Managerial Finance — Nike, Inc. NorthPoint Group, a mutual fund management firm, is trying to decide whether to invest in Nike, Inc. During that same time period, Nike management communicated their plans for revitalizing the company.
More Essay Examples on Nike Rubric The company has been criticized by various non-governmental organizations as it is seen as the symbol of the evils of globalization. Nike is said to exemplify a western corporation that exploits the people of poor countries in order to produce expensive shoes and apparel for their own profit.
The CBS 48 Hours news report is among those that made an expose regarding the inhumane labor treatment that is happening in most Nike manufacturing factories.
This clearly shows the exploitative labor that Nike manufacturing companies are practicing. Nike spent substantial amount of money and worked hard to establish the image that they have but this is now threaten due to this issue that they are facing.
In order for the company to save their reputation as well as control the growing criticism against them, they develop possible alternatives in order to address the problem.
MGT Individual Case Study“Nike: The Sweatshop Debate” at the end of Part 2 Select one of the cases from the International Business Textbook: · “Nike: The Sweatshop Debate” at the end of Part 2. Nike: The Sweatshop Debate 2 Introduction This paper will describe the challenges in the legal, cultural, and ethical area that the Nike corporation had faced due to doing global business in Vietnam government. This paper prosecutes the strategically and operational challenges that make part of Nike and equally illustrates the part of Nike in the scandal of the operation plant and the ethical 90%(20). I believe the organic design of Nike helped in posing the sweatshop labor problem Nike faced. Using a flat structure helps get a lot of work in a short time but none-the-less can cause a lot of trouble as seen in Nike.
The first thing that Nike did is to hire Andrew Young, a one-time U. Ambassador to the United Nations and also the former Atlanta Mayor to work for the company. He assessed the working conditions of the manufacturing plants of those subcontractors that are affiliated with Nike.
He inspected 15 factories in three countries. Young reports showed that Nike was treating its workers properly although there is still room for improvements. He also emphasized that he did not see any sweatshops or hostile working conditions.
On his observation, there were crowded dorms but the workers eat at least two meals a day during their shift and they are paid subsistence wages based upon their cultures. InNike 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.
The participants of the task force include leading companies in the industry like Nike as well as representatives coming from the human rights groups and labor leaders. Some of its provisions are to limit the workweek to 60 hours and for the companies to pay the local minimum wage I these foreign factories.
Furthermore, the task force also consented to establish an independent monitoring association that was referred to as the Fair Labor Association FLA. This independent monitoring association has indeed grown in its membership as it now includes important and prominent organizations in various sectors of the society.
Nike also made another important action in countering the accusations regarding their adherence to sweatshops when the company commissioned independent organizations like the Ernst and Young to audit the factories of its subcontractors.
During SeptemberNike proved its detractors that they are committed in addressing the issue when they terminated their contracts with four Indonesian subcontractors. Nike even named one the subcontractors, Seyon that is responsible in manufacturing sports glove for the company.
Nike elaborated that this subcontractor refused to apply the Nike is determined to solve the problem that is why they decided to take action within their company.
Philip Knight explicitly expressed this objective in his speech on May 12, at the National Press Club. He informed the public of a detailed series of initiatives that his company would pursue in order to enhance the working condition of about 50, employees that make products for Nike through its subcontractors.
Knight emphasized important actions that the company did and plans to do. The specified age requirement would be 15 years old in most countries and 14 years of age in developing states. 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: The company is already observing this kind of measure for the past 13 months.
Every Nike contract factory will be checked annually by the PricewaterhouseCoopers teams. PricewaterhouseCoopers had already conducted monitoring visits. In some of their visits, they found out that there are workers in apparel factories that are below the minimum age requirement.
These factories have been reprimanded and they were instructed to raise the age limit to 17 years old. Subcontractors of the company should also ask for at least three official and verified documents that will prove the age of their workers.
The main of goal of the Nike as Philip Knight stated is to make sure that workers in different parts of the world are protected. This could only be achieved by regulating the practices of people responsible in managing factories and its workers.
They pointed out that Philip Knight was not addressing the root causes of the problem. Even the value of the auditors hired by Nike is being questioned because of its incompetence in identifying and focusing the major labor practice issues.
Nevertheless, Nike pursues to push forward its own initiatives. The company is constantly updating the developments of their efforts in addressing the issue of sweatshops on its Web site. In AprilNike responded to the continued accusations that it has been receiving.
The company expressed a back-up plan that would answer all the allegations against them.Case Study "Nike: The Sweatshop Debate" “We’ve run the course – from establishing codes of conduct and pulling together an internal team to enforce it, to working external bodies to monitor factories and engaging with stakeholders” (Nikebiz, para.
2). The host country governments have played a role this global business operation. The global managers have faced strategic and operational challenges.
'Nike: The Sweatshop Debate': Describe the legal, cultural and ethical challenges. Case Study. examine: "Nike: The Sweatshop Debate" at the end of Part 2 address the following issues: a) Describe the legal, cultural, and ethical challenges that confront Nike. b) Determine the various roles that host governments played in this particular operation.
Nike has gathered much pres about using sweatshops since the s. They have been criticized for the working conditions and low wages at these factories, with many critics accusing the company of profiting from sweatshop labor. Nike: The Sweatshop Debate (Case Study)In today's business world, a company's ethical behavior is constantly under the microscope; and more specifically, the 4/5(2).
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