Nike Slave Labor

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: The Sweatshop Debate SYNOPSIS Nike is a worldwide global corporation that has its shoes manufactured on a contract basis in places like Asia, China, and Vietnam. Although it does not actually own any of the manufacturing locations, it has long been accused of having its products manufactured in facilities that exploit

Nike’s Mission and its target market Nike’s mission is to “BRING INSPIRATION AND INNOVATION TO (Nike, Inc Corporate Social Responsibility Report, 2014). Their goal is trying to incorporate sustainability principles as well as practices in whatever they do; develop sustainable materials, design and advocate for changes in the industry. The main reason to select Nike was because; it became a controversial company across the globe. Customers were protesting against Nike for excessive use of child labor and sweatshop allegations and failure to raise the wages in foreign countries. However, Phil Knight promised that they would ensure a change soon. Thus Nike was the first company to publish a list of contract factories as well as published a CSR report including the wage scales as well as the conditions in the factories. It also has started to recycle shoes into a material called the “Grind”, used in various ways. Nike has also given many donations to Oregon Cancer Institute, sports organizations and many more. Nike is at the discretional level of CSR where it has CSR has become a part of its

Nike is one of the top sports clothing industry in the world. However, for years there are fresh allegation for Nike, which dogged by sweatshops and child labour (Daily Mail Reporter, 2011). On the 13 July 2011, Nike has revealed several cases of worker abused at factory.

As a company, Nike is extremely profitable; it is the biggest shoe company and has become the fourth biggest industry leader. Nike can easily afford to increase wages of people that do labor work for the company without even the slightest loss but unfortunately chooses not to. According to the SEC, “In 2007, Nike’s advertising budget was $678 million. Realistically, Nike could pay all its individual workers enough to feed and clothe themselves and their families if it would just devote 1% of its advertising budget to workers' salaries each year!” (A background on…) In Nike’s Code of conduct, they state that in the area of human rights and in the communities in which they do their business, they want to do everything required of them as well as what is generally expected of a leader and thus by magnifying on the wrongs an industry leader commits, changes in the entire industry is expected.

The highly recognized name brand—Nike— fails to notice the faults that are happening in factories that are violating a few disturbing rules. The company’s reputation has decreased due to demands and claims Nike; implying that they utilize sweatshops to produce more products at a lower pay. The company has been sued numerous times for abusing and exploiting their employees in factories for years. Another problem that Nike has faced throughout the years was making employees work in poor environments that affected the health of many— which contributed to being abused by the manager for not going to work. Nike distributes and sells merchandise of high quality for a high value. The company is giving the satisfaction of quality service to their

Nike does not own any of the factories that produce its products in Asia, and subsequently they do not directly employ the workers or management. They contract out work to factories that make all of the products and run all of the factories. They have a massive amount of leverage when

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

Nike helped to start a voluntary CSR initiative called the Fair Labor Association to Regarding the most controversial social and yet throughout the history of NIKE to the end of 2020 is expected to have only topics contract factories that demonstrate a commitment to their employees and include protection and workers ' rights, issues health and safety, and a progressive movement toward defining the approach of the "just wage" proposed by the fair Labor Association.

While in 1999, Nike established an association known as Fair Labor Association which is a non-profit organization formed by companies, human rights representative, labor representative. The purpose of creating this association is to protecting workers' rights. In which the code of conducts are comply with the U.S. OSHA (Occupational safety and health administration) that will assure the safe and healthful working environment. The code of conducts includes setting the minimum age of worker and maximum working hour per week under labor and employment law. Nike also encourages other brand joining this association.

Similarly, Nike’s corporate social responsibility (CSR) practices were in question. Truly, their CSR was insufficient and lacked in moral obligation to the communities in which they operated. Conversely, supervisors in the overseas factories were just trying to ensure they met production goals and kept costs low so Nike would continue to do business with them (Nisen, 2013). As a result, Nike expanded their compliance staff, invested in the training of staff and overseas suppliers, developed additional auditing protocols, hired third-party auditors to check their internal audits, and spent millions of dollars to improving working conditions in overseas factories who made Nike products (Locke, 2013). According to a case study, “Nike auditors and compliance staff to be serious, hardworking, and moved by genuine concern for workers and their rights” (Locke, 2013, p.

To combat these accusations, Nike instituted a code of conduct to prevent factory owners from forcing overtime, paying low wages, and being abusive. “Critics have charged that Nike’s Code of Conduct is minimalist and not fully enforced, claiming that posting the Code in factories where most employees are functionally illiterate and/or do not possess the power to insist on its implementation is simply window dressing” (MIT). Sweatshop workers feel they cannot rise up at risk of being fired. Managers may feel they cannot enforce some of the regulations because of deadlines and limited amounts of money. As the accusations grew, Nike established a department that oversaw the lives of the workers in their subcontracted factories. (BUSINESS) In 1997, a subcontractor of Nike in Vietnam forced 56 women to run outside until twelve of the women collapsed. These women were punished for wearing improper footwear to work. (Vietnam) Nike claims they were horrified that this happened. Some may argue that Nike could be more horrified that this report had surfaced. To assuage the demand for action, Nike created the Fair Labor Association (FLA), which has its own code of conduct to help regulate the condition in

Nike took advantage of that and disregarded that the people making their products at an extremely low price were actually humans. It was ethically wrong for Nike to not see those employees as actual people but saw them as a machine that produced products. They did not care to see how being underpaid affected a person’s family. They also did not see that children were working to support families and continued to work in terrible health conditions because they needed the money no matter the environment. The biggest issue was that the company had a total disregard for human life.

Nike soon realized even though they have attempted to make changes within their subcontracting companies it has not been enough. Nike realized they have an ongoing obligation to the workers, as well to the different cultures that are involved. Nike implemented a process called The Compliance Generation, which involves increasing their business value by establishing the function, fighting fires, building a global team, and establishing partners. Employee management interaction making the work more systematic, building excellence in management audits, building environment, safety, and health global process, creating transparency, and creating ratings. Nike wants to have a transformational focus on building excellence in factory remediation, developing a sustainable sourcing strategy, building business integration and accountability, increasing contract factory ownership of corporate responsibility, and building industry conditions (Nikebiz, 2010).

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