In the US, there is an ethical code of conduct that has been spelt out for the American corporate industry. However, the American standard of ethics may not be embraced in other regions, and this may trigger an ethical conflict. American multinationals have to take this factor into consideration if they hope to avoid ethical conflicts in their global locations. In addition, cross-cultural challenges have made globalization a murky phenomenon. Without an appropriate corporate culture, a multinational organization is likely face difficulties in its overseas operations. In this paper, I highlight ethical and cross-cultural issues facing Nike in its global operations.
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First, it is important to understand organizations as cultures. Perceiving organizations in this form not only helps us to focus on the symbolic, but also demonstrates the shared meanings of organizations (Lozano, 1998). Organizational or corporate culture of multinational organizations must be in line with those of local cultures if those organizations expect success in overseas locations. Modern multinational organizations are anchored on a system of beliefs, but must value rationality in their operations (Lozano, 1998). Failure to observe this aspect leads to conflicts on ethical grounds that may derail a multinational’s operations in overseas stations.
Lunched in Oregon in the United States in the 1962, Nike has expanded its business operations to various global locations including China, Vietnam, Philippines, Malaysia, India, and Pakistan among others. As noted earlier, multinationals are likely to face ethical challenges in their overseas operations if they have a poor understanding of ethical governance. Nike has a host of ethical challenges in its global locations. The company faces the challenges of cheap labor, low wage for its workers, as well as overtime working, especially for its Vietnamese and Chinese operations where workers are at times subcontracted (Stockdale & Crosby, 2004). In addition, Nike faces the ethical challenges of poor, squalid working conditions, and environmental (air, noise and water) pollution (Stockdale & Crosby, 2004).
Nike has a social responsibility of improving people’s lives through the provision of fair working environment, decent pay for its workforce, as well as the protection of the environment since it’s a manufacturing company. Policies enacted by governments vary per country; local governments have the mandate of regulating their manufacturing policies in order to attain safe and environmentally friendly manufacturing procedures. In addition, labor laws must be upgraded in order to safeguard the rights of workers.
When these ethical issues are looked at critically, they present three ethical perspectives. The first one is the deontology ethics perspective. This perspective denotes that if people are looking forward to acting in an ethical manner, they must do so in accordance to their duty. In addition, motives dictate people’s actions; therefore, the motives of Nike must be ethically sound, if it has to revolutionize its global operations (Stockdale & Crosby, 2004). The second perspective is that of a utilitarian approach. In other words, all possible alternatives must be examined, and those whose effects will favor the majority should be enacted (Stockdale & Crosby, 2004). In line with this, Nike must take this ethical perspective into consideration while executing its international operations. The third perspective is ethical egoism. According to this perspective, a moral agent takes actions that favor their self-interests (Stockdale & Crosby, 2004). Such a perspective should be avoided.
Many companies find themselves in hot soup following their poor interpretation of corporate guidelines and practices and corporate culture. Nike must embrace principles of social responsibility through the use of corporate culture and codes of ethics. Furthermore, the company must ensure that it complies with internationally approved employment processes. The company’s management must take into consideration the fact that ethical responsibility is mandatory in any given company and that it is the responsibility of the corporations management to make ethically sound decisions that will trigger the growth of both the company, employees and society at large. In other words, the company’s activities and commitments that marry with good governance and ethics, human rights, good working conditions, development, customer satisfaction and community involvement.
In the wake of globalization, where companies are seeking to expand their global commerce, multinational operations have been criticized for several wrong doings. Most of them include destruction of local cultures and natural resources, and disregard of working conditions. Nike is not an exception and has faced these challenges. However, these challenges can be addressed through the enactment of a decent corporate culture, and the adoption of ethically sound policies.
In summary, this paper has noted that organizations must be seen as cultural entities. Perceiving organizations in this form because first, it helps to focus on the symbolic meaning of an organizations, and secondly, demonstrates the shared meanings of organizations. Organizational or corporate culture of multinational organizations must merge with the local cultures if those organizations expect success in overseas locations. As much as current multinational organizations are anchored on a system of beliefs, they must also prioritize rationality in their operations. Nike is a global sportswear powerhouse. In order keep their international dominance, Nike’s management must understand that ethical responsibility is mandatory in any given company. Furthermore, Nike’s management must champion the use of ethically sound decisions that will trigger the growth of both the company, employees and society at large in its international operations.
References
Lozano, M. (1998). Ethics and Corporate Culture. Ethical Perspectives, 5, 1-23.
Stockdale, S. & Crosby, J. (2004). The Psychology and Management of Workplace Diversity. New York: Wiley.
