When Nike digitized its operations and embraced digital technology, it encountered several ethical

issues, some of which are outlined below:

1. **Labor Conditions in Supply Chain**: Nike has faced ongoing scrutiny and criticism for labor
conditions in its supply chain, particularly in countries with lower labor standards. As the company
implemented digital systems to manage its supply chain, questions arose about whether these
technologies were being used to monitor and improve working conditions or simply to cut costs.
Ensuring fair labor practices and workers' rights remains a significant ethical challenge for Nike and
other companies in the industry.

2. **Data Privacy**: As Nike collected more data through digital channels, it had to address concerns
about data privacy and security. Ensuring that customer data is protected and used responsibly is a
critical ethical concern. Mishandling or data breaches can harm customer trust and lead to legal and
reputational issues.

3. **Counterfeiting**: With the growth of e-commerce and digital platforms, counterfeit Nike
products became more prevalent. Nike had to grapple with the ethical dilemma of how to protect its
brand and customers from counterfeit goods while respecting individual rights and privacy.

4. **Environmental Impact**: Nike's digital operations, including e-commerce and supply chain
management, have significant environmental implications. The company had to grapple with ethical
questions related to sustainability and environmental responsibility. This includes issues like the
carbon footprint of shipping products ordered online and the impact of manufacturing processes.

5. **Digital Inclusion**: As Nike expanded its digital presence, it needed to ensure that its products
and services were accessible to people from diverse backgrounds and abilities. Ensuring digital
inclusion and accessibility is an ethical issue tied to the company's digital transformation.

6. **Transparency**: With the use of digital technology, consumers and stakeholders expect greater
transparency from companies like Nike. Ethical concerns emerge when companies fail to provide
accurate information or engage in greenwashing, where they exaggerate their environmental efforts.

7. **Worker Displacement**: The implementation of automation and robotics in manufacturing and

distribution raised concerns about job displacement. Nike needed to address the ethical implications
of potential job losses and consider strategies for retraining and upskilling its workforce.

8. **Intellectual Property Rights**: Nike's digital transformation also meant dealing with intellectual
property issues, such as the protection of patents, trademarks, and copyrights. Ensuring that the
company respects the intellectual property of others while protecting its own rights is an ongoing
ethical challenge.

9. **Algorithmic Bias**: If Nike used algorithms and artificial intelligence in decision-making

processes, it needed to address the ethical concern of algorithmic bias. Algorithms can
unintentionally reinforce biases, leading to unfair outcomes in areas like hiring, marketing, or pricing.

10. **Consumer Manipulation**: With the power of data analytics, companies like Nike have the
potential to engage in highly targeted and potentially manipulative marketing practices. Ethical issues
arise when companies use digital technologies to exploit vulnerabilities or engage in behavior that
may not be in the best interests of consumers.

Nike, like many other companies, had to navigate these ethical challenges as it embraced
digitalization. Ethical decision-making and responsible business practices are essential for
maintaining trust with customers, investors, and the wider community in the digital age.
When Nike digitized its operations and embraced digital technology, it encountered several ethical
issues, some of which are outlined below:

1. **Labor Conditions in Supply Chain**: Nike has faced ongoing scrutiny and criticism for labor
conditions in its supply chain, particularly in countries with lower labor standards. As the company
implemented digital systems to manage its supply chain, questions arose about whether these
technologies were being used to monitor and improve working conditions or simply to cut costs.
Ensuring fair labor practices and workers' rights remains a significant ethical challenge for Nike and
other companies in the industry.

2. **Data Privacy**: As Nike collected more data through digital channels, it had to address concerns
about data privacy and security. Ensuring that customer data is protected and used responsibly is a
critical ethical concern. Mishandling or data breaches can harm customer trust and lead to legal and
reputational issues.

3. **Counterfeiting**: With the growth of e-commerce and digital platforms, counterfeit Nike
products became more prevalent. Nike had to grapple with the ethical dilemma of how to protect its
brand and customers from counterfeit goods while respecting individual rights and privacy.

4. **Environmental Impact**: Nike's digital operations, including e-commerce and supply chain
management, have significant environmental implications. The company had to grapple with ethical
questions related to sustainability and environmental responsibility. This includes issues like the
carbon footprint of shipping products ordered online and the impact of manufacturing processes.

5. **Digital Inclusion**: As Nike expanded its digital presence, it needed to ensure that its products
and services were accessible to people from diverse backgrounds and abilities. Ensuring digital
inclusion and accessibility is an ethical issue tied to the company's digital transformation.

6. **Transparency**: With the use of digital technology, consumers and stakeholders expect greater
transparency from companies like Nike. Ethical concerns emerge when companies fail to provide
accurate information or engage in greenwashing, where they exaggerate their environmental efforts.

7. **Worker Displacement**: The implementation of automation and robotics in manufacturing and

distribution raised concerns about job displacement. Nike needed to address the ethical implications
of potential job losses and consider strategies for retraining and upskilling its workforce.

8. **Intellectual Property Rights**: Nike's digital transformation also meant dealing with intellectual
property issues, such as the protection of patents, trademarks, and copyrights. Ensuring that the
company respects the intellectual property of others while protecting its own rights is an ongoing
ethical challenge.

9. **Algorithmic Bias**: If Nike used algorithms and artificial intelligence in decision-making

processes, it needed to address the ethical concern of algorithmic bias. Algorithms can
unintentionally reinforce biases, leading to unfair outcomes in areas like hiring, marketing, or pricing.

10. **Consumer Manipulation**: With the power of data analytics, companies like Nike have the
potential to engage in highly targeted and potentially manipulative marketing practices. Ethical issues
arise when companies use digital technologies to exploit vulnerabilities or engage in behavior that
may not be in the best interests of consumers.

Nike, like many other companies, had to navigate these ethical challenges as it embraced
digitalization. Ethical decision-making and responsible business practices are essential for
maintaining trust with customers, investors, and the wider community in the digital age.