Ethical Perspectives

Ethical Perspectives

Introduction

Global organizations shoulder responsibility in the present age to foster the possibility for ethical control. The global organizations and International companies particularly are now hovering for assuming this role. Ethical consideration in a business and the cross cultural challenges for a US based company when it starts operating in the International markets will be discussed. According to the saying that “Successful Global Business doesn't come without Challenges”, here we will discuss this statement in the Context of Nike.

Discussion

Nike

The Nike Corporation is a renown US based organization which has been made global years ago. The company was established in the year 1972, while 1998 is termed as the best year in the history of the Organization so far. In 1998 the company sales reached $9.6 billion. Since its inception the company has successfully produced some 900 different types of shoes (Stephen Petrina . 2010). Majority of these are sports shoes which have been marketed across the globe by renowned athletes. The company endorses over 3,000 athletes with its advertising worldwide. People usually describe Nike with the range of products the brand offers, or simply with its catchy punch line “just does it!” (Stephen Petrina . 2010). The varied range of products led the company to a turnover of $15 billion in 2006 (Business, P. 2009).

When a brand like Nike, which sells by name, decides to enter the global markets, it is often subjected to various cross cultural challenges where it the company has to maintain its name and the yet experience an increase in the profits (Business, P. 2009). The company has to rise above all such obstacles in order to establish a winning business in a foreign land. It is important that the companies establishing business in new cultures do not get involved in unethical business practices. Due to this, most of the globally recognized companies obtained a variety of cases to protect their positions on carrying out their businesses in the international markets.

Ethical and Social Responsibilities as practiced by Nike

The ethical and social responsibilities owned by Nike after its global expansion underlines many factors which need to be considered. The foremost and first among them is the cost effectiveness. To compete in the international markets in terms of prices by not decreasing the workforce, Nike outsourced some of their product's manufacturing from outside the US. To many people it might be unethical because it can contribute in making many people jobless in the US but since in the third world countries, cheap labor becomes an advantage for the company. The other consideration is at the customers' end (Business, P. 2009). This ethical responsibility is seen to have been overlooked by the company seriously Nike has been found indulged in many violations of the international labor laws when it comes to the offshore manufacturing.

Ethical Controversies and Nike

Nike has been one of those brands that got involved in such controversies when it expanded its business to the countries where the labor was relatively cheaper and the ...