Preview

Hitting the Wall: Nike and International Labor Practices

Good Essays
Open Document
Open Document
1358 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Hitting the Wall: Nike and International Labor Practices
1) Which criticisms leveled against Nike do you consider to be "fair"? Explain.
Nike 's corporate practices are good indicators that the company is only interested in exploiting low wages in third world countries. This is indicated by investing in these countries through worker training or human resource investment but has continually shifted its operation to the country with a lower wage.
Nike is in control of its subcontractors – They dictate the price of a shoe and the cost of operation to its subcontractors forcing them to set high quotas for their workers and to pay low wages.
Based on the Ernst & Young report to do an "independent" inspection of Nike 's factories, Observers found the following:
• 77% of the employees suffered from respiratory problems
• Thousands of females, mostly under the age of 25, worked 10. 5 hours a day, six days a week for $10
• More than half of the workers dealing with chemicals did not wear protective equipment, nor did they understand the nature of the hazards around them.
Ironically, despite these observations, the report concluded that most employees were happy with their pay and working conditions.
The issue of exposing workers to harmful chemicals has also arisen. Observers readily have brought attention to a characteristic smell inside shoe factories. Toluene, a solvent in primers and glues which has been used to bond shoe components, has been identified as one of the culprits. It has also been found to be a cause of brain damage, cancer, head aches, impaired coordination, and lassitude.
2) Which criticisms do you consider to be "unfair"? Explain.
One of the most difficult issues facing companies such as Nike is their willingness to profit from the impoverishment found in third world countries. Most factory workers have little formal education, are poor and come from rural areas where opportunities to earn a leaving are meager. Consequently, the salaries paid by Nike factories may be attractive in comparison to

You May Also Find These Documents Helpful

  • Powerful Essays

    Nike Sweatshop Analysis

    • 1341 Words
    • 6 Pages

    Nike is one of the largest, most popular and profitable shoe and clothing companies in the world. This is why it is a wonder that the reality for many workers overseas making Nike shoes and clothing is far less rosy. Workers are paid wages insufficient to meet their basic needs, they are not allowed to organize independent unions, and often face health and safety hazards.…

    • 1341 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Nike was incorporated in 1968 and has become arguably synonymous with elite footwear/apparel amongst the world population (Nike 10K, 2009). Nike’s primary business “is the design and development and worldwide marketing of high quality footwear and apparel” (2009, pg.1). In addition, Nike also designs/markets sports equipment and accessory products. Nike puts a heavy emphasis on investing in the innovation and design of their products to give their customers a high-quality product. Nike is the largest seller of athletic footwear and apparel in the world (2009). Nike sets the bar for other companies in the sports apparel/footwear industry, like Under Armour.…

    • 5144 Words
    • 21 Pages
    Powerful Essays
  • Good Essays

    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
  • Better Essays

    The success of Nike, however, has not come without controversy. In its efforts to rapidly expand and grow to a worldwide business, the corporation has had its share of ethical controversy, mostly stemming from its largely outsourced factory work. Asian countries like Pakistan, Malaysia, India, Indonesia, China, Philippines, and Thailand contain the majority of Nike’s factories (Professional Ethics Articles, 2012). This has presented Nike with a substantial amount of bad publicity and negative public response.…

    • 1245 Words
    • 5 Pages
    Better Essays
  • Good Essays

    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
  • Better Essays

    Nike - Hitting the Wall

    • 1344 Words
    • 6 Pages

    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
  • Good Essays

    Nike Case Study

    • 899 Words
    • 4 Pages

    The company employs 650 000 contract workers worldwide at relatively low labour costs. Because of the early decision to manufacture shoes in Asia allowed his company to enjoy lower labor and production costs, Nike was able from the outset to produce highquality athletic shoes at competitive prices. Nike’s presence provides an influx of U.S. currency with which host countries can buy the imports, such as high-tech…

    • 899 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Nike Sweat Shops

    • 283 Words
    • 2 Pages

    "Nike has gone into a country with its manufacturing operations, wages have increased and poverty has decreased." (Phil Knight, Chief Executive Officer of Nike)…

    • 283 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    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 Nike 's 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.…

    • 571 Words
    • 2 Pages
    Good Essays
  • Good Essays

    If Nike would require certain conditions to be met and hold true to these standards, then things might get better. But the relax attitude Nike has to leave it up to each facility has put them in the spotlight and until this can be corrected Nike will always be plagued with being connected with child labor, they may have established the minimum age of 18 for manufacturing jobs and 16 for clothing manufacturing jobs but unless they take an active stand on verification, child labor will continue. The low wages that are paid to workers in other countries is considerably lower than the United States wage, yes each country is different but employees should be able to make enough to care for themselves and their families in their respective country. The standard of living is different everywhere but Nike needs to take more action in showing they care for all their employees regardless of nationality. All stakeholders need to be willing to step in and assist with this transition. Nike is making a considerable profit off all products produced in other countries, paying a respectable minimum wage would help untarnish the image that has been bestowed upon the…

    • 944 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Nike- Ethical Issues

    • 1448 Words
    • 6 Pages

    Some areas of concern for Nike include poor working conditions, low wages, child labor, as well as health concerns in the factories. These are all areas of concern where ethics is involved. Ethics is the generic term for the science of our morals. The executives at Nike have been accused of many ethical dilemmas.…

    • 1448 Words
    • 6 Pages
    Best Essays
  • Better Essays

    Nike Sweat Shop Case

    • 2653 Words
    • 11 Pages

    Nike Inc. is an American multinational corporation that is engaged in the design, development and worldwide marketing and selling of foot wear apparel equipment, accessories and services. It has its shoe’s manufactured on a contractual basic in different places like Asia, Vietnam and China. This case overviews the miserable working conditions where all the manufacturing takes places. It states even though Nike is the leading marketers in the shoe business in the planet but still how the very workers who make the luxury products are being neglected from their basic needs. Although Nike does not hold responsibility of the manufacturing locations in regards to how they operate but Nike has been accused of having its products produced in facilities that exploit workers. It is keenly observed that the basic human rights have been cruelly tarnished under the glittering logo.…

    • 2653 Words
    • 11 Pages
    Better Essays
  • Better Essays

    Environmental Factors

    • 1031 Words
    • 5 Pages

    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
  • Good Essays

    Nike Debate

    • 992 Words
    • 4 Pages

    Nike was established in 1972 by Phil Knight. This marketing company is famous for their athletic shoes and apparels sold in some 140 countries (Hill, 2009, p. 154). Nike does not manufacturer any of these products they only design and market them. These products are manufactured in other countries such as Vietnam, Indonesia, and China, where the cost of labor is low. For years Nike has had repeated accusations of their products being produced in “sweatshops.” A sweatshop is a working environment with conditions considered by many people of industrialized nations to be difficult or dangerous, usually where the workers have few opportunities to address his or her situation(s) (Moore, 2007). This can include exposure to harmful materials, hazardous situations, extreme temperatures, or abuse from employers (Moore, 2007). Sweatshop workers earn as little as half to one quarter of what he or she needs to provide for basic nutrition, shelter, energy, clothing, education, and transportation (Moore, 2007). The following topics will be addressed in this paper legal, cultural, and ethical challenges that confront the global business, various roles that governments played in this particular global business operation, and the strategic and operational challenges facing global managers.…

    • 992 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    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