...how the whole Nike incident began and how it ended. It made me feel sorry for the Nike Corporation at first but when all the details unfolded I started to look at the situation in a totally different light. Jonah Paretti started off the case by trying to order a pair of customized Nikes that he wanted to order from Nike id. What he wanted on the shoe is the word "sweatshop." Nike ultimately denied his request because it represented inappropriate slang. He replied to the Nike Corporation by saying he wanted to put a picture of the 10 year old Vietnamese girl who makes his shoes on the shoe. Paretti never received a response. Before Nike could blink an eye the situation turned into a public affair that would get many colleges and Universities involved. By now the Nike product has become synonymous with slave wages, forced overtime, and arbitrary abuse. An even celebrity like Kathy Lee Gifford was shocked when she found out her clothing line was participating in sweatshops to produce these clothes. Whether or not these accusations were true the turmoil with Nike and their usage of sweat shops for the production of their shoes had begun. Nike was founded by Philip Knight in1964. By 1980, eight years after the company was founded Nike became the largest athletic shoe company in the world. Nike’s factories are located countries such as Indonesia, Vietnam, China, and Thailand were the labor cost were significantly less than those in the United States. Nike was also accused...
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...I Corporation Background and History Nike was founded on January 25, 1964 (O'Reilly, 2014) as Blue Ribbon sports by Bill Bowerman and Phil Knight. The company officially became NIKE on May 30, 1971. The name Nike comes from the Greek Goddess of Victory. Nike Currently has a net worth of 86 billion dollars. (Forbes, 2015) Currently Nikes trades were sharing at 124 dollars each on the stock market. II. Description of CSR Issue Nike has contracts with about 700 sweat shops throughout the world. (Nike, INC., 2007-2009) In 58% of Indonesian sweatshops their worker are between the ages of 20 and 24. 83% of these employees are females. (Nike, INC., 2007-2009) III. Organizational Stakeholder Impact A. Help prioritize key issues and develop procedures (Nike, INC, n.d.) B. Must engage to avoid issues again from the 90’s (Nike, INC, n.d.) IV. Societal Stakeholder Impact A. Reviews report for transparency (Nike, INC, n.d.) B. Had most recent report re worked to seek more candidly about lessons learned from both successes and failures (Nike, INC, n.d.) V. Current Status of Corporation Nike pays 25 million annually to implements and follow Corporate Social Responsibility. (Arias, 2010) However, Nike refused to pay 2.2 million dollars to Honduran workers in severance (Arias, 2010) when two subcontractors closed down their facilities. Years later they agreed to pay 1.54 Million dollars to help these workers. VI. Strategic CSR Nike agrees that innovation through the...
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...Running head: Nike: A SWEATSHOP DEBATE Nike: A Sweatshop Debate University of Phoenix MGT/448 Instructor J. Ryan April 17, 2012 Nike: A sweatshop debate. Nike, a multi-billion dollar corporation, is the world’s primary supplier of athletic shoes and attire. Over the past several years, Nike has been involved in much controversy over its possible sweatshops. The following will address the legal, cultural, ethical, strategic and operational challenges Nike faces because of this controversy, as well as their roles in resolving this issue. Legal, Cultural, and Ethical Challenges Even though Nike may subcontract its companies to foreign countries, it is still Nike’s responsibility to ensure the manufacturing sites are operated with integrity. With all of the negative press, and investigations that took place to prove Nike was guilty of running sweat shops, Nike had to take corrective actions overseas and consider the effect the negative press had on its financial stand as well the effect it had from an ethical point of view. They developed a code of conduct and terminated contracts with suppliers who did not comply. According to Hill (2009, p 154), Nike has “signaled a commitment to improving working conditions. It requires that foreign subcontractors meet minimum thresholds for working conditions and pay. It has arranged for factories to be examined by independent auditors.” Nike has also created minimum age requirements for factory workers as well as enforcing OSHA...
