Nike in China Essay

According Gasmi and Grelleau (2005), more multinational companies outsource some of their production motionivities in countries where respectable standards protest from those in developed countries, which frequently is the majority of their consumer market. This is particularly the causal agent of multinational producing sporting corkings, much(prenominal) as Nike, Reebok and Adidas.Nike is the multinational draw in the humankind of sporting verticals with 40% market sports shoes in 2000, before Adidas (15.1%) and Reebok (10.9 %). capital of Minnesota Bowerman and Phil Knight founded the firm in 1964 in the USA under the summon Blue Ribbon Sports (BRS). In the early 1970s, BRS began designing his profess limn of shoes, manufacturingd by Japanese subcontractors. In 1972, the c aloneer-out achieved a overturn of around $ 2 million and change its original name by the launch of the famous Nike brand. In 1978, due to the macro- stinting environment (including the anele crisis) and scotch development of Japan, Nike began to look for otherwise countries cost of labour starting clock time to manufacture its shoes, as the Indonesia and Thailand , and then it goes to China and Vietnam.The quote at the offset printing illustrates the problems faced by multinational companies that save chosen to outsource in a country other than the secure standards of their country of origin. Nike was non s keepdalized by one incident. However, it is a rather comprehensive review of the political subcontracting manoeuvreed by Nike in Asia in general and China in particular. Indeed, Nike was criticized by players defend human rights of lacking ethical practices in outsourcing in China. These actors have insisted that Nike does non meet certain international conventions, inter alia, freedom of association, wreaking conditions, obligate labour, child labour and wage issues.Why and how multinational Nike has it become the principal(prenominal) target, thesymbo lic representation of unethical behaviour, while the practice of its main competitors (Adidas and Reebok) be often similar? To illustrate, fit in to an opinion poll conducted in Novethic France in defect 2002, Nike was the most cited unethical brand (8.7 %), in all(a) socio- passkey so abstruse that Adidas has a good picture. The leading position of Nike on the world market, the composition of its brand and its products, its profitability, visibility giveed actors loving advocacy to make a symbol of the lack of ethics and use its market power sports items as leverage their strategies of protest. Kahle, Boushet Phelps (2000) emphasize that the focus of the controversy over Nike is due, among other factors, the characteristics of stakeholders. A stakeholder is a group or individual who bath affect or is bear on by the achievement of the organization.The ethical implications of outsourcing of production in developing countries, mainly Asian, atomic number 18 valued differe ntly by stakeholders. It is thus possible to send off two rough categories, the first good outsourcing in low-cost countries and antipathetical to ethical considerations and the second sensitive to ethical considerations of outsourcing. This binary categorization distinguishes primeval positions, knowing that many intermediate situations coexist. The following two sub- sections identify and short describe these two categories of stakeholders. The company is now looking for a agree that would satisfy all stakeholders.This first category appreciate the choice of outsourcing, relegation ethical considerations into the topground in favour of the organization for private economic benefits. It brings unneurotic consumers, sh beholders, employees and the countries of sub-contracting and competitors. Nike consumers have a tangible product whose quality is ok at an attractive cost due to low labour be and savings related to the volume drived. This allows the multinational to reap substantial benefits that atomic number 18 valued by its shareholders, anxious to get the most from their investings.For these actors, ethical considerations are overshadowed over private profits, knowing that consideration of ethical standards which have the properties of reality goods may be to the detriment of their private benefits. The success of Nike over its competitors is white from the evolution of itsmarket share and its leadership. Other actors, namely produceers and governments of the countries of sub-contracting, remain back from the ethical choices of the multinational for different reasons, mainly based on considerations of lesser evil for some, attractiveness and economic development for others.What measures have been adopted by Nike to cope with these accusations? If the three response strategies mentioned above is applied, one can visualise the measures it has put in place. First of all, Nike has opted for a system of inactivity, keeping a low profile.Nike receded charges recalling that its subcontractors were independent foreign companies with which it simply had a contract to produce finished products. Nike also explained that the wages of workers of subcontractors were higher than those of other firms. Finally, Nike insisted that accomplish close an ethical work by helping with its production activities in economic development and improving the living standard of the country. Then Nike has increased responsiveness. some(prenominal) NGOs began to criticize Nike using the media to denounce the working conditions at subcontractors of Nike. In addition, actions such(prenominal) as lobbying, public protests, encouraging consumers to boycott products and trials cascade were make. All this has modify the reputation and results of the company and thus has grown considerably, forcing multinationals to react.In that time, Nike admitted its potential consumption and sought to address ethical problems from concrete and tangible elements, as is the causa of the initiation in 1992 of a code of conduct Memorandum of apprehensiveness a document that requires its subcontractors the elimination of forced labour and child labour, to break the legal provisions in force in the country concerned, with the comprehension of one