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Critical analysis of nike
Critical analysis of nike
Critical analysis of nike
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What is social responsibility in the eyes of the corporate world? Everyday we are confronted with evidence that supports that corporate America has lost its inner voice and will enact any injustice in the pursuit of money. In 1964 Blue Ribbon Sports (BRS) was founded by Phil Knight and Bill Bowerman. "The company rebranded as Nike in 1972"(hoovers 2015) and was named after the Greek goddess of victory. Nike is known by their iconic logo, the swoosh mark "designed by a graduate student named Carolyn Davidson, who was paid $35." (hoovers 2015).Designing and developing multiple products such as men's and women's running, basketball and soccer (football) shoes to products for children, recreational activities, such as golf, tennis and walking Nike …show more content…
In 1996 Life Magazine published an article on child labor, this article contained a photograph of a 12-year old boy stitching together a Nike soccer ball. Devastating to Nike's brand name.The article published in life magazine along with the photo caused another wave of criticism against Nike. This was a "critical event" for Nike's understanding of “globalization, international labor standards, and corporate responsibility,” according to Maria Eitel, the Vice President and Senior Advisor for Corporate Responsibility at Nike.(CITE). Health and safety problems in Vietnam. In 1997 As a consultant to the United Nations Industrial Development Organization in Vietnam, the Ernst and Young firm visited the Tae Kwang Vina plant three times, and interviewed workers in confidence away from the factory. The conclusions of their audit were shocking they found that workers were forced overtime, minimum of 10.5 work hour days and 6 days a week. Sexual harassment, " Korean manager allegedly attempted to rape two women workers last year, and then fled the country." (Rourke) physical and verbal abuse and threats to be fired immediately if strikes …show more content…
In 1992 during the Low wages accusations Nike published a code of conduct stating that Nike was built on the principles of trust, teamwork, honesty, and mutual respect and those traits were expected of it business partners. which was to be posted in all factories partnered with the company. In late 1996 and early 1997 Nike truly began to acknowledge the working conditions of factories overseas. The company turned to an outside source, Andrew Young, former mayor of Atlanta and active civil right leader to conduct an independent evaluation of Nike's Code of Conduct. Young found that while some problems do exist Nikes does treat their employees generally fair. The conclusions of Youngs report are as followed. "Nike should implement the provisions of the Apparel Industry Partnership, Nike should explain and enforce their Code of Conduct, Nike should promote the development of "worker representatives, Nike should expand its dialogue with the human rights community and labor groups within the countries where they produce goods, Nike should consider "external monitoring."
Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.
Nike has been under a great deal of pressure to correct the misdoings that have been done regarding production facilities in the East. As Nike is responsible for these plants, their reputation has been tainted with increasing public debate about ethical matters. While Nike still promotes itself as one of the industry leaders in corporate social responsibility, workers in Asia are still forced to work excessively long hours in substandard environments and are not paid enough to meet the basic needs for themselves or their families. They are faced to a life of poverty and are unfortunate subjects to harassment and violent threats if they make any attempt to form unions or tell journalists about labour abuses in their factories. Phil Knight’s speech regarding Nike’s steps to improving human rights in Asian countries was a step in the right direction for Nike, but it would have been much more effective had Nike fully followed through with these initiatives.
Before doing this paper I felt that Nike was successful because they continue to have innovative marketing. They have made an impact with their advertising and they strive to endorse their brands with athletes. I also felt that Nike’s success was due to their great quality of products. My thoughts still hold true but I do feel now, after doing this paper, that Nike is successful because of their employee involvement and also their environment awareness. As a young adult, I also find it very aspiring that one of Nike’s goals is to support the youth with their right to physical activity.
Pittman, B. (2012, September 14). Nike sweatshop history: Should action be taken?. Retrieved from https://sites.google.com/site/americanlaborcrises/labor-crises/nike-sweatshop-action
...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 always been a company that's been questioned ethically. People have heard about the stories of the sweatshops in Southeast Asia exploiting adolescent employees for unreasonably small amounts of money. This had blemished Nike’s reputation several years ago, but since then, it has strived to become a truly respectable company. Located on Nike's website you can find Phil Knight's credo about ethics. It is as follows:
In June of 1996, Life magazine published a article about Nike’s child labor that was occurring in Pakistan. The article showed a little boy who was surrounded by pieces of Nike sports gear. The articles were shoes and soccer balls. Nike then knew then that they had to make some major changes in the way they were producing their items.
