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Nike Report (Group 6)

Nike faced several ethical issues regarding its business practices, including accusations of forced labor in its supply chain and failing to ensure livable wages for employees. Specific issues involved employing Uighurs in China under possible forced labor conditions and receiving low ratings for not paying living wages. Nike was also criticized for threatening to cancel contracts of sponsored athletes who became pregnant. The company used child labor in Pakistan and had unclear stances on pesticide and leather sourcing that negatively impacted the environment. High executive pay and political lobbying were additional concerns.
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0% found this document useful (0 votes)
196 views18 pages

Nike Report (Group 6)

Nike faced several ethical issues regarding its business practices, including accusations of forced labor in its supply chain and failing to ensure livable wages for employees. Specific issues involved employing Uighurs in China under possible forced labor conditions and receiving low ratings for not paying living wages. Nike was also criticized for threatening to cancel contracts of sponsored athletes who became pregnant. The company used child labor in Pakistan and had unclear stances on pesticide and leather sourcing that negatively impacted the environment. High executive pay and political lobbying were additional concerns.
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
Download as pdf or txt
Download as pdf or txt
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BACHELOR OF BUSINESS ADMINISTRATION (HONS)

UNIVERSITI KUALA LUMPUR BUSINESS SCHOOL

EIB20103

BUSINESS ETHICS

AND

CORPORATE GOVERNANCE

NIKE

GROUP:
ME42B

GROUP MEMBERS
NAME

NO. NAME ID
STUDENT
1. RAHWANI BINTI AHMAD ZAINUDIN 62212122175
NURFARAH HANISAH BINTI MUHAMAD
2. 62212122067
ROMZI SHATAR
3. KHAIRUNNISA BINTI SUHAIMI 62212122144
4. MUHAMAD AMIN BIN JAMALUDIN 62212122262
5. MUHAMMAD HAIKAL BIN YUSRI 62212122279
6. MUHAMMAD AMIRUN BIN MOHD 62212122391
SHAMSHURI
ACKNOWLEDGEMENT

Alhamdulillah, first we would like to thank ‫ ﷲ‬as we were able to finish our assignment that
have been given by our beloved Business Ethics Lecturer. This task had been successfully
done with effort from all our group members even we are quite slow in the beginning to
generate business idea and recognized problems. Luckily, with the cooperation of the team,
we manage to successfully finish it.

Besides that, a big thanks we address to our Business Ethics Lecturer, Dr Nor Fairuz
Syazana Binti Nor Fauzi because without her guidance, our assignment cannot be done
properly.She gave us support in finishing the assignment. Without her lecture, we might not
be able to fully understand the assignment and finish the assignment beautifully.

On the other hand, we wanted to thank our family for the support they gave us when we
need to go through the tough time during this assignment. Their love and support that leads
us to finish the assignment without giving up. Without forgetting, thanks to our friends that
helped us to more understand the assignment.

Lastly, thanks to the groupmates that always stick together to the end and worked hard to
finish the assignment successfully.

2|Page
Contents
1.0 COMPANY BACKGROUND ............................................................................................. 4
2.0 MISSION, VISION, CORE VALUES .................................................................................. 4
3.0 ETHICAL ISSUES IN NIKE............................................................................................... 5
4.0 STAKEHOLDERS & HOW THEY EFFECTED ................................................................... 8
5.0 RESPONSE AND RESPONSIBLE .................................................................................... 10
6.0 MAJOR OUTCOMES ...................................................................................................... 14
7.0 SOLUTIONS................................................................................................................... 16
8.0 ALTERNATIVES SOLUTIONS ....................................................................................... 17
9.0 CONCLUSIONS ............................................................................................................. 18

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1.0 COMPANY BACKGROUND

Nike, Inc. has been accused of using sweatshops to manufacture shoes and clothing from the
early 1970s to the 1990s. These claims were made while Nike was producing goods in South
Korea, China, and Taiwan. Nike has denied the claims. As a result, Nike implies that the
company has little control over the subcontractors. Nike began auditing its factories for
occupational health and safety issues in 2002. Workers become more productive as the
economy grows, wages rise, and many move to higher-paying jobs. Nike found cheaper labour
in China and Vietnam, where labour unions are illegal. When workers in these countries
demanded more rights and benefits, Nike factories closed and relocated to lower-cost locations.

