Nike was founded by Bill Bowerman and Phil Knight. They started to create the company back in the 1960's in their shop Blue Ribbon Sports. They were taking shoes that Tiger Shoes sent them and improving them to make them better for runners. Throughout the 70s Jeff Johnson, the first employee of Blue Ribbon Sports, marketed "The Swoosh". This was Nike's original name because of the logo. Nike then became a publicly traded company in the year 1980. Nike has been an ever expanding athletic company. Nike owns Nike, Converse, Hurley, Jordan, and also Nike Golf. Within all these different companies Nike makes all things athletic including shoes, apparel, equipment, and also accessories. Nike has had some trouble always being an ethical company. There were reports about 10 years ago of abuse in the factories overseas where their products were being made. They started the "Better World" campaign where they would go into these factories and make them so they met Nike standards.

Nike purchased the Converse Company in the year 2007. In the year 2011 workers from the Pou Chen Group factory in Sukabumi, Indonesia came out and spoke of abuse happening within the factory. This abuse included both physical and mental abuse. The reported physical abuse included them being slapped, kicked, having shows thrown at them, and also scratched until some people bled. The mental abuse was a combination of things as well. It included the management screaming at the workers calling them names such as monkey, dog, and pig. They were also mentally abused to the point where they did not want to speak up against the bad things that were happening to them. One woman reported that she was fired after she spoke up against the management. These people were making $0.50 an hour, which was just enough to live off of with bunk type housing and food. They could not afford to lose these jobs so instead of standing up against the abuse they were keeping their mouths shut. The stakeholders involved in this case include the factory workers and their families, factory management, and also Nike.

QUESTIONS:

1. Who are stakeholders and how they are affected in this case?

2. Which are the ethical issues in this case?

3. Which are the corporate governance issues?

4. Are the companys actions consistent with the Code of Ethical Conduct of Nike Company?

5. Should investors be concerned that a similar scandal could be repeated in the future?