...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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...Nike: The Sweatshop Debate Summary: Nike is one of the foremost marketers of athletic shoes and apparel on the world. It established in 1972 with a handshake between two visionary Oregonians-Bowerman and his university runner Phil knight. It has annual revenue of $10 billion and it sells in total 140 countries. Nike does not do any manufacturing process only it designs and markets its products. It has 600 factories around the world that employ some 550,000 people. Nike is recognizable for its “swoosh” logo or the faces of its celebrate. Nike being one of the largest sportswear manufacturers, they don’t have any factories of their own but they manufacture through the subcontractors. Here lies the accusation that Nike’s subcontractors manufacture the shoes and the other products in sweatshops. This accusation though denied by the management of the Nike inc, however was seen by a report titled “48 hours” by Roberta Baskin. Besides this many other human right organizations like the global exchange and many others published their reports against the Nike incorporation. In response to these accusations Nike took many steps that included appointing a work assessment officer named Andrew Young, a former US ambassador to the UN, and also taking steps against their subcontractors who don’t follow the child labor laws. On March 1998, Phil Knight in a conference declared their initiatives regarding to improve working conditions for the 500,000 people that make products for Nike through...
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...Study: “Nike: The Sweatshop Debate” Global Business Strategies - MGT 448 Introduction This document will explain the difficulties in the legal, social, as well as ethical area which the Nike Corporation had encountered because of carrying out international business in Vietnam government. This document prosecutes the strategically as well as operational problems which make part of Nike and equally demonstrates the part of Nike in the scandal of the operation plant and the moral problems which surround this sensitive case. Nike has encountered a lot of legal, social as well as moral problems above of when the example of the plant of the operation was encountered. “Nike is a global corporation that was established back in 1972 by the preceding University of Oregon track star Phil Knight, (Hill, 2009).” Nike is among the key sellers of tennis shoes and garments at low prices. The organization has more than $10 billion in annual incomes and sells its items in over a hundred and forty countries throughout the world. Nike is not associated with any one of its proper manufacturer. Nike doesn't get involved in their own production process. Nike designs and creates their own marketing plans. They also produce to more than six hundred international plants throughout the world. As per (Hill, 2009) by using these types of producers Nike is hiring 550,000. With regards to the legal repercussions this organization is experiencing include the rumor of operating sweatshops in which...
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...Nike Corporation is one of the largest marketers of athletic apparel and sportswear equipment in the world and was founded in Beaverton, Oregon, in 1964 by Phil Knight and Bill Bowerman. According to Nike.com (2009) it had record earnings of 19.2 billion dollars and continues to grow at a steady pace. Nike sold its products in a 140 countries and successfully discovered that manufacturing its products was not the only method to successfully produce the results it was looking for but instead marketing and designing its products and contracting the manufacturing out to global factories 600 throughout the country. With the company’s success come painful lessons learned along the way. This paper will describe the legal, cultural, and ethical challenges that Nike Corporation faced as a result of its global business ventures. In addition, it will touch on the roles the host governments played in manufacturing Nike’s products and will summarize the strategic and operational challenges that Nike Managers face in dealing with the interworking of global business. Nike as well as other global companies in the industry has the option to manufacture their products domestically or internationally in either situation there are challenges. If a company chose to the domestic approach it could potentially be more expensive, however, the organization and its manufacturing facility contractors would have to adhere to U.S. labor and safety laws in the areas of wages, code of conduct, working...
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...Case Study "Nike: The Sweatshop Debate" Sarah Martin MGT 448 July 27, 2011 Kenneth Peter Case Study "Nike: The Sweatshop Debate" “We’ve run the course – from establishing codes of conduct and pulling together an internal team to enforce it, to working external bodies to monitor factories and engaging with stakeholders” (Nikebiz, para. 2). The creation of this code of conduct came after serious allegations of using sweatshops with women and children working in hazardous conditions for less than minimum wage in overseas factories scattered across the globe to make their product. This paper uses the case study entitled, “Nike: The Sweatshop Debate,” to describe the legal, cultural, and ethical challenges that confront Nike’s global business. This paper will also determine the various roles that host governments have played as well as summarize the strategic and operational challenges that face global management for the Nike Corporation. Bill Bowerman, a track and field coach at the University of Oregon, and Phil Knight, a talented middle-distance runner from Portland, “shook hands to form Blue Ribbon Sports, pledged $500 each, and placed their first order of 300 pairs of shoes in January 1964” (Nikebiz, para. 1). In 1965, they hired their first employee, Jeff Johnson, to manage the growing requirements. In 1971, he conjured up the name Nike. According to the case study, the profits and success that the Nike Corporation has gained has affected hundreds of thousands of workers...
