UNETHICAL BEHAVIOUR OF NIKE

Nike Is an American multinational corporation that is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. It is the world’s leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012. As of 2012, it employed more than 44,000 people worldwide.

As one of the world’s largest athletic brand, Nike faces great criticism in regards to their use of labor sweatshops in Asia. Employees were forced to work over sixty hours each week and were punished if they refused to work overtime. In these sweatshops, women are much underpaid, hardly enough to cover their basic living. Workers have claimed to be both verbally and physically abused by their employers. Although the use of sweatshops in Asia reduce production costs and enable companies to rake in much greater revenue, the importance of morals and ethics still come into play. Being such a popular and well-known brand, Nike has an image to uphold. Though Nike claims to put effort into resolving these issues of abuse among their factories, some are skeptical as to how dedicated Nike really is to put an end to the horrendous working conditions of their Asian factories.

Although Nike is an American company which revenue turned to$24.1 billion! Is it not the company unethical business policy? While millions of American worker unemployed. The company shifts the Job overseas. Nike is selling their goods to American. Isn’t the company immoral to the worker who get paid less and work overtime even forced to work over sixty hours each week?

HR UNETHICAL ISSUE

As one of the world’s largest athletic brand, Nike faces great criticism in regards to their use of labor sweatshops in Asia. The public was astounded by the allegations of physical and verbal abuse taking place in Nike’s sweatshops. It was found that up to 50% of the factories limited their employees’ bathroom and water usage. Employees were forced to work over sixty hours each week and were punished if they refused to work overtime. In these sweatshops, women are much underpaid, hardly enough to cover their basic living. Workers have claimed to be both verbally and physically abused by their employers. Although the use of sweatshops in Asia reduce production costs and enable companies to rake in a much greater revenue, the importance of morals and ethics still come into play. Being such a popular and well known brand, Nike has an image to uphold. Though Nike claims to put effort into resolving these issues of abuse among their factories, some are skeptical as to how dedicated Nike really is to put an end to the horrendous working conditions of their Asian factories.


PROBLEMS FACED BY NIKE IN MARKETING FIELDS

The market research team at ZION and ZION, a top ranked full-service, national marketing agency, has conducted a nationwide survey regarding Nike’s new Colin Kaepernick ad campaign and the boycott surrounding it.

This study was based on a nationwide survey of 1,405 people; 744 of which are current Nike customers and indicated they are aware of the current Nike ad campaign featuring Colin Kaepernick.

The summary results are below. The margin of error is +/- 4%.

•25.0% of those people indicated that they will be boycotting Nike products.

•That number falls to 18.6% for Millennials and falls to 16.8% for those 25 years of age and under.

•28.8% of parents in the survey indicated that they will either stop buying Nike products for their minor children or that they will strongly discourage their children from buying Nike products.

•While only 12.1% of Democrats indicated that they will boycott Nike products, almost 50% (i.e. 48.8%) of Republicans and 25.1% of Independents indicated that they will boycott Nike.

•36.5% of those that indicated that they have a family member presently or previously in law enforcement plan to boycott Nike.


•37.3% of those that indicated that they have a family member that is a veteran or currently on active duty plan to boycott Nike.



NIKE UNETHICAL MARKETING TACTICS ON CHILDREN   
Nike has been targeting children by feeding them the idea that Nike products, especially the Nike shoes, will make them be stronger, faster, more confident, and able to obtain endless possibilities. Nike’s marketing campaigns are able to “brainwash” individuals to believe that Nike shoes will make them play soccer like Ronaldinho, known Brazilian soccer player. Here is a great example of what one can achieve by putting on a pair of Nike’s magical shoes (Ronaldinho and Nike). Take a look at basketball commercials from Nike (Michel Jordan and AIR Jordan).Children may understand Nike products to be items that makes one a better athlete, a status symbol to be like their athletic idols, a hope to become a sport superstar. Children mostly would not understand that these “benefits” are not actually proven. They are willing to pester their parents, who may not be able to afford a $300 luxury item, until they receive the desired products


FINANCIAL POSITION OF NIKE

The athletic footwear industry experienced an explosive growth in the last two decades . In 1985, consumers in the united states alone spent $ 5 billion and purchased 250 million pair of shoes , in 2001 they spent over $ 13 billion and bought over 335 million pair of shoes.Although the industry is highly segmented by different sports,models and price . Since displacing Adidas in early 1980s and Reebok in early 1990s , Nike has became the largest and most important athletic shoe company in the world.