However, in an interview in 2001, Nike director Todd McKean noted that "Initially, the
mentality was, 'Hey, we don't own the factory. We have no control over what occurs there.
Frankly, that's kind of irresponsible. these things. Every day, we have individuals looking at
quality. We obviously have control and responsibility for certain aspects of the company, so
why not others?" More than 40 institutions have expressed their support for businesses that
utilise "sweat-free" labour. In 2005, the majority of them were led by students from the
institution. Nike went even farther at Brown University, withdrew from its partnership with the
women's ice hockey team in response to student activists' efforts to have the corporation create
a code of behaviour. In 2000, Jim Keady established Team Sweat, a "global coalition of
customers, investors, and workers committed to eliminate injustice in Nike sweatshops
throughout the world."

2.0 MISSION, VISION, CORE VALUES


VISION MISSION CORE VALUES
To bring inspiration What motivates us to do all possible to 1. Community
and innovation to maximise human potential. We 2. Sustainability
every athlete in the accomplish this through developing 3. Diversity
world game-changing sports innovations, 4. Social
making our products more sustainable, responsibly
assembling a creative and diverse global
workforce, and having a positive
influence in the communities where we
live and work.

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3.0 ETHICAL ISSUES IN NIKE

We looked at a variety of ethical problems, such as those relating to animal rights,


human rights, worker rights, supply chain management, pollution and toxics, ecosystems and
resources, environmental reporting, the use of contentious technology, political activity, and
unsavory financial practices. Accusations of forced labour in the Nike supply chain, gender
discrimination against female athletes and parents, and failing to ensure that all employees earn
a livable wage are all highlighted by our research. Not to mention the excessive salaries paid
to company leaders, the company also spends a lot of money on political lobbying every year.
Some of these issues are listed below.

People
The Washington Post reported in February 2020 that many Nike supplier factories had been
hiring Uighurs from China's Xinjiang province, including Qingdao Taekwang Shoes Co.
According to a source cited in the article, Uighurs were employed at the Taekwang factory
"under circumstances that clearly resemble forced labour."

The Uighur Muslim minority was producing shoes for the American brand in circumstances
that implied they were being forced, according to a second Washington Post piece from March
that reads "Nike said it was reviewing its suppliers' employment policies in China."
Nike also received the lowest rating in The Clean Clothes Campaign's 2019 Tailored Wages
UK report, which was released in June 2019. According to the audit, "The brand can offer no
record of paying any workers a Living Wage."

Nike also was criticized after Olympic champion runner and Nike-sponsored Alysia Montao
revealed how the company threatened to cancel her contract and stop paying her if she had a
kid. This caused a public uproar and a congressional probe. Later, Nike released a new
maternity policy that ensured payments and bonuses for all sponsored athletes for the first 18
months of pregnancy.

Nike Company has been charged with utilizing child labor in Pakistan to produce their soccer
balls. Even though child labor and slavery are illegal in Pakistan, the government hasn't done
anything to stop it. The only way to end slavery and child labor is for the US and other countries
to boycott certain sectors. Additionally, the United States Constitution declares that child labor

5|Page
is an illegal and cruel practice.

Environment

Due to its unclear stance on the use of pesticides and herbicides, Nike's cotton sourcing strategy
received the lowest grade possible from Ethical Consumer. Although cotton only covers 2.78%
of the world's arable land, it accounts for 12.34% of all pesticide sales and 3.94% of all
herbicide sales. Organic cotton and cotton that was certified by the Better Cotton Initiative
(BCI) were both used in part by Nike. Businesses who care about the environment should make
it known that they only use cotton that is 100% sustainable.