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...CASE ANALYSIS NIKE THE SWEATSHOP DEBATE Summary of the Facts Nike was established in 1972 by former University of Oregon track star Phil Knight. ... Nike has $10 billion in annual revenues and sells its products in 140 countries. ... Nike has been dogged for more than a decade by repeated accusations that its products are made in sweatshops where workers, many of them children, slave away in hazardous conditions for less than subsistence wages. ... Many reporters, TV shows, companies and organizations have repeatedly exposed negative comments towards Nike. For example, a “48 Hours” news report aired on October 17, 1996 regarding a Nike factory in Vietnam, which was visited by reporter Roberta Baskin. The reporter discovered that Nike hired millions of workers who are literate, disciplined, and desperate for jobs at wages lower than minimum wage. Another example of the criticism against Nike came from a newsletter published by Global Exchange. The newsletter uncovered that the majority of Nike shoes were made in Indonesia and China, countries with governments that prohibit independent unions and set the minimum wage at rock Nike: The Sweatshop Debate The purpose and intent of this paper is to describe the legal, cultural, and ethical challenges that face the Nike Corporation in their global business ventures. This paper will also touch on the roles of the host government and countries where Nike manufactures their products and the author will summarize the strategic and operational...
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...CASE ANALYSIS NIKE THE SWEATSHOP DEBATE Summary of the Facts Nike was established in 1972 by former University of Oregon track star Phil Knight. ... Nike has $10 billion in annual revenues and sells its products in 140 countries. ... Nike has been dogged for more than a decade by repeated accusations that its products are made in sweatshops where workers, many of them children, slave away in hazardous conditions for less than subsistence wages. ... Many reporters, TV shows, companies and organizations have repeatedly exposed negative comments towards Nike. For example, a “48 Hours” news report aired on October 17, 1996 regarding a Nike factory in Vietnam, which was visited by reporter Roberta Baskin. The reporter discovered that Nike hired millions of workers who are literate, disciplined, and desperate for jobs at wages lower than minimum wage. Another example of the criticism against Nike came from a newsletter published by Global Exchange. The newsletter uncovered that the majority of Nike shoes were made in Indonesia and China, countries with governments that prohibit independent unions and set the minimum wage at rock Nike: The Sweatshop Debate The purpose and intent of this paper is to describe the legal, cultural, and ethical challenges that face the Nike Corporation in their global business ventures. This paper will also touch on the roles of the host government and countries where Nike manufactures their products and the author will summarize the strategic and operational...
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...“Nike: The Sweatshop Debate” Daryl Williams MGT/448 June 28, 2015 Timothy Mills “Nike: The Sweatshop Debate” – Introduction When you think Nike the only thing that comes to mind is Michael Jordan. One of many sports hero's that changes the world and how we feel about the product they represent. What is not mentioned is how this product are created. Imagine, a pair of the limited addition Air Jordan can cost anywhere between $140.00 to over $200.00. The price to make the shoe include material less than half. Sound like a great business practice but it has been an ongoing debate that requires business owners to rethink the way they conduct business. This paper will highlight the "Nike: The Sweatshop Debate," covering but, not limited to describing the legal, cultural, and ethical challenges that confront the global business. Defining the various roles host governments played and operational challenges facing global managers. Nike has been under fire since “Nike was a CBS-TV 48 Hours news report that aired October 17, 1996” (Hill, 2013). The report details the internal operation of how the mega-corporation created a product for cheap labor. Working six days for $40.00 a month, one can clearly make an assumption that this does not seem fair. To add insult to an already growing concern the United Students Against Sweatshops (USAS) made its case informing all that "the Fair Labor Association (FLA), which grew out of the...
