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…
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.…
Poor working conditions have been present for centuries. Often times little or nothing is done unless a tragedy occurs to persuade the public to rally for worker rights. This was definitely the case in the United States during the Industrial Revolution and even late in the 20th Century. These conditions have for most purposes disappeared in the United States, with the exception of some in the agricultural sector. However, internationally, mainly in poor third world countries, that is far from the truth. Large corporations from the United States have moved a large portion of their factories overseas to circumvent the strict working regulations within the United States. The third…
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.…
Nike took this practice one step further and severed the connection between the independent contractor manufacturing their product and the company that contracts the work. This action was an attempt to isolate Nike from the poor working conditions in the outsourced manufacturing facilities. Nike’s position was that it could not be held responsible for working conditions in its independent contractors’ facilities (Forbes, 2014). After Nike’s factories came under attack for poor workplace practices Nike’s profits started to…
Nike has been a provider of athletic apparel for years, the Nike Swoosh is a global icon seen from New York, Philippines, China, and Manila just to name a few countries. Nike is synonymous with sporting events of every magnitude and is seen as a multinational presence. In the early 1990’s Nike began to outsource its supply chain operations to contract-factories operating in nations such as Bangladesh, Taiwan, the Philippines, Thailand, Vietnam, Moldova, Argentina, Nicaragua, Mexico, Sri Lanka, Turkey, China, and India with more that are not mentioned (Nike, Inc., n.d.). Nike has a reputation to uphold regardless of what country they…
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,…
Nike sells to approximately 140 countries around the world and currently boasts an approximate revenue of $8,776,900,000 These revenues are based on product sales of shoes, clothing, and other sports products. Advertising expenditures currently total $223,300,000 and include the following allocations: $64,975,000 for network television, $31,447,000 for consumer magazines, $7,700,000 for spot television, $343,000 for newspapers, $134,000 for outdoor postings, and $36,000 for radio. (Reed Elsevier) Most footwear products are made outside of USA. However apparel products are produced in the USA and abroad. (www.statcan.ca) In this article we will try to explore the interaction between the company Nike and its external business environment, as well as the internal strengths and weaknesses of the company. We will attempt to discover some of the significant changes and events in the external environment that have occurred in the last 5 years and have directly impacted Nike. We will describe how the company adapted and responded to these changes and what the effects of these events were. Also we will identify and describe some of Nike's internal strengths and weaknesses.…
I do not believe Jeff Ballinger has a convincing argument against Nike. I do believe he has a convincing argument against labor conditions in Indonesia. He states that in 1988, of the 17,000 violations reported in that year only 12 were prosecuted. While this statistic is very alarming about the poor labor conditions in Indonesia, it has no proof as to where these violations were originating from. It is very likely that some of the violations were coming out of the factories that Nike had under contract, but there is no way to distinguish, out of the 17000, how many of the violations Nike was responsible for. It just seems that Mr. Ballinger has a personal vendetta against Nike.…
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 harassment and abuse. Nike has sought to respond to these allegations by putting into place a code of conduct for all of its suppliers, and working with the Global Alliance to review around 21 of these factories, and to pick up and respond to issues.…
Manufacturers in foreign locations were only concerned with the minimal contract requirements and overlooking fair labor practices in order to perform as low-cost suppliers. The foreign locations also subcontracted the work so Nike did was adequately track the working conditions and wages being paid and the ages of the workers. They failed to address these issues earlier because they wanted to maintain lower cost and there was not a focus on how they were able to accomplish this. Organizations such as National Labor Committee helped make the public aware of the poor conditions and public outrage made Nike and others more transparent and accountable.…
Ethics refer to what is defined as right or wrong in the morality of human beings and social issues are matters which could directly or indirectly affect a person or many members of a society. In this case study, Nike has been accused of subjecting employees in their subcontracted factories overseas to work in inhumane conditions for low wages. The CEO and cofounder of Nike lamented that “The Nike product has become synonymous with slave wages, forced-overtime and arbitrary abuse.” Initially, the firm purchased two shoe-manufacturing facilities in the United States but eventually had to shut them down due to tremendous loss in profits. Today, practically all of Nike’s factories are subcontracted and located in countries such as Indonesia, Vietnam, China and Thailand, where the labour costs are significantly lesser than those in the United States. The founder of Vietnam Labour Watch, Thomas Nguyen, inspected several of Nike’s plants in Vietnam in 1998 and reported cases of worker abuse. At one of these factories which he inspected, a supervisor punished 56 women for wearing inappropriate work shoes by forcing them to run around the factory in the how sun. Twelve workers fainted and had to be taken to the hospital. He also reported that workers were allowed only one bathroom break and two drinks of water during each eight-hour shift. The ethical and social issues in this case are that Nike unethically takes advantage of these labour markets because it provides them with a higher profit.…
Nike is the world’s single largest producer of sporting wear, clothing, shoes and accessories. An Oregon based company founded in 1972 by Phillip H. Knight and William J. Bowerman. Nike’s broad range of products is the key to it’s success, it’s range includes Nike Skateboarding, Nike Golf, Nike Pro, Nike +, Nike Air Jordan and owns other big names such as surf brand Hurley; shoe manufacturer Cole Haan; and two large sports companies – Converse and Umbro. Having such huge sponsorship contracts with many of the world’s biggest athletes and sports teams, these huge profiles are simply another outlet for Nike to promote their products. Nike currently employs over 31,000 people across more than 30 countries, Nike’s revenue for 2008 was a staggering $184 billion which is more than many small country’s GDP. However since this huge multi-national corporation has moved nearly all of it’s production to cheaper Asian countries there has been much concern brought forth about the legality and ethics of the company’s operations in these countries, many claiming exploitation of labour and human rights abuses are taking place.…
Nike has had a long history of abusive labor practices and controversies, but how did it all begin? Nike was founded in 1964 by Phil Knight, a University of Oregon track athlete, and Bill Bowerman, his coach. Initially, they were an athletic footwear distributor, but began manufacturing their own products in 1971. By the 1980’s, the company had begun offshoring their production manufacturing. Controversies regarding unethical labor practices began surfacing in 1991, mostly due to an expose by human rights and labor activist Jeff Ballinger. Nike responded to these criticisms by creating a factory code of conduct. The company assumed this would resolve the abusive labor practices at their factories worldwide. They were wrong.…
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.…