Nike: From Sweatshops to Leadership in Employment Practices - Research Paper Example

Different ethical dilemmas have arisen in the organization due to various undesirable situations and behaviors in the business which was considered threatening for the ethical image of the brand. But the company set an example by meeting the challenges successfully through major changes in their ethical management and auditing processes. The company now acts with fairness and equality and encourages the employee rights as a major strategy in their business objective formulation. Discern how a more effective ethics programs and a more viable code of conduct could have mitigated the ethical issues faced by Nike.

Nike has faced major ethical issues in its business processes within the company. The global business of Nike has faced with critical ethical challenges mainly the sweatshop issue. The sweatshop problems and the allegations of using child labor were main ethical challenges confronted by the business. In countries like China, Indonesia and Vietnam, the company faced the issue of paying low wages and exploiting the labors into working overtime under the agreements in the subcontracts. The company was also condemned for poor and harmful working conditions in their manufacturing factories and for using forced labor for the production of their products.

The business also faced severe allegations due to the environmental damages including air and water pollution and ecological hazards caused by its production processes. The government rules and regulations vary in different countries and Nike faced a major problem regarding the ethical compliance to the laws in its international manufacturing operations. In the different countries like Vietnam, China and Indonesia where Nike faced the major ethical issues, the governments played a major role in accelerating the ethical concerns.

The host governments of different countries make regulatory laws and reforms regarding employment, safety of the workers, protection of consumers, wages and salaries and information. The governments in these countries where Nike was running its operations turned a blind eye towards the low wages and the poor working conditions of the laborers in the factories of Nike. The wages were insufficient compared to the minimum requirement for a living standard. Also, the governments did not have proper laws against the child labor and sweatshop issues.

Describe an ethics training and communications program that may have kept Nike from encountering the ethical issues it did in this scenario. The company should have implemented multidimensional performance appraisal system in the company to reward and facilitate the employees for growth and development. The early adoption of effective ethics training and communication programs would have negated the problematic behavior of the employees by creating transparency between the management and the employees.

These strategies would also include commitment to human rights, development of ethics, good working conditions for the labors, involvement of the communities, customer satisfaction and respect for diverse cultures and backgrounds. These would effectively make the employees more professional and help to maintain the ethical standard of the company throughout its international operations. The major ethical factors to be considered in Nike for designing and implementing an effective program for the business from the ethical perspective are: Ethical