Question

In Nike’s sweatshop case what’s the first thing a CEO of nike should do as a business leader?

Answer 1

Nike is a company which was considered as one of the best manufacturers of the apparels and the shoes and accessories. It also produced sports equipment and was one of the top market share company of the time.

However, a case arose out of somewhere about the ill treatment of workers and underpaid labor in mostly Asian countries. Also, a news broke out which shows that sweatshops or sweta factories are being used to manufacture the products.

As a company marketing the sports shoes and accessories as the star products, it is necessary for the company to get the trust of the customers and also stay away from the legal and social issues. However, Nike was torted by the activists around the world for such scenarios.

The best way to come out clean in such situations is to improve the transparency of the process which is being questioned. Improving the transparency gains the trust of the target customers and hence it is beneficial for the company in a long run.

As a result, it is a good option to get the global media to record and create the documentaries for the production of products at Nike, Use channels such as television to show the actual processes, create stronger policies and initiate and open enquiry for the situation. An open enquiry would not be a negative impact which a direct denial creates in the society. Documentaries will allow a transparent look at the production process. Media will be helpful in gaining the quick trust of the customers for the time being. Hence, this would be my strategy as the leader of Nike.