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Nike and thrid world country labour
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Nike factory workers are abused and aren’t paid enough to meet simple life necesities and are doing nothing to change the problem.Nike moved most of their production from Beaverton,Oregon to overseas simply because of the fact that they can get away with treating their working unfair(Stanford.edu1). Men and Women that work in Indonesia are paid 5$ a day and aren’t even able to by food for their family on a day to day basis. In an article it shows that the monthly wage in South africa for some 660 workers is $ 31.43(Bizjournal 1). This amount of money is simply not enough for anybody to live off of in a month.. Verbal and physical abuse is another problem and in China women were kicked,slapped and verbally abused(daily mail). So If we don’t bring the problem to Nike and the rest of the Nike consumers the problem of unfair wages and abuse will still be prevalent in Nike factories all over the world. Outsourcing happens because companies can get away with more things such as wages.This is happens everywhere in the United States simply due to the fact they can rip their workers off.In California alone 560,000 jobs were taken from the …show more content…
For instance in a article written by daily mail “One worker at the Taiwanese-operated Pou Chen plant in Sukabumi said she was kicked by a supervisor last year after making a mistake while cutting rubber for soles.” In the article it says that nike knew about what was going on and said that there was little they could do to stop it.There is a myriad amount of articles that prove that Nike knows what’s going on in their factories.For instance, Nike shoe factories in indonesia supervisors throw shoes and call the worker pigs and Nike admits that they knew what was going on (huffington post 1). Nike is constantly reminded of the abuse that their workers have to work with,yet they let the verbal and physical abuse
Large corporations such as Nike, Gap, and Reebok and many others from the United States have moved their factories to undeveloped nations; barely pay their employees enough to live on. Countries such as China, Indonesia, and Haiti have readily abundant cheap labor. There should be labor laws or an obligation of respecting workers to provide decent working conditions, fair wages, and safety standards.
This happens all the time in different countries every year, and this can definitely impact a nation economy. It is inhumane from big successful corporations like Nike or Forever 21 to do to their workers. A change definitely needs to be made so that these workers get paid fairly and not only within the U.S, but also in other countries all around the world. NAFTA (North American Trade Organization) is being blamed for sweatshops called Maquiladoras found along the U.S borders on the Mexican side where: “The overabundance of workers enables the factories to pay $50 for a 48 hour week. Yes, that is about one U.S. dollar per hour! If the factory were on the California side of the border, the minimum wage would be $8/hr. (the federal wage would be $6.55)” (Villagran, G. 2009). Clearly, anti-sweatshops laws could be enforced so that every workers have equal rights, benefits, and pay. On the other hand, in countries such as Honduras, people want to work in sweatshops because they are the best jobs available to them and it is their best and only option to be able to make a little money. Sweatshops can be described positively mainly
Nike publicizes itself as one of the leading industries in corporate responsibility. However, they do not comply with several human rights obligations overseas in countries like Thailand, Pakistan, China, Vietnam and Indonesia. In these countries, production facilities called sweatshops have been running for almost 35 years employing workers as young as 13 years of age. The conditions of these factories are adverse to say the least and deprive workers of the moral human rights they should be entitled to. Sweatshops are unethical, immoral and demonstrate Nike’s ignorance towards their social responsibilities abroad. Within these facilities, workers endure stressfully long days under undesirable conditions, often with no breaks and very little pay. While this is going on overseas, sponsored athletes are being paid million dollar salaries here in North America. Although Nike’s reputation has been foiled through the tabloids regarding this issue, they have been making a substantial effort to “clean up” production messes in the East.
Corporations in the United States have proved time and time again that they are all about profit and not about what is good for America. One example of this is the fact that many corporations have factories in other countries, or buy from other corporations that do. Nike (an athletic shoe and clothing company) produces most of their shoes and apparel in factories in other countries, including Japan, South Korea, Indonesia, China, Vietnam and Malaysia. According to Nike’s factory disclosure list released May 2011, only 49 of it’s over 700 factories are located in the U.S. (Nike, Inc.) This means that thousands of jobs that could be filled by needy Americans are instead being filled by workers in other countries. This reason that Nike and other corporations outsource is very simple, it is very cheap to do so. In an excerpt from Jeffrey St. Clair's book “Born Under a Bad Sky” the author describes the vast differences between Nike’s production costs and retail prices. “In Vietnam, it costs Nike only $1.50 to manufactu...
Pittman, B. (2012, September 14). Nike sweatshop history: Should action be taken?. Retrieved from https://sites.google.com/site/americanlaborcrises/labor-crises/nike-sweatshop-action
... ethics? Well, the honest answer would be to eliminate the sweatshops completely. This is unlikely because it would be very difficult for a company with such a broad reach in the corporate world to shut down its factories overseas. Companies will always continue to exploit lower wages as long as the opportunity is present. A possible way would be to improve their employee surroundings. Since Nike is benefiting from low wages, they should at least provide a safer working environment for its employees. No employee should ever be put at risk due to a lack of environmental awareness. Nike should also pay attention to wage laws that govern the area that they manufacture in. With all the profits Nike earns, it couldn’t possibly hurt them to pay their employees no less than minimum wage. Otherwise, any company that possesses such blatant greed will not last in the long run.
