Reference no: EM131733504

An excellent example of a multinational corporation (MNC). Nike has been perceived as a corporate giant often doused in controversy. Nike has been accused of labor exploitation and the maintenance of sweatshops. Some of its overseas operations have been known to use child labor as well as allow subpar working conditions. It is difficult to erase the image of 7-11 year old Asian children stitching Nike shoes for almost nothing and yet theses item are highly priced in the West.Of course, Nike has been working hard recently to change this image.Its efforts in collaboration with CERES are one way in which it has tried to rebuild its reputation.However, it is not an easy feat since its profit margins and the benefits derived from these practices by its local managers cannot be easily ignored or undermined.It is common knowledge that a lot of MNCs invest in developing countries because of lax safety standards and working conditions fueled by the lack of transparency as well as corruption.

Should one therefore assume that companies such as Nike have a moral obligation and social responsibility to address some of the major needs in their host states?