BusinessEthicsGroupAssignment V2

BusinessEthicsGroupAssignment V2 - Business Ethics Group...

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Business Ethics Group Assignment 1. Company Background Nike, Inc. the world most valuable brand in sport business, one of the largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment. In 2015, Nike, Inc. achieved brand values $26.3 Billion, becoming the most valuable brand in apparel industry, the slogan “Just do it” is well known to almost every country in the world. Nike, Inc. sell its product across the world, employed more than 62, 600 workers, have 655 factories in 42 countries. 2. Introduction to Risk Analysis Nike, Inc. without any doubt, have major influence in the world, especially through it aggressive global marketing. From senior member in Beaverton, Oregon, United States to children in Jakarta, Indonesia. It’s have effectively more than a million worker produce its footwear and apparels, mostly in Asian region. While generating massive work opportunities in multiple developing countries, Nike, Inc. have been exploring to questionable practice in managing its workers. To be precise, most of the Nike’s factories are not directly own by Nike, but rather a contractor, who will produce Nike’s product base on its order, most often are exclusive contractor. In its 108-page report, available on its website, Nike disclosed that more than quarter of its factories in south Asian have found cases of “abusive treatment”, both physical and verbal. In more than half of its plants, workers were asking to do more than 60 hours a week, at least 1 out 4 will be punished for refusing to do overtime. In addition, at least a quarter of the factories are being paid below its legal minimum wages. Specifically, in Malaysia, through its exclusive contractor, Hytex Apparel Sdn Bhd, Nike was reported providing unacceptable working conditions to hundreds of its migrant workers, mostly from Bangladesh, China, India, Indonesia, Myanmar, Nepal and Vietnam, the report is available at Nike’s websites. Not only it’s working condition, the living environment also having serious hygiene issue, from overcrowded sleeping space to dirty toilets. Being a huge player in local employment market, Nike have been question on its lack of action to it outsourcing party, or namely its exclusive contractor. Concerns have been raise in many country, questioning Nike’s responsibilities to oversee its contracted factories, especially in Asian region. Locally, country like Malaysia begin to aware of human right
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movement, government administration has been getting pressure to work with multinational company on protection of workers’ rights.
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