improving their corporate social responsibility. Initially consumer campaigns organized by the government were the major tool used to pressurize businesses to conform to these regulations.

An understanding of nike inc and their application of business ethics

Over the years, nongovernmental organizations have joined in and almost taken over the cause. With a high number of corporate scandals witnessed in the 90s, governments imposed ethical regulations to be followed by any organization wishing to be in business. The major issues that these regulations govern include, labor issues such employing, compensating, and firing of people in organizations, quality of products, environmental pollution among other issues.

Business ethics is closely related to corporate social responsibility. As already mentioned, they form the core of business relation to the public. These strategies vary from organization to organization. Although business ethics and corporate social responsibility may be related to the extent that one can be used in place of the other, there are major differences between the two strategies.

Providing the difference between the two is beyond the scope of this paper. The paper only focuses on providing a clear understanding of business ethics.

This knowledge will be important in analyzing the business code ethics of Nike Inc. Business ethics programs gained popularity after governments started to provide regulations, corporate fines and sentencing guidelines to be used for companies which do not follow these guidelines on how they are to treat their publics.

Business ethics therefore evolved over the years not by the will of businesses but by the fear of the consequences of not implementing these programs in their organizations. In businesses today, corporate ethics programs are designed to provide methods that can be used by an organization to manage risks by providing a systematic early warning mechanism that the organization can use so as to avert such risks.

They protect the organization from harm on its reputation by first addressing the ethical issues that can be the possible sources of harm. Although the difference between the two may seem to be very wide, it is important to note that both of them aim at protecting the reputation of the company.

Business ethics in the above statement works as a strategy of averting possible issue that may affect the reputation of the company. This may make business ethics look as a means of future potential issues that may affect the reputation of the company. It is worth noting that individuals working in business ethics departments are also involved in solving already existing ethical issues that may affect the reputation of the organization.

While solving an already existing problem may seem to be an effective way of addressing such problems, it also helps in minimizing the damage that can be done by such problems.

Corporate social responsibility programs in organizations build and support what the company thinks should be the appropriate way that certain things should be done in the society. For example a company manufacturing cabbage disposal pins may take it that they have made it their business to see that the environment is clean and they are putting in place measures to ensure that the objective is realized. They may use this to avert future ethical problems as well as ensuring that their organization profits from their strategies.

  • Nike, inc has a code of ethics for all employees of resources each year, all nike, inc employees are that transform their business by investing;
  • These people are Nike employees;
  • This is because such practices ensure that the company gains the confidence of the consumers and hence the competitive advantage over its rivals;
  • It also means that Nike benefits from reduced import duties and therefore can benefit from other opportunities.

In some cases, corporate social responsibility programs act as a marketing strategy of an organization. Business ethics therefore ensure that areas of potential harm in the relationship of an organization and its suppliers, shareholders and its customers are established and the corrective measures are taken. Such problems as un-honest contracts or faulty supplies information or even incorrect profits information published to the shareholders of the organization are provided by the code of ethics in the organization.

Business code of ethics also focuses on protecting the well being of those in the organization. Business ethics help show the responsibility of an organization to its stakeholders especially those they deal with directly.

Nike business code of ethics

For example, an organization may establish business ethics program aimed at providing protection of its employees against such issues as sexual harassment by their superiors, racial discrimination in work place, providing equal pay for its employees and others.

Such programs aim at protecting the rights of its employees. Although there may be legal regulations on such issues, very few organizations today put in place ethical programs to protect individuals in the organization. There are still high numbers of unethical practices by organizations today despite the harsh government regulations. It owes this big growth to its customers, shareholders and its employees.

This growth has seen the company establish numerous branches in many places in the world. This growth comes with is a big responsibility. As expected from a company of its status, the company has put in place business ethics to standardize its procedures in the different regions. These procedures help regulate its business practices such as pricing of their products, employees treatment and working conditions in their factories.

This therefore implies that the action of every individual in its team will affect the reputation of the company in one way or the other. Employees therefore are expected by the company to be trustworthy, honest, fair, and loyal to the company as well as its customers. Every individual is made aware that their actions can affect the reputation of the company hence they should conduct themselves in ways that promote the image of the company.

Nike also is aware of the importance of providing a good working environment to its employees. A working environment that is free from the discrimination, harassment of any type is important in improving the performance of the employees and also their personality. With this knowledge, Nike ensures that employees work in a harassment and discrimination free environment.

  1. For this reason, Nike code of ethics is not fixed as it allows adjustments to be made to comply with what is expected to be ethical in the different cultures of the locations they operate in. Over the years, nongovernmental organizations have joined in and almost taken over the cause.
  2. For this case there was increasing pressure on the international community to take action against the errand company.
  3. This is achieved through businesses establishing corporate social responsibility programs.
  4. We continue to include training and approaches to raising worker voices as part of the lean manufacturing approach we encourage contract factories to take.

