Case analysis

“Monitoring foreign supplier” the challenge of detecting unethical practice

Please fully answer the following questions about the case in your report:

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1. Summarize and discuss the core issue in the case. Do not repeat the entire case details but only pertinent information at the heart of the case.

2. Identify any ethical and/or moral dilemmas in the case. What is an ethical decision-making? What ethical perspective can be used to analyze this case?

3. A firm’s suppliers are one of its most important external stakeholders. In light of this case, how do you evaluate the performance of Nike and Walmart when it comes to their relationship with foreign suppliers? Are they doing enough in ensuring compliance and supporting these suppliers’ growth? If not, what do you think is missing?

4. Recent research in corporate social responsibility (CSR) suggests that we evaluate the firm’s performance from three important dimensions: economic, social and environmental. These are commonly referred to as the “Triple Bottom Line”. Evaluate Walmart & Nike’s economic performance by specifically focusing on their Return on Assets (ROA), Return on Equity (ROE) and growth of stock price from 2012-2016.[Hint: Use Library’s Mergent Online database for financial information].

5.Similarly, evaluate Nike’s & Walmart’s environmental (sustainable) performance. Begin by downloading these companies’ recent Sustainability Reports from their websites (or related sources). Summarize major initiatives they have that support environmental sustainability in recent years.

6. Some analysts express concern that firms sometimes do not fully commit to sustainability as they claim in their official reports (“greenwashing” phenomenon). In your opinion, are these two companies fully committed to addressing environmental issues/concerns? Support your arguments with research.

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