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Q2. Talking about Nike contracting with factories, known as “sweatshops”, which is the worst inhumane form of workshop in East Asian context, across developing countries in Asia since 1990s, what is stunning is the recurrent of such saga. Sources of criticism ranging from publications (Naomi Klein’s book “No Logo”) to international broadcasted documentaries (by Michael Moore, and by BBC), and news agency articles (Associated Press) and numerous academic research. The BBC documentary and the AP article were published as recent as in 2011. Though Nike took swift action against each crisis and claimed to curb the practices following each uncovered occurrence, people are in doubt of its social conscience. The Manager’s Notebook is quite right quoting Nike’s founder Phil Knight acknowledging that the “Nike products has become synonymous with slave wages, forced overtime, and arbitrary abuse.”
Does the violation of human rights cost Nike’s reputation in an increasingly globalized market? Certainly it does though it does not show in its revenue. Do not take the harsh criticism from the media against “Nike sweatshops” and anti-globalization campaigns rallied by concern groups lightly. The recurrent reports of uncovered stories shows that Nike is being watched by an international market. Just because the Nike kingdom is growing swiftly in the context of consumerism and overconsumption, enlisted one of the Fortune 500 companies with a revenue up to US$24.1 billion (as at May 31, 2012) does not imply that revenue says it all. Riding on the tide of growth fetish (Hamilton, 2003), Nike would examine if contracting “Nike sweatshops” has become a way of life at the firm. If unethical behavior becoming a norm at Nike, it can risk the Oregon based firm all that it has like the scandals at Enron, Worldcom, Tyco, and Global Crossings and many others.
In addition,

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