...* Case Study Thomas Colt MGT/448 March 29, 2013 Dan Daily Intro This paper is about Nike and the sweatshop debate For years Nike has been a target for protester that are against child labor and for good reasons. The first part of this paper will talk about the legal, ethical, and cultural challenges that Nike faces. The next will be about the many roles the host government plays in Nike business operations. The last part I will be summarizing the strategic and operational challenges the global managers of Nike are facing. In the 1970s Nike was located in Taiwan and South Korea but when the workers gained their freedom to organize their wages Nike looked elsewhere to find cheaper labor. That is when they decided to set up shop in China and Indonesia and this is where they have been since the 1980s. They are also located in Vietnam as well. Most believe the reason Nike decided to relocate to these countries is because of the cheap labor, the government in Indonesia has allowed the minimum wage to $2.46 a day but the reason this is such a problem is that the cost of living expenses is about $4.00 a day. So these people are working long hours for terrible pay and they do not even make enough to survive and the same can be said about the other countries as well just different low pay scale. There are even employees being fined in Korean subcontractors...
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...once again become synonymous with labor rights violations. This phenomenon is largely due to globalization, a movement that has led multinational corporations (MNCs) to invest in cheap labor available in emerging economies. The possibility of this investment has spurred local government to ease regulatory measures on labor rights to lure MNCs as well as pitted local manufacturers against each other in the spirit of competitive pricing. These actions have led to diminished standards in factories that have translated to issues like insufficient wages, forced overtime, suppression of free speech and a hazardous working environment. Some proponents of sweatshop labor argue that sweatshops bring about economic prosperity, even going so far as to say that the “simplest way to help the poorest Asians would be to buy more from sweatshops, not less” (Kershner). Increasingly, however, the consensus has shifted in support of the fact that employing the poor for “near subsistence wages...generates little self-sustaining economic development” (Moberg). The light that has been shed on cases of abuse and mistreatment of laborers in Indonesia, Vietnam and Pakistan has mobilized various labor rights organizations and university student groups to take a stance against the exploitation of third world citizens. Groups like Campaign for Labor Rights and...
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...Boycotting Sweatshops Name: Guangzhen Lyu Student Number: 300772748 Professor’s Name: Catherine Boote Date of submission: Nov 28, 2014 Boycotting Sweatshops! The sweatshop is like a juicer exploiting cheap labor. At present, going with the development of economy, cost of manufacture is increasing rapidly; many companies are building factories in developing countries. Because it can help them to reduce the production costs. Unfortunately, some factories are sweatshops. And what is sweatshop labour like? Sweatshop laborers generally work 60-80 hours per week and are not paid enough money to put food on the table; they sometimes receive only pennies a day for their labor. Often, the sweatshop environment is unsafe – workers are harassed, intimidated, forced to work overtime, and made to work in dangerous and unhealthy environments, even while sick. Workers handle toxic chemical paints, solvents, and glues with their bare hands. (Michael Conlan, 2010) And the workers of sweatshops are working in terrible working environment, enduring the huge working pressure, and losing legal rights. One of the reasons why do we against sweatshops is they usually with the uncomfortable and unsafe environment. Firstly, sweatshops can not provide...
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...Home › Social Awareness › Facts About Sweatshops Facts About Sweatshops BY ENDMODERNSLAVERY - PUBLISHED: 11/24/2013 - SECTION: SOCIAL AWARENESS One of the most galling things about Western culture at the moment is the sense of entitlement. Many of us have government funding for support or hold down full-time jobs. The majority of Western countries have modern human rights laws and will help anybody who is in trouble or distress, within reason. The sense of entitlement leads many of us who have perfectly healthy, enjoyable lives to feel that we are the ones on the end of a hard time from fate. However, have you ever considered the conditions in other parts of the world? You may think you are having a hard time, but when is the last time you were forced to work two or three days in a row? When was the last time you considered how lucky you are to be able to splurge on apair of expensive shoes? One thing you should be thinking about in this situation is where these expensive extras you have are actually coming from. Your clothes tend to be made, wrongly, by sweatshops owned by the huge corporations that you buy from. Those who work in sweatshops are desperately unlucky to have to do so – the rate of pay is pathetic, working conditions tend to be poor, and human rights violations are almost constant. Here are just some facts that you should understand about working in a sweatshop. It may help you create some gratitude for your own lifestyle, or realize just how hard some people...
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...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 can support the basic needs of a small family.” What countries and companies are being affected by these anti-sweatshop groups and what is considered a “living wage”? A few of the countries that are affected are: Thailand, the Philippines...