Leather is another important component of Nike's business. To preserve leather, the leather
industry mixes several dangerous chemicals. Tanneries are a highly polluting industry since
their effluent contains significant amounts of various pollutants that can contaminate the land,
the air, and the water supply. In its Impact Report 2019, Nike mentioned using leather that was
Leather Working Group (LWG) certified, but it was unclear what percentage of that leather
was 100% LWG gold standard certified. The only standard that the Ethical Consumer views
favorably is LWG Gold.

Politics
In terms of its financial ethics and political stances, Nike is a questionable firm.
The highest paid executive at Nike earned an astounding $13,968,022 in 2019 (about £11
million). Five listed Executive Officers received more than £1 million in total compensation in
the same year, which is excessive pay in the eyes of Ethical Consumer.

Additionally, the corporation owns subsidiaries in nations that Ethical Consumer considers to
be tax havens, including Bermuda, Delaware, the Netherlands, Taiwan, Hong Kong, and
Singapore. At least 21 of them were regarded as high-risk company types (such as holding
companies) because of the possibility that tax avoidance techniques would be used.

According to Opensecrets.org, the company spent $1,180,000 on lobbying in 2019 and donated
$511,737 to both the Republican and Democratic parties during the 2020 election campaign.
Additionally, according to reports from 2019, 32 of the 38 lobbyists for Nike Inc. previously
worked for the government.

6|Page
Nike is involved in lobbying as well. Nike was named as a member of the US Council for
International Business in February of 2020. (USCIB). According to Ethical Consumer, USCIB
is a corporate lobbying organisation that promotes free trade at the expense of the environment,
animal welfare, human rights, and health protection.

Animal

Given that it sold various items made with materials derived from animals, such as leather,
wool, and down and feathers, Nike was docked a whole point under the animal rights category
of Ethical Consumer.

Nike received a failing grade for having an unclear anti-mulesing policy. In order to produce
more wool, Merino sheep are intentionally bred to have wrinkled skin. Fly eggs are found in
skin wrinkles, and sheep can be eaten alive by maggots. The practice of "mulesing," which
entails slicing wide pieces of skin and flesh from the backs of lambs' legs and the area
surrounding their tails, is used by Australian ranchers to prevent this problem. Nike supports
the usage of wool fiber that is sourced and certified as coming from non-mulesed sheep and
will consolidate its wool sourcing in accordance, as quickly as supplies and pricing permit, the
firm said. The way this was written made it possible for the business to use wool from sheep
that had been mulessed.

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4.0 STAKEHOLDERS & HOW THEY EFFECTED

Due to the fact that each stakeholder has a unique interest in the organization, their evaluation
criteria are all extremely distinct. The stakeholders effected by the Nike sweatshop issue
included customers, staff members, the media, managers, and CEOs.

The company's shareholders, employees, customers, and communities make up its main
stakeholders. The company's achievement of its earnings is what the shareholders and investors
expect from it. Nike's stockholders have worked hard over the past 20 years to create a safe
workplace for all of the company's employees. Many CEOs adopted the "out of sight, out of
mind" attitude when the charges regarding Nike sweatshops initially surfaced by claiming they
had no control over what their subcontractors did to their employees. The most significant
effects were seen by Nike's own employees, not only managers and CEOs.

Customers are worried about quality, safety, and the accessibility of services when they need
them, while employees of the company demand job happiness, salary, and effective
supervision. The Nike workforce was significantly impacted by the sweatshop crisis.
These workers are affected every day by harsh working conditions and little pay, which instils
anxiety in their thoughts that they will be unable to support their families. Customers or
consumers are the following stakeholders. Nike's efforts to ensure better ethical working
conditions and legal compliance are in large part due to consumer demand. For many years,
Nike customers were mostly uninformed of the company's use of sweatshops.

Although many consumers condemned Nike's immoral practices after learning about the
company's usage of sweatshops. Consumers in the 1990s had harsh reactions when it was
revealed that Nike used sweatshops. Student protests were also quite popular in 1997 during
the Nike sweatshop controversy. Even now, many individuals continue to demonstrate against
this unethical situation. Once Nike admitted to using sweatshops, the public was very
understanding.

