Preview

Case Study: The Nike Sweatshop Debate

Satisfactory Essays
Open Document
Open Document
524 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Study: The Nike Sweatshop Debate
The Nike Corporation is the world's leading supplier of athletic shoes and apparel. The company takes its name from the Greek goddess of victory, and has fulfilled its reputation of being victorious in the sporting good industry for over a decade. For several organizations Nike had become a symbol of the evils of globalization as the company became a target for accusations that products were manufactured in "sweatshops" using child labor, working excessive hours under hazardous conditions while being paid sub-standard wages. This paper, based on the case study Nike: The Sweatshop Debate authored by Charles W. L. Hill in his book International Business: Competing in the Global Marketplace (2009) will analyze the legal, cultural and ethical challenges confronted by global business; examine the roles that host governments have played and summarize the strategic and operational challenges facing global managers at Nike.

Legal, cultural, and ethical challengesNike has manufacturing factories in Indonesia, China, and Vietnam. Nike does not have full ownership of these factories they are subcontracted out to independent businesses that then employ local citizens. Nike still carries omnipotent power in regulating how the companies are run in these countries. Globalization is a form of expansion for companies which can provide positive incentives for the local community.

Ethics presents a challenge for Nike as these countries have a different perspective on what is ethical and acceptable when it comes to working conditions, wages and labor practices. Laborers are anxious and willing to work long hours for a minimum wage that does not provide for the basic needs of an individual in an attempt to survive. Nike must question the legal, cultural and ethical implications of its global workforce policies. Working within the local customs and labor standards is not enough if Nike is genuinely concerned with the rights of the workers ability to earn a decent wage rather than just
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Nike Sweatshop Analysis
    • 1341 Words
    • 6 Pages

    Nike Sweatshop Analysis

    Nike publicizes itself as one of the leaders of corporate responsibility. However, they do not comply with several human rights obligations overseas in countries like Thailand, Pakistan, China, Vietnam and Indonesia. In these countries, production facilities called sweatshops have been running for almost 35 years employing workers as young as…

    • 1341 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Eth/316 Week 3 Ethical Perspectives Paper
    • 1081 Words
    • 5 Pages

    Eth/316 Week 3 Ethical Perspectives Paper

    Over the last 20 years, many corporations of the United States have moved their factories overseas as a way of reducing taxes, avoiding strict government regulations, and reducing overall costs. Nike Inc. is no different. They have hundreds of factories in various countries like South Korea, China, Vietnam, Taiwan, Pakistan and China. US based companies view this as an opportunity fulfil the consumers’ needs while maintaining much lower costs of production. The poor decisions of these corporations have been highlighted by the media with Nike getting a major portion of the scrutiny and highly criticized based on its organizational culture. Issues that have…

    • 1081 Words
    • 5 Pages
    Good Essays
    Read More
  • Better Essays

    Eth/316 Corporate Globalization and Ethical Dilemmas
    • 1245 Words
    • 5 Pages

    Eth/316 Corporate Globalization and Ethical Dilemmas

    One organization that has faced a number of cultural and ethical issues as a result of global expansion is Nike. Nike is amongst the most well-known brand names in the world, selling shoes and athletic apparel to all kinds of people all over the world. Founded in Oregon in 1962 by Philip Knight and Bill Bowerman, Nike has grown exponentially to include over 700 retail outlets worldwide, and around 45 offices outside of the United States alone. Employing 30,000 people worldwide and generating tens of billions of revenue, Nike is a prime example of corporate globalization (Professional Ethics Articles, 2012).…

    • 1245 Words
    • 5 Pages
    Better Essays
    Read More
  • Better Essays

    Eth/316 Ethical Perspectives Paper
    • 1080 Words
    • 5 Pages

    Eth/316 Ethical Perspectives Paper

    As with any business that conducts business globally, Nike must deal with the issue of ethics and ethical perspectives across…

    • 1080 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Nike Sweatshops, Slavery or Opportunity
    • 1816 Words
    • 8 Pages

