...to those shareholders. If the corporation does not act with a sense of responsibility, however, that reflects badly on the corporation and also on the shareholders, reducing their return. In today's business environment, there are any number of actions which a company might take that would be perceived as socially irresponsible, and more and more companies are finding that if this does occur and is found out, the company and its shareholders suffer. A controversy involving the Nike Corporation shows how a company can be affected by situations they may not be able to fully control. The athletic apparel industry in which Nike is involved is a major money maker in the United States, but the fact that none of the factories are located in North America has brought some heat to the company. “Nike controls more than 40 percent of the U.S. market for sports related goods, but doesn’t have a single sneaker factory in this country” (Miller, 1995). Nike continues to make millions of dollars yet exploits workers overseas by paying them very little, while requiring long hours without overtime pay in factories that are not up to American standard. “Nike subcontractors employ nearly 500,000 workers in plants in Indonesia, China and Vietnam” (Saporito, 1998). The exploitation of workers in Third World countries, where the majority of Nike’s labor is done sparks a controversial issue. People question why Nike continues these practices. According to “Just do it, Nike,” Nike seems especially...
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...Nike id. What he wanted on the shoe is the word "sweatshop." Nike ultimately denied his request because it represented inappropriate slang. He replied to the Nike Corporation by saying he wanted to put a picture of the 10 year old Vietnamese girl who makes his shoes on the shoe. Paretti never received a response. Before Nike could blink an eye the situation turned into a public affair that would get many colleges and Universities involved. By now the Nike product has become synonymous with slave wages, forced overtime, and arbitrary abuse. An even celebrity like Kathy Lee Gifford was shocked when she found out her clothing line was participating in sweatshops to produce these clothes. Whether or not these accusations were true the turmoil with Nike and their usage of sweat shops for the production of their shoes had begun. Nike was founded by Philip Knight in1964. By 1980, eight years after the company was founded Nike became the largest athletic shoe company in the world. Nike’s factories are located countries such as Indonesia, Vietnam, China, and Thailand were the labor cost were significantly less than those in the United States. Nike was also accused of only paying Indonesian workers 14 cents to the make the company's Air Jordan’s. They also claimed that Nike’s salary for Michael Jordan endorsements were more than the entire...
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...companies act ethically. Discuss For the past few years there has been lots of discussion about Corporate Social Responsibility. Most of the multinational companies issue every year a report on their practices. They try to get involved into communities, fight the poverty in the third world countries and donate millions of ponds every year to charities to as they say “build the better future”. But are their corporate social responsibility statements effective ways of ensuring that multinational entities act ethically? From my point of view, CSR statements do not ensure that practices of companies obey the rules of business ethics and I am going to present a few arguments for. Corporate Social Responsibility is fairly recent term and maybe that is why there is no consistent definition for it. Most multinational companies use different terms in their reports, for example Shell defines it as ‘sustainable development’, Ford uses the phrase ‘connecting with society’, Diageo prefers the term ‘corporate citizenship’. All these expressions, although they have different meanings, are related to Corporate Social Responsibility but because of the proliferation of approaches, every company can put emphasis on something different, creating therefore complexity and confusion. What is more, the socially responsible company not only complies with minimum requirements of the law, but goes a step further and accepts social obligations beyond that. The first argument for, that the CSR statements...
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...“As a company thrives in its home country it is only normal to think about either reaching to outside boundaries or outsourcing. It has become a norm in today’s business that once they have reached a certain success that they must try elsewhere. This does come with many different issues such as a financial risk, different culture issues, and taking jobs away from our country. Controversy will arise either way it is looked at so it makes it almost unfair” Nike, Inc. is highly recognized name and logo not only in the U.S, but also around the entire world. This is because Nike is an American multinational corporation that is highly engaged in the design, development, and manufacturing. They are also responsible for being the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment because of the proper worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman and Phil Knight and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike the Greek goddess of victory. Now that we have a brief history lesson of Nike let’s get into some of the culture issues they have faced and face since they have globalized. When a contract factory wishes to do business with Nike or one its many subsidiaries, it is critical that the owners and/or managers in the supply chain understand the cultural differences...
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...1. Corporate Social Responsibility (CSR) and its Importance: 1.1 Definition of CSR: What does Corporate Social Responsibility or CSR mean? The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts, used the following definition: Corporate Social Responsibility is the continuing commitment by business to behave ethically and to contribute to economic development while improving the quality of life of the workforce and their families, as well as of the local community and society at large. Traditionally in the United States, CSR has been defined much more in terms of a philanthropic model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities. This model tends to be more sustainable because : • Social responsibility becomes an integral part of the wealth creation process - which if managed properly should enhance the competitiveness of business and maximise the value of wealth creation to society. • When times get hard, there is the incentive to practice CSR more and better - if it is a philanthropic exercise that is peripheral to the main business, it will always be the first thing to go when push comes to shove. Different organisations have...
