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Management ethics is how personal moral norms apply to the activities and goals of commercial enterprise (Drummond 1994) - Using the above quote this essay will critically examine the ethical dilemma that Nike faced with its labour.

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Introduction

Management ethics is how personal moral norms apply to the activities and goals of commercial enterprise (Drummond 1994) Using the above quote this essay will critically examine the ethical dilemma that Nike faced with its labour. Nike's corporate responsibility goals make no mention of wage requirements, support for organising and collective bargaining, or limits to overtime work for its workers in the third world. Workers in Nike's suppliers' factories are overworked and subject to abusive management practices. Workers who speak to journalists about conditions in their factories or try to organise unions to defend their rights continue to be systematically humiliated and dismissed. Wages in Nike's suppliers' factories remain unconscionably low. In Indonesia, employees of clothing suppliers are expected to work in excess of 65 hours a week and yet are struggling to survive on less than $1 a day Nike started relocating its production in 1976, first to Korea, and later to Taiwan. ...read more.

Middle

China is Nike's second largest centre of production, but expansion plans in China are a priority for Nike. Nike does not own the factories producing Nike goods. All production for Nike is contracted out to such locations as Southeast Asia. But Nike has close links with the factories that manufacture its products. To become a Nike subcontractor, an enterprise has to prove that it is capable of manufacturing an end product according to Nike's design and specifications. The enterprise pays a licensing fee to Nike and competes with other factories to obtain Nike orders. Each month, Nike assesses the factory's performance. Licenses may be withdrawn if something goes wrong. Nike has around 700 contract factories, within which around 20% of the workers are creating Nike products. Conditions for these workers has been a source of heated debate, with allegations made by campaigns of poor conditions, with commonplace harassment and abuse. ...read more.

Conclusion

Nike however should consider that if it raised its minimum wage from 10 cents/hour to 20 cents/hour it would give its workers a better standard of living. The cost of putting up the wages would be roughly $20million but that 3% of Nike' marketing budget, the wages raise would mean less negative press so in theory will help market Nike and could increase sales. The human resources employed by Nike is efficient, it allows production to be fast, efficient, high quality and a high yield. The human resources at Nike fit into the company's view that profit is paramount over other business functions. However the one thing the human resource management at Nike is not is ethical. There is evidence to Show that many workers in Nike factories are being mistreated this is unethical of Nike human resource management because they are supposed to care about there employees as on there company website they quote them selves as part of a "global family" Clearly Nike are misleading consumers to further profits and to hide some of the truths behind the company. ...read more.

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