Nike is one of those companies of the world which are continuously accused of the ethical issues such as human rights and the working conditions in the Nike factories in the developing and under-developed countries. Despite of abandoning many unethical activities and involving itself in the global social and environmental activities, Nike is still accused for exploitation of labor rights in many countries around the world (Kahle, L. R. & Boush, D.M. & Phelps, M. 2000). The ethical issues and dilemmas faced by the Nike Incorporation are discusses below in detail.
The manufacturing units of the Nike Incorporations have been established in the developing or under-developed countries because of the cheap labor in these countries. The wages provided by Nike are even lower than the standard wage level in those developed or under-developed countries. The employees at Nike are unable to meet their basic needs. Nike has made an effort to solve the issue by employing the workers at the wage rate as given by those countries.
Nike is involved in the violation of the global child labor laws. The children of the age 12 to 14 are working at the manufacturing units of Nike. Nike failed to practice the child labor laws in the under-developed countries.
The human rights committees are continuously criticizing Nike for paying huge amounts to the celebrities for the endorsement of their products. The famous sports celebrities are paid millions of dollars to market and advertise the Nike products It is suggested to spend a part of money to improve workers standards of living and in the community building.
Another issue involved sweatshops operated by the company. Sweatshops are the illegal and unethical activities