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Unethical Practice Nike

Question: What are unethical practice Nike did in the case ? with explantion If you are in place of Nike Management, what you will do in order to overcome all unethical practice as better than what they did?

Sustainability is one of the major concerns of modern era. Due to the increasing pressure of competition among organizations, this has become quite essential for companies to take aggressive steps, which is resulting to affecting sustainability. Nike, despite being one of the largest sport brands, has been criticized several times for its unsustainable activities. In 1996, the company has been accused of recruiting an 11 year old Indonesian girl in a low wage. In the same year the company has been accused for doing unethical activities at its Vietnamese manufacturing firm (Max Nisen, 2013). In this place, they have employed huge number of young aged female workers in a very low wage. It has been accused that the company employs workers who work 6 days a week just to receive 0.20 dollar per hour wage. This critical and derogatory scenario in te manufacturing firms of Nike have faced several criticism throughout the years. This is one of the most unsustainable approaches ever used by organizations. However, before analyzing the type of unsustainable activity done by the company, it is essential to understand what makes an organization sustainable. Nike has also failed to. Be transparent with its stakeholders as they hid information when they are about the unethical practices. Along with that poor wage, they also has to work for nearly 17 hours, in some cases without allowed them to go for a break or bathroom and even talking. Restricting people from basic right and creating a completely jail and restrictive environment is completely unethical.

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Mainly three pillars of sustainability are there which determines the future or stability of a company or of an entire civilization. The three pillars of sustainability are economy, environment, and society. A company must look after the fact that it is taking care of all of the three areas, otherwise the growth of the firm might not sustain. According to Carroll's four responsibilities, the type of responsibilities that should be carried out by a firm is ethical, legal, economic and discretionary. Nike's method of giving low wage to workers is affecting the lives of these workers. They have to live a poor lifestyle despite their hard works. This is creating a social gap between the rich and poor and in fact subjugating the poor to a worse state. Therefore, the company is unethical and failing to meet social responsibility as well. Nike's activity can also be termed as violation of legal responsibility. Every nation has minimum low wage bar. In places like Vietnam, the company gives below the minimum wage margin, even to workers who are in the position of team leader. Thus it is failing to meet legal responsibility (VENU MADHAV, 2019). Along with that, it is also affecting the economy of third world nations. Though such firms have created huge job opportunity for workers in third world nations, the country is made to share its human power in a low expanse and thus the potential growth option is hampered.

The company has taken several strategies in order to mitigate the impacts that it has created due to its unethical practices. However, most of them remained futile as very recently, the same scenario has appeared in very recently. In order to mitigate the challenge, it has to have greater control over its third party vendors. In most of the cases the company gives order to the third party manufacturers in the third world nations. Most of the times, these manufacturing plant owners deceive its workers. Stringent action should be taken for such manufacturing plant owners. Along with that, the company should also talk to and maintain effective communication with the plant workers to avoid chances of same unethical practice within the firm.

The three approaches that could be adopted for solving the issue are Utilitarian, individual rights, and justice. According to the first approach the company should take actions after judging the consequences. Giving better work environment and wage can bring greater benefit. It is also the fundamental rights of the workers and their provision of better wage as well as benefits would give better justice to the contributions they make towards Nike's prolific success. By using Kant's strategy, the company should understand the scenario from the labour's perspective to be more ethical. Placing themselves in that position, they has to understand what a basic level worker might expect from the company.

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