Q: With reference to an organisation of your choice, discuss the ways in which ethics can
influence strategy. [20]
intro :
multinational corporation - specialises in sportswear apparel
73000 employees
1048 retail stores
vision statement : " to bring inspiration and innovation to every athlete in the world "
mission statement : "do everything possible to expand human potential. We do that by creating groundbreaking sport innovations, by making our products more sustainable, by building a creative and diverse global team and by making a positive impact in communities where we live and work.”
CSR agenda: diversity and inclusion, community investment, and environmental sustainability.
Ethics : the socially accepted moral principles that guide decision-making, based on the collective belief of right and wrong
Strategy : The strategy is about devising plans to achieve an organization’s long-term goals.
Para 1 :
Point to prove? (Claim 1/Positive 1/argument for)
One ethic that Nike has successfully achieved while growing the company through external growth is develop products that are environmental friendly.
Ques-Prove that concept 1 impacts concept 2
In 2020, Nike released AirVapour Max 2020 FlyKnit, which is composed of 67% recycled waste.
Because Nike is following all the sustainability and ethical guideline, during new product development, Nike chooses material that are recycled instead of their usual materials such as rubber or polyester.
I- Stakeholders(got impacted)
customer : provide a wider range and provide option for sustainable products
Shareholder: attract more customer - increase in sale - higher dividends
good reputation for the company ( Nike )
reduce pressure group
Long term : all stakeholders
local community : reduce harm to the environment - health ?
Para 2
Point to prove? (Counter Claim 1/Negative 1/argument against)
however, the environmental friendly's product could not be 100% sustainable --> the influence is not strong
Ques-Prove that concept 1 impacts concept 2
not 100% recycled product was used --> still unethical
even though the industrial waste is more sustainable, it is still a plastic based which is harmful to both marine life and environment ( goes against Nike goal )
I- Stakeholders(got impacted)
short run: triggered pressure group --> not fully ethical
boycott
shareholder : reduce sales due to damaged rep
lose potential investor
para 3 :
Point to prove? (Claim 2/Positive 2/argument for)
One ethic that Nike has successfully achieved while growing the company through internal growth is employing employees from different cultures and equally from both genders.
Ques-Prove that concept 1 impacts concept 2
these statistics proved that while Nike has increased the number of employees ( which indicate a sign of internal growth), ethics has played a factor in considering who they employ and how much they will pay them.
--> paying women executive directors the same amount as men because Nike follows gender equality.
A-Application-additionally give absolute figures or other real info
eight Employee Networks: the black community, latino, native American, pride , military veteran, ascend network, ability network, women.
In Nike 2019 impact report- FY19
- they increased vice president and senior leadership representation of women up to 39%
Moreover, they strive for equal pay between all employees.
- they maintained a 1:1 pay equity for women globally and for underrepresented groups in the U.S.
NIKE total number of employees in 2019 was 76,700, a 4.92% increase from 2018.
I- Stakeholders(got impacted)
( owner ) One benefit : brings together employees and allies with unique experiences and perspectives, promotes cultural awareness and helps advance the development of their members. --> increases motivation + the quality of the product
the community: allows a fair opportunity for the people to be employed as Nike employees.
employees: especially women because they finally got the equal pay that they should get for their hard work and does not get discriminated against for gender inequality.
para 4 :
Point to prove? (Counter Claim 2/Negative 2/argument against)
Due to cultural differences both within the company, nike has faced several issues over the years due to its involvement in cultural diversity.
this cause them to pay up --> bad rep + reduce retained profit
Ques-Prove that concept 1 impacts concept 2
Although Nike aims to create a more culturally diverse workplace environment
--> due to lack of work put into keeping up an equal environment, Nike has been forced to pay millions to its workers who have suffered
A-Application-additionally give absolute figures or other real info
the company has reached a $7.6 million settlement in a lawsuit brought by 400 current and former employees of the Chicago Niketown store.
--> accused Nike managers of using racial slurs in addressing black customers and employees, accusing black workers of theft, and prohibiting them from advancing professionally.
I- Stakeholders(got impacted)
employee : being discriminate --> lose motivation --> pressure group
owner : bad rep --> lose costumer + money
might upset both employee and shareholder
shareholder : lose dividends --> sell share
conclude
In conclusion, Nike’s efforts to be more ethical through the development of new products and hiring employees from many different countries has been successful despite the fact that it has risks such as causing internal conflict within the organisation and not truly solving the issue that has been brought up.
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