8|Page
Communities are the next group of stakeholders. Companies like Nike work under the confines
of safety rules, environmental protection legislation, and other laws and regulations. They only
have a charter and licenses. Socially conscious companies like Nike take into account how their
actions would affect all stakeholders. All of them want the firm to act in an ethical and socially
responsible manner, and when this doesn't happen, they become unsatisfied, and the company's
reputation suffers.

The media would be considered one of the company's secondary stakeholders. Non-
governmental organizations promote anti-Nike campaigns by alerting the public via the media
since they have an interest in the news sources. Secondary stakeholders may not have the same
clout as key stakeholders, but they nevertheless have the potential to harm a company's
reputation.

9|Page
5.0 RESPONSE AND RESPONSIBLE

Nike, like other multinational corporations, outsources the production of sportswear and
sneakers to developing economies to save money by taking advantage of a cheap labor force.
Sweatshops are factories where workers are forced to work long hours for very low wages in
deplorable working conditions. Nike sweatshops first appeared in Japan, then spread to cheaper
labor countries such as South Korea, China, and Taiwan. Nike shifted to lower-cost suppliers
in China, Indonesia, and Vietnam as their economies developed. Nike's use of sweatshop labor
dates to the 1970s, but it wasn't brought to light until 1991, when Jeff Ballinger published a
report detailing the appalling working conditions of garment workers at Nike's Indonesian
factories.

The report described the factory workers' meagre wages, which were only 14 cents per hour,
barely enough to cover basic living expenses. The revelation infuriated the public, resulting in
mass protests at the 1992 Olympics in Barcelona. Despite this, Nike continued to expand
Niketown-style facilities displaying a wide range of Nike-based services and experiences,
fueling consumer resentment. Nike was embroiled in a child labor scandal in addition to the
sweatshop issue. Life Magazine published an article in 1996 that included a photograph of a
young Pakistani boy named Tariq who was reportedly sewing Nike footballs for 60 cents a day.

Nike initially denied any involvement, claiming it had little control over the contracted
factories and who they hired. Following the 1992 protests, the company took more concrete
action by establishing a department to improve factory conditions. However, this did not help
to solve the problem. Disputes persisted. Many Nike sweatshops were still in operation. Nike
faced more public backlash in 1997-1998, causing the sportswear company to lay off many
employees.

In May 1998, CEO Phil Knight delivered a speech that marked a significant shift. He
acknowledged the existence of unfair labor practices in Nike's manufacturing facilities and
promised to improve the situation by raising the minimum wage and ensuring clean air in all
factories. Nike's Fair Labor Association was founded in 1999 to protect workers' rights and to
enforce the Code of Conduct in Nike factories. Over 600 factories were audited for
occupational health and safety between 2002 and 2004. In 2005, Nike published a complete
list of its factories, as well as a report detailing the working conditions and wages of Nike

10 | P a g e
employees. Since then, Nike has published annual reports on labor practices, demonstrating
transparency and genuine efforts to right past wrongs. While the sweatshop scandal is far from
over, Nike has received praise from both critics and activists. At the very least, the company is
no longer ignoring the issue. Nike's efforts eventually paid off as it gradually regained public
trust and regained market dominance.

Nike sweatshops unquestionably violated human rights. Workers survive on a low minimum
wage and are forced to work in hazardous conditions for extended periods of time. However,
in the aftermath of the Nike Sweatshop Scandal, numerous non-profit organizations have been
formed to protect the rights of garment workers. Team Sweat is one such organization that
tracks and protests Nike's illegal labor practices. Jim Keady founded it in 2000 with the goal
of putting an end to these injustices. USAS is yet another student-led organization in the United
States formed to oppose oppressive practices. The Sweat-Free Campus Campaign is one of
many projects launched by the organization to protect workers' rights. All brands that create
university names or logos were required to participate in the campaign. This was a huge
success, garnering massive public support while costing Nike money. The company had no
choice but to improve factory conditions and labor rights to recover.