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...LAKE UNIVERSITY David R Hurtado | NIKE IN SOUTHEAST ASIA | | Nike in Southeast Asia Is it ethical for a company to move its manufacturing jobs from country to country looking for the best price to pay for its product? Can Nike afford to ignore the five forces outlined by Harvard University professor Michael Porter? No they can’t! If they do, they will end up like all those before them that have, closed! Before we take a look at why Nike is such a “Bad Guy,” let’s take a look at the American worker. For many decades now, they have been complaining about the loss of jobs and the lack thereof and blame large corporations for this. The fact of the matter is, the American worker has been pricing themselves right out of the job market for decades now. Nike is doing nothing different than its consumers do when they go from store to store or website to website trying to find the very best deal that they can. Why does the consumer act in this manner? Well I can tell you for me it is to keep as much of my money in my pocket at the same time getting what I want from the store. So why it is then, when corporations like Nike moves its jobs around the world trying to get the best price it can, get chastised for the very behavior that we as consumers partake in every day? I am not too sure of this but it might be because of our self-righteous-judgmental nature. The truth is Nike doesn’t employ the people in these so called sweat shops in Southeast Asia but merely buys product...
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...Introduction Working conditions vary all over the world. Some countries have strict rules on the conditions that people can work in and other countries have limited to no rules on the working conditions of people. The difference in working conditions has caused people to form groups to make standards for every country. These groups are fighting against sweatshops and fighting for labor right on behaves of the poor. A couple of the larger groups are, The Institute for Global Labour and Human Rights, The International Labor Rights Forum formally non-as the National Labor Committee. While there are people fighting against sweatshops, there are also people fighting for sweatshops and educating people on the impact that they have in the communities and in the countries. So what is a sweatshop? According to Global Exchange (2015) sweatshops can defined in many different ways: “The US Department of Labor, a sweatshop is any factory that violates more than one of the fundamental US labor laws, which include paying a minimum wage and keeping a time card, paying overtime, and paying on time. The Union of Needle trades Industrial and Textile Employees (UNITE), the US garment workers union, says any factory that does not respect workers’ right to organize an independent union is a sweatshop. Global Exchange and other corporate accountability groups in the anti-sweatshop movement would add to this definition any factory that does not pay its workers a living wage—that is, a wage that...
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...Nike doing business in Indonesia Firm Profile Indonesia is a difficult entrant country environment for corporations to do business in which have constraints like: child labor, low wages, mandatory overtime, and education. Low wages are beneficial for Nike; on the same token the constraints like child labor, unfair work conditions, and mandatory overtime can harm the world renowned brands repetition. The media has painted negative picture of Nike, because productivity of shoes and other athletic apparel comes with the cost of unethical work conditions and labor practices. Arguments have been made that the effort of Nike outsourcing it’s manufacturing to factories in Indonesia, is the wrong choice. Furthermore, Nike has a social responsibility to maintain a satisfactory standard in the facilities where its products are manufactured. Condoning mandatory overtime is unethical. Importance should be placed on upholding the dignity of its workers. We will determine if doing business in Indonesia is a decision that Nike should maintain, due to the negative back lash that they receive in the United States from the Media. Along with indicating what is the best strategy should be applied for doing business in Indonesia. Operation The name Nike is the Greek goddess of victory (Ballinger, 1997) .Nike Corporation was originated by Phillip Knight an athlete from Beaverton Oregon. Knight in his beginning started importing shoes from Japan in efforts to compete with athletic companies...
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...Multi-National Companies (MNC's) have toward human rights ZHOU QING Herzing University The responsibility Multi-National Companies (MNC's) have toward human rights The development of the world economy as a major driving force of globalization multinational companies, in particular, play an active role in the development of the economic development of the host country has been widely recognized by the international community, the role of multinational corporations on the economy to improve the enjoyment of human rights conditions has become the consensus of the people. However, the negative impact of the activities of transnational corporations or work for human rights has often been overlooked. In the 1950s and 1970s, the United Fruit Company and the American Telephone and Telegraph Company, involved in the overthrow of the democratically elected government of Guatemala and Chile scandal was revealed, causing the international community, especially the developing countries concerned about the activities of transnational corporations, and led to the development of countries expand movement multinationals nationalization. In addition, multinational companies are still developing countries, a large scale in grab natural resources, and corrosion of the activities of the government of the nation-state. In order to chase profits in global multinational companies also often in partnership with repressive governments engaged in large-scale violations of human rights activists, or the implementation...
