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Case Study - Nike and Business Ethics

Q1) What are the unethical behaviour in the case? Jusitfy

Solution:

The unethical behavior we can observe in the case study is Nike in its Dark side. We can understand the problems that are faced by the workers in that company; though it is a globalized company it is not providing any benefits to its workers. Instead, it is making its workers work in hazardous conditions, not providing wages which can support their livelihood, harassment in the workplace by making them work for long hours without any extra benefits, Child Labor, doing social injustice and keeping the workers who are uneducated. It pays fewer salaries but makes them work for overtime and shifting the jobs to overseas due to this many of the Americans remains unemployed. The major unethical thing we can observe is the Sweatshop's issue, it is not providing any safe and sanitary working conditions for its employees. It is a common situation for employees that they will be fainting due to overheating that they get exposed during their work and nutrition which is very poor at the time of shift works and harsh treatment toward women. They used to give harsh and severe punishments to its employees if they are found to be talking with others during their work and women are made to run around the premises if they are not wearing the regulation shoe at work. Even though the workers are facing health problems in their respective departments it does not try to shift their departments in order to provide safe working conditions for the employees. Without following proper ethics in its working place it is just pampering its customers and creating Brand loyalty through famous celebrities. The justification is, According to Carroll's four social responsibilities that has to be followed by an organization are economic, legal, ethical, and discretionary. But here in this case study Nike's is not providing wages which can enhance the economic status of their workers and it is not following the work hours of labors legally, not acting in a ethical way towards employees and not showing discretionary involvement regarding employees safety.

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Q2) How nike can prevent these unethical behavior? Explain The justify and explain of the questions must depend to the chapter 3.

Solution:

Nike can prevent its unethical behavior by following the concept of Social responsibility; by increasing the wages to its employees so that their economic status will be get enhanced. They should obey the legal rules of government regarding the working hours for its employees. They should follow the basic ethics which will not affect the belief and behavior of the individuals in the society and it should act discretionary towards its activities. At the same time, it should make some improvements in the policies of the company like providing health insurance to the employees, providing free education to their children, and maintain hygiene conditions in the working place. It should monitor closely the management in different areas and make sure that the employees working under them are not abused by them. To avoid criticism from different organizations and unions it should solve the problems immediately such that it will not be pointed out by the others. It should also remember that maintaining ethics in a business is very important as it affects the trust of shareholders. Four responsibilities of business by Carroll's namely, Economic, Ethical, Legal and discretionary should be followed by any business organization in order to stand in its business. Before taking any strategic decision the managers should communicate with their employees regarding the decision and should take a feedback from them regarding the decision by practicing like this the communication between the employee and the higher officials will be improved and it is essential for the growth of a corporation.

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