Sustainability in Workplace
Adidas comply with International Labor Organization, and follow the code of conduct of the World Federation of Sporting Goods Industry. Adidas`s workplace standards applies to its sites globally, and to their supplier factories across the world. The standards cover health, safety, labor rights and environment protection. They revise the standards from time to time to meet the changing environmental requirements. (Adidas11, 2015).They made sure that their suppliers are following the standards properly by conducting audits from time to time across all of their facilities across the world. This shows their consistent effort and drive to maintain the sustainability efforts within their control. Adidas being a member
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(i.e. computers, servers, data centers, etc.). Hence, they make use of virtualization, i.e. one server is used to spawn several virtual servers. This process reduces resource redundancy, use less energy, moreover less wastage of resources by efficient usage methods. Specific actions to achieve these goals are mainly by getting rid of inefficient hardware, introducing efficient hardware, and promoting server virtualization. (Adidas16, 2015). Adidas`s global goal to meet more stringent energy savings by 2015 are being planned to implement using below techniques,
• Better environment friendly power management options. (For at least 80% of computers.)
• Reduce energy consumption of computers. (By 30%)
• More RFPs (request for proposals) to value the performance of vendors on environmental sustainability.
• Consolidation and virtualization of data
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In a joint effort with the International Labor organization (ILO) and Cambodian officials, Adidas helped to solve prison labor issues in Cambodia. Similarly, Adidas worked with the Uzbek government to help end the forced labor in that country. (Adidas17, 2015). Adidas was keen to support Greenpeace International’s (a non-governmental environmental organization) goal of zero discharge of chemicals and hazardous substances at all points of their global supply chain. (Adidas18, 2015). Adidas worked with various local governmental organizations in Indonesia to develop guidelines to exercise trade union rights in the workplace. The signing of the protocol can be considered as a “historic pact” between Adidas and its peers, the suppliers and trade unions.
Diversity for Sustainability
Adidas is aware that the cultural diversity in the workforce is a critical success factor. They understand that the employees with different ideas, interests, from different cultural backgrounds are a critical factor for success. This solves the issue of shortage of skilled worker for various global
The factories around the world (China, Asia, and Vietnam) assist in manufacturing and distribution of the products. (Mahdi et al., 2015). The globalization and technology have impacted competition and larger expansion of the corporation around the world. The Nike brand is nearly in every culture of the world from the result of globalization and technology impact. The technology has grown on the quality of the research and innovation the company is performing that is resulting in great volumes of customer cares and choices. The globalization and technology have also helped stabilize the prices of the products and avail them all year round so that there are no experiences of low supply and thus raise in the products prices. (Mahdi et al., 2015). The market is always satisfied with the quality and volume of supply that meets all the fluctuation like the sudden increase in demand or its fall. The impacts of globalization have made the company produce high quality, durable and limited the production impact on the environmental pollution and degradation. It is playing a global roll in the management and conservation of the environment worldwide by taking part in community participation and charitable organizations that serve the society in community issues alongside environment (Mahdi et al.,
Through the restructuring that started in 2005, the restructuring involved are explained as below. Adidas had lineup sporting goods comprise of three different business segments, including Adidas, Salomon and Taylor Made. Adidas business segment provides various Sathletes’ products. Adidas business segments has three different products line, including Adidas Sport Style, Adidas Sport Heritage, and Adidas Sport performance. On the other hand, Salomon business segment is the number one brand that provides winter sports like snowboard, Alpine and Nordic. The Salomon business segment has five different products line, including Cliché, Arc’ Teryx, Bonfire, Mavic – Adidas cycling, and Salomon. Next, Taylor made business segment provides a variety of golf hardware and accessories in full range. The Taylor made business segment has five different products line, including Adidas golf and MAXFLI.
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.
...rible situations for people who do not have the laws like U.S. workers have. Even though NIKE has implemented different methods to improve the companies’ image, there have still been many reports that show there has not been much change at all. At a net worth of 67 billion dollars and expected to grow, loyal customers is what allows this multi billion dollar company to grow in profit, the only way there will be an impact on those working in NIKE sweatshops is if today’s society takes action.