Working environment in Nike is free from discrimination or harassment based on sexual, racial, gender, age, religious, ethnic, sexual orientation, marital, ethnic, military status, political affiliation of an individual. This regulation helps to put in order the role of managers, subordinates and other employees of the company in relation to protection of the above right of every individual in the company. The regulations manage relations between co-workers, managers, customers, visitors and vendors in the organization.

Having identified the ethical codes to be observed, the company has also established an elaborate system that can be used to report cases of harassment and discrimination when they occur. It should be noted that all cases of harassment and discrimination may not be legally protected.

  • Corporate social responsibility is the way that organizations use to effectively address these problems;
  • This means that a lot of ethical concerns are more contextual and requires an individual to have a thorough knowledge of their surroundings;
  • These procedures help regulate its business practices such as pricing of their products, employees treatment and working conditions in their factories;
  • CR report, 2007-2009 , Nike had major improvements on what was expected of the contractors that had been given business by the company;
  • Read this essay on mba business ethics to take an authorized peek at their application rotten in hondo sweetener gets bitter reaction nike, inc;
  • Business ethics is closely related to corporate social responsibility.

Such cases as abusive language, rudeness to superiors, insensitivity, and intimidation to a person or a group of people may not be protected by the law and therefore cannot be counted as discrimination or harassment. In such cases, they are counted as discrimination and harassment as long as they do not follow company policy. This is because all the employees of the organization are expected to maintain a working environment free from any type of harassment and behaviors that are considered inappropriate.

Employees are advised by the company to report any cases of harassment or discrimination that they may have experienced or witnessed in the company. The company states that it is committed to ensuring that all their business practices follow all environmental and health safety laws and regulations. Employees of the company are advised to report any of its business practice that they think that is unhealthy, hazardous to the environment and to those working in the organization.

This is through use of scientifically tested and at the same time economically viable technologies in the business practices Given that not only the employees of Nike represent the image of the company, its sales people, representatives, temporary workers, consultants and contractors are also expected to promote the company image by following the regulations for company employees as long as they are conducting business for or with Nike.

  • The major issues that these regulations govern include, labor issues such employing, compensating, and firing of people in organizations, quality of products, environmental pollution among other issues;
  • A business that has a positive public image competing with a business with a bad public image will definitely have an upper hand in terms of improving their performance through improved sales, finding suppliers and also employee commitment;
  • In some countries the Foreign Corrupt Practices Act allows companies to make some special payments under given special conditions;
  • Nike is a big company and is located in many countries;
  • Nike ensures that it complies with the laws on export and import in all the countries that they do business.

The company therefore diligently selects those who will represent them or those who will conduct business on their behalf. The company also retains those who have in the past carried out their selves in the most appropriate conduct.

This means that the company may not retain any of these people or companies whenever their conduct may be questionable. This therefore means that Nike should also ensure that their sourcing practices should also be socially responsible.

Also, independent contractors should be socially responsible to ensure that their working environment conforms to the expectations that the company has put in place.

Also, as a business leader, Nike does not only do what the law expects them to do but what they as a company think is a socially responsible practice. This social responsibility is also expected of Nikes partners and other business associates. To achieve this, the company has developed codes of practice which is to be followed by its partners and associate.

These codes of ethics ensure that the business associates and partners provide a good working environment for its employees through ensuring that there is no harassment, and that the places of work should be safe and healthy. Another aspect that Nike watches in its business practices is by looking at the products that it produces. Nike is always committed to providing innovative and inspiring products to its consumers.

These products sometimes may not be safe for use by the customers and may jeopardize the health of its users. To effectively solve this problem, Nike is committed to making sure that its products are first tested for safety before they are released to the public.

This responsibility to the public has given Nike a competitive advantage over its rivals. This is because such practices ensure that the company gains the confidence of the consumers and hence the competitive advantage over its rivals.

All products that are produced by the different Nike manufactures are expected to be designed and then produced to meet the standards of Nike before they are released to the market.

Nike ensures that it complies with the laws on export and import in all the countries that they do business. It also means that Nike benefits from reduced import duties and therefore can benefit from other opportunities. In order to achieve this, Nike ensures that it is aware of transactions and the relevant regulation that are related to doing business in the place they are working.

Nike is also expected to follow all anti-boycott laws in all the countries that they do business. Anti-boycott laws are laws that ensure importers do not discriminate on a single exporter. Nike has the right to protect its information, ideas and other intellectual properties.