Nike was always focused on the development of its business and the effectiveness of the organizational performance and benefits of the company were the major criteria to define its business success. However, under the impact of the public pressure, the company has to change its policies and to pay more attention to the choice of suppliers to minimize the risk of the violation of human rights by its suppliers and to maintain a positive public image of the company in the US.
In this regard, customers are particularly interested in the protection of human rights of employees in the third world, especially Asia, where Nike supplies a considerable part of its products from. On the other hand, customers are also interested in the affordable price of Nike’s products that contributes to the conflict of interests of customers because, on the one hand, they want Nike to protect human rights, whereas, on the other, they want to buy products at low price.
At the same time, employees of the company also have controversial interests. On the one hand, employees in the US are interested in moving the production from Asia and other countries to the US, but, on the other hand, employees of Nike’s suppliers are interested in the maintenance of the production in the third world. In this regard, interests of suppliers are similar to those of their employees. Suppliers attempt to hold their position and often tend to improve conditions of work for employees to preserve Nike’s contracts.
Governments are also concerned with human rights but the US government is interested in taxes Nike brings to the US budget and observation of human rights. Finally, competitors are interested in weakening of the position of the company in the market.
Thus, Nike should adapt its strategy to interests of its major stakeholders.
Quelch, J.A. & Kanney, D. “Extend profits, not products lines,” in Harvard business review on brand management, eds GS Hardie & LM Lodish, Harvard Business School Press, Boston, MA, 1999, pp. 105 – 126.
Riezebos, R. et al. Brand management: a theoretical and practical approach, Pearson Education, Harlow, Essex, 2003.