Expository Essay Example: Nike Business Ethics

Nike is one of the biggest shoe and garment manufacturers in the world. According to Nike, Inc (2017), the firm employs over 74,000 employees in 1142 stores across the globe. The company was engaged in unethical business practices in the past, which not only dented the Nike’s image but also affected its business operations in several parts of the world. In a bid to understand the current business ethics of Nike, the paper analyses its corporate governance, adherence to laws and regulations, corruption, and labor practices. The essay holds the claim that Nike's business ethics has improved over time but still is not satisfactory.

Firstly, Nike ensures that it fairly caters for the interests of all its stakeholders by seeking and putting in place proper management practices. Regarding corporate governance, Nike, Inc established a committee on sustainability and governance to advice the firm's board and come up with strategies ensuring that Nike is appropriately managed to the benefit of all the stakeholders. The company has succeeded in this regard as it has led to post positive results, redeemed its reputation, and reestablished normal business operations.

Additionally, Nike Inc ensures that it follows the laws and regulations of the jurisdiction within which it performs business operations. Furthermore, the firm complies with local and international labor laws, tax legislation, and environmental laws of the host nation. However, the business has a reputation of failing to observe all the regulations as required by the various jurisdictions. For instance, a report by Robertson (2017) indicated that Nike factories still emit dangerous chemicals into the environment, which reverses the gains of their commitments to use recycled and environmentally friendly materials to manufacture their products. Also, Robertson (2017) noted that Nike ignored the minimum wage standards while remunerating its employees and failed to enhance their capacities. Such failures dilute the strong business ethics in some of Nike's business operations.

Regarding corruption, Nike abhors any form of abuse of company resources or position by the company stakeholders for personal gain. According to Nike (2011), the company forbids its employees to engage in any form of insider trading, financial or social frauds, pilferage, or any corrupt deals and practices as they can potentially damage the company's reputation.

On the other hand, Nike Inc has a record of poor labor practices. An analysis by Panigrahi (2014) revealed that the company indirectly promoted child labor in its factories located in Asian countries like Pakistan and Vietnam. Also, the shoe and garment manufacturing firm overlooked claims that some of their factory employees were mistreated or sexually abused by the supervisors. Such findings go against the proper business ethics expected of a company like Nike and indicate that it failed to observe the highest standard of business practices.

Regarding the issue, Nike Inc has strived to improve the way it treats its employees by putting in place anti-discrimination and fair opportunities policy for all the employees. Also, the firm ensured that it audits all its business operations within the US and other jurisdictions and reveals the findings publicly. Whereas the move has yielded positive results, the firm, according to Robertson (2017), has a fair rating on its labor practices. The low score indicates that Nike's labor practices are not convincing enough to the industry watchdogs and by extension still affect the overall business ethics.

In conclusion, Nike's business ethics has been improved over a period, but still, it is not satisfactory enough. Additionally, the firm has tried to contest the negative image that emanated from poor labor practices in Asian countries by putting in place strategies that provide benefits to all stakeholders. Furthermore, the firm has put in place a strict code of conduct for all employees working in the company. However, Nike's poor labor practices and lack of full adherence to labor and environmental laws affect the firm's business ethics.

References

Nike Inc. (2011). Inside the lines: The Nike code of ethics. Retrieved on December 28, 2017, from https://s3.amazonaws.com/nikeinc/assets/56213/NIKE_INC_Inside_the_Lines_Nov_2011.pdf

Nike Inc. (2017). Annual report on form 10-K. Retrieved on December 28, 2017, from https://s1.q4cdn.com/806093406/files/doc_financials/2017/ar/docs/nike-2017-form-10K.pdf

Panigrahi, H. (2014). Nike: A case of unethical business practice in East & South East Asia. Scribed. Retrieved on December 28, 2017, from https://www.scribd.com/doc/138186741/Business-Ethics-A-Case-Study-on-Nike

Robertson, R. (2017, May 19). How ethical is Nike? Retrieved on December 28, 2017, from https://goodonyou.eco/how-ethical-is-nike/