ETHICS AND STAKEHOLDER MANAGEMENT
MGMT 703

CASE STUDY
Nike, Inc. and Sweatshops

NAME- | Harmanjeet kaur | STUDENT ID- | 300830553 | PROFESSOR- | Michael Cooksey | DATE- | 09/02/2016 |

1. a) The ethical issues in the above case are under age labor, working hours of work, no overtime pay and amount of remuneration paid to workers. Most of the workers hired by the company were minor that means below 18. Workers were required to work 20 hours a day with the page of 31 cents per hour. On one side, company was giving economic opportunities for other nations but on other side it was taking advantage of overseas workers working at cheap labor cost. b) Social issues in this case are Safety, Health and poor working environment. Nike was the first company to join a World Wildlife Fund program to reduce greenhouse admissions.
2. Nike should be responsible for what happens in factories that it does not own to keep and protect reputation name of Nike because it pay wages to the workers working in the subcontracted factories.
Yes, Nike has the responsibility to ensure that factory workers should receive a “living wage” because according to law, it is the responsibility of the company to respect and follow the labor and employment rights of workers, to consider of impact of its functioning on environment, provide a good working environment to workers, follow the code of conduct and certain moral and ethical standards.
As it is the responsibility of local government to decide the minimum wage rate. The wage guidelines given by FLA and WRC seem to be appropriate to me because according to those institutions, a company should pay the minimum wage rate according to the country where it is operating so that workers can meet its basic needs.
3. First thing that I would like to say is that it is completely inappropriate to compare these both sides.