...University of Phoenix Material Nike: The Sweatshop Debate Nike is in many ways the quintessential global corporation. Established in 1972 by former University of Oregon track star Phil Knight, Nike is now one of the leading marketers of athletic shoes and apparel on the planet. Today the company has $20 billion in annual revenues and sells its products in some 140 countries. Nike does not do any manufacturing. Rather, it designs and markets its products, while contracting for their manufacture from a global network of 600 factories scattered around the globe that employ some 650,000 people.1 This huge corporation has made Knight into one of the richest people in America. Nike’s marketing phrase, “Just Do It!” has become as recognizable in popular culture as its “swoosh” logo or the faces of its celebrity sponsors, such as Michael Jordan and Tiger Woods. For all of its successes, the company was dogged for more than a decade by repeated and persistent accusations that its products were made in “sweatshops” where workers, many of them children, slaved away in hazardous conditions for below-subsistence wages. Nike’s wealth, its detractors claimed, was built upon the backs of the world’s poor. For many, Nike had become a symbol of the evils of globalization—a rich Western corporation exploiting the world’s poor to provide expensive shoes and apparel to the pampered consumers of the developed world. Niketown stores became standard targets for antiglobalization protesters. Several...
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...Nike footwear Nike footwear Supply chain analysis report Supply chain analysis report RMIT International University Vietnam Bachelor of Commerce Program Subject Code: | ACCT2118 | Subject Name: | INDUSTRY PROJECT | Location & Campus (SGS or HN) where you study: | RMIT Vietnam (Hanoi Campus) | Title of Assignment:(In the form of a question) | Intro to logistic – Nike – Group 2 | File(s) Submitted: | 1 | Team Name | Group 1 | Student names: | Nguyen Tuan Thanh – S3393110Tran Hai Dang - S3462793Bui Ngoc Phuong – S3462090Vo Hai Phuong – S3483004 | Lecturer and Group number: | Nguyen Manh Hung - Group 1 | Assignment due date: | 21 December 2014 | Date of Submission: | 21 December 2014 | Number of pages including this one: | 20 | Word Count: | 3298 | Assignment Cover Page Table of Contents Executive summary 1 I. Introduction 2 II. Function 4 1. Distribution 4 1.1 Task 4 1.2 Issue 5 2. Transportation 6 2.1 Task 6 2.2 Issue 7 3. Distribution 9 3.1 Task 9 3.2 Issue 12 III. Conclusions 14 IV. Appendix 14 V. Reference list 17 * Executive summary Nike is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and selling of athletic footwear. At the moment, Nikes bases its factory at three Asian countries: Vietnam, India and China. Because the distance from factories to distribution channels and warehouses is far, this makes distribution...
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...(Hitting the Wall: Nike and International Labor Practices ) Business Ethics (MBA-513) Section: 02 Case Summary Nike is global footwear for athletes and non-athletes. It is still a highly successful athletic shoemaker today. Based in Beaverton, Oregon, Nike had been a corporate success story for more than three decades. It was a sneaker company, but one armed with an inimitable attitude, phenomenal growth, and the apparent ability to dictate fashion trends to some of the world’s most influential consumers. Selling a combination of basic footwear and street-smart athleticism, Nike pushed its revenues from a 1972 level of $62,000 to a startling $49 million in just ten years. Many researchers believe that Nike went in decline due to two reasons: Michael Jordan’s final retirement and the slowing economy. Another aspect of Nike that has brought a negative image upon them is the negative accusations of exploiting foreign child labor with lower wage. Poor labor conditions and low wages have been an issue for many years, and are still present in 2011.In the 1980s and 1990s, Nike had been plagued by a series of labor incidents and public relations nightmares: underage workers in Indonesian plants, allegations of coerced overtime in China, dangerous working conditions in Vietnam. For a while, the stories had been largely confined to labor circles and activist publications, until a young female worker had died in a Nike contracting factory in 1997, the labor...
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...Identify a global organization with a multinational presence. *Nike Identify and research a cultural issue that affects this organization's interactions outside the United States. Define the issue and provide an overview of how became an issue in the organization. Prepare an analysis of the ethical and social responsibility issues your organization must deal with as a result of being global. Write a 1,050- to 1,400-word paper summarizing the results of the analysis. Include the following: • Identify ethical perspectives in the global organization. • Compare these perspectives across cultures involved in the organization. • Describe a viable solution for this issue that could be acceptable by all stakeholders. Introduction: The Nike Corporation In today’s economy, there are several corporation that use multinational tactics in order to make their business strive and successful. A great benefit of multinational corporations is that it helps create wealth and jobs around the world. These corporations also offer much needed foreign currency for developing economies. However, there are many disadvantages such as multinational companies have monopoly power which enables them to make excess profit and pushing local shops off the map. A global multinational company that is very recognized and popular around the world is The Nike Corporation. The Nike Corporation was originally known as Blue Ribbon Sports (BRS). It was founded in January 1964 by Philip Knight...
