Corporate Governance and Social Responsibility Essay

Corporate Governance and Social Responsibility - Essay ExampleThen, a discussion of the controversies that unnatural Nike will follow in the context of corporate governance and CSR. The preceding section will listing the corporate governance and CSR practices within the organization including the stir of such measures for Nike today. 2.0 Company Overview Nike is the leading sports footwear and curry manufacturer throughout the world. It has more than 30 long time of experience in developing high executing and innovative shoes. In recent market reports, Nike holds at least 30 percent market sh atomic number 18, a comfortable lead from its closest rival, the German brand Adidas. (Van Riper 2008) Nike as a brand is the strongest among its competitors. This has been achieved through years of careful brand promotions that have exposed Nike to the widest possible population and earned it as one of the American icons next to Coca-cola, IBM, Microsoft, Walt Disney, among others. Nike in its overall organizational strategy from product development to sales and promotions is unique in comparison with all the rest of the major players in the footwear and related industries. If one examines its strategy, the company focuses such(prenominal) on brand-building recruiting the best athletes in every sport to endorse its brands and reinforce the image it has carefully polished throughout the years. Nikes history, however, is not written with success stories exclusively. The fact is that it is punctuated with several controversies involving unethical practices. The following cases are some examples Nike was widely criticized back in the 1990s later on a series of news reports airy in CBS recounted the unfair conditions and practices of the companys manufacturing facilities in Vietnam and Indonesia. The report cited the payment of below minimum rent to its employees charges of employee physical abuse and, the forced running of laps by employees who wore nonregulation shoes. (Jackson, Sawyer and Jenkins, p. 17) The child labor controversy in Pakistan and other third world countries. Nike was sued for false advertising in a California court after Marc Kasky accused the company of issuing false and misleading statements, prompting a protracted and yet unsolved debate about whether Nikes campaign of press releases, advertisements, and other promotional measures to defend its business practices effect free speech or commercial information. (LEtang & Peiczka, p. 56) The manner by which Nike sought to quell these controversies underscored how they value their report and how unethical practices could severely impact their market performance. Crucial to the measures taken by the organization to deal with the to a higher place crises was the adoption of corporate social business practices. Writing about this development in 2001 for The Independent, Steve Boggan (2001) reported, Nike attempted to largess itself to its shareholders in its first corpor ate responsibility report as a touchy-feely entity established by skinny runners and employing young executives who worried about the environment and the level of wages it paid. 3.0 Corporate social responsibility The old adage stating that the only business of business organizations is business is thought to be outdated and no longer applicable today. In the current global scenario, explained Fernando (2009), competition is more cutthroat, requiring corporations to pause and ponder upon the impact of their business on the global community in general and their key stakeholders in particular