Cross Culture Perspectives

In: Business and Management

Submitted By stillridin1
Words 1174
Pages 5
Cross-Cultural Perspectives
When an organization is started, it is generally unknown. As the organization grows, it influences and is influenced by the population and economy around it. If the people in charge of that organization or corporation are using a strong ethical basis for their decision making, they will probably make sound decisions and will not have many problems with their character being questioned. However, all too often, companies make decisions based on financial gain instead of humanities. As a company moves into other areas of the globe and creates a multinational presence, the number of people affected by its policies and regulations grows along with it. If the company is being operated with questionable ethical principles, it can create cultural issues within the organization. This is what happened within the Nike Corporation as a result of their labor policies as they searched for cheap labor to increase the financial gain (Stabile, 2000).
Nike, Inc. was started in 1964 by Philip Knight as Blue Ribbon Sports. Mr. Knight made a deal with the Japanese firm Onitsuka Company, Ltd., and they were among the first to take advantage of Asian-produced, inexpensive imitation footwear. In 1960, shoes that had been imported from other countries only accounted for four percent of the shoes sold in the United States. By 1969, that number had risen to 32 percent and by the year 1984 72% of the shoes sold in the United States were being imported from other countries (Stabile, 2000). During the first year of China's "economic adjustment" in 1979, the local monthly wage average was thirty dollars. Nike took advantage of this and open a manufacturing facility in China where nearly 90% of the workers were women who had to follow a long list of rules that included fraternization with men and curfews. In 1980, ninety percent of Nike's products were…...

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