The use of sweatshop in multinational companies has become a common practice around the world. The main reason is because it could maximize profit by overseas manufacturing with lower labour costs. According to Skarbek et al (2012, p.556),the sweatshop is a factory in the developing country which employ the low wage labors in the poor working environment to produce goods for multinational enterprises. The proponent of sweatshop claimed that based on consequentialist approach, sweatshop has given a positive impact on the ...
... middle of paper ...
...a report of sweatshop abuse in Indonesia, where employees were still getting harsh treatment from their supervisors. This condition was also backed up by military power and lacked of monitoring from Nike. The use of regime power could also be seen in Russia, Vietnam, Sri Lanka, Thailand and Philippine.
The other perspective that could be considered is the disparity between the labor wages with the executive’s salary of Nike and the huge of its advertising cost. Meanwhile, Nike’s products are mostly range in the premium product. Therefore, it is clearly seen where most of company profit runs out every year. Regarding those perspectives, it could be assumed that Nike has not become an ethical company. Despite all improvement that they have implemented, they still have to be more consistent to turn their negative images, especially because of their sweatshop history.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Nike Inc takes pride in being an ethical company. Nike places their responsibility to their stakeholders, internal and external, at the top of their priority list. They expend great of time, money, and resources to ensure that they are fulfilling their ethical duty, and achieving the highest standards of ethical responsibility. Because of Nike’s efforts to maintain their ethical integrity, Nike is a good corporate citizen. Nike’s motto says that Nike Inc was founded on a handshake. Their goal from the beginning was to build business with their partners based on trust, teamwork, honestly, and mutual respect.... [tags: Nike's Labor Practices]
1768 words (5.1 pages)
- 1. What are the pros, cons, and risks associated with Nike’s core marketing strategy. Nike’s mission is to bring inspiration and innovation to every athlete* in the world (*if you have a body, you are an athlete) (Nike, Inc., 2015). Nike offers sporting shoes, apparel, and numerous types of sporting equipment, such as football, basketball, golf, soccer, baseball, swimming, etc. Nike believes in their products before they release the products to the public, Nike researches and tests their products in a laboratory to ensure that their products meet all their claims.... [tags: Marketing, Advertising, Nike, Inc.]
722 words (2.1 pages)
- Philip Knight is the chairman, CEO, and co-founder of Nike and he currently owns more than 90% of the firm. The company is internationally known for its trademark "swoosh" and its leadership in the athletic apparel industry. Philip H. Knight's involvement with a sporting goods company is not accidental. He has always loved running, was a miler in college and has participated in marathons since. Knight received a BBA in Accounting at the University of Oregon in 1959, and was an MBA student at Stanford University.... [tags: Nike CEO Sports]
1796 words (5.1 pages)
- Nike has responsibility for the working conditions of their employees who produce Nike products. In cases of multinational companies, the question of whose ethics and standards to follow is often disputed. Best judgement and reasoning and a combination of the countries’ standards combine to decide on appropriate treatment. In Nike’s case, as part of their strategy, they moved work overseas to save on labor costs. However, the employees still work in Nike factories making Nike products, and Nike has responsibility to protect their working conditions and workers’ rights.... [tags: Employment, Minimum wage, Social responsibility]
734 words (2.1 pages)
- Nike has a responsibility for the working conditions of their employees who produce Nike products. In cases of multinational companies, the question of whose ethics and standards to follow is in dispute. Best judgement and reasoning and a combination of the countries’ standards combine to decide on appropriate treatment. In Nike’s case, as part of their strategy, they moved work overseas to save on labor costs. However, the employees still work in Nike factories making Nike products, and Nike has responsibility to protect their working conditions and workers’ rights.... [tags: Employment, Minimum wage, Social responsibility]
731 words (2.1 pages)
- Over the past ten years, a growing trend of corporate social responsibility (CSR) emerged (Chernev & Blair, 2015). Some believe the CSR movement began post corporate financial scandals from companies such as Enron, WorldCom, and Tyco, as investors wanted to see reform and better corporate responsibility (Boerner, 2010). A 2007 survey of CEOs revealed that approximately half of the respondents included sustainability as part of their corporate strategies (Boerner, 2010). A similar CEO study conducted in 2010 indicated that CEOs who embraced sustainability believed that it strengthened their brand, reputation, and built trust among their stakeholders (Boerner, 2010).... [tags: Corporate social responsibility, Business ethics]
1137 words (3.2 pages)
- 1.0 BACKGROUND TO THIS RESEARCH Corporate Social Responsibility has increasingly become an important and integral part of the decision making of management and operations of corporations especially in the more developed economies in the world (Follows and Jobber, 1999).This owes largely to corporate scandals that continuously surfaced in various multinational companies. A few examples are the 2008 chinese milk scandal in the consumer food industry where 6 children died and 300,000 others fell ill, the Nike sweatshop scandal where human and working conditions were well below acceptable standards.... [tags: Corporate social responsibility]
1388 words (4 pages)
- Introduction: Corporate social responsibility has been proposed by western countries since nineteenth century, it attaches importance in recent years, and federation already become a charity where drive the enterprise to be responsible for society. Due to the fad of corporate social responsibility, some people hold that business is not supposed to shoulder any social responsibility except making profits. By the side of economic, it is correct as Friedman said, there is one and only one social responsibility, which is increasing profits( Friedman, 1962).... [tags: Corporate social responsibility]
1004 words (2.9 pages)
- The company which I chose to research and assess their ethical practices is the Nike Company. The company is the world’s leading maker of athletic clothing and footwear however, Nike has long been facing issues since the 1990’s for their mistreatment of employees and horrible working conditions in sweat shops overseas. This makes them a perfect example of a company who is trying to overcome the tarnished image consumers have placed on the company, by turning to a new set of ethical standards The first principle in the Better Business Bureau’s Ethical/Enterprising principles is transformation at the top.... [tags: Ethics, Business ethics, Better Business Bureau]
865 words (2.5 pages)
- Phil Knight and Bill Bowerman founded Blue Ribbon Sports in 1964. The Nike brand was created in 1972 and renamed in 1978. Nike is the largest worldwide seller of athletic goods with about 168 Nike stores in the United States and is present in about 160 countries (Toulouse, 2012). Nike was exposed by celebrity athlete sponsors. The company’s manufacturing demands grew with the popularity of Nike’s products. In the late 1990s allegations about labor and human rights violations in Third World countries (Daniel Fund Ethics Initiative).... [tags: managerial, labor, practices]
933 words (2.7 pages)