nike
BUSINESS ETHICS AND CORPORATE GOVERNANCE
ASSIGNMENT-2
NIKE’S LABOR PRACTICES
SUBMITTED TO: SUBMITTED BY:
MS. SHIVANI RAHEJA Aishwarya Makkar 50209 Akash Sehra 50211 Aman Gandhi 50217
Anadita Mittal 50219 BBS 3FA
CASE SUMMARY & HIGHLIGHTS
Formation of Nike
In 1958, Phil Knight came realised the need of a good American running shoe and started working on his idea. In 1964, he along with Bowerman formed an athletic shoe company and called it Blue Ribbon Shoe (BRS) company. In 1971, they developed a distinctive trademark and a new brand name and this is how Nike came into existence.
Exceptional economic performance
Nike grew at an amazingly fast pace with profits growing from $10 million to $270 million in the first half of 1970s. It soon became a publicly traded organisation, was reported as the most profitable organization in America in 1982 and Knight became one of the richest men in the world. Its operations extended to more and more countries including Vietnam. In 1995, the company received license to place its logo on the National Football League (NFL) and soon it also vied for consumers’ attention at summer Olympics.
Poor social performance
In 1997, the situation took a new turn when VLW (Vietnamese Labour Watch) report came out and claimed Nike violated many labor regulations and this activated many human rights organisations in the US against Nike. Post this Nike faced a lawsuit against its sweatshop conditions and various newspaper articles followed. The controversies and the accusations continue to haunt Nike as workers go on strikes, please protests, mass boycotts happen and scarring incidents increase in Nike factories.
Nike’s reaction
In response to the above allegations, Nike started denying the existence of any unfair labour practices. In order to convince the public about the same, it adopted several measures. Firstly, it sent representatives to
ASSIGNMENT-2
NIKE’S LABOR PRACTICES
SUBMITTED TO: SUBMITTED BY:
MS. SHIVANI RAHEJA Aishwarya Makkar 50209 Akash Sehra 50211 Aman Gandhi 50217
Anadita Mittal 50219 BBS 3FA
CASE SUMMARY & HIGHLIGHTS
Formation of Nike
In 1958, Phil Knight came realised the need of a good American running shoe and started working on his idea. In 1964, he along with Bowerman formed an athletic shoe company and called it Blue Ribbon Shoe (BRS) company. In 1971, they developed a distinctive trademark and a new brand name and this is how Nike came into existence.
Exceptional economic performance
Nike grew at an amazingly fast pace with profits growing from $10 million to $270 million in the first half of 1970s. It soon became a publicly traded organisation, was reported as the most profitable organization in America in 1982 and Knight became one of the richest men in the world. Its operations extended to more and more countries including Vietnam. In 1995, the company received license to place its logo on the National Football League (NFL) and soon it also vied for consumers’ attention at summer Olympics.
Poor social performance
In 1997, the situation took a new turn when VLW (Vietnamese Labour Watch) report came out and claimed Nike violated many labor regulations and this activated many human rights organisations in the US against Nike. Post this Nike faced a lawsuit against its sweatshop conditions and various newspaper articles followed. The controversies and the accusations continue to haunt Nike as workers go on strikes, please protests, mass boycotts happen and scarring incidents increase in Nike factories.
Nike’s reaction
In response to the above allegations, Nike started denying the existence of any unfair labour practices. In order to convince the public about the same, it adopted several measures. Firstly, it sent representatives to