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...The Triangle Shirtwaist factory was a garment factory located in NYC, a city most notable for its unique textile goods. The factory produced the “shirtwaist”, a fashionable women's blouse that caught on quickly on the New York fashion scene, becoming highly demanded in the early 1900s. In order to keep up with the level of demand, owners Isaac Harris and Max Blanck disregarded what sparing legislature was in place to protect the workers in factories. The factories in New York after the Second Industrial Revolution were primarily employing immigrants desperate for jobs to survive who were willing to work for lower wages in bad conditions. In the case of the textile factories, specifically the Triangle Shirtwaist factory, those employed were mainly women, many of whom were sending money back home to their families in other countries. The factory is infamous for the fire that took place there on March 25th, 1911, appropriately nicknamed “the triangle fire.” The factory fire took the lives of one hundred forty six people- one hundred and twenty three women and twenty three men who were employed at the factory. Consuming the top floors of the building which ladders at the time could not reach, the fire wrought devastating human cost. Easily preventable, in the factories there was a lack of regard for safety precautions to protect workers. “Workers on the eighth and tenth floors were able to escape unharmed, but those on the ninth floor were not so lucky. There they jammed up at illegally...
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...English 1020 2 November 2015 4.1 Ravisankar begins his essay by describing consumers and their want for low prices then describes sweatshops and their conditions. The problem he identifies is consumers demand lower prices to do this, corporations cut the cost on their employees either decreasing their wages or worsening their working conditions. Ravisankar assumes his readers are poor college students looking for lower prices and have a basic understanding of what a sweatshop is but does not fully know the appalling conditions of sweatshops. His purpose in this essay is to raise awareness of the degrading environment of sweatshops. In order to accomplish this purpose, he appeals mainly to pathos an appeal to emotions by mentioning how bad sweatshop working conditions are and its consumer’s. He also appeals to logos when he writes that people should have equal rights as others like pay. In this essay, Ravisankar addresses the main argument against his thesis the idea that the big companies like Nike, Reebox, and Gap are to blame for decreasing conditions in sweatshops. He refutes this argument by saying these companies are taking apart of “the race to the bottom” the pressure for low costs. Finally, he concludes by making the point that universities purchase around $3 billion in clothing with the universities name on it. This puts pressure on the companies to provide living wages and reasonable working. Overall, the argument Ravisankar makes is ineffective although he does...
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...1. Assume that you are executive of a large U.S. multinational cooperation planning to open a new manufacturing plants in China and India to save on labor cost. What factors should you consider when making your decision? Is labor outsourcing to developing countries a legitimate business strategy that can be handled without risk of running into a sweatshop scandal? As an executive of a large U.S. multinational corporation planning to open a new manufacturing plants in China and India to save on labor cost. There are a few factors that must consider when making the decision. The factors are including the environment business of the both country. First factor that must be consider is regulations and laws of the country. It is a very important thing that the producer must care when planning to open a new business in a foreign country. It is because the business cannot against the regulations of the country that can be affect the business such as the company must close their business in the country. The regulations and laws that the producers must be mention such as minimum wage laws, labor laws, safety and sanitation requirement, and trade union organizing provision. This regulations and laws is made because the country have to protect their labor right. Second factors that the producers must consider to come in the foreign country is the culture of the country. It factor is important for producer to make their business suitable and acceptable by the country. It is because...
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...After reading “Story of a Sweatshop Girl”, I could not help but feel good. This was one of those surprise stories that you would never expect to come from a sweatshop worker. Sadie Frowne was obviously an educated woman who had ambition. To read this document from her perspective was a very enlightening experience. Sadie was very intelligent and independent. She wanted to take full advantage of everything that America had to offer. Sadie educated herself by going to night classes. She recognized that through education and bettering herself she could achieve a better, fuller life. I thought it was interesting how she stated that she forced herself to go out after work instead of going to sleep. This kind of reminds me of the way young people are today. Many of Sadie’s characteristics give me the impression that she could live in today’s world. Sadie liked the finer things in life even on such a modest income. She enjoyed finer clothing in hopes that it could help her fit in with the higher class citizens. Sadie was extremely supportive of the union, yet was afraid of being associated as being a socialist. What surprised me about Sadie Frowne was her calm demeanor throughout her testimonial. She seemed to emit almost no emotion when talking about the death of her parents and the injuries some workers suffered. Sadie never complained about the hardships that she had faced. I was rather shocked at how casually she would speak about getting injured at work. “We all have accidents...