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...Offei MGT/448 Global Business Strategies Case Study Nike: The Sweatshop Debate July 5, 2012 Professor, Marc Mosko Nike, the sweatshop debate Nike Inc. was started by Bill Bowerman and Phil Knight, who met each other in 1957 Before going into business, Knight became a certified public Accountant (CPA) the original Nike Inc. was founded in 1964 by Phil Knight and his friend Bill Bowerman with a collective investment of 1000 to fund the business tries (Nike repository, 2010) The company began with Bill and Phil being local distributors for the Onitsuka Tiger footwear brand now own by Asics footwear, Bill and Phil did business out of their cars at local track meet and sporting event to athletes in the vicinity of the University of Oregon, the first sport retail store open in California in 1966 as where the company profit began to grow they realized that their financial limits imposed by Onitsuka Tiger would limited their long team profits (Nike repository, 2010) This paper will describe the legal culture ,and ethical challenge that confront the global business as personated on the case study, in addition the paper will determine the various roles that the host government played in global business operation .at the end it will summarize the strategic and operational challenges facing global managers illustration in Nike organization Global business doesn’t come without challenges Nike organization plan to become a global body and that...
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...Nike Global Business and Challenges Once a company, like Nike, decides to become a global entity, it will often experience an increase in profitability. Unfortunately, companies like Nike must overcome some difficult obstacles before establishing a successful business in a foreign country. Some of the issues of concern are child labor laws, wages, and outsourcing’s effect on sales. Because of this, most widely known companies have presented various cases to defend their positions on conducting business in the foreign country. One such example is a Nike sweatshop labor case that stirred up a large amount of controversy over ethical business practices. Even though Nike has attempted to recover from the bad press it received about the sweatshops, it still struggles to defeat the negative feelings from people across the United States. Thus, a summary of the case, the legal, cultural and ethical challenges, an understanding of the roles the host governments play, and the strategic and operational challenges faced are important to gain a thorough understanding of the issues and case. Most people could easily define Nike and are familiar with the products offered, like the customized options available in the Nike store online, Nike Sportswear, Nike Women, Nike Basketball, and Nike Football. These products, among others, have led Nike to a profit of $15 billion in 2006 and a catchy “Just Do It!” slogan (Hill, 2009). The company outsourced its manufacturing plants to several...
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...Research Documents The Research Paper Factory Join Search Browse Saved Papers Home Page » Business and Management Nike: the Sweatshop Debate In: Business and Management Nike: the Sweatshop Debate Nike: The Sweatshop Debate Summary: Nike is one of the foremost marketers of athletic shoes and apparel on the world. It established in 1972 with a handshake between two visionary Oregonians-Bowerman and his university runner Phil knight. It has annual revenue of $10 billion and it sells in total 140 countries. Nike does not do any manufacturing process only it designs and markets its products. It has 600 factories around the world that employ some 550,000 people. Nike is recognizable for its “swoosh” logo or the faces of its celebrate. Nike being one of the largest sportswear manufacturers, they don’t have any factories of their own but they manufacture through the subcontractors. Here lies the accusation that Nike’s subcontractors manufacture the shoes and the other products in sweatshops. This accusation though denied by the management of the Nike inc, however was seen by a report titled “48 hours” by Roberta Baskin. Besides this many other human right organizations like the global exchange and many others published their reports against the Nike incorporation. In response to these accusations Nike took many steps that included appointing a work assessment officer named Andrew Young, a former US ambassador to the UN, and also taking steps against...
