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Unethical business practices
Unethical business practices
Solutions to child labor
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Child labor, a lot of companies use children for cheap labor. Some big companies like Nike and saga use cheap child labor in poor countries. You shouldn’t buy from companies who use child labor, because they pay of the children and the treatment of the children. The pay of the children that work in these factors is very little. A lot of the kids get paid less than a dollar a day (John H. Cushman Jr.). “Mr. Knight’s pledges did not include increased wage, a major complaint of critics who say that Nike and other American companies pay workers in China and Vietnam less than $2 a day and workers and workers in Indonesia less than $1 a day” (John H. Cushman Jr.). Children are doing jobs meant for adults and they get
Places like Pakistan, places with high percentage of poverty, children are being forced to work extreme numbers of hours making soccer balls for the rest of the world. It is ironic that almost all around the world children are playing with soccer balls but in high poverty areas like Pakistan children are not going to school but rather making soccer balls all day long. “About 7,000 children between the ages of 5 and 14 have no time for school because they work full-time manufacturing soccer balls, earning about 50 cents for each ball they produce” (CNN). A child does not wake up excited to make soccer balls every day. They are forced to do it because the family with those children belong to are generally poor and that is why they have every person in the family working to help each other bring food to their table. During the 1998 world cup sales for soccer balls increased “25 percent” (CNN) because of the hype that is drawing attention to the upcoming World Cup. Even though the world cup games were held in France and a lot of money was generated by FIFA not much was passed down to the families who worked on the equipment that was essential for a soccer game to be conducted. From the player’s outfit to the footwear everything was being generated by poor families that are getting paid less than minimum wage. This kind of situation spreads like wildfire. “Efforts in the 1990’s to expose abuses in the assembly of soccer balls in Pakistan pushed businesses into India, where children continue to work in this industry. The report shows that industry initiatives have failed to improve the lives of thousands of children forced to work in Meerut, India to pay off the debt of their parents. For years, companies have said that they have extensive monitoring programs to make sure child labor is not used in the production
Many people in our society today are constantly asking, "Why do sweatshops exist?" The answer to this question is that companies like Nike and Wal-Mart use sweatshops to produce their goods for a much cheaper rate, to reduce the cost of their products. The problem with sweatshops is that the workers are subject to hard work in often times poor conditions for minimal pay. But although many people may condemn sweatshops, there are some advantages that many people overlook when arguing against sweatshops and their practices.
The children who are paid, get a very low salary compared to the adults who work in industries, here is something to think about. Say you go to the store, a...
The lives of people in some third world countries such as Honduras and Indonesia are completely different than ours hear in a much more prosperous nation. So when citizens of this great nation hear about people working for thirty to fifty cents an hour they think it’s absolutely absurd. But what they don’t realize is that this amount of profit is acceptable to these people. David R. Henderson backs this up by stating, “Take the 31 cents an hour some 13-year-old Honduran girls allegedly earn at 70-hour-a-week jobs. Assuming a 50-week year, that works out to over $1,000 a year. This sounds absurdly low to Americans but when you consider that Honduras’s GDP per person in 1994 was the equivalent of about $600.” You can also see proof of this in Cathy Young’s article when she writes, “I have also wondered why, when we are shocked by reports of 50-cent-an-hour wages, we never think of those Save the Children ads reminding us that a contribution of $15 can feed and clothe a Third World child for a whole month.” Also, Young brings up another good point by stressing the fact that to many Third World country families having children is one more financial burden, “…in poor societies, a family cannot afford to support a child for 18 years. For virtually all of human history, most children worked…”
Throughout time children have worked myriad hours in hazardous workplaces in order to make a few cents to a few dollars. This is known as child labor, where children are risking their lives daily for money. Today child labor continues to exist all over the world and even in the United States where children pick fruits and vegetables in difficult conditions. According to the article, “What is Child Labor”; it states that roughly 215 million children around the world are working between the ages of 5 and 17 in harmful workplaces. Child labor continues to exist because many families live in poverty and with more working hands there is an increase in income. Other families take their children to work in the fields because they have no access to childcare and extra money is beneficial to buy basic needs. Although there are laws and regulations that protect children from child labor, stronger enforcement is required because child labor not only exploits children but also has detrimental effects on a child’s health, education, and the people of the nation.
