Nike Company must be honest and pays the wages fairly to the workers. With low payment it becomes not fair to the workers who work hard every day. The others are freedom of association and excessive overtime among others method to address the problem. Nike said it is moving more of its production to factories that meet a core set of standards. A Nike spokesman did not immediately respond to a question about why Nike didn't disclose information about factory wages in the new report.
Nike’s operational practices were not ethical or effective and were delaying its success by causing negative publicity which led to reduced sales and loss of profits forcing Nike to change its operational strategy drastically in order to be compliant with labor and civil rights unions. One of the many operational challenges Nike had to face was the addition of a stringent monitoring system in all of its international sweatshops. Another challenge was to hire a well-rounded firm to certify and guarantee ethical inspections and accurate data are consistently produced at all international
Evaluate Nike’s response to societal and consumer concerns about its contract manufacturing. It is a shock for the media as they did uncovered that Nike’s the industry leader, has a twisted problem within its own company, and the topic itself had spread rapidly to the worldwide in no time because Nike’s company did not take an immediate measurement to face the problem. Since the mid-1990s, critics about Nike labour rights had arisen rapidly in a massive amount, not only from the public, there are critics of from the mainstream media, and from human and labour rights violations bodies as well, such as child labor. In order to counter and response the criticism, Nike has to take a quick and suitable decision, in goal to rectify the problem, but as well as to redeem its reputation. Therefore Nike’s new priorities is making sure that their factories were not taking advantages of its workers anymore, and to ensure for a competitive wage and a safe work environment is provided for each worker.
There was a revelation of sweatshop working conditions in these countries and this challenged Nike’s business opportunities. From then onwards, Nike had a number of ethical issues; for instance in Vietnam there was the violation of working hours and minimum wage. In addition, there was the use of child labor in Cambodia and Malaysia in addition to forced labor. Nonetheless, the company took full responsibility by recognizing their inherent social responsibilities. According to Dutton, “The company took immediate steps to correct the situation, implementing a code of social responsibility throughout its supply chain that improved working conditions for some 800,000 employees at 700 factories in 52 countries” (Dutton, 2012).
Nike and their Just Do it slogan is one that is very known throughout the world. Nike is a fortune 500 company. Nike is a major company in sporting products and has put a lot of time in developing the company reputation in reliable and good quality. Nike is very smart in marketing their products to the general public. They use all types of methods to get the company to attract consumers.
In my perspective, the second response, instead of the initial lackluster defense the company came up with, a code of conduct should have been immediately put in place to correct the anomalies and publicly apologize for what was going on. The company should have immediately embarked on a training mission to educate both contractors and employees on what is acceptable and what is unacceptable in any factory connected with Nike. This training mission should have been the third response of the company. Although the company applied the above suggestions, but it was rather too late while some significant damages were already inflicted on the company’s
Some of them are the properties of Nike's Korean suppliers. The positive impact was the factory production increase, and it came under detailed examinations and careful investigations. The negative influence of the firms was greater scrutiny exposed to a variety of Non-Government Organizations and labor activists. They made a statement that these factories were exploiting Indonesian workers by applying exemptions to the legal minimum wage. These activists also found that the poor working condition and labor abuses happened in the plants.
Activists claimed that this would be beneficial for workers in the factories that made the major corporations’ products, as disclosures would force responsible corporate practices and better working conditions. Nike surprised the corporate community when they published their supplier list in 1995, in response to their image which co-founder and former CEO Phil Knight described as “synonymous with slave wages, forced overtime, and arbitrary abuse (Doorey 2011, 600-601).” This image prompted an anti-Nike movement and resulted in the company taking several steps towards corporate responsibility to lose their negative image. In fact, image is paramount in Nike’s corporate decision-making over the past two decades – leading to greater workers’ rights, corporate responsibility actions, and initiatives such as the Nike Ambassador program that continues to change the lives of people who cannot afford Nike
The Nike organization is synonymous for their apparel, footwear, and sports equipment (Epstein-Reeves, 2010). By the mid-1990’s, the Nike organization was synonymous with slave wages, forced overtime, and arbitrary abuse (Epstein-Reeves, 2010). The organization tried to ignore the claims, stating that Nike could not be held responsible for the practices of their supply chain (Epstein-Reeves, 2010). However, after the pictures of a child in Pakistan appeared assembling Nike soccer balls (Epstein-Reeves, 2010). Nike began to reshape the organization by taken social responsibility for their supply chains (Epstein-Reeves, 2010).
Leadership Challenge Nike Sweatshop Ethical Dilemma Introduction Nike is a multinational company involved in the design, manufacture, and sales of sports apparel. Nike motivates and encourages athletes to attain their objectives by offering the right attires. The company is focused on extensive advertising and endorsement of various celebrities such as Tiger Woods to help in marketing their products. Therefore, Nike outsources its manufacturing processes to other countries that have easy access to raw materials and cheap labor. Further, customers appreciate Nike’s products because they are comfortable and creatively designed which makes Nike a favorite brand for the youth who focus on their health and fitness.