Does Nike’s New Makeover Hide Their Flaws?

http://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5

Nike has been scrutinized for numerous years for its unethical labor practices and some of their recent actions relates to the topic of business ethics. The company has been the prime example of a firm who established their business model from using cheap labor to maximize profits, and they were heavily under fire mainly because of their success and popularity. Nike has recently taken upon “social responsibility” and is actively working towards rebuilding their image to an ethical company. One can argue that Nike is beginning to care about their low-waged workers, however, in the mindset of Milton Friedman; these actions should not be misconstrued as an act for humanity. According to Friedman’s passage The Social Responsibility of Business is to Increase Profits, the firms’ only “social responsibility” is focused on maximizing profits and catering to their shareholders in this capitalistic world. So how can one judge Nike? Are they acting in such a way because they have come to a realization that abusing low-waged workers working in dangerous conditions is wrong? Or are they only caring about their real “social responsibility”, which is to continue to increase sales and to keep their stock value up? That answer is up for debate, but for the time being, Nike has rebranded their global image to give the impression that they are “ethical”.

 

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