In my point of view Nike was responsible for compensating the workers in Honduras because of corporate social responsibility. Nike should be socially responsible to do the “right thing” before their corporation decided to closed down their factories in Honduras. The right thing such as established proper procedure for employees benefits for post-employment, implement appropriate compensation, and set-up a wide-operational meeting in helping the employees understand the reasons of the closure. The change of stance was the effect of several Universities to canceled its sports apparel contract with Nike. Universities believed that Nike should take responsibilities for the Honduran workers who lost their job. In addition, the reason of why Universities decided to cancelled their contract with Nike was the compelled facts against the labor rights violations in closing down the factories in Honduras last January of 2010. …show more content…
This information was then obtained and passed down to the students, universities, and worker themselves before becoming involved in the protest. In the article, “Standing up to Nike” by Mariah Thompson, she explains how the Honduran law supports the Honduran workers, “It took a stand against the athletic giant after Nike closed a factory in Honduras and still refused to pay $2.6 million in severance pay required by Honduran law to the laid-off workers, most of whom are still struggling to feed their families and to find new
Honduras is one of those countries people barely know about there are really interesting things about honduras. The life expectancy of people in Honduras is 71. Some of the exports are coffee , bananas, shrimp, lobster etc. (text from national geographic atlas of the world eighth edition). Hondureno catracho (the national nickname) can be amusing; insulting , or friendly depending on the context “catracho” comes from the name Florencio Xatruch , the general who led the Honduran expeditionary force against William Walker in Nicaragua in 1856. The culture is very unique and interesting. The violence is terrifying , especially the security , you can basically get away with anything without getting caught or in any legal problems. The population in Honduras is very big depending on the area talked about and in different parts of the country. When there are special events or occasions usually the Honduran females wear special handmade outfits and dresses made by their mothers. Main sport in Honduras in soccer, play in many ways an also called futbol in spanish. Soccer is played in many different ways , and they also have many
Nike started to open up manufacturing factories in countries like Indonesia, Pakistan and Vietnam. Due to the wants of Nike to increase their revenue they tried to outsource the labor of their products since labor work in the US is very high and expensive. This was a bad idea due to that Indonesia pays their workers extremely low wages. Pakistan doesn’t have an age limit for them to be able to legally to work so many children in Pakistan were making
Since the 1990s, Nike has been embroiled in controversy over its use of sweatshops. Including numerous media reports of workers earning very little an hour (14 cents per hour), and even workers abused by sub-contractor (Allarey, 2015). Incidents such as these are ingrained in Nike’s history and not quickly forgotten. However, as CEO I would like to attempt to correct wrongs.
Nike at this time knew the situation could not be resolved. Nike has changed there working environments for their employees from past mistakes. Hopefully Nike and the Universities
This paper describes the legal, cultural, and ethical challenges that confronted the global business presented in the Nike sweatshop debate case study. It illustrates Nike’s part in the sweatshop scandal and it also takes a look at the ethical issues that surround this touchy subject. This paper
One of the biggest and most popular brands in America, Nike, who targets athletes of all ages to be better athletes engages in unethical behavior by exploiting people from other countries by providing bad working conditions and low wages. Nike produces athletic equipment as well as apparel that is not only appealing to athletes, but also to the general public. However, the people that work for Nike and make these products are people being physically abused by supervisors and have to deal with horrible working conditions. According to an article written by Zaid Jilani, he said that thousands of women in Indonesia are being exploited by companies such as Nike where the wages being paid to these women are not enough to survive. Nike is well aware of what they are doing to these people in Indonesia, but still continue with it because the profits they receive at the end of the day is more valuable to them than the poor working conditions they offer to these Indonesian women. This shows that Nike uses the the Utilitarian approach because the company weighs out the pros and cons of the situation and still decides to produce products in Indonesia where it’s perfectly legal to pay low wages and have bad working conditions even though it is
The company Nike operates in over 50 different companies. This makes them a very large global company. Nike makes all kinds of products including gym shoes, clothing and apparel, equipment and accessories. “In 2004, Nike products were manufactured by more than 800 suppliers, employing over 600,000 workers in 51 countries” (Locke, Kochan, Romis & Qin, 2007, p. 6). Nike came under fire because of their workers that work outside the United States. In other countries, labor laws are unlike those within the United States. Large corporations often exploit the fact that they can pay laborers significantly less outside of the United States. Companies may also provide less than favorable working conditions to its labor force outside of the United States.