In 1990, all questions were answered when the number of workers with a degree increased,
opening more opportunities for people, particularly in prosperous areas such as Vietnam,
Indonesia, and China. Nike introduces a code of conduct at the factory called SHAPE, which
stands for Safety, Health, Attitude, People, and Environment. Nike began exploring Vietnam
in 1995 by establishing a factory, and the revenue of its division is based on the gross domestic
product, which reached 5% in 1999. In 1998, Nike began a programmed to replace petroleum-
based solvents with less hazardous water-based solvents. To avoid the use of chemicals that
could endanger the public. At a factory in Vietnam, Nike also installed a local exhaust
ventilation system and trained employees to be more concerned about worker health and safety
issues. Nike introduced its own "Code of Conduct" in Vietnam in 1999, modelled after several
ILO (International Labor Organization) conventions, to establish and protect workers' rights,
as well as strengthen accountability and transparency in Nike operations in Vietnam.

This is because, according to Nike's Corporate Responsibility report from 2012, the main cause
of global warming is the release of CO2 chemicals (Million Tons). To create the best and most
sustainable marketing, Nike's fabric supplier produces jersey fabric made from used plastic

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bottles from landfills in Japan and Taiwan. Nike also used design tools that cost $6 million
over seven years to help designers reduce their environmental impact. In 2011, Nike increased
its use of recycled plastic bottles by 82 million bottles. Nike expects to contribute $315 million
to society. The company does, however, spend about $10 million per year to comply with the
code, which includes rules for fire safety, air quality, minimum wage, and overtime limits.

Nike established the Global Alliance for Workers and Communities, which merged with
several other organizations, including the International Youth Foundation. The organization
publishes reports on the corporation and its plans to improve current circumstances. In 2001,
the Global Alliance faced criticism after a report on Nike Inc. failed to include recent events
such as strikes, worker terminations, and a lack of collective bargaining in their Indonesian
factories. Nike audited its factories 600 times between 2002 and 2004, assigning each factory
a score on a scale of 1 to 100, which is then assigned a letter grade. Nike threatens to stop
production unless the conditions are quickly improved. Beginning in 2004, Nike intended to
broaden their monitoring process to include environmental and health concerns.

In 2007, Nike donated $1 million to a financially troubled school, and the Jordan Fundamental
Program was established to provide financial support to educators who have made significant
contributions. The Jordan Fundamental Program contributed more than $8 million to public
high school lunch programmed for teachers in 1999. Nike joined the United Nations Refugee
Agency in 2007 and raised $2 million in its first year to support refugee youth education and
sports. Nike also sells T-shirts featuring refugees to raise global awareness and funds. Nike
also has a partnership with the Lance Armstrong Foundation, which aims to encourage cancer
patients.

Nike issues a privacy policy outlining how they collect and use information through various
types of digital devices, as well as the types of information they will collect. For example, if a
customer uses a computer to access the Nike website to purchase Nike products or register
personal information, the Privacy Policy protects the customer while also assisting parents in
supervising children.

Nike does not use forced labor, including prison labor, and only hires people who are at least
16 years old. Employee contractors are paid on time and at least the national minimum wage.
Working hours are reasonable, and the workplace is healthy and safe. Nike was the first

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company to publicly list the locations of over 800 contractors in 2005, and the locations can
still be viewed on Nike's official website. Employee relations in terms of sexual discrimination
show that 40% of female administrators and 60% of male administrators. Nike hired more
women than men in Europe, the Middle East, and the United States in 2009. Employees have
access to paid vacation, on-site childcare, job-sharing programmed, and telecommuting.

In Nike factories, monitoring has become the most popular method of enforcing regulations.
According to the findings of the audits, this system is not as effective as the authorities
expected. When researching the monitoring process, it is critical to consider how the
monitoring is carried out, who is involved, and the purpose of the check. The person conducting
the visit must go in with no preconceived notions of wanting or not wanting to find flaws in
the factory. Inspectors associated with the company were found to conceal errors, while those
affiliated with non-governmental organizations or other interest groups exaggerated their
findings.

Nike reduces greenhouse gas emissions and uses recycled plastic in product manufacturing,
works with communities to help schools and refugees, has a Privacy Policy and Code of
Conduct in place to protect consumers, establishes standards for its supply chain, rejects gender
discrimination, and promotes working conditions for employees.