Basu, Kaushik, and Pham Hoang Van. "The Economics of Child Labor." The Economics of Child Labor (1998): 412-27. Print.
Nike, as many other companies do, facilitates production in other countries to help grow sales in those particular regions. The main difference between Nike and some of the other companies is that other companies do not support the exploitation of labourers or human rights. Not to suggest that Nike promotes labour exploitation, but they are less strict about these rules than other companies in foreign markets. Impacts on health and safety are a major factor for employees in sweatshops. However, physical and sexual abuse is another serious concern of many of the sweatshop workers. Most of the sweatshops run by Nike contractors are factories located in relatively small spaces to save on real estate costs. They are often soiled with dirt and kept unheated to save on expenses. Broken glass and dangerous equipment is left on the floors causing potential dangers to any people scattered within the factory. Employees are subject to harassment and violent punishments if work is not being completed as thoroughly and efficiently as the contractors would like. Workers slave under unfavourable conditions for up to 14-hour days often with no breaks. These employees are paid less than $100 US and work on average over 250 hours per month. "Substandard wages keep factory workers in poverty and force them to work excessi...
This paper will give a brief introduction about the history of Nike Sweatshops which will shed the light on their public image and their manufacturing process. It will further move to the suggested alternatives, what facts impact them, their stakeholder and their impact on the economic as well as social basis. In the end, it will discuss if the given choices are legal and ethical or not.
Nike Incorporated is the number one leading sportswear and equipment provider in the world. They manufacture anything from casual clothes to sports equipment, shoes to socks, and basketballs to golf balls. As a result of its massive success, Nike employs nearly 30,000 people worldwide while manufacturing in 700 shops around the globe and has 45 offices outside the United States. Its extensive reach into the global market has Nike producing more exclusive products than any other manufacturer in the world. Nike’s headquarters is located in the metropolitan area of Portland, Oregon.
A survey done every four years says that there has been less child labor in countries such as India and Morocco than in the United States (Barta and others). Some companies overseas have strict policies against child labor; for example, a toy factory in China will not accept children for work because they feel children should not be forced to do hard labor for any amount of money. On the opposing side, in some places child labor is a huge problem such as Africa and parts of Asia. For example, in Bangladesh several under 18 workers were found working in Rana Plaza and a 15 year old worker died in a factory accident in May, according to Kate O’Keeffe of the Wall Street Journal. O’ Keeffe also writes, “There is concern that child labor will go for the worse rather than for better, especially if Western economies rebound stronger.”
Pakistan has a per-capita income of $1,900 per year, so in essence, a typical person survives barely on $5 per day, and with the high rate of inflation it becomes difficult for a low-income population to survive. Nike’s child labor is spread all over Pakistan but has the greatest impact in the northwest of punjab province, that is Sialkot. Pakistan has a population of approximately 1 million and is an important center for the production of Nike’s goods for export to international markets, particularly sporting goods and shoes. Sialkot is one of the world’s most important centers for production of Nike’s sporting goods.
Another area of concern is the discrepancy of differences in East Asian worker regulations and wages compared to the North American standards. Much speculation has gone toward attacking Nike for their blatant disregard of American labour ethics, but Nike is having difficulty explaining their justification of meeting offshore requirements. For example, the legal age in Indonesia was 14, an age at which compulsory Schooling has ended. Nike was criticized for apparently having girls at this age working in their factories (which wasn’t true), and was shunned for inhuman labour practices according to American standards.
In this Case Study Analyses, an objective SWOT Analyses will be done to help identify potential strengths, weaknesses, opportunities, and threats within the Nike Corporation.
The next time when you are out on your shopping trip, chances you may have support a business that exploits children. It is very disturbing and heartbreaking to learn many children are chained to looms for 12 hours a day because families need to have their child bringing home a small amount of moneys. Child labor has always been a difficult subject to address, the topic have become much more complicated and prolific.
Nike is the world famous company. It is an American multinational corporation which is occupied in the design, development, manufacturing and worldwide marketing and selling of the footwear, equipment and many more other services. The Nike Company was founded on 25 January 1964. The first founder Bill Bower man and the second founder Phil Knight. The Nike name comes from the Greek word goddess of victory. The mission of the Nike Company is to bring inspiration and innovation to every athlete in the world. There are two sides to Nike: the public face and hidden misery. It is the number one shoe maker in the world. This Company creates designs for all age groups, for instance, for men, women and for Children.