Nike Essay, Research Paper
There has been much debate and controversy recently concerning Nike’s Asian labour practices. This is a very complex issue and one that is a long way from being solved. It is very difficult to determine which side of this argument to defend, as both sides acknowledge the facts, yet put a completely different spin on them. Do you believe Nike’s critics who say they’re exploiting workers? Or, do you believe Nike when they say that they are giving workers in these countries wonderful opportunities to raise their standard of living? The consensus answer to this question by all sides seems to be that Nike is improving but still has a ways to go.
Nike’s Asian ties can be traced back to the birth of the company. The CEO, chairman of the board of directors, and co-founder, Phil Knight, wrote his masters thesis at Stanford University in the 1960’s on the prospects for using Asian labor to produce goods cheaper and more effectively. In order to incorporate this plan in to Nike’s business structure, a partnership was set up with a Japan based company called Tiger Sports. Tiger Sports would manufacture shoes for Nike in Asia then shipped them to the United States to sell. In the 1980’s however, this aspect of Nike’s partnership with Tiger Sports was dissolved, and Nike was forced to expand production from the United States to countries such as Taiwan and Korea where their products could be manufactured at the same relatively low cost that Nike enjoyed through the Tiger Sports partnership. Over the last five of years, however, the production numbers for these countries have been decreasing at an alarming rate due to the fact that their economies expanded at a very rapid pace. This, in turn, caused the cost of labour to increase dramatically, and therefore Nike could no longer produce their product as efficiently as before. In lieu of the rapid economic growth in the pacific rim, and the increased production cost, Nike has moved more into countries such as Vietnam and China where the labour is cheaper and labour laws less stringent. (VLF, VN Fact Sheet)
Nike does not own any of the factories that produces its products in Asia, and subsequently they do not directly employ the workers or management. They contract out work to factories that make all of the products and run all of the factories. They do, however, have a massive amount of leverage when dealing with these factories because of the huge contracts they supply. To ensure good labour practices, Nike has a Code of Conduct that every contractor must agree to abide by in order to get a contract. The Conduct Code in theory condemns and prohibits child labour, requires that workers be paid fair wage, imposes caps on the days and hours a worker can be forced to work, prohibits mistreatment or discrimination of workers in any form, obligates factories to implement programs that benefit worker’s health and safety, and recognizes and respects the workers right to freedom of association. There are 1000 Nike employees worldwide monitoring operations at the subcontractors and specifically the Code of Conduct adherent.
The most consistent criticism of Nike is that the workers in the factories contracted by them are not aware of the Code of Conduct that was agreed upon, and/or it is not enforced (especially the wages and overtime aspects) by the factory officials. Critics contend that the factories pay less than minimum wage at times, force too many overtime hours, and fail to make the workplace as clean and as safe as standards dictate. Many of the factories that are contracted have workers and management from different countries, causing some problems in communication. Some factories in China have Taiwanese Managers while factories in Vietnam have Korean managers. This is one reason offered by Nike in defense of the factories failure to comply with the Code of Conduct. To look into this issue, earlier this year Nike commissioned Andrew Young, a former civil rights leader and United Nations ambassador to do an analysis of how well the Code was working. Young and his staff visited four factories in Vietnam, Indonesia, and China for three to four hours each led by Nike’s people. Young’s conclusion proved not only to be uninformative, but somewhat aggravating to the public due to its elementary tone. “Nike is doing a good job, but could do better” was the statement released by Young at the end of the report. Another aspect of the inquiry that bothered the public was the fact that Young chose not to look into the issue of wages, a prime component of the Code. The reason for this being “such an exercise was well beyond the technical capacity of our small firm.” (GoodWorks, Executive summary)
Stephen Glass calls into question Young’s work in his article. He criticizes Young and GoodWorks International LLC (Young’s company) for not using their own interpreters, not spending enough time in the factories, not consulting with “experts” on the issue, and using this report as a public relations ploy for his new company. He states, “But if the Nike report was ‘classic Andy Young,’ it was also a classic sham, marred not just by shoddy methodology but by frequent misrepresentations” (Glass). Young even admits that he and his company are not “labor practices experts” (GoodWorks, disclaimer) yet they were chosen to do this job.
About a month ago a secret internal audit performed by Ernst and Young was leaked to press (Audit). In it was information about dangerous levels of carcinogens, as well as overtime abuse suffered by workers. This information directly contradicts Young’s statement of “clean, well-lit, ventilated factories.” This report makes it appear that Young’s report was strictly for public relations and had no real impact on rectifying the situation, or bringing to light any of the issues that surrounded the situation.
