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Issues Paper SUBJECT: Still Waiting for Nike to do it? DUE: 9th January 2004 Introduction Nike, the global giant, though had won awards in the world advertising and recognition in the industry of sports brand. The adverse publicity generated by the use of Asian sweatshop scandal also creates excessive critics for Nike. 1. From Nike’s perspective, identify the key publics the company should take into account in order to improve its reputation in the area of social responsibility. Give brief reasons for your answer. In the context of Nike, the key publics that should be taken into consideration are consumers, human rights group, stakeholders & investors, government and media. Consumers Consumers are recognised as one of the key public as most business or companies such as Nike, largely requires the consumers to purchase its products so as to retain the profitability of the Nike business. Hence, any form of unfavourable critics or comments will have a direct impact in consumers’ mind towards Nike. In certain circumstances, a particular critic about Nike can possibly make a consumer switch to another brand. Human Rights Group As Nike has been alleged use of sweatshop labour, the workers are excessively exploited, whereby, the Nike workers are forced to work up to 70 hours per week in high-pressure work environments while not earning enough to meet the basic needs of their daily life. Workers faced the situation of getting dismissed if refuse to work for extra hours. Furthermore, sexual and verbal harassment and limited access to medical care are commonplace in some Indonesian factories making goods for Nike. All the aforementioned reports of Nike, is considered inhumane acts. The human rights group is particularly concern about such issue and will try to unfold more truth in Nike’s labour in comparison to what Nike has claimed publicly social responsible company. Stakeholders & Investors If Nike continues to be plagued by accusations of exploitation and negative publicity of the sweatshop scandal, it will deter the confidence of stakeholders and the prospect of attracting potential investors. Government Government has an important role to play in ensuring company to be socially responsible. For example, the working conditions of Indonesia factories had improved in the last two years not because Nike is proactive in to improve conditions, but rather it could be Nike has been pressured to succumb or adhere to certain labour rules and regulations set by the government.
Approximate Word count = 1416
Approximate Pages = 5.7
(250 words per page double spaced)
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