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...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. It has also provided the resources and environment essential for organized mobilization in the form of a new social movement (NSM). When the labor activists and scholars began observing Nike’s labor practices, they discovered systematic violations of workers’ rights in Nike factories. Their findings...
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...ABC co. 253 Broadway New York, NY 10007 www.abcCO.com Phone- 212-577-7020 Contact: John Doe FOR IMMEDIATE RELEASE Tel. 212-555-999 Cell Phone: 347-852-9555 Email: abcCO@gmail.com New policy to improve sweatshops work conditions and labor ABC co is proud to release a new policy to improve our work environment and labor in the sweatshops. To prevent any problems with the sweatshop we are releasing a new policy. The new policy will features strict supervision, safer environment, and provide enough income for the employees. Although there are many sweatshops, ABC co intends to offer more, having a new policy means safer work environment. In order to commit to this new policy the company supplier has to agree to it and sign a contract. This way ABC co will know what is going to be done to the factories. This new policy will have an impact on all of us not just ABC co. The consumer would be pleased with the products they purchase comes from a safe work environment. The employees will know there will be no forced labor and they will have their rights. We as a company would like to improve our work environment since most of the sweatshops work conditions are really in bad conditions. We want to have our reputation as an excellent company. We know by releasing this new policy will make a change to our company. This would be great opportunity for the company to get known as a company that have a safe work environment and treat the employees...
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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: Just Do It” By Adam Fernald ETH/316 John Bevell In the past Nike has been accused of using child labor in the production of its soccer balls and sweatshop conditions in suppliers’ overseas factories. Nike has about 28,000 employees globally and over 800,000 workers who are employed by its suppliers in 52 countries and create sports and fitness footwear, apparel, equipment, and accessories for worldwide distribution (Trevino, L.K. & Nelson, K.A., 2011). Nike has worked to improve labor conditions in their footwear, apparel and equipment supply chains for more than 15 years. Key issues in which they have engaged include the health and safety of the workers who make their products, excessive overtime, the ability of workers to freely associate, and child labor and forced labor (Nike Inc., Labor, 2013). Since these accusations were brought to the publics attentions Nike has been focused on improving the monitoring of the organizations supply chain, sent auditors to evaluate conditions and enforce the company code. About a decade after Nike was first targeted they released factory names and locations of their suppliers. A MIT professor was brought in to assess Nikes audit data and the results were disappointing. Most suppliers’ factories had not improved, and some even got worse (Trevino, L.K. & Nelson, K.A., 2011). Nike's entrance into the Pakistani markets was the part of its long term strategic planning. Although Pakistan has laws against child labor...
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...Muckraker news There were various issues that occurred during the progressive era. Some the issues were economic and social problems. Many of the people during this time suffered and died because of these issues. This society faced issues such as poverty, greed, racism and a lot of violence. It wasn’t a big deal during this time, but when it was all over people started to realize the horrible actions that had occurred. There were multiple issues that took place during the progressive era. Some of these issues were child labor, factory conditions, and political machines. The first issue that occurred during the progressive era was child labor. Child labor was one of the most depressing issues during the progressive era. Children from various ages would work 8-hour shifts in unhealthy factories while earning barely any money. The put the children to work because they were smaller than your average adult and they could easily work in smaller spaces. They were easily controlled and they worked for less money than an adult would so of course the owners were very fond of this. What they failed to realize was that they were robbing this child from their childhood. Most children working in these factories were forced to grow up and act like an adult. They didn’t get to enjoy being young like most Americans did in this day of age. This is a very sad issue because nobody deserves to have their childhood taken from them. This didn’t end until the early 1900’s after the Great Depression...
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...Child Labor Today, Child Labor laws exist to ensure children are able to get an education and be employed under safe conditions. History tells a different story to the meaning of child labor. History explains how the industrial revolution changed the lives of young children during this time. Children as young as four years old were put to work, some worked under very hazardous conditions and were treated cruely. According to the Unicef website,” many children are put to work in ways that often interfere with their education, drains their childhood of joy, and crushes their right to normal physical and mental development”. This paper examines the history of child labor, the hazardous jobs these children endured, and the medical conditions resulting from such conditions. In addition, this paper examines meetings held within communities, and among organizational leaders on both the state at national levels addressing child labor issues and how to combat them. In the United States company owners use to hire children to work in factories because they were not hard to work with. The children would listen and do what they had to. By 1900 the factories moved south. Lots of children were hired in factories that dealt with textiles, agriculture and many others. During the twentieth century the number of child labor increased. The National Child Labor Organization worked to end child labor. They also worked to get children free education. In 1938 the government took control...
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