Reference no: EM133424641

Question: The ethical practices of a US or International company can impact economic progress. Pick one company and provide an example of how an ethical issue demonstrates a disconnect in their economic progress.

Case Study: Last year, there was a major scandal taking place in Southeast Asian countries that had nike sweatshops due to many workers who were forced to work through the pandemic to go unpaid for over eight months. This issue arose due to the pandemic causing hundreds of thousands of item orders to get cancelled and instead it was all shipped to warehouses where it deprecated. Nike lost 790 million dollars in the first three months following the beginning of the pandemic and the first pool they took from to cut their losses was the wages of the factory workers overseas which is obviously a major ethical concern, thousands of workers were laid off and many more were working unpaid overtime. This caused miniature economic crashes in the areas surrounding the Nike factories, nearly completely comprised of sweatshop workers and factory managers, worsening the economic peril that many of these areas already suffer from. once brought to the public eye Nike was forced to re-pay the nearly 500 million dollars in stolen wages to its employees.