NIKE CASE STUDY MGMT34001 - A GRG POST 5
POST 5: Recommended course of action and Ethical Analysis
NIKE SWEATSHOPS: Are Nike's workers paid a living wage?
Indonesia Nike Protest - 2007 (Shutterstock)
Ethical Framework Analysis
Deontological Ethics: Duty
based
From a deontological perspective, Nike has a moral duty to
respect the dignity and rights of its workers. Workers should not be treated as
merely a means to increase profit, which reflects Kant’s principle of
respecting individuals as end in themselves (Kant, 1175/1993). Poor working
conditions and unfair wages violate basic human rights, regardless of financial
outcomes. Therefore, Nike has an obligation to ensure ethical labor standards
and practices simply because it is the right thing to do.
Utilitarianism: Outcome
based
Utilitarianism focuses on achieving the greatest good for
the greatest number of people. Improving labor conditions would benefit
workers, their families, and communities by increasing overall well-being
(Mill, 1863/2001). At the same time, ethical standards and practices would
benefit Nike by improving its brand reputation, increasing consumer trust, and
reducing long term risk (Nisen, 2013). However, utilitarianism has limitations
because it may justify unfair treatment if it benefits the majority. This makes
it less effective in protecting individual workers’ rights.
Virtue Ethics: Character
based
Virtue ethics focuses on the character of the company and its leadership. An ethical company should act with honesty, fairness, responsibility and integrity (Aristotle, 2009). By improving labor conditions, Nike would demonstrate strong moral character and align its actions with its values. This approach encourages companies to act ethically even when it is difficult or costly.
Stakeholders Theory and
Corporate Social Responsibility (CSR)
Stakeholders’ theory argues that companies should consider
the interest of all stakeholders, not just the shareholders (Freeman, 1984). In
Nike’s case, this includes workers, suppliers, consumers, communities and
investors. Corporate Social Responsibility (CSR) also supports this idea by
stating that companies must go above and beyond legal requirements and ensure
fair wages, safe working conditions and respect for workers’ rights
(Caroll,1991). These frameworks are especially important in this case because
Nike’s decisions directly affect millions of workers across its global supply
chain.
Best recommendations and
why
In my opinion, the best recommendation and strongest ethical approach combine Deontology, Stakeholder Theory and Corporate Social Responsibility (CSR). These frameworks work well together because they focus on both the moral duties and the broader impact of business decisions on society. Deontology is important because it clearly emphasizes that exploiting workers is wrong, regardless of financial benefits. From this perspective, Nike has a duty to respect workers' dignity and ensure that they are not treated merely as a means to increase profit. This makes it a strong ethical foundation because it protects basic human rights.
Stakeholder Theory and CSR
strengthen this argument by emphasizing that Nike must consider the well-being
of all groups affected by its decision not just shareholders (Freeman, 1984;
Carroll, 1991). This includes factory workers, local communities, consumers and
investors. These frameworks encourage Nike to take a more balanced and
responsible approach by recognizing that it success depends on many
stakeholders, especially those in its global supply chain.
Overall, Nike should adopt a combined ethical approach that prioritizes human rights while also considering long term impacts. By doing so, the company can create a more ethical, sustainable, and accountable global supply chain that aligns with both its values and its global influence.
Conclusion
The strongest ethical response is one that treats workers not as a cost to be minimized, but as a human stakeholders whose dignity, safety, and rights must shape Nike’s global business decisions. As a global business leader with significant influence, Nike has both the power and responsibility to set higher standards and practices across its supply chain. Addressing these issues is not only important from a moral perspective, but also for maintaining trust, reputations, and long-term success. Companies that prioritize ethical standards and practices are more likely to build stronger relationships with consumers and stakeholders.
In summary, improving labor conditions is not just a business decision, it’s a moral obligation and responsibility of Nike. Nike must continue to move beyond policies and take consistent, measurable actions that ensure fair treatment for workers around the world. By doing so, the company can truly match its global success with ethical responsibility.
https://historyofeconomicthought.mcmaster.ca/aristotle/Ethics.pdf. (n.d.).
https://cpb-us-w2.wpmucdn.com/blog.nus.edu.sg/dist/c/1868/files/2012/12/Kant-Groundwork-ng0pby.pdf. (n.d.).
