Nike was providing jobs to people in areas that was not easy to provide for their families but Nike made some mistakes. “The majority of challenges Nike had to overcome involved ethical issues and debates. Even though Nike was providing jobs to those who may not otherwise have one, it was paying “a mere $1.60 a day to Vietnam factory workers when the living wage is at least $3 a day” (Hill, 2009). Nike could have avoided this challenge by paying each employee worker the living wage of the country he or she lives in to purchase necessary items”. (Phoenix Business, 2014).
In 1971, he conjured up the name Nike. According to the case study, the profits and success that the Nike Corporation has gained has affected hundreds of thousands of workers in other countries that have worked in harsh conditions for very little pay. The case study states that, “Nike is now one of the leading marketers of athletic shoes and apparel on the planet. Nike does not do any manufacturing. Rather, it designs and markets its products, while contracting for their manufacture from a global network of 600 factories scattered around the globe that employ some 650,000 people” (Hill, p. 154).
Such slavery consists of sweat shops, forced labor, and child labor. In that case, we will discover what’s unethical about modern slavery. Companies such as Nike have been alleged to have their products manufactured in sweatshops in Vietnam, China. The workers were working in bad conditions, caught common colds from other employees, and paid under minimum wage. For such unethical behavior I would create a system to fix the work environments sanitation, and raise the wages to minimum wage for the workers.
The Coca-Cola Company is the largest and most important worldwide non-alcoholic distributor. The company has a strong commitment of operating in a local scale. The main idea is to focus on the type of service and product the company offers to the consumer. The company has a well structured organizational chart to identify and review areas of improvement. The efficiency of every area is important and crucial in every decision made for the success of the organizational goals.
Sweatshop Labor Practices. Angel A Montaz PHL/320 27 April 2015 Laura Lewis Sweatshop Labor Practices Sweatshop labor is something we hear a lot too often in the TV, social media, and at work on the Human Trafficking training. Sweatshop is defined by the United States ARMY and the Department of Labor as company that breaks several human and Federal laws. Sweatshops are inhumane, companies force people on false pretended promises to work in unsafe, unsanitary, and harsh conditions for low or not wages. They usually use children, woman, and old people as well.
It allowed its long-term suppliers to have its own routine testing, with additional quarterly spot testing by Mattel. However it failed to specify and ensure testing methods were compliant to Mattel standards. In addition, Mattel’s 200 employees who were responsible for vendor inspection were located in Hong Kong, rather than co-located with Chinese vendors. * Cost-sensitive business environment: Suppliers in China were experience tremendous cost pressure. On the one hand, a concentrated customer base left the manufactures little
In 1991, real problems began to emerge when it was discovered that wages and working conditions at Nike factories were extremely poor. In one report, it was documented that one Indonesian worker worked for only 14 cents a day, which is far below Indonesian minimum wage. Although there were further accusations and reports regarding the working conditions, allegations such as this one kicked off almost a decade worth of protests against Nike. In fact, in 1998, then-Nike CEO Phil Knight stated that Nike had become synonymous with slave wages, forced overtime, and arbitrary abuse (Nisen, 2015). Internal v. Cultural Ethics Internally, Nike was really only concerned with two issues: providing high quality products to its
Global Interdependence Nike does not own any manufacturing facility. However, because of American firms historical success of offshore outsourcing associated with low cost of production, which contributes to its ability to set prices at a profitable level, Nike decides to depend on factories such as Yue Yuen in an industrial estate in Dongguan, China. Asian factories are geared towards Nike standards and reflect Nike needs. Moreover, the leather used for its shoes comes from South Korea. Production happens in mainland China in a factory owned by a Taiwanese.
The concept of a sweatshop has been around since the early 1800’s. Throughout history the image that comes to mind from the term sweatshop has been one of low-paying, swarming, and dirty workplaces that are owned by large corporations to manufacture goods at a low cost. A sweater, or manager, directed the workers in clothing production, which often rose to as many as 100 workers or more. These workplaces attracted the poor-especially immigrants- in all types of cities, including London and New York. Sweatshops still exist and are of much greater abundance than ever, but are mostly located in other continents such as Africa and Asia, and range from electronics assembly to shoes manufacturing.
Question #1: Sourcing Headquartered in Beaverton, Oregon, Nike, Inc. has become the largest supplier of athletic shoes, apparel and sporting equipment in the world. In 2012, Nike reported revenue of approximately $24.13 billion dollars (Schulz, n.d). Nike’s sourcing strategy has traditionally been characterized as vertical disintegration through the practice of outsourcing their manufacturing activities to independent factory owners in foreign countries (Collins, 2010). Outsourcing allows Nike to focus on their core competencies such as marketing and product development (Mongelluzzo, 2002). Nike creates the manufacturing designs and specifications, and their suppliers follow them through the production process.