1 / 13

Nike Corporation Jumping the Hurdles of Social Responsibility Disclosure

Nike Corporation Jumping the Hurdles of Social Responsibility Disclosure. Background. Nike is the biggest manufacturer of sportswear in the world, and employs almost 1 million people. Nike outsourcing contracts 500 factories in 45 countries. Accusations.

pauline
Download Presentation

Nike Corporation Jumping the Hurdles of Social Responsibility Disclosure

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Nike CorporationJumping the Hurdles of Social Responsibility Disclosure

  2. Background • Nike is the biggest manufacturer of sportswear in the world, and employs almost 1 million people. • Nike outsourcing contracts 500 factories in 45 countries.

  3. Accusations • In 1996, Nike was accused of labor violations and human rights abuses in foreign countries.

  4. Nike’s Response • Nike responded with • Labor Codes • Personal Letters • Campus Visits • Newspaper Releases

  5. Litigation • Marc Kasky, a San Francisco resident, sued Nike for false advertising, saying the statements were a marketing charade.

  6. Nike’s Response • Nike said its speech was protected by the First Amendment. • The company won the first trials, but lost in the California Supreme Court. • Nike successfully appealed to the US Supreme Court.

  7. Consequences • If Nike were to lose on the grounds of false advertising, companies everywhere would be liable for almost any public statement, muzzling corporations. • If Nike were to win on the grounds of First Amendment protection, companies would be legally empowered to mislead consumers.

  8. Supreme Court Decision • The US Supreme Court decided 5-3 to postpone ruling on Nike vs. Kasky. • Groups on both sides complained about the decision, having hoped for a solution.

  9. Charity Settlement • Nike made a charity settlement, giving $1.5 million to the Fair Labor Association. • Groups on both sides of the issue complained about the settlement.

  10. Ethical Considerations • Product advertising ethics are more lenient than responsibility advertising ethics. Was Nike ethical in the way it promoted its responsibility campaign? • What methods of communication should companies use to promote social responsibility?

  11. Corporate Social Responsibility Statements: A Possible Solution • CSR Statements would require companies to report labor and environmental information like the financial information in balance sheets.

  12. CSR Reporting • CSR Information is widely sought and used: • Investors screen companies for violations • Consumers more loyal to responsible companies • CSR information improves corporate image • Companies are more likely to improve if information is disclosed

  13. CSR Reporting CSR reporting would remove legal ambiguity from companies seeking to improve transparency.

More Related