Case Analysis Nike the Sweatshop Debate

CASE ANALYSIS NIKE THE SWEATSHOP DEBATE Summary of the Facts Nike was established in 1972 by former University of Oregon track star Phil sawbuck. Nike has $10 billion in annual revenues and sells its products in 140 countries. Nike has been dogged for more than a ten-spot by repeated accusations that its products are made in sweatshops where workers, many of them children, hard worker away in hazardous conditions for less than subsistence takings. Many historyers, TV shows, companies and organizations bewilder repeatedly exposed negative comments towards Nike.For example, a 48 Hours news calculate aired on October 17, 1996 regarding a Nike factory in Vietnam, which was visited by newsperson Roberta Baskin. The reporter discovered that Nike hired millions of workers who are literate, disciplined, and desperate for jobs at leases lower than minimum w mount. Another example of the criticism against Nike came from a newssheet published by Global Exchange. The newsletter unc overed that the majority of Nike fit out were made in Indonesia and China, countries with governments that prohibit independent unions and set the minimum wage at rock bottom. In September 1997, Global Exchange published a report on workings conditions at four Nike and Reebok subcontractors in southern China. In November 1997, the organization obtained and then leaked a confidential report by Ernst & Young of an audit that Nike had commissioned of a factory in Vietnam owned by a Nike subcontractor. Nike formulated a number of strategies and simulated military operation to deal with the problems of working conditions and pay in subcontractors. In early 1997, Nike similarly began to commission independent organizations such as Ernst & Young to audit the factories of its subcontractors.Finally, on May 12, 1998 Nike founder Phil Knight spelled out a series of initiatives designed to improve working conditions for the 500,000 people that make products for Nike through subcontracto rs. Even though Nike has admitted there have been problems in some overseas factories and has attempted to do things to rectify the problems, the company continues to be a target of protests and a figure of dissent. Statement of the Problem On the May 12, 2001, Nikes CEO Phil Knight made six commitments to improving the working conditions in Nikes external All Nike shoe factories go away meet the U.? actories. The six commitments were The minimum age for Nike factory workers get out be raised to 18 for footwear? Nike will include non-government? factories and 16 for apparel factories. organizations in its factory monitoring, with summaries of that monitoring Nike will expand its worker education program, making? released to the earthly concern. free high enlighten equivalency courses available to all workers in Nike footwear Nike will expand its micro-enterprise loan program to benefit four? factories. housand families in Vietnam, Indonesia, Pakistan, and Thailand. Nike has yet to hold up to these commitments they made to its workers and customers. Nike continues to be criticized by human rights organizations and the media because they have ignored demands that crusade and human rights groups have requested. Causes of the Problem Nike has treated sweatshop allegations as an issue of public relations rather than human rights. Nike has not released documentation to date of their reports from the working conditions in the factories. .