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Introduction
Nike is a renowned Corporation that deals with a range of sports attires such as shoes and Jerseys. This paper clearly describes diverse ethical, cultural, and legal challenges that affect this global Corporation. The paper also expounds on the various roles that different host nations played in the business venture. It finally recapitulates the operational and strategic challenges facing global businesses.
Discussion
A thorough analysis of the Nike case study shows that there are diverse legal, cultural, and ethical challenges that are being faced by the Corporation. One of the legal challenges that Nike is facing concerns the accusation on violation of the labor laws by employing under age staffs as young as eleven years old.
Child labor laws require that only adults of eighteen years and above should be employed in any organization. This also includes the violation of local laws such as Chinese labor law that stipulates that children under sixteen years should not work in a factory.
The corporation is also accused of violating overtime laws, wage laws, rules on the code of conduct. This also includes infringing on important labor practices like having a hazardous working environment. In this case, Nike is accused of paying wages that are far below the stipulated minimum in wage laws. The organization is also accused of not paying overtime wages as set in the overtime laws. It was noted that some 11-year-olds were made to work for 17 hours per day and paid 10 cents per hour. This is illegal.
On cultural aspects, Nike has not been able to meet cultural expectations concerning the wages of its staffs in overseas factories. Ethical challenges include accusations of violation of human rights by failing to give sick leave to staffs, making supernormal profits at the expense of poor people, staffs working for long hours in excessive heat, noise and in foul air.
The company still has staffs with skin problems working in directly with chemicals. This also includes those with breathing problems. The two categories of employees should have been transferred to other departments. The Corporation does not also provide protective attire for those handling harmful chemicals. This is quite unethical.
Nike Corporation has subcontracted business in various nations.
The governments therein play different roles. The two Vietnam news organizations like CBS’s 48 Hours take the role of protecting their citizens from exploitation through highlighting on dilapidated working conditions of in Nike factory. Taiwan and Korean governments also take the role of fighting for worker rights by allowing employees to have trade unions that advocated better payment.
Through this, Nike Corporation could not go on with its subcontracting business in the nation.
However, other nations such as Indonesia and China take the role of submitting to superpowers. This is through prohibiting independent labor unions. The nations also have very minimal wage requirements hence failing to be considerate to its people. Andrew Young, U.S ambassador, played the role of assessing conditions in oversees businesses.
Global businesses face challenges that are functional and also operational in mature. One of the operational challenges is that of having maximum production hence putting in place stringent rules that violate human rights such as failing to give sick leave. It is also evident that global managers seek cheap labor, yet this is unethical to exploit the poor while making supernormal profits.
Monitoring of overseeing businesses remains to be an operational challenge. It is a strategic challenge to get a reliable firm to audit oversees businesses. Strategic challenges also include choosing nations to carry out subcontracting or required business. This may not be supported by the local government.
Conclusion
In conclusion, it is clear that embracing globalization comes along with legal, ethical and cultural challenges. It is imperative that management in Nike focuses on improving its working environment, adheres to laws and ethical standards. Through strategic and operational planning, the corporation is bound to succeed.
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