Advertising or Free Speech? The Case of Nike and Human Rights
This week’s discussion is about Corporate Social Responsibility (CSR), focusing on the brief case study about Nike (p.101 in the textbook).
Nike pioneered offshore manufacturing by hiring third-party contractors in developing nations to work in its company-owned plants. Among other workers, the contractors hired minors at low pay in” sweatshops.” When the news became public in 1996, Nike faced negative public opinion, and then it established a Corporate Responsibility and Sustainability Committee to ensure that labor practices were ethical across its supply chain.
After that, Nike was sued for allegedly knowingly making false and misleading statements in denying its direct participation in the abusive labor conditions abroad in manufacturing its products. The case was dismissed for procedural issues by the U.S. Supreme Court. Thereafter, Nike has worked on building its CSR profile through relief efforts and advocating fair wages and employment practices in its outsourced operations.
Thinking about Nike’s corporate practices, if you were to start a company that outsourced labor in order to reduce manufacturing costs, what decisions would you make to combine commercial objectives with social goals to improve the impact of corporate social responsibility efforts? How might the two conflict?
Embed course material concepts, principles, and theories, which require supporting citations along with two scholarly peer-reviewed references supporting your answer. Keep in mind that these scholarly references can be found in the Saudi Digital Library by conducting an advanced search specific to scholarly references.
Review Chapters 2 & 3 in International Management: Culture, Strategy, and Behavior
“Brief Integrative Case 1.1: Advertising or Free Speech? The Case of Nike and Human Rights” (p. 101), in International Management: Culture, Strategy, and Behavior.
Beumer, C., Figge, L., & Elliott, J. (2018). The sustainability of globalisation: Including the ‘social robustness criterion’. Journal of Cleaner Production, 179, 704-715.
Christ, K., & Schaltegger, S. (2020). Multinational enterprise strategies for addressing sustainability: The need for consolidation. Journal of Business Ethics, 1-22.
Richter, U., & Arndt, F. (2018). Cognitive processes in the CSR decision-making process: A sensemaking perspective. Journal of Business Ethics, 148(3), 587-602.
Al-Malkawi, H. (2018). Corporate social responsibility and financial performance in Saudi Arabia. Managerial Finance, 44(6), 648-664.
Alnajdi, O., Calautit, J., & Wu, Y. (2019). Development of a multi-criteria decision making approach for sustainable seawater desalination technologies of medium and large-scale plants: a case study for Saudi Arabia’s vision 2030. Energy Procedia, 158, 4274-4279.
Das, M., Rangarajan, K., and Dutta, G. (2020). Corporate Sustainability in SME’s: Asian Culture. Journal of Asia Business Studies, 14 (1), 109-138.
Murphy, M., Macdonald, J., Antoine, G., & Smolarski, J. (2019). Exploring Muslim attitudes towards corporate social responsibility: Are Saudi business students different? Journal of Business Ethics, 154(4), 1103-1118.