Marc Kasky Versus Nike Inc.

There is a growing demand by consumers and pressure for use of business ethics. People around the world are concerned about the negative impact of organization's socially unacceptable policies. There have been instances in the past when company negligence resulted in serious damage to society. Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society. That is why they are expected to act responsibly in their business with employees. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like Indonesia and China. As a result the company is somewhat limited to its area of expertise of design and marketing. Nike not only sells products but they spend billions of dollars for advertising contracts with famous athletes to increase the value of the brand by associating the factor of lifestyle to their products. The company's image has been damaged many times by press releases as well as a variety of nongovernmental organtizations who have long pointed out the inhumane working conditions in the production facilities. Workers deal with hazardous conditions, make below minimum wage, and sometimes deal with sexual harassment. This leads to the question whether should Nike orientate the regulations of the suppliers to the labor standards in their respective countries or those in the United States? I feel that Nike has a responsibility to its employees and should follow regulations with the United States. The labor conditions are so inhumane that Nike at least should try to converse to the U.S. standard to improve the situation.

Since the pressure of the nongovernmental organizations on the company has been growing, Nike developed a concept that promises to improve the monitoring of social and environmental standards for their contractors. According to Nike's principles the company wants to work together and bind their business partners. Nike presents a close relationship of all parties based on their stated values of trust, teamwork, honesty and mutual respect. The Responsibility Concept has been distributed to the manufactures and is oriented on the basis of human rights. People have a right to work, and be able to live humanely. In addition to this, people have other rights as well such as protection from discrimination, the right to breaks and permission to form unions. In many low-wage countries, however, these laws are not valid. The first aspect on which Nike has to work is the lack in Safety and Health standards. In many of the production facilities, the working conditions cause a hazard to workers' health. Although Nike demands the observance of Safety and Health Guidelines in its Code of Conduct, every day, workers come into contact with chemicals. Employees also suffer from respiratory problems as well. While the companies do make protective