Recently, Nike commissioned a study by graduate students from the Amos Tuck School of Business at Dartmouth College to determine if workers in Indonesia and China were earning a livable wage. The intent of this study was to shed some light on the areas that the Young report failed to cover. The students spent three weeks interviewing workers in each country, and at the end of the study, three main conclusions were found. The first conclusion, “Nike contract workers consistently earn wages at or above government mandated minimum wage levels.” The second conclusion states, “workers living on their own can generate discretionary income in excess of basic expenditures such as housing, transportation, and food.” The third conclusion, “for workers living in extended family households, Nike contract factory worker wages are typically used to increase or augment total household income to raise overall household living standards” (Nike, Press Conference). Although these conclusions support Nike’s insistence that they do not sacrifice their workers well being for their own financial gain, critics bring to light a valid point when they argue that it is impossible to paint an accurate picture of the pay scale in three weeks time by interviewing approximately 1% of the workers, sometimes in front of management, which doesn’t allow the worker total freedom of speech.
Другие работы по теме:
Slave Labor By Te US Essay Research
Paper Nike is an over-hyped shoe company whose commercials show Michael Jordan soaring five-hundred feet off the ground, jamming the ball through the rim, second making us believe we could fly if we had their shoes. Nike gets its money by pricing their so-called, top of the line athletic shoes for $125 and up. (Yamada, Masako.np.) Millions of kids in the U.S. buy these shoes because they are endorsed by some of the greatest athletes on earth, such as Griffey Jr., Johnson, and Hardaway.
Romeo An Juliet Essay Research Paper hi
Romeo An Juliet Essay, Research Paper hi i need an essay about a character in romeo and juliet that demonsrtated maturity. in a well developed multi pagraph essay and say why you think the character’s maturity was greater than the other characters in the play.
Our Superficial World Essay Research Paper Our
Our Superficial World Essay, Research Paper Our Superficial World Mostly everything in our world is based on outer beauty of people and objects. Society has a fixed image of beauty. Woman should be skinn with blond
Heroes And Villains Essay Research Paper Is
Heroes And Villains Essay, Research Paper Is a hero a person who wears tights and a cape and goes around saving the world? And is a villain a person who schemes evil plots against the hero? Even though heroes and villains might be seen differently through the eyes of individual people, we all know that not all heroes and villains are recognized for their actions.
Shock Treatment
– Nike Advertising Essay, Research Paper Title Shock Treatment Every company that has a product to sell wants to have their advertisements grab the attention of the potential buyer. Companies today are competing at high levels to come up with the advertisements that will be flashy and aggressive so consumers will become interested in their product.
Kive Essay Research Paper
# a b c d e f g h i j k l m n o p q r s t u v w x y Grapes of Wrath, The – Book Summary and Analysis Grapes of Wrath, The – Book Analysis Grapes of Wrath, The – Joads’ Journey Great Expectations – Powerful Themes in the Novel
Ethics For A New Millinium Essay Research
Paper Ethics for a New Millinium In a rapidly growing market, responsible and reliable service is a must for any business to be successful. Ensuring ethics in the work place not only makes for more productive workers, it also insures happy customers. If ethical behavior is not followed by employees on all levels, the productivity will be affected.
Oh Really Essay Research Paper Oh Reallyyou
Oh Really? Essay, Research Paper Oh Really, you think i am a lark, the dogs they run and bark, but when i say to them, shut up shut up shut up, you say to be nice to them,
Advertisment Tactics Essay Research Paper When reviewing
Advertisment Tactics Essay, Research Paper When reviewing advertisements over a twenty-four hour period, one notices that there are a variety of weasel words and different tactics such as unfinished words and personification used to persuade the consumer to buy a certain product. Weasel words are words that appear to make a claim for a product, but in actuality, they don t.
Hockey Essay Research Paper Companies extend to
Hockey Essay, Research Paper Companies extend to great lengths to push their products. Advertising is a multi-billion dollar a year industry. Most companies are willing to put up millions of dollars in advertising to wager that their cleverness will sell their product. Nike has taken an unusual approach to this in the attached ad.
Work Or Hell Essay Research Paper 37000
Work Or Hell? Essay, Research Paper 37,000 transnational or multinational corporations with their 200,000 subsidiaries control 75 percent of all world trade in commodities, manufactured goods, and services. These corporations, such as Nike, Reebok, and Levi?s, are cheating other small countries that manufacture their products.
Shane Essay Research Paper Sometimes I need
Shane Essay, Research Paper Sometimes, I need you more than I need air And sometimes I miss you more than I will forever, never forget the times that we have shaared. The are priceless
Unions Essay Research Paper The Role Of
Unions Essay, Research Paper The Role Of Unions in SocietyIn the past, unions were established to protect the dignity and the basic rights of the worker. Union protection of the worker is genuine in well-established countries. Unfortunately, in third world countries workers do not enjoy the benefits of suitable wages, sick leave, and respect from their employer.
Nike Essay Research Paper In 1957 a
Nike Essay, Research Paper In 1957, a Coach and an athlete met at the University of Oregon, and together they went on to establish the most successful athletic footwear company in the world. Bill Bowerman and Phil Knight are these founders. The history of Nike can be split up into sections of three decades. From 1961 to 1971, Knight decided that dealing Tiger, a Japanese company, would break up the World domination in athletic shoes by Germany.