Nike does not merely sell products these days. They spend billions of dollars for advertising contracts with famous athletes like Tiger Woods to increase the value of the brand by associating the factor of lifestyle to their products. The company's image has been damaged many times by press releases as well as a variety of NGOs who have long pointed out the inhumane working conditions in the production facilities of sporting goods manufacturers. This leads to the question whether should Nike orientate the regulations of the suppliers to the labor standards in their respective countries or those in the United States? The labor conditions are so inhumane that Nike at least should try to converse to the US standard to improve the situation. The following analysis of an abstract of Nikes’ Responsibility Concept, including SHAPE and their Code of Conduct, should give an insight into the difficulties of the Sweatshops.
Phil Knight started his shoe company by selling shoes from the back of his car. As he became more successful in 1972 he branded the name Nike. In the 1980’s Nike Corporation quickly grew and established itself as a world leader in manufacturing and distributing athletic footwear and sports' attire. The Nike manufacturing model has followed is to outsource its manufacturing to developing nations in the Asia Pacific, Africa, South and Latin Americas; where labor is inexpensive. It quickly became known for its iconic “swoosh” and “Just do it” advertisements and products. Its highly successful advertising campaigns and brand developed its strong market share and consumer base. But, the road has not always been easy for Nike; in the late 1990’s they went through some challenging times when their brand become synonymous with slave wages and child labor abuses. During this period, Nike learned that it paramount that the company understands its stakeholders’ opinions and ensures their values are congruent with their stakeholders. Nike learned that their stakeholders were concerned with more than buying low cost products; their customers were also concerned with ethical and fair treatment of their workers. Because Nike was unwilling to face the ethical treatment of its employees, the company lost its loyal customers and damaged its reputation. Nike has bounced back since the late 1990’s and revived its reputation by focusing on its internal shortfalls and attacking its issues head on. Nike nearly collapsed from its missteps in the late 1990’s. They have learned from their mistakes and taken steps to quickly identify ethical issues before they become a crisis through ethics audits. This paper is based on the case study of Nike: From Sweatsh...
Many people in our society today are constantly asking, "Why do sweatshops exist?" The answer to this question is that companies like Nike and Wal-Mart use sweatshops to produce their goods for a much cheaper rate, to reduce the cost of their products. The problem with sweatshops is that the workers are subject to hard work in often times poor conditions for minimal pay. But although many people may condemn sweatshops, there are some advantages that many people overlook when arguing against sweatshops and their practices.
But the forty or so factory workers in the Philippines who make the trainers will share just over £1 between them. " I think the writer is getting consumers to use their consumer power to not buy the products being advertised, by appealing to the consumers conscience, bringing to their attention the plight of the workers in L.E.D.C's. "Christian Aid charges the sports shoes companies with short changing the workers in Asia. It has calculated how long it would take a young production worker to earn the annual salary of Nike boss Phil Knight." Christian Aid have spent a lot of time finding out the facts to back up what they say they are bringing you information straight from the bosses and the workers and showing the reader the pain the workers are going through.
With the increasing awareness and publicity of poor working conditions in subcontracted factories in East Asia, Nike has stimulated an uprising of activist and watchdog groups working toward seeing these conditions changed. With Nike in the negative spotlight, various organizations have revolved around generating a negative outlook on Nike’s practices of social irresponsibility. Certain campaigns such as the “National Days of Consciousness” and “International Day of Protest” were organized to educate people on the deplorable working conditions in Nike’s Asian manufacturing plants, and were designed to get more people involved in global employment issues.
In this Case Study Analyses, an objective SWOT Analyses will be done to help identify potential strengths, weaknesses, opportunities, and threats within the Nike Corporation.
In June of 1996, Life magazine published a article about Nike’s child labor that was occurring in Pakistan. The article showed a little boy who was surrounded by pieces of Nike sports gear. The articles were shoes and soccer balls. Nike then knew then that they had to make some major changes in the way they were producing their items.
The aim of this project is to highlight the product by considering the objectives of marketing and communication. Sports shoes are the most common shoes used as regular basis. These kinds of shoes are meant for running, exercise, walking .Sports shoes are commonly known as: running shoes and athletic shoes. Due to a great competition in the market of Sports shoes, Marketers are providing modified sports shoes as per requirements of customers.
American companies manufacturing at cheaper costs in foreign companies is not a new practice. Companies have been using overseas factories to produce goods for years due mainly to cheaper manufacturing costs. Not only are labor and material costs less expensive, foreign countries often do not have as strict of labor laws as the ones enforced in America. They also do not have a sense of responsibility to the community. Companies can come into a remote area in another country and provide substandard pay and working conditions to underprivileged workers who typically do not have many opportunities for work. In such cases, there is usually no local regulation enforced and global companies like Nike can take advantage of impecunious workers while increasing their profits.