As a well-known business, and like many other transnational corporations, Nike needs to ensure that it has an objective to act in a way which reflects the interests of its stakeholders (e.g. people who owe shares, customers, workers).
It is often believed that if large organisations were to successfully satisfy the needs of their stakeholders they will benefit financially from it.
Changes in social attitudes, such as heighten concern for justice and ethics, put pressure on large organisatins to conform to society's expectations. The danger of not conforming to society's views can cause negative consequences to a business (e.g. bad reputation, lower revenues, higher staff turnover).
In our opinions, Nike needs to address the issue of employing cheap labour and exploiting employees. They need to adopt better business ethics.
Business ethics a 'a relative term that refers to the belief of a business and what that business considers right and wrong. These beliefs should guide the busines practices of Nike.
Business thoeries often suggest that strong business ethics should allow for better corporate reputations and due to this better reputation, the organisation's profit and performance should improve.
To ensure for better reputation, Nike needs to ensure that not only do they adopt better business ethics they should adopt triple bottom line.
'Triple bottom line is an approach to management in which an organisation broadens their financial priorities to include environment perforamance and social responsibility.'
In other words, Nike should not only care about just their finanical gains and profits, but to also recognise the importance of showing a concern for society. Consumers will generally buy from company's of better reputation and of equal price range.
