In the year 1972, Nike was established by Phil Knight and Bill Bowernman. Currently Nike has emerged to be one of those global companies targeted by a broad range of campaigning non-governments as a symbolic representation of the business in society. Nike has established a forum, which is a well-developed focus of being responsible in improving condition in contracted factories (May, Cheney, & Roper, 2007). Nike aim for carbon neutrality as well as making sports available to young people across the world.
Nike has experience many legal issues in its lifetime. Nike has long been accused of many allegations. For instance uses sweatshops which are said to ties with terrorism. The legal challenge that Nike face is the age limit an employee must have and minimum wage for its employee. However, the challenges have shaped its current marketing strategies which lead Nike to be the most recognized brands in the world (Hill, 2005). Among the allegations Nike has were; breaking numerous labors laws, sweatshop and child labor scandal.
Nike, a huge corporation has its culture that confronts its global business. A cultural challenge Nike faces is setting up factories in different countries. However it is known and regarded in culture of producing quality and long lasting products mostly the sports attire, for instance shoes. Over the years Nike formulated several strategies and tactics to handle and tackle its problems of subcontractors’ working conditions as well as their pay. The culture of handling the workers is a way of improving efficiency and quality work in business society (May, Cheney, & Roper, 2007). According to young they did not see sweatshops or any hostile conditions since they ate at least two meals a day on the job as they make what I was told were subsequently wages in those cultures.
The ethical issues and dilemmas that Nike faces are as a result of manufacturing their goods on foreign soil (May, Cheney, & Roper, 2007). The areas that are really concerned on ethical issues include poor working conditions, child labor, low wages and health concerns in the factory. Generic term that involves science in our morals is referred as ethics. The Nike executives are accused of many ethical dilemmas. For instance poor working conditions in the factory. It has been noticed with a lot of concerned that Nike outsources their labor to countries that needs economic growth. This leads to cheap labor accompanied with unfair rates. As result workers are exposed to working conditions that would be far below what is accepted in any developed country in the world.
The host government must assess the political risks this include nationalization and protectionism. It must also explore the local competitive environment. For instance, the government needs to set up manufacturing factories for Nike’s shoes and attire. Besides setting up the factories the host government must ensure that there are adequate employees to the factories for quality production of the attire and shoes (Hill, 2005). The two roles are essential to the Nike Company and result to be an advantage to the host country by earning financial compensation. This result to increment of wealth due to more money being spent in the country and eventually raises the economy of the host country.
The whole Nike management team faces challenges from host country and organization in the United States. For example, human rights organization such as San Franco based Global Exchange opposes unfair labor practices. Besides that, organizations based on defending child labor also bring challenges that oppose the unfairness in the company (May, Cheney, & Roper, 2007).
Electric Sky (Firm), Films for the Humanities & Sciences (Firm), & Films Media Group. (2006). Globalization is good. New York, N.Y: Films Media Group.
Hill, C. W. L. (2005). International business: Competing in the global marketplace. Boston: McGraw-Hill/Irwin.
May, S., Cheney, G., & Roper, J. (2007). The debate over corporate social responsibility. Oxford: Oxford University Press