Nike does not merely sell products these days. They spend billions of dollars for advertising contracts with famous athletes like Tiger Woods to increase the value of the brand by associating the factor of lifestyle to their products. The company's image has been damaged many times by press releases as well as a variety of NGOs who have long pointed out the inhumane working conditions in the production facilities of sporting goods manufacturers. This leads to the question whether should Nike orientate the regulations of the suppliers to the labor standards in their respective countries or those in the United States? The labor conditions are so inhumane that Nike at least should try to converse to the US standard to improve the situation. The following analysis of an abstract of Nikes’ Responsibility Concept, including SHAPE and their Code of Conduct, should give an insight into the difficulties of the Sweatshops.
Phil Knight started his shoe company by selling shoes from the back of his car. As he became more successful in 1972 he branded the name Nike. In the 1980’s Nike Corporation quickly grew and established itself as a world leader in manufacturing and distributing athletic footwear and sports' attire. The Nike manufacturing model has followed is to outsource its manufacturing to developing nations in the Asia Pacific, Africa, South and Latin Americas; where labor is inexpensive. It quickly became known for its iconic “swoosh” and “Just do it” advertisements and products. Its highly successful advertising campaigns and brand developed its strong market share and consumer base. But, the road has not always been easy for Nike; in the late 1990’s they went through some challenging times when their brand become synonymous with slave wages and child labor abuses. During this period, Nike learned that it paramount that the company understands its stakeholders’ opinions and ensures their values are congruent with their stakeholders. Nike learned that their stakeholders were concerned with more than buying low cost products; their customers were also concerned with ethical and fair treatment of their workers. Because Nike was unwilling to face the ethical treatment of its employees, the company lost its loyal customers and damaged its reputation. Nike has bounced back since the late 1990’s and revived its reputation by focusing on its internal shortfalls and attacking its issues head on. Nike nearly collapsed from its missteps in the late 1990’s. They have learned from their mistakes and taken steps to quickly identify ethical issues before they become a crisis through ethics audits. This paper is based on the case study of Nike: From Sweatsh...
An article recently published in The Wall Street Journal focused on the effects of Nike
The essay, “The Noble Feat of Nike” by Johan Norberg basically talks about the effects of Nike going into third world countries, particularly Vietnam. Norberg explains how Nike’s factory gains from being in its desired location, Vietnam. Vietnam being a communist country comes to Nike’s advantage, because if they were located elsewhere they would have to pay workers higher wages and use more of their machines. Workers in these countries are provided with an air conditioned building with regular wages, free meal plans, free medical service, and training/education to operate the machinery within the factory. The workers find all of this beneficial and in their own favor because of the fact their earning double to five times the amount in wages than if they were working outdoors on a farm. This great deal, blinds them to notice the meaning behind the company’s location in Vietnam. The Nike factory was rather clever in making their location in that specific area to gain benefits for Western owners. The catch Nike gains from is simple. The owners pay factory workers only a small monthly sum from what they make selling the shoes to customers. Globalists state that the company doesn’t pull this fast one on the Western population because of our advancements compared to the Eastern countries. Western people would protest and strike to demand better wages for their work, but the people in Eastern countries have no choice but to deal with the injustice in order to support their families and educate their children.
With the increasing awareness and publicity of poor working conditions in subcontracted factories in East Asia, Nike has stimulated an uprising of activist and watchdog groups working toward seeing these conditions changed. With Nike in the negative spotlight, various organizations have revolved around generating a negative outlook on Nike’s practices of social irresponsibility. Certain campaigns such as the “National Days of Consciousness” and “International Day of Protest” were organized to educate people on the deplorable working conditions in Nike’s Asian manufacturing plants, and were designed to get more people involved in global employment issues.
Nike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon Sports. Our modest goal then was to distribute low-cost, high-quality Japanese athletic shoes to American consumers in an attempt to break Germany's domination of the domestic industry. In 2000 Nike Inc. not only manufactured and distributed athletic shoes at every marketable price point to a global market, but over 40% of our sales came from athletic apparel, sports equipment, and subsidiary ventures. Nike maintains traditional and non-traditional distribution channels in more than 100 countries targeting its primary market regions: United States, Europe, Asia Pacific, and the Americas (not including the United States).
In my point of view, the most unethical Nike’s decision is not to take the responsibility to ensure at least minimum and humane standards that it should offer to its work force. For example, in Vietnam, Nike paid its workers less than the cost of three meals of rice and vegetables and tofu. It treated workers no better than in sweatshops with only two drinks of water and one bathroom break in an eight hour shift. Also Nike let its contractors in developing countries to use child labor under sub-standard conditions. On the other hand, the least unethical Nike’s decision is to have a TV commercial featured a Manchester United player explaining how spitting at a fan and insulting a coach won him a Nike contract.
This project concentrates on the Nike Sports shoe; Nike is one of most significant shoe manufacturing company worldwide. Sportswear manufactured by Nike is known for quality and is most liked brand of athletes. (Daniel, 2011)