In many ways, it seems obvious to me that Nike should be held responsible for working conditions in foreign companies where products for Nike are made. In my opinion a company is not only responsible for itsʼ own employees but also for the employees that produce for them even though theyʼre not in their own company. I think that every part of the supply chain is partially responsible for the entire supply chain. As Nike is the
Although Nike may be technically removed from responsibility in some areas, it clearly has the obligation to be certain that exploitation by subcontractors do not occur. Certainly the pay and working conditions that the workers of subcontractors receive is due in large part to the contract that has been negotiated by Nike. If Nike had chosen to make improved working conditions a part of the arrangement, them those benefits may have been passed on to the workers. Still, Nike is a publicly owned firm whose goal is to improve the wealth of its shareholders. The workers in these Asian countries were happy, even eager, to accept the conditions that were provided as a manufacturer of Nike. The reason is that those wages were probably equal or superior to wages available from other sources. If Nike were to leave the country because of the pressures placed upon it, the workers would undoubtedly suffer greatly.
If I were dealing with the same issues that Nike experienced, I would have probably done the same thing that they did. The need to get the suppliers and factories to adhere to save and fair treatment of the employees along with a decent wage would be my first priority. To openly talk to the press, customers or whoever would listen and inform then that yes, the ball was dropped and we have problems, but we are working on correcting the problems and then outline the steps that were being taken to resolve the issues. I grew up in Oregon and have heard numerous times how the company started. I know people who work in the corporate office and Nike treats their employees in the United States very good.
Nike should not be allowed to claim they are an ethical company especially when they are still outsourcing to impoverished countries in Asian. The company takes advantage of low living standards and lack of democracy in those countries. There was nonexistence of labor movements in countries like Indonesia. The government never allowed
They should be responsible for the legal, social and philanthropic aspects of its subcontracted factories. They are not paying their employees the legal minimum wage, caring about the working conditions and welfare of these employees and just not taking into consideration the well-being of others. Ten years ago, the company had been subjected to negative press, lawsuits, and demonstrations on college campuses alleging that the firm’s overseas contractors’ subject employees to work in inhumane conditions for low wages. With the introduction of the fair labour association and worker rights consortium, Nike is slowly trying to improve the working conditions on subcontracted factories and hopefully in 10 years, they would be able to re-establish themselves as a morally acceptable company.
Another perspective is to analyse based on the amount of good done as compared to the amount of bad. By subcontracting its operations in underdeveloped countries, Nike helps to create job and improve the lives of the employed. Then, we have to consider the poor working conditions, poor wages, and the constant violation of child labour laws. Now, the bad inevitably outweighs the good despite the lack of unit of measurement in the
The Pou Chen factory is located in a place where the minimum wage is far below the national average. It has 10,000 workers who make Converse sneakers. Most of the workers are women, and they earn only 50 cents an hour. The amount that they earn is not even enough to cover their food and very poor housing. In this factory, the women are both physically and verbally abused. Nike’s own investigations have proved these complaints to be true. The company made a statement saying that immediate actions would be taken to deal with the situation. It is interesting to note that, “an internal Nike report, released to the Associated Press after it inquired about the abuse, showed that nearly two-thirds of 168 factories making Converse products worldwide failed to meet Nike’s own standards for contract manufacturers. Twelve are in the most serious category, ranging from illegally long work hours to
The main ethical issues were that there were sweatshops were being underpaid, there were children working in sweatshops, and some factories were violating health laws which exposed employees to harmful chemicals. When looking at all of these from an outside perspective one can see that Nike allowed these to happen because they did not care for the quality and rights that humans have. In the United States, these would never occur because of US Labor Laws to protect people, but in these third world countries there are no regulating laws.