Picture taken from original article site

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

This article by Max Nisen of Business Insider highlights Nike’s past problems with  their overseas sweatshops. As stated in the article Nike’s business model has  been based on outsourcing their manufacturing overseas,  not unlike many companies today, such as Apple[1] and Gap[2]. Companies use cheap overseas labour in order to reduce production costs allowing companies to sell their products at more competitive rates, yet also raises important questions about ethical business practices.  The Cambridge Dictionary Online describes Business ethics as rules, principles, and standards for deciding what is morally right or wrong when doing business. Nike’s business practices, under this definition do not seem ethical. Their use of sweatshop workers, in the poor working conditions under which they have been subjected, is not morally right.  Nike has recognized the issues pertaining to their business practices and has investigated and corrected issues that arose within their overseas operations.The article mentions that they respond to allegations instead of covering up their issues. This is important as they are a company which is trying to overcome their image as a company with questionably ethical business practices.

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