Human rights and labor compliance standards. (n.d.-b). Retrieved from https://about.nike.com/en/resources/human-rights-and-labor-compliance-standards
(N.d.-a). Retrieved from https://www.youtube.com/watch?v=QfnanViZgNM
(N.d.-a). Retrieved from https://www.youtube.com/watch?v=CCrUZuyZHyk
(N.d.-a). Retrieved from https://www.researchgate.net/publication/4883660_The_Pyramid_of_Corporate_Social_Responsibility_Toward_the_Moral_Management_of_Organizational_Stakeholders
(N.d.-a). Retrieved from https://www.terry.uga.edu/wp-content/uploads/Carroll.2015.pdf
Nike Facility Code of conduct. (n.d.). Retrieved from https://about.nike.com/en/resources/nike-supplier-code-of-conduct
The Internet Classics Archive: Nicomachean Ethics by Aristotle. (n.d.). Retrieved from https://classics.mit.edu/Aristotle/nicomachaen.1.i.html
Part 2 does a great job shifting from identifying the ethical issues to proposing real solutions. Your focus on living wages and transparency shows that you’re thinking beyond surface‑level fixes. I also appreciate how you brought in real examples, such as the Indonesian protest, to show that these problems have long-term consequences. The recommendations you make feel practical and ethically grounded, especially the idea that Nike should take a more active role in monitoring and enforcing standards rather than relying on third‑party factories.
ReplyDeleteThank you for your comment. I’m glad you found my recommendations very practical and meaningful.
DeleteWhich of your recommended actions do you think would have the most immediate impact on workers’ well‑being?
ReplyDeleteI think the living wage standard (recommendation 1) would have the greatest impact in the short term because it would directly benefit the worker by helping them meet their daily needs, like food, shelter, healthcare and education.
DeleteHow should Nike balance profit goals with the ethical obligation to ensure safe and fair working conditions?
ReplyDeleteI believe Nike should balance its profits with its ethical considerations by making ethical practices a part of its business model, not just optional expenses. In the long term, ethical practices can improve brand reputation, customer trust, and reduce risk.
DeleteDo you think public pressure or internal leadership change is more effective in pushing companies toward ethical reform?
ReplyDelete4. I think public pressure would have more impact in the short term because it would force companies to act sooner, but internal leadership changes are also important in the long term for sustainable changes.
DeleteGreat closing post! One thing I'd push on: do you think Nike's existing Supplier Code of Conduct could actually enforce a living wage standard if strengthened, or would it require something more structural like third-party audits with real consequences for non-compliance?
ReplyDeleteThank you for your comment. I think Nike's existing Supplier Code of Conduct could be a good starting point, but it may not be sufficient in itself to ensure the enforcement of a true living wage.
DeleteI think that it may need to be much stronger in the way it is enforced, perhaps with the inclusion of third-party audits, minimum livable wage requirement, and consequences for non-compliance, in order to be effective in ensuring a true living wage.
So, in conclusion, I think that a stronger code of conduct and stricter monitoring and accountability are necessary
Amazing post!
ReplyDeleteThe way you explain Nike's responsibilities and provide a moral justification of them. I like how you connected each ethical theory to real-world actions like boosting openness and paying people fairly. This relates to the lecture note for our class because companies should put worker protection ahead of profit. It is logical that better working circumstances will eventually help both the company and its employees in the long term.
Do you think companies like Nike will put protecting workers ahead of making money if they don't have to? Or do you think they need strict rules and public pressure to really change?
Thank you for your comment. I'm glad that you found the connection between ethical theories and real-life actions meaningful.
DeleteI think that most companies, including Nike, are not likely to place greater emphasis on protecting employees rather than their profit. While some company might take their own initiatives but it is only when strict regulations and monitoring are enforced that they will take action that goes beyond protecting their own image. Pubic pressure is also a major factor that can bring possible changes because it forces companies like Nike to focus on these types of issues.. On the other hand, when ethical behavior is incorporated into a long-term strategy, they realize that protecting employees also means protecting their sustainability.
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ReplyDeleteGreat work analyzing and summarizing the information and theories for this post. Do you believe that it is possible that Nike might follow these recommended courses of action? Or do you think they would rather keep things as they are?
ReplyDeleteThank you for your comment.
DeleteI think that it is possible that Nike could follow these recommendations.
This is because they have already made some improvement in the past but they could still implement various effective actions that can impact their workers and other stakeholders.
However, I also believe that Nike might take a long time to totally embrace this change. This is because if they pay their employees a living wage and take other effective measures, they might lose their profit margin. This is because every company wants to make money first while making compromise on ethical issues.
I think that Nike can make and bring the needed change. However, I also think the realistic need of rapid and effective measures of change is going to take a very long time.