segmentation ,targeting
NIKE-HUMAN RIGHTS VIOLATION.
1. Brief about the case
Nike from the start has used outsourcing as its strategy. It outsources labour to developing countries to exploit cheap labour and maximize profits. But this has given rise to sweatshops in Asia especially in South-East Asia (Indonesia, Malaysia etc.)
2. Type of company activity where human rights has been violated
Nike has been blamed for the following things:-
Inadequate wages
Working hours
Safety hazards
Withheld passports of foreign workers
Forced overtime
Restricted access to water
Child labour
SOME FACTS
Vietnam: People are illegally forced to work 65hrs/wk
Vietnam/China: Chemicals causing liver, kidney and brain damage are at 177 times the legal limit, and 77% of workers suffer respiratory problems, most exposed workers are given neither protective gear nor the truth.
China: People are illegally forced to pay their first month’s salary as a "deposit", which they lose if they leave within a year.
Indonesia: A new Manpower Bill prohibits independent unions and strikes on public areas while allowing ejection from company areas, and requires advance submission of names of strike leaders to a military dictator who has murdered millions of civilians.
Indonesia: 30% of Nike’s total business costs go to payoffs for Indonesian generals, government officials, and cronies.
Recent Incidences,
Daewoo International
Malaysia- Bangladeshi Immigrants
3. How did the company handle the issue
Nike raised the minimum age of workers
Significantly increased monitoring of factories
Will adapt U.S. OSHA clean air standards in all factories.
Nike created the Fair Labour Association, a non-profit group that combines companies, and human rights and labour representatives to establish independent monitoring and a code of conduct, including a minimum age and a 60-hour work week, and pushes other brands to join.
The company performed some 600 factory audits between 2002 and 2004, including repeat visits
1. Brief about the case
Nike from the start has used outsourcing as its strategy. It outsources labour to developing countries to exploit cheap labour and maximize profits. But this has given rise to sweatshops in Asia especially in South-East Asia (Indonesia, Malaysia etc.)
2. Type of company activity where human rights has been violated
Nike has been blamed for the following things:-
Inadequate wages
Working hours
Safety hazards
Withheld passports of foreign workers
Forced overtime
Restricted access to water
Child labour
SOME FACTS
Vietnam: People are illegally forced to work 65hrs/wk
Vietnam/China: Chemicals causing liver, kidney and brain damage are at 177 times the legal limit, and 77% of workers suffer respiratory problems, most exposed workers are given neither protective gear nor the truth.
China: People are illegally forced to pay their first month’s salary as a "deposit", which they lose if they leave within a year.
Indonesia: A new Manpower Bill prohibits independent unions and strikes on public areas while allowing ejection from company areas, and requires advance submission of names of strike leaders to a military dictator who has murdered millions of civilians.
Indonesia: 30% of Nike’s total business costs go to payoffs for Indonesian generals, government officials, and cronies.
Recent Incidences,
Daewoo International
Malaysia- Bangladeshi Immigrants
3. How did the company handle the issue
Nike raised the minimum age of workers
Significantly increased monitoring of factories
Will adapt U.S. OSHA clean air standards in all factories.
Nike created the Fair Labour Association, a non-profit group that combines companies, and human rights and labour representatives to establish independent monitoring and a code of conduct, including a minimum age and a 60-hour work week, and pushes other brands to join.
The company performed some 600 factory audits between 2002 and 2004, including repeat visits