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...Carmen Corbett Mr. Martin Adv. 100 June 23, 2013 Illegal Immigration in America One of the most controversial political issues today is illegal immigrants. Illegal immigrants is a serious problem that has to stop, because it is unfair to the people here in America. Illegal immigration is also unfair for the country that the immigrant left. It is public knowledge that the majority of the illegal immigrants in America come from Mexico. This is a problem that must me stopped as it hurts America’s economy and tax paying citizens. Illegal immigrants live off tax payers, take jobs and housing of hard working citizens, and leave there country of birth without skilled workers and help leave their own country into poverty. Legal American citizens pay taxes that help support welfare, health care, public schools and many other social services, many of which are taken advantage of by illegal immigrants. Illegal immigrants do not have to pay as many taxes as citizens do, illegal immigrants don’t have to pay social security. This isn’t fair to Americans. I personally don’t care if people migrate here I just want them to have to pay taxes just like everyone else. Illegal immigrants need to abide by the same laws as Americans. If a child is born in America, even if the parents are illegal, the child is a American citizen, making this child a burden to the state to make sure the...
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...to the Industrial Revolution. It affected all Americans and transformed the role of government in American society. Most racial issues and women's rights, were ignored during the progressive era, but the groundwork was laid for future reforms in those areas. Many events occurred during the time of the Progressive Era and Great Depression that made a big contribution to today’s society. One of the first turning points of this era was the founding of the Anti-Saloon League. It was a non-partisan political pressure group established in 1893 with Protestant churches as its primary support in rural areas and the South. In the words of leader Ernest Cherrington, it was "the united church militant engaged in the overthrow of the liquor traffic.” The League also used churches more directly to achieve its objectives. For example, it arranged for pastors in over 2,000 churches in Illinois to discuss a pending temperance measure and urge congregations to ask their representatives to support it. The Anti-Saloon stressed its religious character and since it acted as an agent of the churches and therefore was working for God, anything it did was seen as moral and justified because it was working to bring about the Lord's will. This became the first modern, single-issuing lobbying group in the America and opened the doors for more groups to establish new movements. Today’s society has been affected by the initial views on alcohol and laws have been created to control the sale and distribution...
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...“Outsourcing-Offshore” Outsourcing is said to have emerged a few thousand years ago with the production and sales of food, tools, and other household appliances. As soon as small communities and societies began to form, people with specialized professions began to trade with each other for goods and services. It can be said that each worker was outsourcing some activities to others. Research shows that even in the industrial age, a few thousand years later, very few companies outsourced any of their operations. Companies in the 1800s and 1900s were vertically integrated organizations, taking care of their own production, mining, and manufacturing from raw materials to finished goods as well as then shipping the goods to company owned retail outlets. These companies often handled their own taxes, employed their own lawyers, as well as designed and built their own buildings without outside assistance. This model does not apply to all companies during that time period, but it gives a general idea of the time. The history of outsourcing portrays that as onshore outsourcing continued manufacturing outsourcing of low-tech items such as toys, shoes and apparel goods began to take place. After this manufacturing higher value items like high-tech components and consumer electronics began to appear. In fact outsourcing history demonstrates that manufacturing was the first activity that began to move to offshore destinations in a quest for lower costs. Globalization began during...
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...Elizabeth Fosnight, Archana Kalegaonkar, and Adnan Qadir. I would also like to thank Miguel Alexander, Maria Eitel, Dusty Kidd, Joseph Tomasselli and Dara O’Rourke for their helpful comments and assistance during this project. 1 1. Introduction How should global corporations behave in the new international world order? What constitutes good corporate citizenship in a world where the stakeholders are diverse and dispersed around the globe and where no clear or consensual rules and standards exist? These questions shape the behavior of most multinational corporations (MNCs) today. Although multinationals are eager to pursue the opportunities of increased global integration, they are increasingly aware of the reactions which their strategies induce – both at home and abroad. Thus, they tread warily, lacking clear and agreed-upon definitions of good corporate citizenship. Through a case study of Nike, Inc. – a company that has come to symbolize both the benefits and the risks inherent in globalization – this paper examines the various difficulties and complexities companies face as they seek to balance both company performance and good corporate citizenship in today’s global world. 1. The Athletic Footwear Industry The athletic footwear industry experienced an explosive growth in the last two decades. In 1985, consumers in the United States alone spent $5 billion and purchased 250 million pair of shoes.2 In 2001,...
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...Final Exam Jessica ETH/316 Michael Scott Due June 30, 2014 Question #1 Introduction Ethics are considered the science in which one bases their beliefs, while morals are the choices made based on those beliefs. To be considered a virtuous person one must understand and demonstrate the “acceptable” beliefs of their society, by maintaining their personal character traits and standards, and by making and demonstrating good choices in their personal and professional lives. A person who is ethical and moral may not be considered virtuous, because of the differences between the three concepts. Virtuous Virtuous is used to describe a person who strives for excellence, in both their ethical and moral behaviors. Virtue, demonstrated as one who has good character traits, is often associated with ethical and moral beliefs, which is necessary for people to function in society with distinction. Virtuous examples are demonstrated in one who shows honesty, forgiveness, kindness, and respectfulness; among other exemplary character traits. A person who is virtuous shows commitment to doing the right thing, no matter what the cost; personal or not. Someone who is virtuous does not bend to desires, urges, or impulses, but acts according to their principles and values. Ethics Ethics are the rules and principles that govern the actions of people in comparative societies, while morality may differ from person to person. Ethics are described in our reading as, “what constitutes...
