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MGT 325 Topic 7 Assignment; Organizational Change Research - Part 2.docx
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MGT-325: Organizational Change Research: Part2
Nike places extreme emphasis on supply-chain transparency and sourcing materials from cruelty-free
distributors. News had broken that cotton grown and harvested in Xinjiang, China, was done so while
employing “severe human rights abuses, including forced labor, torture, and political indoctrination”.
(Parker, 2021). The first step in handling this crisis, awareness, took place with a formal statement
from the company. (Inc, n.d.) Nike’s brand image has been under fire as a result, especially in China,
where these claims are vehemently denied. “The Chinese government denies the claims, insisting that
the camps are “vocational training schools” and the factories are part of a massive, and voluntary,
“poverty alleviation” scheme.” (Sudworth, 2020). As it sits prominently on the world’s stage, Nike
must act swiftly on these claims. After all, the athletic wear giant disclosed its commitment to
cultivating a “shared purpose to leave an enduring impact.” (Nike, 2022). Setting an example,
maintaining ethical business practices, and ensuring that the products bearing its name honor its
commitment to its various stakeholders should become a top priority. The next step for Nike is to
actively seek materials from an alternative cotton supplier. Not only does sourcing cotton from
Xinjiang support the accused abuse of unwilling workers and violate Nike's corporate promise to
humanity, but it also complicates supply chain processes and product availability as new laws
introducing sanctions complicate the
process.
Nike leaders will need to effectively communicate to staff and employees, clearly, authentically, and
honestly as to ensure that the messages, procedures, and protocols are understood and followed.
This can be done through internal office letters or emails directing employees that in case of a crisis,
what they are to do, whom to contact, and what procedures to follow (Lopez, 2022). Some
companies and leaders have found that written communication is effective when it comes to a crisis
situation (Heathfield, 2019). The communication should start with the CEO and Andy Campion, who
is responsible for ensuring that managers implement changes within the organization to the
employees without disrupting the production process (NIKE, inc. Executive officers, n.d.). In
handling the negative media about Nike and the forced labor when it comes to cotton in China
(Sudworth, 2020), Nike will need to appoint their crisis management teams. Nike’s legal team will
need to confront any legal matters that arise and communicate through verbal or written
correspondence. The company’s public relations department should be responsible for speaking to
the media through interviews, public speeches, and video conferencing. Management that is
responsible for communications with the employees will effectively hold in-person meetings with all
personnel, explaining the situation and what procedures are to be followed regarding the publicity
and that the procedures are conducted successfully (Abbas, 2022). Nike’s leaders can communicate
via email to their marketing team to find other suppliers of cotton, then relay this message to the PR
department in steps to correct the bad publicity. Whether communicating from the CEO to
management to employees, effective communication will make a change in an organization
successful.
First, the easiest thing that Nike could do is find another source of cotton due to the current supply
from China is linked to, especially since there is an effort to crack down on supplies imported from the
Xinjiang region though some officials say the effort will have a minimal effect is any effect at all
(Vanderford, 2022). Another effort the company could potentially back is switching to some type of
alternative to cotton. Another source that can be investigated is banana fibers. Sources show that
fibers made from banana have a higher quality compared to standard cotton and is a more
sustainable
source (Khan et all, 2022).
The management team, employees, agents, and stakeholders of Nike all encounter certain obstacles
, that play big roles and make big impacts on the company. Management has steps that Nike managers
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