Poem She Sat Essay Research Paper She
Poem: She Sat Essay, Research Paper She sat… helpless in her room praying to whatever god there may be to let her call to him. could god ignore such a painful cry?
Nike Air Flightposite Essay Research Paper SUMMARYThis
Nike Air Flightposite Essay, Research Paper SUMMARY This report recommends that basketball players try the Nike Air Flightposite. These shoes are hyper-thin, with a fully integrated molded foamposite PU upper construction and a full-length, dynamic sleeve. This shoe is built for speed with a zippered dynamic-fit lace cover; the shoeliner is encased with Zoom Air to provide enhanced cushioning and responsiveness during quick moves.
Hot Dogs And Blow Up Dolls Essay
, Research Paper Michael **** 10/22/99 Professor D. Hum. 101 While I was flipping through the pages of ?Maxim? magazine looking at the gorgeous women and laughing at the funny captions, I stumbled upon an advertisement that made me laugh out loud. It is a series of four pages, two facing each other, and then two more layed out in the same way.
Sneaker Industry Essay Research Paper The athletic
Sneaker Industry Essay, Research Paper The athletic shoe industry is one of the largest markets in the United States today. This segment operates globally with many competitors. This industry provides us with T-shirts, sweatshirts, sweatpants, shorts and of course, athletic footwear. Three major corporations dominate the industry itself: Nike, Adidas, and Reebok.
Nike Essay Research Paper In 1958
Nike Essay, Research Paper In 1958 the beginning of NIKE Inc. came about when Coach Bill Bowermen and business student Phil Knight, both from the University of Oregon, felt the need for a better athletic shoe. Through
The Great Gatsby Nick
– A Good And Neutral Narrator Essay, Research Paper The Great Gatsby: Nick – A Good and Neutral Narrator In today society, many people like to follow the current. They want
Shoe Industry Essay Research Paper Shoe
Shoe Industry Essay, Research Paper Shoe Industry The shoe industry is one of the biggest moneymakers in the market, but it?s facing many changes, rushes, and difficulties. The big power in the industry is Nike inc. which all the other companies are trying to be like. Some changes are the industry as a whole is moving there factories to the far east such as China.
Sight Of Destiny Essay Research Paper A
Sight Of Destiny Essay, Research Paper A Sight of Destiny Drops of humidity slowly falls forming an ocean below my off-white, red laced Nike mid-tops. Legs long been possessed by the Drum and Base expelled from surrounding boxes almost as if I was standing in a circle of musicians long inhibited by the Gods of music.
Nike Business Practices Essay Research Paper Throughout
Nike Business Practices Essay, Research Paper Throughout much of South-East Asia and particularly Indonesia, Nike factory workers struggle within a system that devalues their work and prevents them from adequately supporting themselves and their families. Despite these factors, there is a strong yet unfounded belief that “these are great jobs for those people.”
Visual Advertising Essay Research Paper Visual AdvertisingThe
Visual Advertising Essay, Research Paper Visual Advertising The world of advertising is the foundation for how a company communicates its product to the consumers. Here a complex struggle takes place continually to gain the attention, even for a second, of a potential buyer. The footwear industry is no exception, and when combined with the semiotics of today s culture advertising campaigns often are a chore to understand.
Influence Of Media Essay Research Paper The
Influence Of Media Essay, Research Paper The media has affected me in a variety of ways. I am manipulated by the media through images and symbols which are portrayed through it. It has influenced my lifestyle, personality and opinions.
Nike Essay Research Paper Nike is a
Nike Essay, Research Paper Nike is a huge supplier if athletic shoes for the world these days. Philip H. Knight, the founder of this corporation came up with an idea of an athletic shoe at the track field of the University of Oregon.
Nike Essay Research Paper Nike is the
Nike Essay, Research Paper Nike is the most popular brand in the American, even the whole world. It offers all the athletic shoes, clothe, watch and all the things you will wear in a sport. Almost every American will have at least one or two pairs of Nike shoes, which we can see how popular the company is and how well the qualities of their products are.
Nike Goddess Of Victory Essay Research Paper
Nike: Goddess of Victory Who was Nike? Nike, according to Greek mythology, was the winged goddess of victory. Nike was the daughter of Athena and the god of the River Styx. Nike sat beside Zeus in Olympus. She helped in the battle with the Titans, and helped Zeus achieve victory. The Titans, according to mythology, created the earth, and ruled it till they were overthrown by the Olympian gods.
Nike Vs Reebok Essay Research Paper Nike
Nike Vs. Reebok Essay, Research Paper Nike -Vs- Reebok Over the last decade, the running sneaker industry has become very profitable. The demand for a top quality running sneaker has grown in quite large
Cambodia Essay Research Paper Cambodia is known
Cambodia Essay, Research Paper Cambodia is known for its war torn history as well as its factor in international business. By using Griffins framework, and reading the article A Bumpy Road to Reform out of the September 11. 2000 issue of Business Week it is easy to see why such large companies such as Nike, Target, Gap, JC Penny and Wal-Mart see interest in this war ravaged nation in need of export earnings and investment.