Ethical Labor Practices: Nike's Corporate Responsibility

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Recommended: Challenges that Nike faces

Nike will face numerous challenges as it attempts to regain corporate responsibility. The temptation to use low wage, unethical labor practices in order to increase performance will exist not only for Nike, but also its contactors (Ferrell, Fraedrich, & Ferrell, 2015). Competition in a global environment will present continued pressures on cost-reduction, and often these reductions are accomplished by either lower wages or less hospitable working conditions. Locke (2013) points out that private corporations pledges to increase corporate responsibility can delay appropriate legal and regulatory efforts that would have otherwise improved known issues with unethical or socially irresponsible behavior. Nike will no doubt face pressures to use its …show more content…

Consumers are increasingly aware of CSR behaviors and expect corporations to act in a socially responsible manner (Smith & Brower, 2012). This increased importance of CSR behaviors is particularly important for millennial consumers, and millennials actively look for information on products regarding CSR and environmental related issues. As millennial consumer group continues to grow in purchasing power in the coming decades, CSR programs and ethical conduct will become increasingly important to organizations. However, as jobs continue to be lost to automation, society may begin to view the environmental impact and risks involved in unethical labor practices to be less important than the inability for members of a society to find suitable employment. Nike does indeed have a program designed to increase automation in its production processes (Wei, 2016). This increasing automation will not only be an issue that Nike will have to deal with, it will also be an issue that society and other industries will face as well. As previous jobs working in factories become decreased substantially, society will need to find alternative ways for individuals to gain employment. In order to face these issues, Nike will need to continue to form partnerships with others in various industries to …show more content…

(2015). Business ethics: Ethical decision making and cases (10th ed.). Mason, OH: Cengage. Locke, R. M. (2013). Can global brands create just supply chains?. Boston Review, 38(3), 12-29. Smith, K. T., & Brower, T. R. (2012). Longitudinal study of green marketing strategies that influence Millennials. Journal of Strategic Marketing, 20(6), 535-551. doi:10.1080/0965254X.2012.711345 Wei, J. (2016, December 27). Nike's manufacturing revolution: A source of hidden value for shareholders. Seeking Alpha. Retrieved December 28, 2016, from

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