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...revenue. It sells in 140 countries. It only Sub Contracts. Employs 550,000 all around. Mission Statement “ Just Do It “ Accusations !! Products are made in Sweatshops. Many are Child Worker. Work in hazardous condition. Less than Subsistence Wages. Nike have become symbol of Evils of Globalization. Global Exchange – A Human Right Organization targeted Nike for repeated critisicm. Accusations !! The condition at foreign factories was at stake. Subcontractors were not matching minimum local labor laws. Long working hours. Working environment very poor. Minimum Wage rate very low. Safety & Security compliances not followed. Case Against Nike In search of cheap labor Nike looks factories as such in target countries where minimum wage level is not set. Targeting literate , disciplined and desperate job seekers. Mostly young women are hired. Labors don’t share Nike’s huge profit. They work 6 days a week for only $40 a month - just 20 cents an hour. Attack on Nike’s Sub Contracting Some factories were employing 11 years old labors in Indonesia for their sneakers. Wage as low as 14 cent per hour. In Indonesia , China and Vietnam where Nike has their subcontracts are those countries where government prohibits independent unions, and set the minimum wage level rock bottom. Attack Continues Indonesian government admits that the minimum wage do not ensure enough to supply the basic need of one person...
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...Wall: Nike and International Labor Practices 1. Does Jeff Ballinger have a convincing argument about Nike? Does Nike have a convincing response? There is no denying of the fact that Jeff Ballinger has a convincing argument about Nike. As he was assigned to run AAFLI office in Indonesia, he was very much inclined to investigate the labor practices and minimum wage compliance by overseas American companies. Moreover, Nike was in news at that time regarding its critical labor practices, so it became the only prominent target. Ballinger, during the course of his studies about the company and research about the labor practice, revealed that Nike encouraged its contractors to hit some unrealistic production quotas by mistreating the labors. It was also revealed that there were heavy traces of corruption which was degrading the law practices and there were hardly any prosecutions made. According to him, Indonesian workers were paid so low that it hardly fulfilled their basic necessities. The comparison between the pay stub of Indonesian factory and Michael Jordan endorsement contract was even harder hitting based on his technical calculations. According to his report, an average Indonesian worker would take 44,492 years to match the money made by Michael Jordan's one endorsement contract. Followed by the extreme media coverage on this, CBS found that Indonesian workers were only paid 19 cents an hour. Despite hiring Ernst & Young to carry on the audits in the factories, Nike could...
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...Nike: Sweatshops and Business Ethics (Adapted/summarised from original) By Charles Hill*, University of Washington Introduction: Nike is a global corporation, founded 1972, and now one of the leading marketers of athletic shoes and apparel. It has a turnover of $10bn and operates in some 140 countries. Nike does not manufacture anything. It focuses on design and marketing and contracts out (outsources) its manufacturing to some 600 factories worldwide, employing over half a million people. For over a decade, Nike has been dogged by bad publicity and persistent accusations that that its products are made in “sweatshops” where workers, many of them children, slave away in hazardous conditions for below subsistence wages. Nike’s wealth, its detractors claim, has been built on the backs of the world’s poor. To many, Nike is a symbol of the evils of globalisation. Nike has taken many steps to remedy the situation but admits there are still problems in overseas factories, despite laying down minimum standards of working conditions and pay, and having their standards independently audited. But the accusations, protests and bad press continue. The Case against Nike: In 1996 a CBS 48 Hours news reported from a factory near Ho Chi Min City (formerly Saigon, Vietnam) … The signs are everywhere of an American invasion in search of cheap labour. Millions of people who are literate, disciplined, are desperate for jobs. This is Niketown near what used to...