day off per week and a maximum of sixty hours of work per week. The company also undertakes to recognize the right of workers to freedom of association, and non to practice any form of discrimination. Despite the existence of this Code of Conduct, on that point is still a lack of control, transparency and sanctions may make it effective.At present, we can say that ethical and environmental issues are consideredpriorities in the overall management of the company. Recognizing the benefit of proactive actions, Nike has recently launched in North the States Reuse- A-Shoe , a voluntary program to collect and recycle used sneakers for the manufacture of flooring for different types of sports fields . This initiative and others allow Nike to acquire an two-bagger of confidence, both technical and moral, in the context of environmental protection and regulations.To conclude, we can say that the existence of a power to international market such as Nike comes more of a notion of social and moral responsibleness of the vexation, especially critical in activities based on reputation of the company. It is absolutely necessary for the company to find a balance amidst ethical and economic objectives, it means for the company to make substantial profits on financial matters without affecting the expectations and interests of the various stakeholders.The integration of the ethical dimension is generally perceived as a company generating costs. However, beyond this approach in terms of cost alone, it is possible to consider integration as a strategic option that can generate a competitive advantage. Indeed, the establishment of a pre-activated or proactive strategy may, under certai n conditions, allow companies to integrate ethical issues and generate winwinwin situations (win for the company, consumers and activists), by inserting these efforts in a strategy of differentiating its products over those of competitors. These strategies raise many research questions, because of their characteristics.This type of specialization, such as lack of child labour does not bring tangible changes to the product. This differentiation involves not visible and unverifiable characteristics of the final product by the consumer ( bankers acceptance goods ). To make perceptible to the consumer, taking into account informational dimensions (information asymmetry) and cognitive (informational overload) are crucial. In addition, ethical profits generated by these strategies generally have a favourable opportunistic behaviour collective dimension, as the risk of free riding. In addition to the costs associated with the implementation of ethical characteristics, previous problems ge nerate traffic costs can be high, especially to ensure thecredibility of ethical differentiation._PART B PORTFOLIO OF EVIDENCE__Appendix A honest debate_We can say that Mike Gustavsson is therefore functional for him ecstasy is the supreme good of smell. So happiness moldiness prevail on wealth, freedom, and equality. Indeed, Mike thinks that corporate behaviour is dictated by the behaviour at the top of the organization, if you have good people at the helm of the company, make good decisions, and using the right rules, then the nightclub itself is ethical.Mike was initially very happy that her daughter had a good job with good pay, still now he is worried business type of environment that is generated in the business that takes graduates of business schools fees and idealistic transforms them into frames bounty to research.We can say that Jan Edwards is utilitarian, in fact, it is to maximize the overall well- being of all sentient beings. Jan is involved in a program to issue pedagogics in Guatemala. January launched a program to encourage employees of his company to give their time to help the most disadvantaged people themselves. But Jan has become progressively concerned in recent years the nature of graduates it employs trade schools on its internal development program graduate. Many graduates seem extremely concentrate on profitability and work their focal point up the corporate run away rather than on good people management skills, being all-round(prenominal) citizens and good, genuine people.Arguably Mei- Hua is non- consequentialist right and justice, in fact fit to John Rawls (1971) , justice is served when the burden and benefits of a corporation are distributed in accordance with the article of beliefs that free and rational persons would agree as conforming to their own interests without knowing in advance what are the advantages and disadvantages they would actually receive in the distribution process. The key to ethics is fai rness. She believes that captains have had inrecent years a very bad image and negative press active their ethical behaviour.Accounting as a profession has strict codes of conduct and strict rules, and Mei- Hua has consistently adhered to these rules, and she also believes that she and her colleagues are very professional ethical and moral people who are treated unfairly . In his company, for example, they have a strict code of business conduct, especially on financial matters such as fraud, and she was incessantly impressed by the way the code of conduct is reinforced in the induction of company and the company documentation. Mei- Hua believes that strong ethical codes of conduct and codes of conduct strong professional to lead a moral and ethical company, and the generation of profits and wealth, as well as ethical, can work a coherentside each other.Finally, we can say that Deshi Chen is individualistic, in fact, jibe to Emile Durkheim Individualism is a political, social and moral conception which tends to favour the rights, interests and values of the individual versus the group and the community. Its principle is that the individual is the only entity that can measure the moral worth of an action. And rejects the commuting of the individual by the group process often used to unfairly promote individual sacrifices for the benefit of others.The dream of him one day work for a large international companies but is concerned that without a good office job, he will never be able to provide a stable environment to raise a family, and