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Nikes Ethics Essay

1261 words - 6 pages

“As a company thrives in its home country it is only normal to think about either reaching to outside boundaries or outsourcing. It has become a norm in today’s business that once they have reached a certain success that they must try elsewhere. This does come with many different issues such as a financial risk, different culture issues, and taking jobs away from our country. Controversy will arise either way it is looked at so it makes it almost unfair”
Nike, Inc. is highly recognized name and logo not only in the U.S, but also around the entire world. This is because Nike is an American multinational corporation that is highly engaged in the design, development, and manufacturing. They ...view middle of the document...

For instance, under is a general analysis of Asia’s common cultural dimensions one can expect to encounter when doing business with them and can be different for any other country.
• Time Sensitivity: Nations located in Asia and the Pacific Rim tend to have longer, more drawn-out negotiations due to the high value placed upon long-term relationships and the amount of time it takes to create them.
• Space Orientation: As a result of the abundance of people in such small spaces, personal space in Asia and Pacific Rim cultures is closer than in North America. Managers engaged in negotiations should expect brief handshakes or bows with minimal physical touching. Eye contact is brief and physical gestures are reserved as signs of respect.

• Power Distance: Most Asian nations have a high power distance, meaning that authority is respected. These nations
accept the fact that inequality in power is considered the norm.

• Uncertainty Avoidance: Avoiding uncertainty is paramount to most of the Asian cultures, as respecting authority and saving face are critical facets to business processes.

• Individualism-Collectivism: Asia and Pacific Rim cultures emphasize collectivism, choosing to focus on group needs in lieu of those of the individual. As a result, the negotiation process can be slower since decisions are made by the entire group instead of one key player.

• Masculinity-Femininity: The male gender is typically favored over the female, and heavy emphasis is placed on education and career-goals as a way to bring honor to the family.
Nike's explosive increase did not come without any consequence though; as it has been singled out as one of those global companies targeted by a broad range of campaigning NGOs and journalists as a symbolic representation of the business in society. Since faced with the increased labor and manufacturing costs in the 90s, Nike began to outsource its supply chain operations to contract-factories operating in different countries such as Bangladesh, Taiwan, the Philippines, Thailand, Vietnam, Moldova, Argentina, Nicaragua, Mexico, Sri Lanka, Turkey, China, India, and many more. Many of these contract-factories were accused of second-rate working conditions and wages, but had little to no leverage until recent public protest uncovered what many believe where unfair labor practices. As a result, Nike was admonished by many human labor watchdog groups, sued in Kasky v. Nike, INC., and boycotted by many university students and faculty. (NikeSupplyChain)
Nike was extremely criticized for treating workers poorly in Asia, but they were also attacked for taking jobs away from the United States. This attack was a damage to the reputation but the Nike’s reps responded with. "Knight . . . and other Nike officials argued that most of the 6,200 American employees of the company have the kinds of...

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