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...Running Head: Nike, Inc. Nike, Inc. Case Study Adelaide A. Odoteye FIN 586 – Dr. Cullers Fall 2006 The brand name “Nike” is one of the most readily recognized around the globe. The name is synonymous with high-quality athletic shoes, apparel, and accessories in the minds of many people worldwide. Perhaps it is the ubiquitous Nike “swoosh” and compelling marketing that commands attention. Or maybe it is the association between the brand name and its famous endorsers, such as Tiger Woods and Michael Jordan. Alternatively, it may be Nike’s cutting-edge sporting vision and technology that entrances multitudes of consumers. Quite conceivably, it is a combination of these factors that has propelled Nike to the top of its industry. However, not all of Nike’s story is ideal. In recent years, the company has faced criticism in connection with its use of contract labor in developing nations. The purpose of this case is to provide an understanding of the company’s background, its general business strategy, and its use of contract labor. The Athletic Apparel and Footwear Industry The athletic apparel and footwear industry experienced steady growth for more than two decades, beginning in the early 1980’s. For example, in the U.S.A. alone, consumer spending on athletic footwear increased by 10 percent during the first six months of 2005 (Quinn, 2006). Consumers were not just professional athletes, but ordinary men, women, and...
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...Nike, Inc. Nike History Nike is the leading supplier of athletic footwear and apparel and manufacturer in the world. Founded in 1962 by University of Oregen track athlete Philip Knight and his coach Bill Bowerman. Nike was first known as Blue Ribbon Sports and started out as a distributor for Japanese shoe maker Onitsuka Tiger, now known as ASICS. In 1971 the “Swoosh” was designed for $35.00 by Carolyn Davidson and the first shoe sold doning the swoosh and the name Nike was a soccer shoe. In 1972, Blue Ribbon Sports changed its name to Nike, Inc. after the winged greek goddess of victory. Later on in the 1970’s the company’s world headquarters were opened up un Beaverton, Oregon. (http://www.theshoegame.com/Nike-History-Timeline-Info.html) Nike- 1980s The company really took off and became well known all across the world in the 1980’s. The company started prodection of their footwear in 11 countries including China, Vietnam, and Indonesia. Famous shoes such as the “Nike Air” Air Force Ones and the Air Aces were introduced. Also in the 1980’s, the famous Nike slogan “Just Do It” came about. The slogan is still a major focal point in the companies advertising and marketing to this day. The success of the Nike took a huge turn in 1985 when the company signed a deal with the world’s greatest basketball player of all time, Michael Jordan. Jordan played a major role in how successful nike is today. The newly introduce “Air Jordan” became popular to basketball players worldwide...
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...Nike: The Sweatshop Debate Nike is a well-known global corporation. Recognized for its catchy “Just Do It!” slogan and the world-class athletes that represent the brand. Nike was established in 1972 by Phil Knight a former collegiate track star whom enthusiasm has lead the company to become the leading provider of athletic shoes and apparel in the world. Although, Nike is a multiple billion-dollar company they have faced several challenges in the way they conduct international business. Nike produces their products in factories all over the world. Many of these factories are located in the world’s poorest countries with low minimum wage standards and poor employee rights. Nike has been criticized for the selection of their factory locations; some people even refer to these outsourced places as “sweatshops.” This has caused legal, cultural and ethical challenges for Nike. Critics have protested that Nike has failed to follow the child labor laws in the countries they have entered, hiring under age children and making them work for long hours with little pay. For example a Korean subcontractor hired by Nike was hiring children as young as 13 years old, paying them 10 cents an hour and working them 17 hours a day. The countries that Nike subcontracts to such as the Vietnams, China and Indonesia are cultural poor. Most people are just happy to have a job and Nike is thought to have taken advantage of this fact. “Nike’s wealth, its detractors claimed, was built upon the backs...
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...Labor Practices Factory workers endure abuse on the job lacking a voice or ablility to do anything about it. Since Nike contracts out for their factory managers, it has been hard for Nike to regulate what goes on when they are not on their tour or walk through. “A Korean supervisor in a Vietnam factory was found guilty of beating 15 Vietnamese about the head with a shoe “upper”, and another Korean supervisor was charged with sexual molestation.” (Saporito 3) In this instance it was not an U.S. supervisor, nor was it a military officer but someone of a different nationality. The hard part is that there are no independent unions and meaningful corporate codes of conduct to discipline management. So workers must turn to the courts for help which is a long fought battle that no one wants to attempt. In one case that made it to, a Vietnamese court recently found a Korean supervisor guilty of beating workers and extradition may be sought for the accused sexual molester who fled. In Indonesia 24 discharged Nike workers are challenging the legality of their dismissal before the country’s Supreme Court (Saporito 3). These are major breakthroughs in the court systems to have someone tried and convicted in these distant countries whose courts are often corrupted. Factory conditions are consistently getting press here in the U.S., as many are angry with Nike for not providing for their overseas employees. The following account is of the conditions in a Chiniese factory: Twelve hour...