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...Emily Newsom ECON627 – Article Review The Future of Globalization Globalization is the process by which nations become increasingly integrated. This is occurring primarily due to advances in technology that have enabled people, goods, money, data and ideas to travel the world much faster than before; and the reduction of trade and economic barriers, which has greatly increased trade between countries. In recent years, globalization has become a hot topic, one that has been associated with trends such as the following: • The rise and expansion of multinational corporations with business interests and employees in several countries, including McDonald’s, Coca-Cola, Toyota, Sony, IBM, Unilever, Nike and Shell. • The emergence of global financial markets in centers such as New York, London, Frankfurt and Hong Kong, providing businesses around the world with easier access to financing. • Greater levels of immigration, changing the ethnic, cultural and religious composition of several countries and leading to the establishment of multicultural societies. • The erosion of trade barriers between groups of nations, leading to the emergence of powerful trading blocs, with names such as NAFTA (the North American Free Trade Agreement), the European Union and the ASEAN (Association of Southeast Asian Nations). Globalization is not new. Historically, people have left their surroundings and traveled to distant lands for four main reasons: conquest (the desire to control other countries);...
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...Adam Michel Professor Kofler English 1120 7 March 2015 Social Injustice: Sweatshops If an unfair conflict was developing right in front of you, would you go out of your way to do something to stop it? What if it would be to your benefit to stay uninvolved? Many people would say yes, but would they believe strongly enough to continue to fight for what is right? In the mid 1990’s and early 2000’s, several warehouse abuse scandals tainted the reputation of large companies such as Shell, Wal-Mart, and Nike. Cases of employee abuse in factories and sweatshops in Asia and Africa have raised awareness of human rights violations and have inspired people all around the world to continue to fight together to end human rights violations. One case of human rights violations occurred at a Shell oil facility in Nigeria. “Shell is different from other oil companies because it stations its facilities in Nigeria, rather than in the United States, where the company was founded” (Kaeb, 324). By doing this, the company has a higher risk of human rights violation incidents because the distance makes it much harder to monitor what goes on in Nigerian factories and refineries. When the American public gained knowledge of employee abuse in Shell facilities in Nigeria, Shell responded saying that employee abuse is not simply an issue of cruelty within the company, but rather “within a nexus of corruption, poverty, poor public services and infrastructure, government instability, and other factors...
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...phenomenon that employees suffer a bad working condition but only get a little wage still exists. In current world situation, companies and industries are becoming increasingly globalized, then both benefits and problems can appear, moving factories to developing nations is due to it. That firms move factories to developing nations is a win-win event, which can not only bring firms a higher profit but also help poor countries develop many-sided abilities and ease job problems, while a deficiency that cannot be ignored is the poor conditions and low wages majority corporations provide to their cheap labor, and it may affect a harmonious and benignant cooperation. First of all, this report will reveal the worldwide financial situation and describe the background information of typical developed and developing countries, studying the relationship between these and factories’ moving, and then take Boeing company and Nike company as examples to clarify the benefits that both foreign firms and low-cost countries could get from the plant relocation and point out the shortcomings about workers’ treatment, such as the company systems that aim at labor and the working conditions that are provided to workers. Finally, it will put forward some possible...
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...MQM 385 Summer 2008 Under Armour Strategic Analysis Team 2: Paul Huston. Ryan Marchand. Eric Webster. Rachel Eberle. Irén Ganèva. Lamar Wooley. Margaret Kobel. Table of Contents Executive Summary ___________________________________________________________2 External Analysis _____________________________________________________________3 Value Chain…………..…………………………………………………………………….3 Key Success Factors ……………………………………………………………………...7 Porter’s 5 Forces ……………...……………………………………………...…………..9 External Analysis Conclusion …………………………………………………………...12 Opportunities in the environment …………………………………………….....12 Threats from the environment …………………………………………………...14 Internal Analysis_____________________________________________________________16 Financials & Cash Flow Analysis ………………………………………………………16 Cash Position ……………………………………………………………………16 Financial Indicators ……………………………………………………………..16 Cash Flow ……………………………………………………………………….16 Internal Analysis Conclusions …………………………………………………….…….17 Strengths ………………………………………………………………………...17 Weaknesses ……………………………………………………………………..17 Competitive Strategies ________________________________________________________19 Current Corporate Strategy ….………………………………………………………..19 Integration position ……………………………………………………………...20 Diversification position …………………………………………………………21 Current Business Strategy ….…………………………………………………………23 Product positioning ………………………………………...………...…………23 Current Functional Strategy …….…...