Nike's CEO and senior management must be openly and strongly committed to social
responsibility and ethical behavior. They must provide consistent leadership in renewing the
company's ethical values and social responsibility. The management must be active in
communicating the company's commitment through speeches, directives, company
publications, and, most importantly, actions. The CEO, along with the company's managers,
are the ones who most clearly set the tone of the organization through their behaviors.

Nike's management should understand why ethical responsibility is required within the
company because it is the responsibility of the organization's management to make decisions
and take actions that will benefit the welfare and interests of society as well as the organization.
It would include activities and commitments related to human rights, governance and ethics,
development, employee working conditions, community involvement, customer satisfaction,
relationships with the company's suppliers and customers, and finally respect for diverse
cultures and people, among other things.

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6.0 MAJOR OUTCOMES

Based on the ethical issues, we concluded that there are a few major outcomes.

People
It was reported that Uighurs from the Chinese province of Xinjiang were hired by Nike supplier
factories. The Washington Post report from February 2020 mentioned a source that said
Uighurs had worked at the Taekwang plant "under circumstances that obviously resemble
forced labour." Nike was sued by the Association of Uighurs in France for engaging in
"deceptive commercial practises and involvement in the concealment of forced labour," the
group told Euronews. The sports company is charged with subcontracting Chinese companies
that employ oppressive labour practises against Uighur minority members. A social media
movement calling for a boycott of Nike has been started in response to the allegations against
the brand. Raphael Glucksmann, a French MEP who has spoken out about the situation of
Uighurs in China, said in June of last year that more than 20,000 individuals had criticised Nike
on Instagram.

On another hand, there is an issue concerning sponsored athletes especially women. For
instance, the Olympic champion runner Alysia Montao received a contract termination threat
from Nike if she had a child, which outraged the public.

Nike was plagued by reports in the 1990s that their worldwide supply chain was being backed
by child labour in areas like Cambodia and Pakistan. The outcry against Nike was so severe
that it damaged the company's reputation and hurt its financial performance. According to data
from Stanford University, Nike's revenues were declining, and the corporation was being
characterised in the media as one that was willing to exploit their workers and deny them the
minimum wage.

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Environment
Nike's cotton sourcing policy also obtained the lowest ranking in the ethical consumers
environmental report (Nike 2017). The report found that because of its industrial facilities'
murky attitude to the use of pesticides and herbicides, the country has experienced rises in
climate, harmful pollution, water usage, and waste. They don't adhere to utilising just cotton
that is 100% sustainable. Nike also used hazardous chemicals to extend the life of their leather.
Additional investigations also noted problems with carbon emissions, the usage of renewable
energy, and the sourcing of certain materials, but little was done to address the high toxic levels
in the workplace and the environment, impeding Nike's ability to meet its CSR-related ethical
objectives.

Politics
During the 2020 election, Nike donated to both the Republican and Democratic parties and
engaged in lobbying. It is unknown and hidden how much money Nike has given to trade
associations and other tax-exempt "Dark Money" organisations that can be easily and discreetly
used for electoral purposes. Activists of campaign finance reform believe that voters should be
aware of the sources of political advertising money. They believe that such information is
necessary for voters to evaluate the quality of political communications and to identify potential
attempts by special interests to influence politicians. According to Democracy 21's founder and
president, Fred Wertheimer, "history makes it clear that unlimited contributions and secret
money are a formula for corruption." A similar statement has been made by the Campaign
Legal Center, which described the development of dark money as a "severe threat to our
democracy."

Animals
For having an unclear anti-mulesing policy, Nike was given a failing rating in the Ethical
Consumer category for animal rights. FOUR PAWS, the global animal welfare organisation,
has just launched a campaign to prevent the mutilation of merino lambs by requesting Nike to
remove the cruel and painful practise of mulesing from their supply chain; yet, despite
international public anger, Nike continues to ignore the pleas for reform.

