MGT 448 Week 5 Nike Debate Paper
Nike: The Sweatshop Debate
MGT/448
Date: November 25, 2014
Introduction This paper is about a case study entitled: “Nike: The Sweatshop Debate.” Legal, cultural, and ethical challenges that confront Nike’s global business will be described. In addition, various roles that host governments have played in the debate will be determined and a summary of the strategic and operational challenges facing global managers for the Nike Corporation.
Article Summary According to the case study, Nike is well-liked and popular shoe and athletic wear company, and carries a slogan of “Just Do It”. The case study indicates that, “Nike is now one of the leading marketers of athletic shoes and apparel on the planet. Nike does not manufacture its own product. Rather, it designs and markets its products, while contracting for their manufacture from global network of 600 factories scattered around the globe that employs some 650,000 people”, (Hill, 2013, p. 154). Nike Corporation’s success and billions of profits has affected hundreds of thousands of workers mainly in Asian countries. These workers, toiled in a cruel working conditions and environment with a slave pay. The production of Nike products are subcontracted to Asian countries such as China, Indonesia, Taiwan, and Vietnam. Nike products are produce overseas to avoid higher taxes in the United States and the benefit from hiring workers for very low wages. Every time a company subcontract to a company abroad, they are at risk for lawsuits and allegations for they are not able to manage the work environment and monitor labor practices. “The majority of Nike shoes are made in Indonesia and China, countries that prohibit independent unions and set the minimum wage at rock bottom. The Indonesian government admits that the minimum wage there do not provide enough to supply the basic needs of one person, let alone a family”, (Hill, 2013, p. 155).
Legal, Cultural, and Ethical
MGT/448
Date: November 25, 2014
Introduction This paper is about a case study entitled: “Nike: The Sweatshop Debate.” Legal, cultural, and ethical challenges that confront Nike’s global business will be described. In addition, various roles that host governments have played in the debate will be determined and a summary of the strategic and operational challenges facing global managers for the Nike Corporation.
Article Summary According to the case study, Nike is well-liked and popular shoe and athletic wear company, and carries a slogan of “Just Do It”. The case study indicates that, “Nike is now one of the leading marketers of athletic shoes and apparel on the planet. Nike does not manufacture its own product. Rather, it designs and markets its products, while contracting for their manufacture from global network of 600 factories scattered around the globe that employs some 650,000 people”, (Hill, 2013, p. 154). Nike Corporation’s success and billions of profits has affected hundreds of thousands of workers mainly in Asian countries. These workers, toiled in a cruel working conditions and environment with a slave pay. The production of Nike products are subcontracted to Asian countries such as China, Indonesia, Taiwan, and Vietnam. Nike products are produce overseas to avoid higher taxes in the United States and the benefit from hiring workers for very low wages. Every time a company subcontract to a company abroad, they are at risk for lawsuits and allegations for they are not able to manage the work environment and monitor labor practices. “The majority of Nike shoes are made in Indonesia and China, countries that prohibit independent unions and set the minimum wage at rock bottom. The Indonesian government admits that the minimum wage there do not provide enough to supply the basic needs of one person, let alone a family”, (Hill, 2013, p. 155).
Legal, Cultural, and Ethical