...NIKE AND SWEATSHOP LABOR Do you think the critic of Nike is fair, considering that the host countries in dire needs of creating job? It seems to me that critic of Nike is fair. It is because that If all places , mostly in dominating countries, are dominated by such an inappropriate and unconventional working environment, including overtime working without getting paid as well as hiring under-aged workers. Majority of those developing countries are in the midst of industrial transformation from agricultural to manufacturing industries. Also, many kids in poor families happened to be not going school because parents either have no money to support them or do not think it is important to educate their kids. So, Kids in these situations are mostly working for living and support their families. What do you think Nike’s executives might have done differently to prevent the sensitive charges of sweatshop labor in overseas factories? Before having a contract with local retail shops and manufactures, Nike might have made a strong contract policy that enhances the right of local workers as well as maintains a good working environment. Do firms need to consider the so-called corporate social responsibilities in making investment decision? I think that even though social responsibility has always been an ultimate goal to majority of foreign companies, this value seems to be avoided or less-considered when it comes to making investment decision. Firm can help them to...
Words: 401 - Pages: 2
...A Case Analysis of Nike: The Sweatshop Debate Mindi Merritt Class Fall 2014 Instructor’s Name Introduction Nike is a hugely successful global industry that designs and markets shoes and apparel (Coakley & Kates, 2013). Most of Nike’s products are subcontracted and manufactured overseas in countries such as China, India, Vietnam, Indonesia and Korea. For decades, Nike has been embroiled in controversy where critics claim its products are manufactured in foreign factories with substandard working conditions and disregard to labor laws (Powell & Zwolinski, 2012). As a result, Nike has initiated numerous policy changes in an effort to silence these criticisms. While Nike has definitely made great strides in turning around its image, it continues to struggle with allegations from critics. Nike’s Responsibility for Working Conditions Should Nike be held responsible for working conditions in foreign factories that it does not own, but where subcontractors make products for Nike? Nike should be held responsible for the working conditions in foreign factories where subcontractors make products the company sells. Although Nike does not actually own the foreign factories, the workers are employees of Nike and Nike is the beneficiary of the products they are making. Thus, Nike is responsible (at least in part) of the working conditions endured by those that work there. Labor Standards of Foreign Factories What labor standards regarding safety, working conditions...
Words: 953 - Pages: 4
...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...
Words: 934 - Pages: 4
...Nike, Inc. and Sweatshops Over the years Nike has been called out for their unethical practices in shoe making. Nike does not actually make shoes but has subcontractors who do and Nike just sells them with their logo on them. The blame of being unethical in this came with the sweatshops is held with both Nike and the subcontractors. This is because Nike has an amoral style of management in regards to utilizing foreign production facilities, more commonly known as sweatshops, for cheaper labor to produce their products. The term amoral management appears to encompass both ends of the morality spectrum; moral management conforms with the highest standards of ethics and professional behavior whereas immoral management is a complete disregard for ethical principles that imply an active opposition to ethical behavior. Amoral management lacks the moral awareness of being moral management, either intentionally or unintentionally, and pretends to be more focused on acting lawful not necessarily being lawful. The focus of this case is the ethical dilemma Nike is faced with because of their ongoing use of sweatshops to manufacture their shoes with low cost so as to maximize the company’s profits. When Nike was first introduced they were an American made product but soon sought to outsource their labor to meet growing demands. It was not until Kathy Lee Gifford discovered that her clothing line was being made in sweatshops did anyone really start to take interest in the company doings...
Words: 1073 - Pages: 5
...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...
Words: 1153 - Pages: 5
...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...
Words: 853 - Pages: 4
...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...
Words: 2203 - Pages: 9
...For many years, Nike Inc has been known worldwide as the champion of athletic gear producers, being a global leader in business and marketing. The company experienced a tremendous growth between 1970s and 1990s, dominating the global athletic footwear and apparel market (Cartey, 2002). However, in 1990s, Nike started facing a fierce criticism for its unethical practices of conducting business in developing countries. Critics accused Nike for poor working conditions, exploitation of cheap overseas labor, and violation of minimum wage and overtime laws in countries, such as China, Vietnam, Indonesia, and Mexico, where the company had outsourced its manufactures. Instead of using ethical means to developing a global brand, Nike used child labor and every possible cheap way to increase its profits. Like many other U.S. companies, Nike manufactures its products in third world countries. Workers in these manufactures may earn as little as 12 cents per hour, working in unsafe, even dangerous working environments. These manufactures are called sweatshops, and have triggered many objections from human right organizations for violating the basic human rights. Victoria Carty (2002) explains that: The Internet has significantly accentuated awareness of the controversies surrounding Nike’s business culture and practices. Information regarding corporate abuses has spread quickly through cyberspace, bringing bad publicity to new levels of awareness, and has facilitated mobilization among activists...
Words: 1331 - Pages: 6
...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...
Words: 1167 - Pages: 5
...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...
Words: 1070 - Pages: 5
...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...
Words: 934 - Pages: 4
...A sweatshop can be defined simply as a shop or factory that employs workers at very low wages, working for long hours and in poor working conditions. Most of the workers employed in sweatshops are not offered benefits, and in most cases, are illiterate. Sweatshops are not only bad for the workers and the countries they are located in but also bad for America and the rest of the world. The common argument put forward by supporters of sweatshops, like that in the article by Nicholas Kristof (2009), is that they help unskilled workers gain skills and then further develop the economy. While this might appear to make sense on paper, a deeper analysis proves otherwise. Those who make this assumption fail to understand that some of the sweatshop workers...
Words: 1111 - Pages: 5
...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...
Words: 3121 - Pages: 13
...Corporate greed and global competition to produce goods at the lowest possible price are the main reasons for the existence of sweatshops. It’s much more cost-effective for corporations to subcontract their manufacturing to suppliers who produce goods cheaply by minimizing worker salaries and benefits, skimping on factory and dormitory upkeep and standards, and demanding high levels of productivity (long hours and big quotas) from their workers. Nike manufacturer’s shoes in different countries on subcontractor basis, Although Nike do not own any manufacturing facilities in those countries it is accused of producing its goods where the workers are exploited. Problems a sweatshop can be described as a workplace where workers are subject to extreme exploitation, including the absence of a living wage or benefits, poor working conditions, and arbitrary discipline, such as verbal and physical abuse. Since sweatshop workers are paid less than their daily expenses, they are never able to save any money to improve their lives. They are trapped in an awful cycle of exploitation.. Nike was faced with anti globalization protesters for the following problems Child labor. As the report published by Global exchange in September, 1997 Workers as young as 13 earned as little as 10 cent an hour and worked unto 17 hours daily in enforced silence. Talking during work was not allowed with a violators fined $1.20 to $3.60. Hazardous working conditions If workers got sick or had something’s to take...
Words: 1278 - Pages: 6
... 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...
Words: 666 - Pages: 3