Abuse And Abuse Of Nike

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Written Assignment Unit 1 Assessed submission Written Assignment Unit 1 submitted on Wednesday, 13 April 2016, 7:40 AM In 1985, consumers in the United States alone spent $5 billion and purchased 250 million pair of shoes.2 In 2001, they spent over $13 billion and bought over 335 million pair of shoes.3 Although the industry is highly segmented – by different sports, models and price – the branded shoe segment is dominated by a few large companies founded in 1964 through an investment of $500 each by Phil Knight and Bill Bowerman, the company (then called Blue Ribbon Sports--BLS) has evolved from being an importer and distributor of Japanese specialty running shoes to becoming the world leader in the design, distribution and marketing of athletic…show more content…
In what follows, we provide not a comprehensive review of the various abuses of which Nike and its suppliers have been accused in recent years, In the early 1990s, Nike products were being manufactured in six Indonesian factories, employing more than 25,000 workers. Jeff Ballinger, founder of Press for Change, (but at the time employed by the Asian-American Free Labor Association, a branch of the AFL-CIO), spent nearly four years in Indonesia, exposing low wages and poor working conditions in factories producing Nike goods. In 1993, CBS aired a report about workers’ struggles at 15 This section relies heavily on “International Sourcing in Athletic Footwear: Nike and Reebok,” HBS Case #, 9-394-189, “Hitting the Wall: Nike and International Labor Practices,” HBS Case # 9-700-047, and “Nike: What’s it all about.” Electronic memo, Global Exchange, 1999. 16 “International Sourcing in Athletic Footwear,” p. In April 1999, after the Indonesia government raised minimum wages to 231,000 rupiah/month (US$26), Nike announced that it would raise wages for workers…show more content…
In his report of Nike’s suppliers, Young did not mention the serious health and safety issues at the plant.21 In short, more than simply another example of poor working conditions at one of Nike’s supplier’s plants, this episode called into question the company’s honesty about and commitment to labor and environmental/health standards. These three events, combined with the numerous others that were reported in the press, created a major public relations problem for Nike. (Appendix C traces the number of negative articles about Nike that appeared in major publications.) Increasingly, labor and environmental problems at Nike’s suppliers’ factories were becoming a major problem for Nike itself.At Nike shops. Nike’s Response: Learning to Become a Global Corporate

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