nternational. Nike has come a long way from when its founders used to sell the shoes out of the trunk of their cars until the first Nike store was built in 1966.
Although Nike has become the leading manufacturer of footwear and apparel, they are often associated with having no regard for the ethics involved in their business, but in the past decade we have begun to see a change in the way they conduct their business. Business ethics is defined as "the study and examination of moral and social responsibility in relation to business practices and decision-making in business" [Dictionary.com 2003].
Nike has been often criticized for both its ethical decisions as well as its actions toward social responsibility. The company has been often associated with outsourcing jobs and having factories with poor work conditions. Nike has also been plagued with the reputation of causing violence in the inner-city areas of the United States. Although Nike's profits are undeniably impressive, their ethical and social image is far from flawless.
When Nike first began their products were produced in Japan. But, as the company matured so did the Japanese market and the costs of production became too high. They then shifted the bulk of their production to less developed countries such as Indonesia, Vietnam and China where wages for labor are significantly less. This enabled the company to greatly increase profits but at the same time sacrifice reliability and quality. All of the factories where Nike products are produced are subcontracted which means they have no actual ownership of the factories. Due to Nike's ex
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