Nike International Business and Trade Unit

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Case Study: Nike, Inc. International Business and Trade Unit

1. Company Ethics: Nike Inc. in Cooperation with its suppliers
Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.
Nike does not merely sell products these days. They spend billions of dollars for
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Special attention should also be paid to the factor of stress. The workers have to deal with two different forms of stress. On the one hand they suffer under the high pressure and frequently abusive work environments and on the other hand the stress which is forced by their supervisors if they do not for example manage to produce the expected quality standards.

1.1.2 Working Hours
The offense against the observance of working hours points out another example of the inhumane labor conditions at Nikes manufactures. The Code of Conduct foresees a weekly work load of 60 hours. In addition all workers have the right to one day off a week. Further conditions are set down in local employment laws. Overtime hours should only be disposed if necessary and workers have to be remunerated for that. Many suppliers have thus reduced the number of overtime hours so that they confirm to the Code of Conduct. However, workers must now complete the required number of units in a shorter amount of time in order to satisfy the sporting goods manufacturers’ production schedule. “Workers complained about increased stress caused by tightened production schedules and new production system introduced by management to offset the reduction in working hours.” The reduction of working hours which at first appeared advantageous has apparently turned into a detriment for workers.

1.1.3 Remuneration
Another example of the inhumane conditions in the Nike factories is the low wages. A
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