    Nike Sweatshops, Slavery or Opportunity

    Nike plays an enormous role in our youth fashion and athletic attire and has a huge role in our world’s economy and the global effect it has on our earth. Working in the enormous Nike factories around the world is an opportunity to help these people survive. It is not slavery; it is a chance for the poor to get a job and support their families. Nike said they would change their practices and they have. Nike had a few steps to get back into the game. The first step was to identify the problems such as workers’ wages, working environment and then make the improvements, and while doing that they were helping the poor. In the past,…

    • 1816 Words
    • 8 Pages
    Good Essays
    Read More
  • Better Essays

    Nike - Hitting the Wall
    • 1344 Words
    • 6 Pages

    Nike - Hitting the Wall

    1) The intension with which it has acted: any corporate’s acts are a manifestation of the values of individuals responsible for making decisions. In my view the most relevant reading that applies to Nike is Kant’s philosophy of acting in good will to others and out of moral duty. Kant believes people should respect the rights and dignity of others. However, by having a supplier selection criterion, which focuses on lowest cost and does not include any information on how the goods are manufactured, by who, where they come from, and how the supplier manages such a low cost, Nike has committed a serious oversight of its duties and moral responsibilities. In the process it has acted in sheer self-interest and has ignored the workers’ rights and dignity. It becomes even more important in Nike’s case because it commands a really high bargaining power and could have easily got any information it wanted.…

    • 1344 Words
    • 6 Pages
    Better Essays
    Read More
  • Best Essays

    Nike- Ethical Issues
    • 1448 Words
    • 6 Pages

    Nike- Ethical Issues

    In this essay, we will look at Nike’s international business operations and analyze the ethical issues and dilemmas they are faced with as a result of manufacturing their goods on foreign soil.…

    • 1448 Words
    • 6 Pages
    Best Essays
    Read More
  • Better Essays

    Cross Cultural Perspective – Nike Corporation
    • 1125 Words
    • 5 Pages

    Cross Cultural Perspective – Nike Corporation

    In this essay, I will attempt to present an analysis of the ethics and social responsibility issues that an organization can face when it is a global organization. One of the most recognized organizations globally would without a doubt have to be the Nike Corporation. Several years ago the Nike Corporation came under fire for using child labor in Pakistan and Cambodia to make their soccer balls. Because Nike came under fire for this unethical and inhumane practice, the organization attempted to reduce this practice. Pakistan and Cambodia have strict child labor and slavery laws, however, the government has done very little to regulate it. Contracts for production are still being granted in areas of Pakistan where there is not sufficient monitoring or regulation to make sure that child labor laws are being observed and enforced. The United States Constitution deems that child labor is not only illegal but also inhumane and that any organization caught practicing or even encouraging forced labor or violating child labor laws will be prosecuted. The general thought process of Nike and many other global organizations is that they can operate their production with the lowest cost of labor. This leads the organizations to enter into violations of child labor laws.…

    • 1125 Words
    • 5 Pages
    Better Essays
    Read More
  • Better Essays

    Nike Sweat Shop Case
    • 2653 Words
    • 11 Pages

    Nike Sweat Shop Case

    Nike has been targeted by various agencies and organizations throughout the world claiming how the workers who manufacture Nike shoes are denied of fair wage and benefits. The worker who make Nike shoes are been shutout while several sport megastars reap in multimillion dollar contracts to promote Nike shoes. Although Nike admits some wrong doings in the manufacturing facilities of its contractors, it claims to have started a commitment to improve the miserable working conditions in those facilities. To many Nike has become a symbol of the evils of globalization.…

    • 2653 Words
    • 11 Pages
    Better Essays
    Read More
  • Better Essays

    Environmental Factors
    • 1031 Words
    • 5 Pages

    Environmental Factors

    Nike’s influence on global economic interdependence is very great. Nike has several countries that they not only market to but outsource work to such as a company called Silver Star in the country Pakistan who has been producing their soccer balls since mid 2007 (Nike Biz, 2010). Because Nike does a great amount of global production business they have a very influential effect on trade practices and agreements as it pertains to their business deals. For example Nike has created the Workers in Factories “Freedom Association” (Nike Biz, 2010). This association is committed to bringing all trade practices and agreements up to human standards for all its workers in the factories who are committed to producing Nike’s products across the globe.…

    • 1031 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Nike Overseas Labor Practices
    • 5337 Words
    • 22 Pages

