Nike faced child labor issues in 1990s, since then, they have been concerned about labor and human right issues which are ongoing ethical concerns in order to be among the top companies in the world. However, they solved these problems through regular monitoring of its affiliated supply chains.
“In evaluating where our targets fell short, we saw a consistent pattern: a focus on auditing against a set of criteria sometimes results in on-the-ground improvements for workers, but it rarely produces systemic change in the area of concern,” Nike says. “On further reflection, we realized that, if we want to make sustainable improvements for workers, we need to significantly change the way we engage and interact with our supply chain as a whole.”
Nike has a strong brand name despite the criticisms such as labor issues; which will not significantly affect it. They do not want to take risk which they experienced in 1990s. In order to be a top company in the world, Nike is always seeking for problems and systematically solving in order to keep its clientele.
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References :
Article
http://business-ethics.com/2010/01/24/2154-nike-corporate-responsibility-at-a-tipping-point/
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