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...Nike What is Ethical Issue ? A problem or situation that requires a person or organization to choose between alternatives that must be as right (ethical) or wrong (unethical). History of Nike: . Start with 2 man trying to make good shoes . In 1964 Phil Knight and University of Oregon Track coach Billy found Blue Ribbon later name as Nike. . Nike Sport good in Japan and US. market. . In 1978 Nike become the world largest seller for Ethical goods. ETHICAL Problems: 1) Role of Government: The role of the government also plays a major role in these challenges that are faced by Nike. As we know that government laws and regulations are differ from country to country and this makes manufacturing of products very difficult challenge for the international companies like Nike. 2) Ethical Responsibility: The management of Nike should understand that why ethical responsibility is needed within the company because it is the organization’s management to make decisions and take actions that will grow and interest of the society and as well the organization. 3) Nike Labor issue in Pakistan: Nike has been accused of using child labour in the production of its soccer balls in Pakistan . GATT (General Agreement on Tariffs and Trade) and WTO (World Trade Organization) member nations, like the United States, against the importation of goods made by Children. Child labor exists in Sialkot both in the export sector and the domestic sector. This fact has been well documented and reported...
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...Nike Inc. Nike’s Unethical Business Practices Nike’s Unethical Business Practices Love those Nike shoes your wearing? Have you ever thought how they were made, who made them, and at what price they were made at? I bet you probably don’t. I bet that you see those Nike shoes at the store, and think to yourself, “oh I like those shoes, I have to have them,” and then buy them. What you don’t know is that those pair of shoes you just bought were probably made in a third world factory by employees who are probably working in harsh working conditions. These factories are not owned and operated by Nike, but contracted by Nike. Nike chooses to locate the majority of their production in such countries because of the abundance of cheap labor. Nike contracts factories around the world in effort to get the best product for the cheapest price made, without concern for contracted factory employee. Nike has not been concerned about what goes on in these factories only that the product is made, because Nike is not in the business for Human Rights, they’re in the business of athletic shoes sales. The Ethical Dilemma Nike has been accused with human rights violations. The charges that were made against Nike include the following: the use of child labor in factories, unsafe working conditions including exposure to toxic chemicals and the use of machinery without the proper safety precautions, pay below minimum wage and forced overtime hours. The contracted factories Nike uses to produce...
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...Study Frank Torres MGT/448 May 6, 2016 Professor Louise M. Lozada-Sorcia Nike must overturn problematic problems in order to establish a successful commerce in a foreign country. Some of the legal, cultural, and ethical challenges that confront Nike’s global business are child labor laws, wages, and outsourcings of manufacturing. Nike sweatshop labor case like those described in “Nike: The Sweatshop Debate” has agitated a large sum of controversy over business ethics. The first case illustrates how Nike has inadvertly managed to oversee that those companies they subcontract do not follow international labor laws, including those pertinent to the country the employees are working from. An example is the employee Lap, interviewed in the article. The employee is exploited, “Her basic wage, even as sewing team leader, still doesn’t amount to the minimum wage . . . . She’s down to 85 pounds. Like most of the young women who make shoes, she has little choice but to accept the low wages and long hours. Nike says that it requires all subcontractors to obey local laws; but Lap has already put in much more overtime than the annual legal limit: 200 hours.” Another evident situation that challenges business ethics is the cultural depreciation in the countries where Nike contracts with manufacturer subcontractors. Countries like China and Indonesia close to non-existent labor laws, “The majority of Nike shoes are made in Indonesia and China, countries with governments that prohibit...
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...Perspectives: Nike Student UoP Ethics 316 June 18, 2012 Week Five Dr. No Instructor Cross-Cultural Perspectives: Nike Nike Corporation grew from a local United States-based footwear distributor to a global marketing giant of athletic footwear, apparel, and equipment. This paper will provide an analysis of the ethical and social responsibility issues Nike must deal with as a global organization. Additionally, the paper will identify Nike’s ethical perspectives and present the exploration of these perspectives across cultures. Ethical and Social Responsibility Issues Nike began globalization through industrializing in countries, such as Vietnam, Malaysia, Indonesia, and Cambodia. The contracting by Nike of suppliers within these regions instantly began providing jobs, which at the time was just good enough to these improvised areas. However, by the end of the 90s Nike’s use of offshore manufacturing suppliers brought revelations of the sweatshop working conditions prevalent in these nations. The ethical responsibility issues Nike had as a challenge because of these sweatshop conditions ran the full gamut. For example Vietnam factories were violating the minimum wage and overtime laws, Cambodia was using child labor, and Malaysia even went as far as employing forced labor to ensure manufacturing requirements were met. Nike was quick to...
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