Nike is a very well known sporting footwear and apparel company. The company is a multinational corporation with headquarters located in Beaverton, Oregon. Nike is the leading supplier of sporting footwear and apparel in the world. They employ more than 44,000 people worldwide including countries such as the United States, Thailand, and China. The brand is most recognized by their logo, the swoosh, and their slogan “Just Do It”. Nike was founded in 1964 by Bill Bowerman and Phil Knight. The company was originally named Blue Ribbon Sports and in 1978 was renamed Nike after the Greek goddess of victory. In the early years the company worked as a distributor for a Japanese shoe ...view middle of the document...
Thirdly companies are held to the stakeholder theory. Under this theory the company must consider all stakeholders in the company when making its decisions. These other stakeholders include employees and the local community. This is to make sure that companies just don’t make decisions in favor of shareholders at everyone else's expense. The final rule that must be followed is corporate citizenship. This states that companies must try to do their best as a repayment to society. Companies have the power they do because of society, so in turn they owe it to society to try their best.
Like all other large companies Nike is held to these rules and must do their best to abide by them. When it comes to maximizing profits Nike does a good job. In the quarter that ended August 31, 2011 the company's gross profit was 2.6 billion. In the same quarter in 2012 their gross profit was up 8% to 2.9 billion. Nike’s dividends increased from 12 cents per share in 2002 to 37 per share in 2006. Nike continues to increase the money it pulls in by plastering its name and logo everywhere. You are constantly seeing ads on billboards and commercials on television displaying Nike products. Nike also secures increases in profits through their sponsorship of high profile athletes. By putting their product on athletes they are making their product the must have of sportswear.
When it comes to the subject of moral minimums Nike has been under scrutiny. Nike has been accused of using sweatshops in other countries and paying workers well below what they should be making. Though they were accused, Nike has always denied the allegations. These accusations led Nike to begin pressuring their manufacturers to improve the working conditions. In the 1990’s Nike began using a code of conduct for their factories. They now spend millions of dollars a year to keep factories up to the code. Nike also use what they call Considered Design Index in their product design. They use environmentally preferred materials and attempt to reduce waste through this design process.
When it comes to stakeholder interest, Nike is very involved in making sure they see all sides in the decisions they make. They constantly interact with their stakeholders to help them deal with challenges that they face. Nike also uses their stakeholders to help them prioritize their key issues. The company doesn’t just do this with key stakeholders, but all of them. They communicate with the industry, consumers, and shareholders through networks and organizations. Nike also uses the Business of Social Responsibility to help develop a list of stakeholders and organize meetings with them.
In corporate citizenship Nike uses an approach that has three main areas of focus. The first area of focus is the Nike foundation which is an organization design to help change the course of poverty through young girls in developing countries....