Nowadays, businesses are facing a high demand not for their products but for their ethical conduct to produce goods or services. Alongside with the technological advances that create easy accessibility for information and the openness in media coverage, consumer’s awareness also increases regarding business’s ethical issue. This then make some type of business, especially International Business; have to be careful in their business’s conduct because each country has different standards and different rules also regulations concerning business ethics.
There are 3 ethical factors that become the main consideration for the company in their business activities which covers profit, people and planet. Although a lot of developments have been made in rules and protocols regulating those factors, one that is still remain having a lot of loopholes is the people factor. The known ethical issue regarding this factor is sweatshop. It is the term used for defining factories that give their employees “low wages for long hours and under poor conditions” (Definition of sweatshop in English no date, p. Online). This problem is mostly happen in under-developed or developing countries, such as Indonesia and Bangladesh. Companies or corporations choose to do their manufacturing process in these countries because of the cheap labor, availability of productive workers and the lack of law on working conditions.
Nike; a famous sport brand, has a long history with this ethical issue. The problem emerged in 1991, after “Jeff Ballinger publishes a report documenting low wages and poor working conditions in Indonesia” (Nisen 2013, p. Online). The workers were paid closest to the legal minimum wage with only $2 per day. Moreover, the workplace was dangerous wi...
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...eatshop [Accessed 17 May 2014]
Galpin, R. (2002), Spotlight on Indonesian 'sweat shops'. BBC News [online]. Available at: http://news.bbc.co.uk/2/hi/asia-pacific/1860217.stm [Accessed 17 May 2014]
Herlina, A. (no date), Workers' Conditions in Indonesia. European Parliament [online]. Available at: http://www.europarl.europa.eu/hearings/19970617/droi/doc5_en.htm [Accessed 17 May 2014]
Nike workers 'kicked, slapped and verbally abused' at factories making Converse. (2011), Mail Online [online]. Available at: http://www.dailymail.co.uk/news/article-2014325/Nike-workers-kicked-slapped-verbally-abused-factories-making-Converse-line-Indonesia.html [Accessed 17 May 2014]
Nisen, M. (2013), How Nike Solved Its Sweatshop Problem. Business Insider [online]. Available at: http://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5?IR=T& [Accessed 17 May 2014]
The mere idea of sweatshops, let alone their existence, seems cruel and unusual to people like us, especially in today's day and age. After all, in sweatshops "workers are subject to extreme exploitation. This includes... (not) enabling workers to cover ...
The controversial issue of sweatshops is one often over looked by The United States. In the Social Issues Encyclopedia, entry # 167, Matt Zwolinski tackles the issues of sweatshops. In this article Matt raises a question I have not been able to get out of my head since I have begun researching this topic, “ are companies who contract with sweatshops doing anything wrong?” this article goes on to argue that the people who work in the sweatshops willingly choose to work there, despite the poor environment. Many people in third world countries depend on the sweatshops to earn what they can to have any hopes of surviving. If the sweatshops were to shut down many people would lose their jobs, and therefore have no source of income. This may lead people to steal and prostitution as well. this article is suggesting that sweatshops will better the economy by giving people a better job than what they may have had. Due to this the companies contracting with sweatshops are not acting wrong in any way. This was a deductive article it had a lot of good examples to show how sweatshops are beneficial to third world countries. Radly Balko seemed to have the same view point as Matt Zwolinski. Many people believe the richer countries should not support the sweatshops Balko believes if people stopped buying products made in sweatshops the companies will have to shut down and relocate, firing all of the present workers. Rasing the fact that again the worker will have no source of income, the workers need the sweatshop to survive. Balko also uses the argument that the workers willingly work in the current environments.
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.
Nicholas D. Kristof and Sheryl Wudunn are Pulitzer Prize-winning New York Times journalists who spent fourteen years in Asia doing research on the country as well as the sweatshops of that country. In their article "Two Cheers for Sweatshops" they sum up clearly the misunderstanding of sweatshops by most of the modern world. "Yet sweatshops that seem brutal from the vantage point of an American sitting in his living room can appear tantalizing to a Thai laborer getting by on beetles." The fact of the matter is that sweatshops in the eyes of the actual workers are not as bad as they are made out to be, by many activists. Though many organizations that oppose sweatshops and their labor practices try to make the point that sweatshops do not have to exist. But one must consider the fact that, the companies that use sweatshops are creating at least some type of jobs for people that gladly accept them.
The lack of ethics concerning global issues can be found in the sweatshops of underdeveloped and third world countries. This issue has developed from the indiscretion of industries and employers. Industries treat their employees poorly; moreover, employees are subjected to extremely poor working conditions, poverty wages, and little to no benefits or union representation. The competition of industries has created these oppressive practices. According to research done by Jay Mandle at Cambridge, in countries such as Bangladesh, sweatshop workers are paid only 13 cents per hour in US money. These workers are subjected to extremely overpopulated sweatshops, being that an astounding 3.5 million workers make up the workforce of 4,825
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.
Sweatshops are factories that violate two or more human rights. Sweatshops are known in the media and politically as dangerous places for workers to work in and are infamous for paying minimum wages for long hours of labour. The first source is a quote that states that Nike has helped improve Vietnamese’s’ workers lives by helping them be able to afford luxuries they did not have access to before such as scooters, bicycles and even cars. The source is showing sweatshops in a positive light stating how before sweatshops were established in developing countries, Vietnamese citizens were very poor and underprivileged. The source continues to say that the moment when sweatshops came to Vietnam, workers started to get more profit and their lives eventually went uphill from their due to being able to afford more necessities and luxuries; one of them being a vehicle, which makes their commute to work much faster which in turn increases their quality of life. The source demonstrates this point by mentioning that this is all due to globalization. Because of globalization, multinationals are able to make investments in developing countries which in turn offers the sweatshops and the employees better technology, better working skills and an improvement in their education which overall helps raise the sweatshops’ productivity which results in an increase
“Sweatshops Are the Norm in the Global Apparel Industry. We’re Standing up to Change That.” International Labor Rights Forum. N.p., n.d. Web. 6 Feb. 2014. .
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.
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.
Contrary to what many people believe, sweatshops actually improve the lives of workers and the surround community. Kristof is a personal witness to this phenomenon. In his words, “My views on sweatshops are shaped by years living in East Asia, watching as living standards soared… because of sweatshop jobs” (Kristof). Its one thing to notice a change in living standards, but how do sweatshops cause this change? In an interview with the Mises Institute on March 20th, 2017, Benjamin Powell reasoned, “Sweatshops bring with them the proximate cause of economic development- capital, technology, and the opportunity to build human capital” (Powell, “Sweatshops: A Way Out of Poverty”). He goes on to talk about how historically living conditions have risen rapidly in countries due to industrialization. Because of lower living conditions already, a sweatshop is no where near as harsh to its workers as it would appear to an outsider. Even
As we can see in the essay, “The Noble Feat of Nike” by Johan Norberg, the globalization of companies like Nike isn’t all bad. There is some positive light to it, for example, the fact that workers are finally making enough money to live a decent life and send their children to school. In addition to this, workers are guaranteed jobs and don’t have to endure the tough labor of working on farms in the harsh weather conditions. So from these effects we can conclude that the globalization of Nike in third world countries like Nike isn’t a disadvantage to these workers, in fact it serves as an advantage.
Nike’s sweatshop manufacturing practices which can be seen through media have shown people that this company goes under the good guys images, these images which are displayed in their commercials show people that their employees are treated well and their happy in their working environment.
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.
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...