Ethical Criticism Of Nike

Like other large corporations, Nike looked to expand their operations outside North America. Many companies do this because of the law and wage demands of the United States making overseas operations very appealing. Employment laws are scarce and labor is cheap in most third world countries and can be easily become targeted by giant corporations such as Nike.

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

Unfortunately, the same factor that contributed to Nike’s exponential growth (low-cost labor and production) also contributed to hurting Nike’s public image as a leader in “athleticism, health and fitness, and innovative marketing and design” (Locke, 2002). Nike was criticized for unethical practices by their subcontractors, which included underpaid workers, poor working conditions, child labor, and abuse (Locke, 2002).

“In 1996 Nike was severely embarrassed when a US magazine featured a photograph of a young Pakistani boy sewing together a Nike

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.

However, Nike has long been eluding allegations of employing people in the developing and under-developed economies, at low wages and poor working conditions for a long time. Nike tried many different measures of correcting

This paper will discuss the company Nike. Nike has had many ethical issues, which will be addressed. The ethical dilemmas that Nike faced will be evaluated under two ethical frameworks. The whistleblower part that was played in exposing Nike will be analyzed. This paper will evaluate whether Nike used marketing or public relations successfully when trying to repair the damage caused by the reported lapse in ethics.

As a leading company in footwear industry, Nike believes they have the responsibility to conduct their business in an ethical way and also expects the same of its business partners. Moreover, Nike focuses on working with long-term, strategic suppliers that demonstrate a commitment a safe working conditions to their employees (Nike, Inc., 2014).

Nike has suffered attacks from a number of agencies and organizations throughout the world that claim that the workers who manufacture Nike shoes are denied the basic essentials of living—a fair wage and decent benefits. All

Nike is a United States based sports company in Beaverton, Oregon. Nike’s original name was Blue Ribbon Sports and its mission is to be the world’s leading sports and fitness company (Nikebiz, 2010). Nike had two options for

Another attack on Nikes practices came from the Global Exchange in 1997 when they published a report on the working conditions from 4 factories in Southern China. According to their reports in one of the factories, owned by a Korean subcontractor, workers as young as thirteen were working for a mere ten cents an hour for up to seventeen hour days in complete silence. Talking while working was prohibited and violators were fined anywhere from $1.20 to $3.60. Global exchange stated that these practices were in violation of Chinese labor law, which states that no child under 16 may work in a factory. Also that the minimum wage requirement was $1.90 for an 8 hour day. Though once again Nike defended themselves and assured that the monitoring systems they had in place was in fact working and that most, if not all, of the issues were addressed. Global exchange though obtained a confidential report of an audit stating that thousands of young women were working more than 10.5 hour days, six days a week, in excessive heat, noise and foul air. Also many workers suffered from skin or breathing problems and many were not

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

Child labour in Pakistan may be common and arguably a necessary evil but it certainly does not give Nike the rights to break its own standards, practice child labour, and advertently break the law.

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

Nike’s management understands how important a relevant strategy is in the global environment, as Don Blair, Nike’s CFO, stated “...we are refocusing our efforts, increasing our investments in innovation, using our voice for stronger advocacy and looking at how we incubate new, scalable business models that enable us to thrive in a sustainable economy.”