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...evaluation of the role of the Internet on the fashion industry as well as comparing and contrasting the e-marketing mix strategies of two competing e-businesses Nike Inc and Sass & Bide. Firstly, the report will critically analysis the roles of the Internet on the Fashion Industry. Secondly, the report will highlight ways in which the Internet has significantly changed the way the Fashion industry operates. Thirdly, the report will analysis and compare the product mix strategies of both Nike and Sass & Bide. Fourthly, the report will analysis and compare the price mix strategies of both Nike and Sass & Bide. Fifthly, the report will analysis and compare the promotion mix strategies of both Nike and Sass & Bide. Sixthly, the report will analysis and compare the place mix strategies of both Nike and Sass & Bide. Seventhly, the report will summarise the key findings from the analysis of Nike and Sass & Bide. Lastly, the report will outline whether superior marketing mix strategies are found in either Nike or Sass & Bide. * The report is successful in highlighting the varied roles the Internet has within the Fashion industry and how it has significantly changed the way the industry operates. * The report demonstrates differences between the e-marketing mix strategies of Nike and Sass & Bide that allow each business to have success, profitability and growth * The report allows for an interesting critical analysis to be revealed...
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...10 November 2013 Contents Section Page 1 Introduction 3 2 Definition of Corporate Social Responsibility 3 2.1 Carroll’s pyramid of CSR 3 2.2 Theoretical clusters 4 2.2.1 Instrumental theories 4 2.2.2 Integrative/Political theories 4 2.2.3 Ethical Theories 4 3 Implementation of CSR 5 4 The Body Shop: core purpose 5 5 Balancing act 6 6 Heightened awareness 6 7 Cost Implications 7 8 New Look: Stakeholder’s conflict 8 9 Challenges 8 9.1 Increased responsibility 8 9.2 Daily implementation challenges 8 10 Recommendations 9 11 Conclusion 10 12 Appendix one: The Body Shop 12 13 Appendix two: New Look 14 14 Appendix three: Carroll’s Pyramid 17 15 Appendix four: Schwartz and Caroll Venn diagram 18 16 Appendix five: Ethical Trading Initiative 20 17 Bibliography 21-24 1. Introduction This report identifies the key challenges faced by organisations with a global supply chain in implementing Corporate Social Responsibility (CSR) policies. The Body Shop (appendix 1) and New Look (appendix 2) are UK based companies, with a global trading presence and both depend on a global supply chain for the purchase of their products. In 2013 both companies remain committed to CSR and ethical trading. These companies have been chosen to demonstrate the differences between implementing CSR at start-up stage, and the challenges faced...
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...share in China – Li Ning. It is worth noting that Nike does not have a Chinese online website store to facilitate customers to come online and learn/buy Nike’s products. b. Price sensitivity – Developing markets are generally price sensitive markets. Nike’s premium and high quality brand image doesn’t sync with the expectations of the customer. In other words, the differentiation strategy might not bring as good results as it had brought in the USA. 3. Significant reliance on IT and sophistication in managing supply chains. Nike is heavily dependent on information technology systems across our supply chain, including product design, production, forecasting, ordering, manufacturing, transportation, sales, and distribution. Nike’s ability to effectively manage and maintain our because the product design and innovation forms the backbone of the company. Nike success 1. The key reasons for the success of Nike are associated with its global brand promotion. Due to its extensive advertising campaigns the Nike’s brand is known in almost every household worldwide. 2. Nike (now, called the unofficial sponsor!) has generated the most buzz online in the lead up to the World Cup. Much greater than Adidas, it’s arch-rival and official sponsor. Coca Cola, Sony, Visa and other FIFA partners are lagging far behind. 3. Nike shoes and other accessories have also become the favorite fashion products for teenagers. 4. Nike is known around the world for being one of the iconic...
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...Ethical Issues Affecting Each Component of the Marketing Mix Ethical issues in businesses among other related issues like conflicts or success revolves around relationships. In today’s business world, it has become inevitable to built strong and effectives between all the key players in businesses (Carroll et al 403). The board of directors in every business has the mandate of giving direction and oversight making sure that the business does not stray from its course and remains relevant in achieving its objectives in a socially acceptable, legally acceptable and ethical manner. In many instances of unethical business conduct, there exists a certain degree of compliancy and knowing corporation which acts to perpetuate the acceptance of such conduct. Importantly, most ethical issues come into existence due to conflicts in belief patterns and value conflicts regarding what is wrong or what is right. This occurs because ethical standards are a derivative of deeply-rooted personal believes and societal morals which may not be universally agreed upon. The elements of the marketing mix are important aspects of the business which can be evaluated in the light of ethical issues. Marketing mix encompasses all the major areas of decision making affecting the marketing process and when carefully blended, desirable results for the organization are obtained. As marketing managers make decisions about the overall process of marketing, they have to consider the specific elements...
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