Ethics Of Nike

Nike, is a sneaker company “armed with an inimitable attitude, phenomenal growth, and the apparent ability to dictate fashion trends to some of the world’s most influential consumers.” (Spar, Page 2) Regardless of its prosperity among young adults, Nike was faced with an overflow of scandals and “was increasingly becoming known as the company of labor abuse.” (Spar, Page 2) By the late 1990s, “the Nike product had become synonymous with slave wages, forced overtime, and arbitrary abuse.” (Knight, Page 13)

For years, Nike faced harsh criticism across the globe for its labor practices. Continued backlash from the media caused outrage among consumers and activists. In the early stages, Nike responded by insisting “that labor conditions in its

Ballinger was “particularly concerned with the stubborn gap between wage rates in developed and developing worlds.” (Spar, Page 4) Ballinger argued that “Nike’s policy of competing on the basis of cost fostered and even encouraged contractors to mistreat their workers in pursuit of unrealistic production quotas.” (Spar, Page 4) Ballinger worked for several years to “draw worldwide attention to the exploitation of third-world factory workers by rich U.S. companies.” (Spar, Page

With Nike stubbornly sticking to it’s “not our problem attitude” criticism and outrage only increased. With all its media coverage, Nike’s initial response – “We don’t make shoes” – “was becoming harder and harder to sustain.” (Spar, Page 2) Washington took interest into the allegations with “several senators and representatives suggesting solutions to the issue of overseas labor abuse.” (Spar, Page 6)

In 1996, Nike began enlisting in a damage control strategy by hiring Andrew Young. The civil rights leader and former mayor of Atlanta was in charge of traveling to Asia and issuing a formal report on how Nike was doings. When he returned Young concluded that he sincerely believed Nike was doing a good job. Offering suggestions on improvements than should be made Young did not touch base on the issue of wages.

Young argued that “Nike had not asked him to address compensation.” (Spar, Page 8) This report did nothing in terms of calming critics and only outraged reporters concluding that Nike had done what it does best by enlisting, yet again, another celebrity to endorse the company during its hardships. The issue of wages began to resurface again in