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Nike Team
www.sneakerfreaker.com
Blake Daw
n Rebecca Steve
n
Nike Corporation"TO BRING INSPIRATION AND INNOVATION TO EVERY ATHLETE*
IN THE WORLD."
http://high-definition-wallp4perz.blogspot.com/2013/03/nike-logo-wallpapers.html
Nike
Early Years
Two Visionary Men…Bill Bowerman & Phil Knight
Blue Ribbon Sports Became Nike in 1972
Logo Was Created…“Swoosh”
First Debuted in Eugene, OR
http://nikeinc.com/pages/history-heritage
Highlights
“Swoosh” Recognized World-wide After Trials
“Just Do It” Became Their Slogan
In 1985 Signed NBA Rookie Michael Jordan
Publicly Traded Company
1995 Signed Brazilian World Cup Team
2012 NFL’s Official Sponsor
Nike Products and Services
Nike Brand-Footwear, Apparel , and Equipment
Converse, Hurley, Nike Golf, Jordan Brand
Nike Foundation
Nike Global Distributionhttp://beta.fool.com/peoplesinvestor/2013/04/01/3-questions-to-take-a-bite-out-of-your-first-stock/28181
Revenues and Net Income (in Millions)
www.standardandpoors.com
Stock StatisticsCurrent Price-$66.30EPS-2.71PE Ratio-24.44Dividends and YieldStock SplitsStock Repurchase PlanShares Outstanding
www.standardandpoors.com
Nike and S&P 500 Comparison Nike S&P 500
Initial Investment $5,000 $5,000
Additional Investments $120,000 $120,000
Total Invested $125,000 $125,000
Total Dividends (Reinvested) $52,972.16 $36,990.89
Total Value $759,515.81 $255,310.73
Total Benefit
As of June 2013
$634,515.81 $130,310.73
Initial Investment: $5,000 in June 1993DCA Investment: $500 per month
Information taken from Edward Jones Equity Hypo
Problems For Nike Corporationhttp://www.michellehenry.fr/Nike2.jpg
Nike Failed to Maintain Oversight on Subcontracted Factories
Accused of Sweatshop Labor
Child Labor Allegations
Key Issues
Problems & Key Decision Criteria
Ethical Issue: Nike failed to maintain oversight on factories that it subcontracted to produce its goods
Alternatives: Shift manufacturing to the United States where monitoring the factories is easierDevelop a corporate social responsibility program and incorporate it into business
strategy
Key Decision Criteria:
Optimize stakeholder balance of interest, Improve corporate image, Maintain profitability in the long run
Problems & Key Decision Criteria
Ethical Issue: Sweatshop Labor An employer that violates more than one federal or state labor law governing minimum wage and overtime, child labor, industrial homework, occupational safety and health, workers compensation or industry regulations
Alternatives: Terminate contracts with factories that consistently violate labor laws and regulationsWork with the host government and the contracted factories to improve areas of
concern
Key Decision Criteria:
Optimize stakeholder balance of interest, Improve corporate image
Problems & Key Decision Criteria
Ethical Issue: Child LaborUNICEF estimates that 150 million children aged 5-14 are involved in some type of child laborInternational Labor Organizations estimates that 215 million children under the 18 work full-time
Alternatives: Enforce the legal minimum age set by host governmentProvide a means for education for children in the communities where
factories are located
Key Decision Criteria
Optimize stakeholder balance of interest, Improve corporate image
"Child protection from violence, exploitation and abuse." UNICEF. 04 Aug. 2013 <http://www.unicef.org/protection/57929_58009.html>."Travail des enfants." Travail des enfants. 04 Aug. 2013 <http://www.ilo.org/global/topics/child-labour/lang--fr/index.htm>.
