Environmental Factors Paper
With organizations no longer only working within the parameters of their own nation or culture, business and ethical considerations of globalization need to be evaluated. Companies are choosing to expand internationally for many different reasons. This paper will focus on the Nike Co. and it venture to stay in compliance with global laws while upholding its ethical responsibilities. This paper will also highlight the influence of the foreign corrupt Act on the Nike Company and touch on interdependence policy. One of the major expectations of all global companies is Ethical responsibilities.
Companies operating outside the United States must factor in the countries laws and ethics before embarking on their business venture. Business ethics are somewhat different from individual ethics since the definition of business ethics is the moral principles and standards that guide behavior in the organization. A sound ethical perspective that should be followed when conducting business globally is the theory of utilitarianism. This is “a moral theory that dictates that people must choose the action or follow the rule that provides the greatest good to society” (Cheeseman, 2007, p. 186). To ensure that global ethical behavior is at the fore front in an organization, research needs to be conducted to make certain that the company’s policies and procedures are in line with the international and local laws. The business should also contribute to the development of the international country. International corporations should adhere to the values of the culture they are in and avoid practices that would have a disadvantageous effect on the nation. Another ethical consideration is that the organization must respect the freedoms or boundaries other countries have. With the advances in technology, the amount of companies going global has increased. Global companies produce products or provide services that cross cultural lines. Leaders in the organization need to be aware of the cultures in which they are working in to ensure that all employees are treated fairly according to their cultural background. The employee’s culture, values, beliefs and ethics need to be taken into consideration when policies and procedures are put in place. Open communication will go a long way in avoiding cultural misunderstandings.
Nike co. Is one of the world’s largest Global sportswear companies, which have dominated both domestic and foreign markets with its global premium brand. Nike is known to sell high quality shoes at premium prices. Nike is a representation of image therefore, it attracts younger markets. Nike partnered with Michael Jordan (a basket ball icon) to have his name on the shoe, after the success of the first Jordan shoe; Nike resigned the deal with Jordan three more...