How should global corporations behave in the new international world order? What constitutes good corporatecitizenship in a world where the stakeholders are diverse and dispersed around the globe and where no clear or consensual rules and standards exist?These questions shape the behaviour of most multinational corporations (MNCs) today. Althoughmultinationals are eager to pursue the opportunities of increased global integration, they are increasinglyaware of the reactions which their strategies induce
both at home and abroad. Thus, they tread warily,lacking clear and agreed-upon definitions of good corporate citizenship.Through a case study of Nike, Inc.
a company that has come to symbolize both the benefits and the risksinherent in globalization
this paper examines the various difficulties and complexities companies face as theyseek to balance both company
performance and good corporate citizenship in today’s global world.
The Athletic Footwear Industry
The athletic footwear industry experienced an explosive growth in the last two decades. In 1985, consumers inthe United States alone spent $5 billion and purchased 250 million pair of shoes. In 2001, they spent over $13billion and bought over 335 million pair of shoes. Although the industry is highly segmented
by differentsports, models and price
the branded shoe segment is dominated by a few large companies (e.g., Nike,Reebok, Adidas). In fact, the top 10 footwear companies control over 70% of the global athletic footwear market. (See Table 1). Since displacing Adidas in the early 1980s and Reebok in the early 1990s, Nike hasbecome the largest and most important athletic shoe company in the world. (See Figure 1).
|Case Code||:||BECG018||For delivery in electronic format: Rs. 300;|
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges
ThemesHR Practices and Policies
|Case Length||:||12 Pages|
|Period||:||1996 - 2001|
|Organization||:||Nike, CBS News, Vietnam Labour Watch|
|Industry||:||Apparel and Footwear Industry|
The case describes the maltreatment of employees and sweatshop conditions in Nike's Asian factories. In many Asian countries, Nike violated local labor laws.
» Conflict between economic performance and social obligations, non-profit organizations/special interest groups in creating awareness of malpractices
Maltreatment, employees, sweatshop, Nike, Asian, local labor laws, Vietnam labor watch, wages, proper working conditions, adequate health, safety measures, blind eye, child labor, sexual harassment, factories
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