RecommendationsOverview of Issues:
Lack of oversightSweatshop laborChild Labor
Selected Alternatives: Develop a corporate social responsibility program and incorporate it into
business strategyWork with the host government and the contracted factories to improve
areas of concern Provide a means for education for children in the communities where
factories are located
Accused of Poor Factory Conditions
Challenged with Environmental Problems
Accused of Abandoning Sites
Key Issues
Problems & Key Decision Criteria
Buy Factories for Nike Use OnlySet Standards and Have Surprise Inspections
Key Decision Criteria: Maintain Corporate Image, Optimize Stakeholder Interests, Improved Employee Morale
Ethical Issue: Accused of Poor Factory Conditions
Alternatives:
http://www.chinahearsay.com/wow-a-positive-story-on-prc-factory-workers
Problems & Key Decision Criteria
Ethical Issue: Challenged with Environmental Problems
Alternatives:Research & Development on Cleaner ManufacturingEstablish OSHA Standards
Key Decision Criteria:Maintain Corporate Image, Minimize Environmental Impact
http://thinkprogress.org/climate/2009/07/01/174368/scotus-environment
Problems & Key Decision Criteria
Ethical Issue: Accused of Abandoning Sites
Alternatives:Be More TransparentLease Sites for Term with Option of Extending on
Year-to-Year Basis
Key Decision Criteria:Maintain Corporate Image, Increase Sales, Optimize Stakeholder Interests
http://fiz-x.com/abandoned-america
RecommendationsOverview of Issues:
Poor Factory ConditionsEnvironmental ProblemsAccused of Abandoning Sites
Selected Alternatives: Set Standards & Implement Surprise Inspections (New Buildings Would
be Too Expensive)Research & Development of Cleaner/Greener Manufacturing Be More Transparent
Universities Cancelled Contracts:Branded Athletic Goods
Stock Prices Decreased:Led to Layoff of 1500 Workers
California Lawsuit:Violated Unfair Competition
Key Issues
Problems & Key Decision Criteria
First Ethical Issue: Universities Cancelled Contracts with Nike
Alternatives: Personal visits to these Universities Invite the athletic funding department to visit the factories Hold a discussion at these Universities/present a video
Key Decision Criteria: Maintain Corporate Image/Improve Profitability/Increase Sales
http://www.arkansasbusiness.com/article/31796/arkansas-unveils-new-razorback-football-uniforms
Problems & Key Decision Criteria
Second Ethical Issue: Stock Prices Decreased/Lay Off 1500 Workers
Alternatives: Hold Public Conferences Around the Country Where Sales are LowCreate a Marketing Campaign /Activist Against Child Labor and Unfair
Wages
Key Decision Criteria: Maintain Corporate Image/Employee Morale/Optimize Stockholder Interests
http://www.wallstreetoasis.com/tag/bank-layoffs
Problems & Key Decision Criteria
Third Ethical issue: California Lawsuit/Violated Unfair Competition
Alternatives: Keep Nike’s mouth shut…Let the public relations team do all of the talkingHire lawyers who specialize with these issues
Key Decision Criteria: Maintain Corporate Image/Optimize Stockholder Interests
http://sanfrancisco.cbslocal.com/2011/01/23/toxic-flea-collar-lawsuit-filed-referencing-californias-prop-65/
RecommendationsOverview of Issues:
Universities Cancelled ContractsStock Prices Decreased-Lay Off WorkersCalifornia Lawsuit
Selected Alternatives: Visit the Universities that cancelled the contracts and hold Q&A Session Create a Marketing Campaign /Activist Against Child Labor and Unfair
WagesKeep Nike’s mouth shut…Let the public relations team do all of the talking
Nike Needs Transparent Measures
Needs to Pay Fair Wages
Celebrity Endorsements
Key Issues
Problems & Key Decision Criteria
Ethical Issue: Lack of Transparency
Behind the Swoosh Video
Alternatives:Allow Transparent Measures & AuditsDo Not Disclose more than what is legally required
Key Decision Criteria: Optimize Stakeholder Interests; Maintain Corporate Image; Ease or Speed of Implementation
Problems & Key Decision Criteria
Ethical Issue: Nike Pays Unfair Wages-What is Fair?
Alternatives:Pay above the country’s minimum wage Pay base wage, along with housing allowance and benefitsDetermine a formula to base wages somewhere between the other
countries and the U.S. wages
Key Decision Criteria: Optimize Stakeholder Interests; Within Present or Future Capabilities; Employee Morale, Safety, and Turnover; Code of Conduct
Problems & Key Decision Criteria
Ethical Issue: Celebrity Endorsements
Alternatives:Keep Celebrity EndorsementDiscontinue Celebrity EndorsementInclude Stricter Ethics Clauses in Contracts
Key Decision Criteria: Optimize Stakeholder Interests, Increase Sales, Market Share and Return on Investment,
Improve Profitability
RecommendationsOverview of Issues:
Needs Transparent MeasuresNeeds to Pay Fair WagesCelebrity Endorsements
Selected Alternatives: Allow Transparent Measures & AuditsDetermine a Formula to Base Wages Between the Other Countries & the
U.S. Wages Continue/Discontinue on Individual Basis, Include Stricter Ethics Clauses
Nike Corporation*"IF YOU HAVE A BODY YOU ARE AN
ATHLETE."
http://high-definition-wallp4perz.blogspot.com/2013/03/nike-logo-wallpapers.html
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