The United States has specific labor wages that must be followed which are set by the government. The most common known other than the U. In 1996, Nike made another decisive move when it joined a presidential task force that is created to think of ways in order to put a stop to sweatshops in the shoe and clothing industries. Nike Corporation to explain why Australia should adopt a policy of Globalisation. Governments In developing countries frequently permit and support sweatshops because the whitewash create tax revenues and other income. In 1971, he conjured up the name Nike.
Their goal… 1195 Words 5 Pages business presented in the Nike sweatshop debate case study. You will see where you can insert your own product category and brand name. The Indonesian government admits that the minimum wage there does not provide enough to supply the basic needs of one person, let alone a family. We have uncovered these issues clearly before anyone else, and we have moved fairly expeditiously to correct them. 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.
The company agreed to take their manufacturing overseas to third-world countries where the cost of laboring is cheaper. Besides this many other human right organizations like the global exchange and many others published their reports against the Nike incorporation. Saporito, Bill 1998, March, 30. Rather, it designs and markets its products, while contracting for their manufacture from a global network of 600 factories scattered around the globe that employ some 650,000 people. The trend of the industry has been a steady increase since 2009. Nike: The Sweatshop Debate Summary: Nike is one of the foremost marketers of athletic shoes and apparel on the world.
This paper will also determine the various roles that host governments have played as well as summarize the strategic and operational challenges that face global management for the Nike Corporation. Thus, Nike is responsible at least in part of the working conditions endured by those that work there. If it insisted on prevailing conditions in the United States, there would be little reason for Nike to seek contractors from outside countries. This multitasking is beneficial for employees, and that having more responsibilities feel more identified with the company and hence trying to do their best work to excel in all tasks, while learning many things from different departments. Although Nike admits about some problem in the overseas factories, it has taken many steps to the. Knight is like a three-card monte player. Despite such high aims by the company, there are still reports of human rights violations in factories manufacturing Nike products.
This paper, based on the case study Nike : The Sweatshop Debate authored by Charles W. This could only be achieved by regulating the practices of people responsible in managing factories and its workers. The creation of this code of conduct came after serious allegations of using sweatshops with women and children working in hazardous conditions for less than minimum wage in overseas factories scattered across the globe to make their product. In these countries they have horrible working conditions. As per Hill, 2009 by using these types of producers Nike is hiring 550,000.
The accord limited the workweek to 60 hours and called for paying at least the local minimum wage in foreign factories. In the face of constant accusations, Nike has developed a considered response but the criticism of Nike still continues. For example a Korean subcontractor hired by Nike was hiring children as young as 13 years old, paying them 10 cents an hour and working them 17 hours a day. Keep all of these questions! Should Nike be held responsible for working conditions in foreign factories that it does not won, but where sub-contractors make products for Nike? Those factories have been required to raise their standards to 17 years of age, to require three documents certifying age, and to redouble their efforts to ensure workers meet those standards through interviews and records checks. Nike does not produce any products that are sold.
PricewaterhouseCoopers had already conducted 300 monitoring visits. Another issue we an al ys ed wa s wa ges. In 1965, they hired their first employee, Jeff Johnson, to manage the growing requirements. Some reports showed that Nike hired millions of workers who are literate, disciplined, and desperate for jobs at wages lower than minimum wage, and the majority of Nike shoes were made in Indonesia and China, countries with governments that prohibit independent unions and set the minimum wage at rock bottom. The countries that Nike subcontracts to such as the Vietnams, China and Indonesia are cultural poor. University of Minnesota professor Paul Glewwe The affiliates of U. The specified age requirement would be 15 years old in most countries and 14 years of age in developing states.
The first option is Nike can own and operate the factories and manufacture the product. The controversial issues are why the majority of Nikes labor is conducted in Third World countries. 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. Workers with the minimum age of 18 will be accepted in all footwear manufacturing and 16 years old in other types of manufacturing such as: apparel, accessories, and equipment. 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.
We expect our suppliers to share our standards and to operate in a legal and ethical manner. Every year, employees are required to verify that they have read and understand Inside the Lines. Words: 1818 - Pages: 8. The Global Alliance report on the factories in Indonesia gave the following workforce profile: 58% of them are young adults between 20 and 24 years old, and 83% are women. Nike: The Sweatshop Debate analyzes the legal, cultural and ethical challenges confronted by global business and will also examine the roles that host governments have played while summarizing the strategic and operational challenges facing global managers at Nike.
Having standards in place will protect the organization from a major crisis like the one formally faced by Nike. The company's current strategy is to reshape its public image while doing as little as possible for the workers. Words: 401 - Pages: 2. Nike is determined to solve the problem that is why they decided to take action within their company. Nike has encountered a lot of legal, social as well as moral problems above of when the example of the plant of the operation was encountered. Over the past decade, tens of thousands of students, people of faith, activists, and consumers have demanded that retailers take responsibility to clean up sweatshops such as Nike.