Preview

Mini Case: Nike and Sweatshop Labor

Good Essays
Open Document
Open Document
402 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Mini Case: Nike and Sweatshop Labor
Nike, a company headquartered in Beaverton, Oregon, is a major force in the sports footwear and

fashion industry, with annual sales exceeding $ 12 billion, more than half of which now come from

outside the United States. The company was co-founded in 1964 by Phil Knight, a CPA at Price

Waterhouse, and Bill Bowerman, college track coach, each investing $ 500 to start. The company,

initially called Blue Ribbon Sports, changed its name to Nike in 1971 and adopted the “Swoosh” logo

recognizable around the world originally designed by a college student for $35. Nike became highly

successful in designing and marketing mass-appealing products such as the Air Jordan, the best selling

athletic shoe of all time.

Nike has no production facilities in the United States. Rather, the company manufactures athletic

shoes and garments in such Asian countries as China, Indonesia, and Vietnam using subcontractors, and

sells the products in the U.S. and international markets. In each of those Asian countries where Nike has

production facilities, the rates of unemployment and under-employment are quite high. The wage rate is

very low in those countries by U.S. standards the hourly wage rate in the manufacturing sector is less

than $ 1 in each of those countries, compared with about $ 20 in the United States. In addition, workers in

those countries often operate in poor and unhealthy environments and their rights are not particularly well

protected. Understandably, host countries are eager to attract foreign investments like Nike’s to develop

their economies and raise the living standards of their citizens. Recently, however, Nike came under

worldwide criticism for its practice of hiring workers for such a low rate of pay “next to nothing” in the

words of critics and condoning poor working conditions in host countries.

Initially, Nike denied the sweatshop charges and lashed out at critics. But later, the company began

monitoring

You May Also Find These Documents Helpful

  • Powerful Essays

    Strategic Fit

    • 5046 Words
    • 21 Pages

    Founded in the early 1960’s, Nike formerly known as Blue Ribbon Sport grew into one of the world’s most recognised brand. A leader in the field of sport clothing and footwear, Nike has always been one that encouraged innovation, creativity and growth. Outsourcing of its manufacturing processes, created an opportunity for Nike to realign itself and focus on its core competencies, doing what they do best research, development and advertise.…

    • 5046 Words
    • 21 Pages
    Powerful Essays
  • 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

    Since the beginning, Nike has ventured into other countries outside the United States. The Nike Corporation was founded by Bill Bowerman and Philip Knight. The company headquarters is in Beaverton, Oregon and its expansion to other countries is with the aim of reaching the untapped markets around the world in order to increase its…

    • 1081 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Reduce Poverty In Mexico

    • 2098 Words
    • 9 Pages

    Mexico just has many jobs but they all have extremely low wages it just makes the worker…

    • 2098 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Nike Inc., the global leader in the production and marketing of sports and athletic merchandise including shoes,…

    • 768 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Nike- an Ecnomic Report

    • 3351 Words
    • 14 Pages

    Nike is the world 's leading designer, marketer and distributor of athletic footwear, apparel, equipment and accessories for a range of sports and fitness activities. Nike is headquartered in Beaverton, Oregon and owns facilities in Tennessee, North Carolina and The Netherlands. The company operates in the Americas, Europe, the Middle East, Africa and Asia Pacific.…

    • 3351 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Nike produces footwear, clothing, equipment and accessory products for the sports and athletic market. It is the largest seller of such garments in the world. It sells to approximately 19,000 retail accounts in the US, and then in approximately 140 countries around the world. Just about all of its products are manufactured by independent contractors with footwear products in particular being manufactured in developing countries. The company manufactures in China, Taiwan, Korea, and Mexico as well as in the US and in Italy.…

    • 571 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    INTRODUCTION Founded in 1968 in Oregon, Nike's business activities involve design, development and the worldwide marketing of high quality apparel, equipment, footwear and accessory products.…

    • 4587 Words
    • 12 Pages
    Powerful Essays
  • Best Essays

    Nike- Ethical Issues

    • 1448 Words
    • 6 Pages

    For example, poor working conditions in factories that produce Nike products has been one big issue plaguing the company for years. Nike outsources their labor to countries that are in need of economic growth. They are able to obtain the labor at a cheap, and some may say, unfair rate. This causes workers to be exposed to working conditions that would be far below what we would accept here in the US or any developed country in the world. These workers are faced with long grueling hours, some as long as sixty five hours per week,…

    • 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
  • 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
  • Good Essays

    Nike’s official website has a detailed set of “responsibilities” that it must adhere to in order to maintain a safe and fair working environment. Many of the policies are to do with sustainable production and development of their products. However many investigations through current affairs programs have revealed that some of these responsibilities are not being carried out. Nike has been accused of allowing the factories to force their workers to work 7 days a week, long days, employing underage workers. Nike continually defends it’s factories saying that the reports that they receive and inspections that they carry out show no signs of abuses or exploitation.…

    • 1034 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Nike: the Sweatshop Debate

    • 1480 Words
    • 6 Pages

    Nike decided to create and design the product and use manufacturing companies outside of the United States. Nike has continued to soar in the marketplace and in 2006, Nike’s annual revenue was 15 billion dollars, sold Nike apparel in140…

    • 1480 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    For that reason, more and more American companies move their “manufacturing operations” to those countries. Sweatshop violated many groups of protecting labor rights, so these groups want to get rid of sweatshop, and improve working conditions and wages. However, a fact that lots of product which owned by “best-known American companies” are made by sweatshop labor. Big American companies like sweatshop because of cheap-labor source. “While Nike pays its U.S factory workers $11 an hour, its Indonesian workers earn about $2 a day” (John 2). On the other hand, some ideas state that sweatshop is bringing opportunities for jobs in poor countries. “By setting up shop in Indonesia, for example, Nike says they bring that poor country much needed jobs and billions of dollars in investments” (John 2). Disagreeing with that, some critics says if those companies want to give occasion for developing countries, they even can pay higher for poor labors to be able to support their families. At the end, the statistic graph shows there is a big disparity of hourly wages among countries. For instance, in East Asia, the hourly wages in Japan is $16.29 while China is…

    • 896 Words
    • 4 Pages
    Good Essays

Related Topics