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... Case Study The Nike Firm is definitely the world’s leading company of athletic shoes and clothing. The company got its name from the Greek goddess of victory, and has achieved its reputation of becoming victorious within the sports niche for more than a decade. Nike has accumulated skyrocketing manufacturing numbers via independently hiring companies beyond the United States to manufacture. “Nike sold about 280 million sneakers, cross-trainers and running shoes last year. Doubling manufacturing workers' wages in China would cost Nike, which last year had revenues of almost $14 billion a year” (Dreier, 2007) Millions of people throughout the world have been in awe with the success of this organization. An incredible number of Americans have purchased merchandise produced by Nike. Nike provides a quality brand name that's supported by super stars and sports athletes; however millions of people are not aware exactly how Nikes involvement with outsourcing to third world nations has created great debate with labor unions, and more importantly employees within these countries.” Today’s global economy is characterized by rapid and at times wrenching changes, driven by competition, new technologies, and a continuing search for cheaper resources and markets” (Thinking Critically, 2008). Nike must bear in mind that together with the importance of manufacturing and supply of products and services they are really however dealing with individuals and institutions. Nike has processing plants...
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...Nike - Social and Ethical Issues http://www.writework.com/essay/nike-social-and-ethical-issues Nike has become one of those global companies targeted by a broad range of campaigning pressure groups and journalists as a symbolic representation of the business in society. In Nikes case, the issues are those of human rights and conditions for workers in factories in developing countries. In the face of constant accusations, Nike has developed a considered response but the criticism of Nike still continues. Nike produces footwear, clothing, equipment and accessory products for the sports and athletic market. It is the largest seller of such garments in the world. It sells to approximately 19,000 retail accounts in the US, and then in approximately 140 countries around the world. Just about all of its products are manufactured by independent contractors with footwear products in particular being manufactured in developing countries. The company manufactures in China, Taiwan, Korea, and Mexico as well as in the US and in Italy. The Global Alliance report on the factories in Indonesia gave the following workforce profile: 58% of them are young adults between 20 and 24 years old, and 83% are women. Few have work-related skills when they arrive at the factory. Nike has around 700 contract factories, within which around 20% of the workers are creating Nike products. Conditions for these workers have been a source of heated debate, with allegations made by campaigns of poor conditions...
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...markets for Nike. They are my sponsor. Nike Inc. produces footwear, clothing, equipment and accessory products for the sports and athletic market. It is the largest seller of sports garments in the world. It sells to approximately 19,000 retail accounts in the US, and then in approximately 140 countries around the world. Just about all of its products are manufactured by independent contractors with footwear products in particular being manufactured in developing countries. Nike developed a strong working relationship with Japanese shoe manufacturers, but Nike moved on to other countries seeking after alternative, lower-cost producers. Today the company manufactures in China, Taiwan, Korea, Pakistan, Vietnam, Indonesia, and Mexico as well as in the US and in Italy. Nike has around 700 contract factories, within which around 20% of the workers are creating Nike products. Conditions for these workers have been a source of heated debate, with allegations made by campaigns of poor conditions, with commonplace harassment and abuse. As its founder and Chief Executive Officer, Phil Knight lamented in a May 1998 speech to the National Press Club, “the Nike product has become synonymous with slave wages, forced overtime, and arbitrary abuse.”(HBS Case # 9-700-047) “Hitting the Wall: Nike and International Labor Practices,” HBS Case # 9-700-047 Problem Statement Is Nike doing just enough to clear bad publicity or are they really fixing their factory issues? How can Nike work toward...
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...Introduction Nike is the world leading manufacturer of athletic shoes, apparel and equipment. Nike is one of the most popular companies all over the globe. Nike also experienced some problems that affect their companies, which are usually experienced even in other companies. As one of the biggest brands in the business, Nike became the center of the eyes of people across the United States, because of the criticism about the sweatshop labor case. Facing this kind of criticism, Nike tried to cover the malicious issue from the bad press, but they cannot defeat the negative feelings from the people. Nike also faced majority challenge involving ethical issues and debates. One of the ethical issues involved “Nike did not pay the living wage of every worker and more than half of the workers who did not wear protective masks or gloves who dealt with dangerous chemicals”. The debate was over the unsafe conditions that Nike was the responsible of providing all the needs of its factory workers while them increasing their profits. Nike also criticized for hiring children who were not allowed to work and forcing them to work overtime for below minimal pay. They failed to follow the labor child laws by hiring children as young as 13 and paying them at 10 cents an hour up to 17 hours. They hired firm to monitor and to ensure accurate accounting reports. Nike faces several challenges; however, it can achieve continual success by applying effective operational and strategic plan. Despite...
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