What a scandal – Nike’s North American head Ann Herbert resigned after a report from Bloomberg Business showing Ann’s connection to her son’s resale company.
Her son, Joe, has no ordinary resale company: his company specifically resells shoes, especially ones designed and made by Nike. As of Monday, following the controversy, Hebert resigned on her own accord.
The specific shakeup links Ann’s credit card to the purchase of more than $100,000 worth of limited edition shoes for Joe’s company West Coast Streetwear.
Ann was responsible primarily in her final days for helping expands Nike’s direct-to-consumer strategy. She also made sure to disclose all relevant information about her son’s company when asked to do so in 2018. Her son also did say that he never received anything from his mother for his business.
What type of effect do these conflicts of interest have on company work? How should they be dealt with?
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This can cause the company head to make decisions to make more money and influencing what shoes get released based on personal reasons. I also believe that the company should do some internal investigation to make sure it won’t happen again. Also introduce new policies and be more aware that this is a possibility.