The majority of multinational corporations have elected to outsource their production processes to Asia in countries such as Indonesia, China, and Vietnam. The logic behind such practices is that moving production abroad is that costs are significantly lower when compared to the costs if production is based in the States. Companies such as Nike have embraced the practice of using foreign factories to manufacture its products. Labor conditions and wages are two issues that have courted concern for the company. The concern stems from questions about the level of responsibility that a company such as Nike has regarding working conditions in the foreign factories.
1. What responsibility does Nike have for conditions of work at foreign factories making its products?
The strategy of outsourcing production to foreign countries has allowed Nike to enjoy low production costs. The workers who operate in the factories are usually not directly employed by Nike. They work for companies that are sub-contractors for Nike. The argument, therefore, goes that it is the sub-contractors who should be answerable to concerns over working conditions in those factories. However, has social and ethical responsibilities to ensure that factories producing Nike 's product offer favorable working conditions to their workers (Ferrell, Fraedrich and Ferrell 411). The claim that the responsibility lies with the subcontractors does not consider the fact that if Nike stopped its relationship with the contractors, the factories would not exist. Most of these factories are based in countries that have little or no regulations on labor practices and therefore companies such as Nike owe the workers an ethical responsibility of making sure they are trea...
... middle of paper ...
...product because they did not want to fund the exploitation of workers. Since the desired effect of the statements on Nike’s sales was positive, it has to be commercial speech. Statements that do not impact the sales of a company in a positive or negative way can be classified under non-commercial speech. Misrepresentation of facts to the public and then hiding under the shade of non-commercial speech is a violation of business ethics.
Baker, C. Edwin. "Paternalism, Politics, and Citizen Freedom: The Commercial Speech Quandary in Nike." Case W. Res. L. Rev. 54 (2003): 1161.
Ferrell, O C, John Fraedrich, and Linda Ferrell. Business Ethics: Ethical Decision Making and Cases. Boston: Houghton Mifflin Co, 2008. Print.
Locke, Richard M. "The promise and perils of globalization: The case of Nike. “Management: Inventing and delivering its future 39 (2003): 40.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Materialistic things consume today’s society, whether it is cars, clothing, or jewelry, in a sense we rely on these objects for our happiness. Companies such as Nike, Gap, and Toms, have all had major success do to their loyal customers, who seek the name brand logo of their company. These companies have continued to grow tremendously, making billions of dollars; the companies strive to find ways to outsourcing its manufacturing, in hopes of making more and more profit. Profit is not the only thing that rises, many questions and investigations have occurred, exposing the poor ethical choices these businesses have made.... [tags: NIKE CSR]
1043 words (3 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)
- Like other large corporations, Nike looked to expand their operations outside North America. Many companies do this because of the law and wage demands of the United States making overseas operations very appealing. Employment laws are scarce and labor is cheap in most third world countries and can be easily become targeted by giant corporations such as Nike. In the beginning, Nike probably selected countries like Indonesia and Vietnam because of the vast poverty level and wage demand given the demographics.... [tags: large corporations that go abroad]
1316 words (3.8 pages)
- NIKE's Labour Troubles 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.... [tags: Nike Sweatshops Outsourcing Labor Essays]
1415 words (4 pages)
- Case Study: Nike, Inc. International Business and Trade Unit II (Prof. Sosland) Vera Tillmanns 1. Company Ethics: Nike Inc. in Cooperation with its suppliers Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand.... [tags: Nike Sweat Shop Case Study Analysis Ethics]
1371 words (3.9 pages)
- ... Knight finally got a call back from the manufactures of tiger shoes, and made knight the distributor of tiger shoes, which gave Bowerman and idea that he and knight should be partners to provide his footwear design to tiger shoes (Nike, Inc.). Also Nike was, and still is privately owned company which means it has no shareholders therefore it could not treat them unethically. Nike’s Unethical Treatment in Advertising and of Consumers Nike does have flaws, which often originate from its unethical actions.... [tags: Company, Actions]
588 words (1.7 pages)
- Fashion has become an important part of everyday life throughout the world. Every morning people wake up to decide what they are going to wear and if it is “trendy” in today’s society. Television and media is covered with celebrity’s new dresses and unique outfits. Most of the first world countries are unaware of how retail clothing companies manufacture their clothes. Being both ethical and a profit powerhouse in the clothing industry is difficult for even the best of businesses. People throughout the world are speaking up for unethical behavior and these large company’s sales are hurting from it.... [tags: Ethics, Business ethics, Social responsibility]
1533 words (4.4 pages)
- This paper describes the legal, cultural, and ethical challenges that confronted the global business presented in the Nike sweatshop debate case study. The paper determines the various roles that the Vietnamese government played in this global business operation. This paper summarizes the strategic and operational challenges facing global managers illustrated in the Nike sweatshop case. "Nike: The Sweatshop Debate" Case Study This paper describes the legal, cultural, and ethical challenges that confronted the global business presented in the Nike sweatshop debate case study.... [tags: Human Rights Case Study]
1197 words (3.4 pages)
- Nike Case Analysis With the increased monitoring and enforcement of labour practices; Nike being in the public spotlight and subject to negative publicity on their subcontracted factories is forced to readjust the working conditions of their cross ocean factory workers to abide with proper regulations. This has caused Nike to modify their factory standards and employee working conditions by; limiting the maximum hours worked a week, implementing proper ventilation systems to filter out toxic fumes, increase worker access to protective equipment, and increase the capacity of medical facilities and medical staff for their workers.... [tags: Business Case Study]
1614 words (4.6 pages)