Nike Business Ethics

1.0. Introduction

Business Ethics is the study of business situations, activities, and decisions where issues of right and wrong are addressed (Crane and Matten 2010). Ethics is also known as moral philosophy. There are instances when making decision to do what is morally correct and ethical can be rather challenging, as the decision made can affect the business. However, adopting good business ethics is essential to show the best practices and values of the company. Thus, building up confidence and trust in the existing and potential customers to ensure long term business. It is said to be important to act ethically and keep customers loyal to the company as customers is company's biggest asset. Besides, they are the one who enables the company to continue operating by generating its income.

1.1. Company Background

Nike is the world's well-known leading innovator in athletic footwear, apparel, equipment and accessories. Nike's mission statement is to bring inspiration and innovation to every athlete in the world. Back in January 1964, Bill Bowerman and Phil Knight formed Blue Ribbon Sports, and that is where Nike had been established. In 1971, Jeff Johnson designed early Nike shoes and conjured up 'Nike' name. Nike chosen a brand mark which is known internationally as the "Swoosh". It was designed by a graphic design student named Carolyn Davidson. In later years, Nike built on its momentum from the 'Revolution' campaign by launching a broad yet empowering series of ads featuring the tagline "Just do it". Nike has successfully leaves a mark in customer's mind with its brand mark and tagline. When people hear and see "Swoosh" and "Just do it", they will automatically think of Nike.

1.1.1. Nature of Business

Nike is mainly involve in designing their product, developing and marketing footwear, apparel, equipment and accessory products worldwide. Nike sells its products to approximately 18, 000 retailers in United States and also sells through independent distributors, licensees and subsidiaries in around 200 countries. Nike is a company that sells athletic footwear and sports-related apparel and accessories. However, their main product which attracts customers the most is its athletic footwear designed specially for athletic use whereby some are worn for casual or leisure purposes. Their product comes in men, women and children design as they target to market their products to all gender and age group. Nike's top-selling product is its sports shoes, children's and women's shoes.

1.1.2. Nike practices in ethics

Nike has come out with its code of ethics for their employees called 'Inside the Lines'. The purpose of 'Inside the Lines' is to do the right thing. The code of ethics defines the standards of conduct that employees are expected to follow. Inside the Lines includes a range of topics on employee activity, ethical behaviour, product