Ethical Perspectives Nike

Ethical Perspectives: Nike, Inc.

Martha Camacho-Kelly

ETH/316

April 30, 2012

Anthony De Veto

Ethical Perspectives: Nike Inc.

Nike, Inc. (Nike) began in 1964 as a footwear distributor to Onitsuka, the Japanese manufacturer of Tiger shoes. It operated under the name Blue Ribbon Sports (BRS), located near Beaverton, Oregon. Phil Knight, co-founder of BRS, initially sold the shoes out of his trunk at track meets while his partner, Bill Bowerman, sought ways to improve the Tiger shoes. Bowerman tested his creations on his University of Oregon runners, hence establishing the foundation of what was to become Nike (Nike, Inc., 2011). According to Nike, Inc. (2011), Bowerman and Knight envisioned "the creation of running shoes to give athletes a competitive advantage" (1950-1959) over the competition.

As the company grew, it hired its first full-time employee in 1965, Jeff Johnson. Johnson played an instrumental role in the success of BRS through his invaluable service. He developed marketing techniques, created a mail-order system, opened a retail store, and oversaw shipping and receiving. Additionally, he designed several shoes and in 1971, came up with the name Nike. The company was ready for a new image as its relationship with Onitsuka was ending. Bowerman and Knight embraced the opportunity to move from a distribution business to a designing and manufacturing business. In 1972, Nike chose a logo, debut a new line of footwear at the U.S. Track and Field Trials, and chose an athlete to endorse its products (Nike, Inc., 2011).

The early 1980's were successful for Nike, which became a publicly traded company at the end of 1980. During this time, it underwent a transitional period that also saw its visionaries step down and pursue other ventures. By the mid-1980's, Nike stumbled as the industry leader, partly because it miscalculated the aerobics surge. In 1985, a new line of shoes endorsed by then-rookie Michael Jordan helped Nike strengthen its portfolio. By the late 1980's, in a series of launching other products and marketing campaigns, Nike regained the industry lead and has since remained there (Nike, Inc., 2011).

Cultural Issues

Nike contracted with Taiwanese and Korean suppliers for shoe production. As demand increased, these suppliers subcontracted with labor markets in China, Vietnam, Thailand, and Indonesia. Nike's operations were so large that in 1999, its athletic wear was manufactured from more than 500 factories in 45 countries. Nike evidently lost control and awareness of factory conditions with each subsequent subcontractor. In 1996, however, the conditions of Nike factories were made public by the media (De Tienne & Lewis, 2005).

A New York Times reporter accused Nike of exploiting Asian women for slave labor. He also compared Nike to the pyramids "that crushed the backs of oppressed laborers" (De Tienne & Lewis, 2005, p. 361). The article went on to portray Nike