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. They should guarantee workers are being paid fairly according to the minimum wage, ensure their overseas factories comply with child labor laws, and certify the working conditions
Apple’s maintenance of its image in the global marketplace comes with a price on how ethnically Apple conducts business practices while promoting environmentally safe products for the consumer. Apples’ Code of Conduct, voluntarily executed, exemplifies to the global market, investors, regulators, that Apple’s standards and codes of environmental conduct are universal. To maintain Apples’ universal symbolism, systematic inspections into Apples’ supply chain, conducted regularly, are to expose violations of its work ethics not surpassing apples’ comprehensive standards established for its suppliers.
The many steps to stay a competitive industry began with lowering the manufacturing costs from their less developed Third World Countries because their labor cost was much lower. This gave plentiful opportunity for Nike to mass-produce all of its products. In these countries like Indonesia, China, and Vietnam it’s enormously difficult to “keep track of and regulate the working conditions and wages of factories” Ferrell, Fraedrick, J. & Ferrell (2013) Nike was evaluated on their child labor, harassment issues, poor work environment, and abuse practices. Nike in an effort to fight against the presumed allegations launched a campaign towards child labor and employee
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.
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.
They underlie their opinion by a deontological approach which supports the equal treatment towards others as a response of our behaviour. In order to fulfil the dignity of workers in Nike supply chain, the company established code of conduct in 1992 and their amendments in 1997 and 1998. These ethical values were included recommendations for minimum wages, maximum working hours of 60 hours per week, minimum age for workers of 16 years old and 18 years old to work in a hazardous environment, prohibition on forced labor and minimum safety and environmental standards. However, some reports of sweatshop misconducts are still continued. For example, in 2011, there was a report of sweatshop abuse in Indonesia, where employees were still getting harsh treatment from their supervisors. This condition was also backed up by military power and lacked of monitoring from Nike. The use of regime power could also be seen in Russia, Vietnam, Sri Lanka, Thailand and
Nike has been accused of using child labor in the production of its soccer balls and shoes for Nike in Pakistan. While Pakistan has laws against child labor, the government has taken very little action to terminate it. It is said that only a boycott by the United States and other nations will have any impact on child-based industries. In addition, the U.S constitution states that child labor is an illegal and inhumane practice and any U.S. company found guilty practicing and encouraging it will be prosecuted. The World Trade Organization (WTO) prohibits member nations, like the United States, from discriminating against the importation of goods made by children.
Companies use a collection of brand equities to represent their products in the market (Voolnes, 2012). Brand equity refers to the commercial value that is derived from the perception of consumers on any given brand name of particular products in the market as opposed to the product itself. Ataman (2003) notes that the effect to the consumer is in the brand name and not the product itself. Companies use logos, trademarks and a collection of other symbols to present this information to the customers. The use of these symbols is meant to try and capture the customer mindset so that they can be thinking about the company products at all times through the items they possess at home (Estes, Gibbert, Guest, & Mazursk, 2012). This can well be explained by use of the customer-based brand equity model that brings together the requirements for a publicly renowned brand in the market.
The current market for footwear particularly sneakers is booming, fueled by millennial demand and the organization 's strategic business approach. The international sneaker market has also grown by approximately 40% since 2014 to an estimated $55 billion. In 2015 the athletic footwear industry in the United States grew by 8% generating about $17.2 billion in sales. Out of that number, Nike sales are approximately 3% with the average selling price increasing by 5% which translates to $61.15 (Hill, 2009). The millennials alone are driving the market as they spent approximately $21 billion on footwear in 2014. In Japan alone, the organization has boosted the market by about $2.6 billion. Furthermore, the footwear industry is expected to be one
There are as many brands as there is ants in the world, but the two brands that pop out are adidas and nike. Those two brands have been going head to head for ages to see who is the better brand. It’s been tested, compared, and debated which brand is better. Whether it’s the quality of the materials or the cost of it, the debate is ongoing. Both brands have been fighting for the top ever since they were both created and I don’t blame them it’d be fantastic to be the best brand in the world. When Nike and adidas are contrasted, it becomes clear that the Adidas brand are better for the overall consumer and enhances sport performance than Nike.
Nowadays, there are so many famous sportswear companies that exist in the market globally, which make people have more product varieties that they can choose. In addition, most of those companies have become very important for its host countries, in terms of supporting their economic development. Yet, the existence of those companies can also possibly bring some problems to the host countries, as well as negatively affect the countries’ people (Pettinger, 2008). In order to explain it better, the existence of Adidas in Indonesia is used in this report to give more information about what makes Adidas becomes a successful company in the world, as well as providing problems that Adidas has in Indonesia.