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7.0 SOLUTIONS
There are several parties involved in finding solutions to the issue of sweatshops,
including external organizations such as transnational advocacy groups and governments, as
well as the Nike company itself as an internal party.

Transnational advocacy groups aim to improve the wages, working conditions, and
overall treatment of factory workers. They also work to empower workers by enabling them to
organize and gain respect from their employers. There are various types of advocacy groups,
including those focused on human rights, religion, and labour, that collaborate to achieve better
conditions for factory workers. These groups have different motivations for supporting the
workers, but they all work towards the common goal of improving conditions. Global efforts
have helped to bring attention to the issue of Nike sweatshops and have increased the
dissemination of information about the conditions in these factories.

Transnational advocacy groups have teamed up with international allies, such as the
United States, to raise awareness about sweatshop conditions in foreign, typically wealthier
countries. These allies have provided assistance to workers who were not paid while on strike.
While non-governmental organizations within the country where the factories are located may
not have as much sway with their own government, the wealth and political influence of
advocacy groups based in other countries can give them greater leverage in advocating for
change.

Political efforts are an important part of addressing the ethical issues surrounding Nike's
sweatshops. One main focus of these efforts is to increase the minimum wage for factory
workers in the countries where the factories are located. Other components of these political
efforts may include limits on working hours, mandated rest periods, minimum age
requirements for workers, and maternity leave for women. Together, these measures aim to
improve the conditions and treatment of factory workers.

The Nike company has taken on the responsibility of finding a solution to the sweatshop
issue. To this end, it has established the Global Alliance for Workers and Communities, a non-
governmental organization that aims to inform the public about the company and its plans for
improving conditions. Nike has also conducted approximately 600 audits of its factories in an
effort to monitor conditions and identify areas for improvement. However, these audit
processes have faced criticism for bias, leading Nike to seek solutions such as involving higher-
level employees in the audit process in order to address these issues.

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8.0 ALTERNATIVES SOLUTIONS

In order to minimize the organizations environmental footprint and adhere to ethical policies,
Nike has set targets to reduce its environment impact by at least 10% by 2020, increase the use
of sustainable material for all products, reach 100% renewable energy locally and overseas,
eliminate footwear waste during manufacturing, adopt new approaches to water use reduction
within the supply chain and to lower the discharge of hazardous, toxic chemicals, as well as
reduce carbon emissions by more than 50% by 2025. Furthermore, Nike has implemented a
Code of Conduct and audits all factories used in the production process, making sure that all
employment is voluntary, workers below the age of 16 are not allowed and that a set number
of hours can be worked by each person per week, in order to ensure a safe, green and
equitable workplace.

Furthermore Nike need to treat their worker better. This means providing higher wages, better
working conditions, and better benefits. It should also be more transparent about its labor
practices and ensure that workers have a safe and healthy work environment. Additionally,
Nike should work to create better communication between management and employees and be
more open to employee feedback and suggestions.

Nike need to give their worker better working conditions, including a safe and healthy work
environment, fair wages, and opportunities for advancement and training. They should also
implement policies to ensure that workers are not subjected to discrimination or exploitation,
and work with local communities and organizations to address any issues that may arise.
Additionally, Nike should be transparent about their labor practices and engage in open
dialogue with their workers and stakeholders to address any concerns and make improvements.

Lastly according to think like Aristotle. Aristotle believed in the concept of eudaimonia, or
achieving happiness and well-being through living a virtuous life. In the context of Nike's labor
practices, this would mean treating their workers with respect and fairness, and considering the
long-term well-being of both the workers and the company. It would also involve taking a
holistic approach to business, considering the impact on all stakeholders, including the
community and the environment. By following these principles, Nike can not only improve the
lives of their workers, but also contribute to the greater good and create a more sustainable and
ethical company.

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9.0 CONCLUSIONS

In conclusion Nike have found themselves constantly in the media in regard to their unethical
ways of working and the treatment of their workers. Whilst they are taking steps to improve
conditions they still have a long way to go. But despite their unethical, Nike still remains as
one of the top sportswear brands and yields a large profit each year. Nike should continue to
seek ethical ways of working through use of ethical principles.

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