Nike and Walmart Case Analysis

1. How important is it for companies such as Nike and Wal-Mart that source extensively from foreign suppliers located in countries where wages are low and sub-standard working conditions are common to have supplier codes of conduct and to have programs to monitor and ensure supplier compliance with these codes of conduct?

a. Today society more so than in previous ones it is important for companies that have global business. There are steps that have to be taken in order to guarantee that human rights and local laws are being followed, especially in the case of off shore manufacturing also known as foreign suppliers. Companies such as Nike and Wal-Mart the topic of foreign suppliers can come with a lot of complications if the proper precautions and rules are not followed serious issues could arise for the company’s reputation or the brand itself. With the costs more often than not being measured infinite, Nike invested millions in brand building and advertising. With that said it could be very risky to have any kind of infractions when it comes to human rights violations or local law. In addition to the risk of violations are the fines, penalties, and loss of favored contracts. Companies such as Nike and Wal-Mart have to be prepared in order to stay away from the existent affects that come along with unfavorable labor practices. Nike and Wal-Mart has been the subject of conversation when the topic unethical labor practices have been discussed. Not only is ethical business the right things to do but the companies are subject to come under concentrated analysis of their labor practices. A message stating that they provide solid local jobs is not considered acceptable any longer. Codes of conduct and a means to follow them need to be instituted in order guarantee they are being followed. With most of the large companies in the United States having high ethical practices it is surprising that any of them are able to get away with less than perfect ethical practices. The morals become a part of the company mission. Being that they are a part of the company mission the employees are aware that this is the way that the company is expected to perform including everyone. Nike and Wal-Mart face the challenge of integrating their morals with the foreign suppliers that have their employees working well over 40 hours, in some cases double, and under age children working in

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