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nike stakeholder conflicts

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Emma Barfield

on 29 January 2013

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Transcript of nike stakeholder conflicts

By Emma, Jack, Chi and Dannis The problem Nike vs Keady Stakeholders'Conflicts Nike has been trying to resolve some of these problems after it saw sales of its products slowing down and it was heavily criticized for what it was doing. Nike has argued that some of the problems are caused by other firms such as Wal-Mart who keep prices very low and make it difficult to compete, They have also pointed out that in some cases, the situation is not quite as simple, as some workers want to work overtime so they can earn more money. However, as seen in the video the working conditions are not to standard and Nike are expoiting these people. - Managers and employees (especially child employees): managers want to keep labour cost as low as possible in order to gain higher profits while employees want higher pay rewards .
- Customers and shareholders: customers will look for value for money - low prices and high quality while shareholders expect the business to maximise profits, meaning higher prices. Solutions
Nike - Stakeholder Conflicts In the late 1990's, there were reports circulating that Nike, the sports shoes and sports clothing company, were exploiting workers in factories that make products for the company. Nike uses 124 plants in China, 73 in Thailand, 35 in Korea and 34 in Vietnam, amongst others. Eventually, Nike admitted that the treatment of workers within these plants was not satisfactory. Examples of such exploitation included restricting access to toilets and drinking water for workers, forcing workers to do overtime, not providing workers with a day off, paying wages blow the legal minimum and accusations of jobs being given on receipt or favours, including sexual favours. - Shareholders and community: Shareholders want to have higher return on their investment so they may not want to stop using child labor while the community want to stop this unethical issue. Nike could introduce the use of fairtrade in the manufacturing process to ensure their workers receive a sufficient salary, This would increase the sustainability of the company as well as improving their reputation. It would benefit the local economy and resolve conflict with employees , customers and suppliers. However it may cause further conflicts with the owners and shareholders, however it is important for the company to consider the business sustainably in order to ensure that correct measures are taken to maximise success for all sectors of the company. Ashley MacEachern, senior manager of outreach for Nike, said Nike is phasing out dangerous chemicals in its products and non-water-based adhesives from its shoes. The company is also increasing the amount of organic cotton in its clothing, and conducting studies in order to decrease children inactivity. This therefore shows that Nike are making their company sustainable.
Thankyou for watching :)
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