Globalization Case

Executive Summary

Globalization enables the possibility of businesses worldwide and the existence of strong and dynamic competitions. Business ethics is vital in a contemporary environment as it studies business situations, activities, and decision where issues of right and wrong are addressed. In every business whether it is big or small they will always encounter ethical dilemmas. This report provides a ‘snapshot’ of Nike’s business ethics identifying its ethical dilemmas, evaluating the importance of these ethical dilemmas, explaining its best practices and values and lastly providing appropriate recommendations to answer its critics. The author will analyze Nike’s ethical dilemmas in the first stage. It includes child labour, low wages, poor working conditions and corruption. Nike practices child labour in Pakistan, Vietnam and Indonesia. If this continues, the child education will be deprived and that will ruin their future. Statistics revealed that there were estimated 44.6 million child labourers in Asia, 23.6 million in Africa, and 5.1 million in Latin America. Other than child labour, Nike also involved in payment of low wages in Indonesia. Based on the complaints received, workers were paid below minimum wages by only $2.50 per day. Thirdly, Nike practiced poor working condition or poor working environment by placing their workers in health hazardous condition resulting in various occupational illnesses and gave them insufficient meals. In Vietnam, workers suffered from insufficient hygiene where they were forced to work long hours. Besides, Nike has also committed corruption in its business practice which is considered as one of the most serious unethical issues. In Indonesia, contractor of Nike dealt with corruption by bribing the President of Indonesia in order to get cheap and low wages workforce. After that, the author evaluates the relative importance of these ethical dilemmas and provides an explanation