    Nike Overseas Labor Practices

    Nike Inc., is one of the largest and most successful manufacturers of athletic apparel. The company’s successes were not without failure in handling important legal, ethical and societal issues. Nike was accused of unfair overseas labor practices in its factories and for making misleading claims about its involvement. Nike’s unethical practices in these overseas territories were not illegal. In contrast, it was illegal when Nike used the media to make false statements regarding its overseas labor practices. Nike was acting socially irresponsible to allow unfair labor practices in affiliated factories and when the company deliberately attempted to mislead its customers and society in general. The allegations against Nike were confirmed by the Courts and the company took important admirable steps to improve its overall operations.…

    • 5337 Words
    • 22 Pages
    Powerful Essays
    Read More
  • Better Essays

    Nike and Unfair Labor Practices
    • 1057 Words
    • 5 Pages

    Nike and Unfair Labor Practices

    Nike has been accused of the unfair labor practice of sweatshop labor. A sweatshop is a place with hazardous working environments, extreme temperatures and abusive employers, hence the term sweat shop. Sweatshop workers work long days exceeding 14 hours and earn less than the living wage (Britanica, n.d.). While these conditions may be shocking to Americans and Modern Western Nations the notion of abusive working conditions is more attractive to Asians and South Americans who are faced with the stark choice of terrible working conditions or unemployment and possible death by starvation. The accusation then is that Nike is using these labor condition inequalities to take unethical advantage of the laborers. Of course, Nike, Inc. denes these allegations often hiding behind the claim that Nike has little control over the working conditions in the facilities of its subcontractors. After all, Nike will never admit that the Lebrons or Black Mambas they sell for a small fortune are made by sweatshop labor halfway across the world. This speech will talk about the problem presented by the unfair labor practices of the Nike subcontractors and how it is against the teachings of the Church. The speech will attempt to shed the light of the faith on the situation and how we can bring glory to God’s name by offering a remedy.…

    • 1057 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Nike sweatshop
    • 1148 Words
    • 5 Pages

    Nike sweatshop

    Nike doesn’t own any manufacturing facilities and outsource its production. Therefore, it can’t be directly blamed for terrible working conditions. Nike can influence indirectly on working conditions at contracting factories thorough refusing to work with sweatshop factories. However, Nike, like any other capitalistic enterprise, is looking for economy of scales and making more money for its shareholders, so each dollar counts. In this case, Nike business ethics is being questioned. From another point of view, workers and employers have a voluntarily contract engagement and working conditions are on the same level as at other local enterprises. However, if Nike claims to be a social responsible corporate citizen, it has to maintain business practices accordingly. They have to influence their partners to provide better working conditions and avoid long hours for child labor. Otherwise, they should be like everybody else and benefit from prevailing business practices in the third world countries.…

    • 1148 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Geography research nike
    • 3392 Words
    • 14 Pages

    Geography research nike

    Nike has been criticized for contracting with factories (known as Nike sweatshops) in countries such as China, Vietnam, Indonesia and Mexico. Vietnam Labor Watch, an activist group, has documented that factories contracted by Nike have violated minimum wage and overtime laws in Vietnam as late as 1996, although Nike claims that this practice has been stopped.[41] The company has been subject to much critical coverage of the often poor working conditions and exploitation of cheap overseas labor employed in the free trade zones where their goods are typically manufactured. Sources for this criticism include Naomi Klein 's book No Logo and Michael Moore documentaries.…

    • 3392 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Good Essays

    Nike: The Sweatshop Debate
    • 686 Words
    • 3 Pages

    Nike: The Sweatshop Debate

    Philip Knight and Bill Bowerman created the world's largest sportswear company, Nike, in 1962. Nike now controls more than 40% of the U.S. Market for sports related goods. However, Nike does not have one shoe factory in the United States (Miller, 1995). As Nike continues to make millions, they continue to employ workers from overseas and paying them very little wages and requiring long hours without overtime pay in their factories. The controversial issues are why the majority of Nikes labor is conducted in Third World countries. Nike subcontractors employ nearly 500,000 workers in plants located in Indonesia, China and Vietnam (Saporito, 1998).…

    • 686 Words
    • 3 Pages
    Good Essays
    Read More