Nike, Inc.

Paper Summary:

This paper looks at how Nike was able to successfully repair its image, after enduring several scandals regarding labor and working conditions in oversees operations, and come out in 2008 as a company worthy of calling effective in its development of a "global code of conduct" and highly successful risk management tactics. The paper relates that, when it was an acceptable risk to expand productions to contractors who might not follow national employment standards, Nike was successful in building a huge shoe and apparel industry with a highly profitable margin. However, when such risks could no longer pay off because of the growth of the corporate social responsibility movement (CSR), Nike took appropriate actions to change this situation locally and globally. The paper further explains that, to ensure compliance, Nike created a code of conduct that holds contractors accountable for many CSR standards and changed the manner in which such companies are audited. In addition, the company has effectively changed its corporate image to answer for a risk management decision made in a previously less demanding business climate all while maintaining profitability and growth.

From the Paper:

"Nike then has the challenge of creating a corporate code of conduct that either includes or excludes contract employees or employees of other corporations that do its heavy lifting for it. Despite early resistance, Nike has made changes that are unprecedented in the global outsourcing economy. It has applied such rules and minimum ages (18 for shoes 16 for apparel) for employees in suppler companies and demanding that these companies live up to OSHA standards that are not traditionally applied oversees."

Sample of Sources Used:

• Armbruster-Sandoval, Ralph. Globalization and Cross-Border Labor Solidarity in the Americas: The Anti-Sweatshop Movement and the Struggle for Social Justice. New York: Routledge, 2005.
• Dalla Costa, John. The Ethical Imperative Why Moral Leadership Is Good Business. Reading, MA: Perseus Publishing, 1998.
• Putnam, Douglas T. Controversies of the Sports World. Westport, CT: Greenwood Press, 1999.
• Richard, Lock, Thomas Kochan, Monica Romis, and Fei Qin. "Beyond Corporate Codes of Conduct: Work Organization and Labour Standards at Nike's Suppliers." International Labour Review 146.1-2 (2007): 21.

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