2. Nike could have better anticipated that sooner or later the maltreatment in sweatshop factories would be exposed especially when the company began to grow quickly. Groups of critics become larger as the company grows, thus making it difficult to hide any malpractices or issues of corporate social responsibility. In response to the sweatshop labor issue, Nike attempted to improve the working conditions in their overseas factories, implement a factory code of conduct, and even start a voluntary CSR initiative called the Fair Labor Asso...
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...ificant problems. Reports of a factory in Bangladesh stated management punished employees for learning about labor rights, and reports of a factory in Malaysia discovered workers paying an outrageous recruitment fee and being denied their passports until it was paid off. While Nike has made attempts to improve conditions in these sweatshops, there has been little proof of any serious results.
Nike has not addressed the root causes of problems in the supply chain. Perhaps Nike should be more particular when choosing the contract supplier, and make sure standards and codes of conduct are stated clearly when contracting. As another idea, Nike could impose consequences on those factories who are not obeying the conduct rules. This may hurt the business by causing delays or loss of suppliers, but Nike would gain a great amount of respect again from critics and customers.
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