This paper describes the legal, cultural, and ethical challenges that confronted the global business presented in the Nike sweatshop debate case study. The paper determines the various roles that the Vietnamese government played in this global business operation. This paper summarizes the strategic and operational challenges facing global managers illustrated in the Nike sweatshop case.
"Nike: The Sweatshop Debate" Case Study
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
…show more content…
Legally the company has done no wrong doing, and the types of environments that these sweatshops are located in are normal within the countries cultures. The main issue in this case is the ethical responsibility of Nike to ensure that the workers work in humane work environments, and are paid wages that they are able to survive on (Vann, n.d.).
Nike’s sweatshops had many positive effects on the developing countries that they were located even though the workers in the sweatshops were mistreated. The company created jobs and this is one of the main reasons that developing countries welcome the formulation of sweatshops. By Nike opening sweatshops in these countries they pay taxes and provide revenue for the host country’s government. In order for Nike to produce more goods in less time the company has to supply the sweat shops with high-tech machinery which improved the production process and raised productivity levels. The countries that allowed Nike to have sweatshops had no restrictions on the sweatshops or any forms of foreign direct investments so they were able to achieve high rates of GDP growth, reduction of the inflation rate and swell up the country’s trade surplus. Although most sweatshops were thought of as whole sale manipulators, human rights violators, and the work conditions were noticeably poor. The workers suffered from the absence of safety procedures and quality equipment because the sweatshops were not
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
Furthermore, Jeffcott proves his point of view by mentioning important brands such as Nike who certainly become a part of the sweatshop abuse for their employees. He then mentions a way in which all the readers can stop
Sweatshops and developing countries go hand in hand. Cheap and plentiful labor along with little to no taxation allows big businesses to build factories countries that are on the low end of the economic spectrum. We can see why--if a country is stable enough (i.e. no civil war, civil unrest or corrupt government) and the populace is generally poor, it would be beneficial for a company like Adidas to build factories in such countries in order to maximize their production via cheap labor. Conditions in such factories are often despicable. Dreary work, harsh supervision, difficult and hazardous jobs and frequent accidents along with extremely low pay and very long working hours make the lives of sweatshop workers miserable. However, sweatshops
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.
A sweatshop is an industry where there are manual workers that are forced to work for very low pay. Long hours, very short breaks if any at all, and under poverty-stricken conditions. The conditions that a sweatshop workers faces are unfair pay, unreasonable hours, child labor, and no health benefits. In some counties children from the age of 5 to 14 are forced to work in sweatshops. Sweatshops are similar to slavery because children are forced to work where there is almost non-existent of paid and the mentally and physically abuse.Nike is one of the corporation that are involved in sweatshops by bad labor practices. It was report that Nike corporation was documented for their low wages and very poor working conditions in Indonesia . Workers
In these sweatshops, worker’s endured very poor working conditions. This paper will discuss the terrible conditions that workers face and how Nike has responded to the criticisms. Late in the 20th century, manufacturers began taking advantage of the cost savings by using Chinese factories where labor is cheap. Athletic shoes are one of the top products manufactured in Asian countries.
The clothing and shoe giant Nike has managed to turn its image around. Nike Has not fully achirvrd its goal in bringing factories into line,but there's no denying that the company executed one of the greatest image was being wuestion in regards to unethical desicions of using swaet_shops.In 1996 that would change thayt,by Nike estbalishing a department tasked with improving the lives off factory workers.the,in 1997 more allegations emereged and college students around the nUnited states began protesting the company.In 1998 Nike faces weak demand and nrelenting criticism.it has lay of workers,and begins to realizes it needs to change.the real shift would begin in1999 when Nike begun to create the Fair labor asscoation.also in 2005Nike publishes
Wage rates are not the only thing low on the totem pull but also working conditions. These poor working conditions and low wage rates came back to hurt Nike as they were scrutinized for their practices. The Asian countries were so desperate for job opportunities that they did not fight for proper working conditions and wage rates. After allegations were made about the sweatshop practice Nike immediately denied any affiliation. At a later date Nike began inspections of Asian factories to ensure better quality working
This paper delves into the well-known Nike Inc. and the ethical dilemma they have been struggling with for years, including the history as well as their efforts to address the issue. While they are have already found ways to try to turn their company around, this paper discusses multiple alternative options as well as the top recommendation and form of application for management to take. With analysis, evaluation, recommendation, and application, this case study will also focus on the impact of the five stakeholders: owners, employees, customers, stockholders, and society at large.
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.
The purpose and intent of this paper is to describe the legal, cultural, and ethical challenges that face the Nike Corporation in their global business ventures. This paper will also touch on the roles of the host government and countries where Nike manufactures their products and the author will summarize the strategic and operational challenges that Nike managers face in globalization of the Nike product.
Time and time again, there are stories of dishonest companies who take advantage of the fact that they have money, try to create more wealth and subsequently forget their workers well being. Although they have more then enough money, greed takes over and good morals are overlooked. Nike, a popular sports brand, makes billions of dollars a year selling various products. To manufacture them, Nike has created many sweatshops throughout the world. Although they can definitely afford to pay their workers fairly, it has been found that these workers,
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.
A large majority of Americans do not realize where the clothes they purchase are produced. Unethically made goods are predominantly less expensive than goods made outside of sweatshops. With the increase in investigations, it is apparent major brands such as Nike, Disney, Reebok, the Gap and others are involved in the use of sweatshops. Sweatshops are commonly known for having poor working conditions, unfair wages, unreasonable hours, child labor, and a lack of benefits for workers. In foreign countries, sweatshops have around 168 million children ages 5 to 14 forced into child labor (“11 Facts”). Labor conditions are violated, and are often ignored by the US Department of Labor. Sweatshops are still ongoing due to the ignorance or lack of care for the people involved in a sweatshop corporation. With the awareness of where the majority of inexpensive clothing is manufactured, the public and major American companies should reconsider supporting sweatshops.
With a slogan of “Just Do It,” Nike is known all over the world for its products ranging from apparel to shoes. Receiving recognition and sponsorship from various celebrities and athletes including Michael Jordan, Nike’s brand is generally associated in a positive light. However, the brand itself, variety of products, and numerous sponsors exist as only a few aspects of this continuously expanding brand. Another aspect to consider when addressing the overall existence of a product as well as the constant introduction of new products is the production process itself: how the product came to be, who is involved in creating the product, and where the product is produced.