it will not be attractive to potential brides. Deshi parents are the first in their family to have reached a comfortable lifestyle of the middle class. Deshi worked hard all his life in his education, and tried to build a good business learn to do office work. But he also knows that Western societies are hypocrites who say one thing and mean another when they operate in China. But even if Deshi is unhappy with the teaching o f ethics and ethical leadership, if it fails this course, he knows he will be in danger and his diploma, which means not only the end of the dream work, but also the dream of being attractive for a bride. Deshi is not clear why these dreams have to keep up because of this useless ethics course, and would like to see removed from the curriculum._Appendix B estimable Dilemma Case_In this part, we are going to Identify and analyse all the ethical quandarys for each characters. Using several concepts such as the utilitarianism, egoism, and truth ethics concepts. So first, we are going to explain All Those concepts according to Bentham and John Stuart Mill (1987), Utilitarianism is a system of morals and ethics, unable to objectively define what is good and evil, is proposes to ignore establishing useful as the first principle of action. He considers that what is useful is good and that the utility can be determined rationally. Utilitarianism is based on the sole criterion of optimiza tion of the greatest happiness for the greatest number of people, assuming that the well- being of all is well for all men.He rejects the notion duty as first and measure the morals of an action with consequences we can expect quality. sterberg explains that egoism states that the human being should always act in nightclub to satisfy his in the flesh(predicate) interests in the long term it would be better for everyone and not only but for all. Finally, according Metayer (2008) the virtue ethics focuses on character traits as evidenced by the actions to determine the morality of an action, we must look the character trait that is commonly associated with such an act. Is it a virtue or a vice? An act is morally good because it is what would someone virtuous.Now that we have explained these concepts, we will book them to the different characters. Firstly the characters are faced with a dilemma are Borries, Borries s manager and Marcus.Borries was due to go on holiday with his l ady helpmate Swee Lan but his manager told him to not to go to holiday because of work. Borries s dilemma is to choose to go to meet his girl friend and her parents, but Borries would face sanctions for his manager. Or to stay at work that would generate pull ahead contracts for the company but Swee Lan and her parents Would Be very upset not to meet him. Borries decided to cancel his holiday According Bertham and Mill (1987), Borries is utilitarian because he wants the happiness of the greatest number of people and in this case these are the shareholders, managers and co-workers. The solution would be that shifts the date of his holiday he finishes his work and he leaves after.The manager s dilemma is to let Borries to go to holiday and loose further contracts or to force Borries to stay by threatening to sanction that would generate lots of contracts. For sterberg (1988) the manager is only egoist because he sees its own interests and the company interests because more contrac ts said more profits, and shareholders will go around see him. The solution would be to leave Borries go on vacation because it give huge for the company and replace it with another person.Finally, Borriess friend Marcus reacts after the decision of Borries to not go to holiday and he told him that he was a coward, he was to weak to say no and had jeopardised his relationship with Swee Lan. Marcus dilemma is to tell him his opinions on him decision to stay and to convince that he made the wrong decision (that what true friend do or to do not tell him and to be a bad friend. For Metayer (2008), Marcus is a retention of virtue ethics because the fact to help that person would be clement or benevolent. Indeed, in this case Marcus just wants to do its best to him. He took the better solution that is to say to tell him its opinions._Appendix C Interpersonal and Team-working skills_First, we were a group of 5 students, from different countries. In the group, there was no leader or no s ecretary. It was a group of communication. Indeed, the people participating in the group share the same status within the group. The social order is indeed based more on compliance but on consensus, compromise emerges an institutionalized dialogue in which everyone can participate either by a mutual adjustment. For each seminar, we had case studies to analyse.Firstly, we were doing our work in our side and one week before the seminar, we met all together to trade our views and our differences. The interpersonal communication in our group was very strong between members of the group and the transverse flow and informal communication. After exchanging and gave its opinion, we put our thoughts together and divided the parts we would propose to the oral. At the end of the meeting, we asked questions to each other to see if we mastered well about us.Personally, these group projects taught me a lot, in fact, to discuss, say, and especially to defend my opinions, listen to those of other s, to find a consensus. This allowed me to provide personal enrichment discuss with people with different cultures. And the fact that there was a good atmosphere and good communication within the group pushed ourselves to more investment in this module and Im convince that we were more fireREFERENCES BENTHAM JEREMY AND STUART MILL JOHN (1987) UTILITARIANISM AND OTHER ESSAYSDURKHEIM MILE (1898) LINDIVIDUALISME ET LES INTELLECTUELS Gasmi N. et Grolleau G., (2005) Nike face la controverse thique relative ses sous-traitants Kahle L. R., Boush D. M., Phelps M., (2000) Good morning, Vietnam an Ethical analysis of Nike activities in Southeast Asia Mtayer Michel (2008) La philosophie thique enjeux et dbats actuels sterberg Jan (1988) Self and Others A Study of Ethical Egoism Rawls John (1971) A Theory of Justice