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...Executive Summary Costco is one of the most profitable retail stores in the United States at the moment. This is in spite of the prevailing tough global economic times and stiff competition from stores such as Wal-Mart and Target. Costco, a members’ wholesale retail store, was founded in 1983 in Washington by Jeffrey Brotman, who serves as the current Chairman of the board of directors and James Sinegal, the current company president. Costco has not been spared by the current global economic conditions. They have affected it in a number of ways that have made the company’s management respond in a manner that is meant to ensure that the business not only survives but grows even stronger. First, Costco has taken strong measures to keep enough employee numbers. Customers are better served by employees who are in good health. Employees are not going to be in good health if they work long hours and cannot visit a doctor when sick. Costco employees work normal hours since there are enough employees to serve the company’s customers. While other stores such as Wal-Mart have seen it fit to downsize their workforces, Costco has moved to ensure that employees are of the right numbers all over its stores within and without the United States. Secondly, the current tough global economic conditions have driven Costco into extending good salaries to its employees. The good compensation has ensured that employees are well motivated and ready to serve customers in a better manner. As counter...
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...The Fight against Child Labor International Business Tamara Ramsey May 9, 2012 Abstract Child labor has recently become a very touchy subject throughout the world. Well known corporations and clothing and sporting goods distributors that have for decades been taking advantage of cheap labor in third world countries are seeing their names and images tarnished by allegations of child labor practices and obscene working conditions. Child labor is nothing new to the world. It has been a part of almost every society in recorded history. From ancient times, children have been a part of the economic survival of their families, particularly in industries like the farming and crafting industries. Child labor is meant to define unfair, abusive work whereas work is an important part of the sculpting of most children. There is no question in society that some forms of labor are acceptable and some are not. Children may work without being abused and in many countries and even some American cultures; it is both necessary and integral that children perform some laborious duties. The line between work and child labor is most commonly drawn where normal tasks are replaced with exploitative tasks and children are expected to do things that go well beyond the borders of inhumane. When you think about children, chances are you think of them getting up in the morning, going to school, then coming home and going outside to play. Sadly this isn't always the case. In many countries...
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...4/21/2010 Executive Summary: Abercrombieand Fitch was Founded as a High Quality sporting goods store in 1982 by David Abercrombie. Abercrombie Co opened its first store in Manhattan, New York with the intention of providing high quality equipment to an elite segment of the market. Throughout the years, Abercrombie and Fitch Co has proven itself to be able to adapt to the constant changing retail market and has slowly evolved in the retail giant we are familiar with today. Abercrombie and Fitch currently employ a focused differentiation strategy where they target customers ages 12-25. Instead of using conventional methods of strengthening their brand through advertising and a squeaky clean image, A&F instead takes full advantage of controversy and word of mouth advertizing in order to gain their customer base. It is through A&F’s unorthodox methods that they have been able to establish themselves as a highly desirable, high quality apparel retailer and due to these factors they are able to charge a premium price for their products. A&F’s current strategies have helped them to not only establish themselves in the United States, but they are now poised to expand into the global market. With the recent opening of flagship locations in Tokyo, London, Milan, A&F now has a solid foothold to tap into the Western European and Asian Markets. With the potential in these foreign markets, A&F should realize high levels of growth in the near future if they are successful. Table of...
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...the Beware of Plagiarism! brochure found on doc-depot. I attest that this work conforms to the rules on academic integrity of the University of Ottawa. __________HAMILTON, DAVID______ _________5322750___ Name, Capital letters Student number _______________________________ ________11/29/2011_____ Signature Date Ethics in business must start at the top of a company and work its way down to every employee involved in an organization. In today’s world, corporations feel a moral obligation to practice business fairly while treating their employees with respect, so shouldn’t a company keep the same ethical approach if they expand their operations abroad? Over the last century or so, the global economy has changed drastically, with less barriers and a greater flow of goods and services between countries. A multinational corporation is any business that has productive activities in two or more countries. Although there are many benefits to the changing world economy, a majority of these multinational corporations are harming their host countries in a variety of ways. The three main ethical issues that multinational corporations are involved in when operating in host countries include environmental pollution, unethical employment practices, and even corruption. The purpose of this paper will be to analyze these three...
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...The first entity is Waltham Forest College, which is an expanding UK public sector college. The other company is Costa Coffee – a successful UK based and international coffee chain which provides high quality food and beverages service to UK and overseas clients. The aim of this report is to investigate and qualify how Charles Hunt Investments can raise financial resources from (for) clients such as the above mentioned and examine ways, on a long term basis how to secure the best dividends (tangible and intangible benefits) for its stakeholders (Kotler, 1997). A further aim of this qualitative study is to identify areas (strategic business practices) of the two organisations which can be made more promising (profitable) – in light of today’s global marketplace imperatives (Carnall, 1999). The overall objectives of the report are:- * Author (new Business Analyst) to highlight processes of the two organisations (organisational purposes) in relation to their nature of business and...
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