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Nike and corporate ethics and social responsibility
Nike and corporate ethics and social responsibility
Nike and corporate ethics and social responsibility
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Nike has plenty of critics, but some believe the company has done nothing wrong with the treatment of their workers. William Stepp, from Libertarian Mises Institute, believes that the benefits the workers are given at the factories improve their lives (Nike sweatshops, 2017). William backs his opinion by the fact the workers agreed to the wage and work hours before deciding to take the job (Nike sweatshops, 2017). The workers are supplied with benefits like free physicals, clinic and health services, uniforms, food, transportation, and entertainment; if the other part of the factory work is not as glamorous, the workers still receive better treatment from the factories than other jobs (Nike sweatshops, 2017). In addition, studies were conducted by the Global Alliance for Workers and Communities, and they discovered that 70% of Nike workers in Thailand would rate their supervisors as good, and that 72% thought they were paid fair wages (Nike sweatshops, 2017). If the workers believe they are being treated fairly, and that the factory job is more stable than farm work, is there really a problem. Many factory workers will migrate towards factories because the work is steady than farmland, and they can send money back to their families. The factories supply jobs to people who normally would not be able to find jobs that pay a decent and consistent wage (Nike sweatshops, …show more content…
2017).
However, the willingness of the workers makes them easy targets for low wages and poor factory conditions, and the factory strike in China is the perfect example of human beings that are tired of being treated like they do not deserve fair
rights. Factory Strike In April 2014, Yue Yuen Industrial holdings factory, which produces Nike and Adidas shoes, had a massive worker strike. Nearly 50,000 of the 60,000 workers of the plants refused to work until management agreed to fair terms (Lau, 2014). The workers realized threat the company was not paying them the full amount that was legal (Lau, 2014). Each month the workers were missing 250 yuan a month for their social insurance, which is just one of the social benefits that Yue Yuen Industrial was suppose to pay (Lau, 2014). IN addition, the workers also demanded to have a pay raise, with the slow down of the economy employee rights have become more significant (Lau, 2014). The increased activism has caused violence in the plants, and police have clashed with the strikers, however the workers won this victory of getting higher payment and the full amount for their social insurance. They managed this victory even though the management of the company tried to keep them from organizing their efforts, and the workers are scared to step up in fear of retribution (Lau, 2014). The government and management make getting the rights the workers deserve almost impossible, and the counter argument that William Stepp offered does not take into consideration that management takes advantage of the workers, and keeps them from pursuing labor activism. These workers are desperate for the money and benefits they are given, and will put up with unhealthy working conditions, because these factory jobs are the only thing available. A factory uprising of nearly 50,000 workers speaks for itself, the rights of workers need to be respected these are humans not just workers.
Corporations in the United States have proved time and time again that they are all about profit and not about what is good for America. One example of this is the fact that many corporations have factories in other countries, or buy from other corporations that do. Nike (an athletic shoe and clothing company) produces most of their shoes and apparel in factories in other countries, including Japan, South Korea, Indonesia, China, Vietnam and Malaysia. According to Nike’s factory disclosure list released May 2011, only 49 of it’s over 700 factories are located in the U.S. (Nike, Inc.) This means that thousands of jobs that could be filled by needy Americans are instead being filled by workers in other countries. This reason that Nike and other corporations outsource is very simple, it is very cheap to do so. In an excerpt from Jeffrey St. Clair's book “Born Under a Bad Sky” the author describes the vast differences between Nike’s production costs and retail prices. “In Vietnam, it costs Nike only $1.50 to manufactu...
... (Piven & Cloward, 18) Workers protest by striking against their employer, it is easier for employees to protest because they are all located and working together under one roof and are fighting for one thing, and that one thing is related to the workplace. While it is easier for employees to protest, it is not that easy for lower class employees to protest because they have little ability to protect themselves against their institutional managers. When the lower class workers have an informal organizational protest the government is eventually stepping in to disarm the protestors and make efforts to conciliate, “…mobs of unemployed were granted relief in the 1930s…” (Piven & Cloward, 29) The protests cause disruption and sometimes that disruption can make a change but when people are protesting blindly they are more prone to social injustice then making a change.
Large corporations such as Nike, Gap, and Reebok and many others from the United States have moved their factories to undeveloped nations; barely pay their employees enough to live on. Countries such as China, Indonesia, and Haiti have readily abundant cheap labor. There should be labor laws or an obligation of respecting workers to provide decent working conditions, fair wages, and safety standards.
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.
Lack of good alternative jobs explains why wages at the factory remain low, which also raises profits.... ... middle of paper ... ... Unions give workers some freedom from the hierarchy, but today finding a job is not so much about making labor contracts with your equals as it is about saving yourself from unemployment and competing with equally qualified laborers for the same job, often for a company within which you neither have a vested interest nor a share in its profits. Only approximately 12% of the workers in the United States are unionized, yet a substantial number of unions could revolutionize worker influence in capitalism (215).
Nike’s sweatshop manufacturing practices which can be seen through media have shown people that this company goes under the good guys images, these images which are displayed in their commercials show people that their employees are treated well and their happy in their working environment.
... ethics? Well, the honest answer would be to eliminate the sweatshops completely. This is unlikely because it would be very difficult for a company with such a broad reach in the corporate world to shut down its factories overseas. Companies will always continue to exploit lower wages as long as the opportunity is present. A possible way would be to improve their employee surroundings. Since Nike is benefiting from low wages, they should at least provide a safer working environment for its employees. No employee should ever be put at risk due to a lack of environmental awareness. Nike should also pay attention to wage laws that govern the area that they manufacture in. With all the profits Nike earns, it couldn’t possibly hurt them to pay their employees no less than minimum wage. Otherwise, any company that possesses such blatant greed will not last in the long run.
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.
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.
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.
The working class is being severely exploited and abused. They are treated as mere puppets. They have to pretend as if the factory job is perfect for them when consumers or inspectors visit them. They are being severely oppressed. Most of the workers are too young to be employed.
1. Who is legally responsible for child labour in Nike case? Since the issue of labor exploitation in Asia was conveyed to the media spotlight, Nike has accepted an arrangement of reconstruction for its misuse. Be that as it may, these progressions have not come to fruition as fast the same number of would have trusted. Nike is by all accounts stalling with respect to the issues at the core of the issue: paying a lowest pay permitted by law enabling specialists to bear the cost of essential human necessitites and conceding laborers the privilege to shape free labor unions.
A well-known example of social dumping is the production of Nike shoes. Nike has factories in third world countries such as China, Indonesia, and Vietnam that produce millions of shoes with labor costs at the bare minimum. Nike was known to pay “a minimum wage allowing workers to afford basic human necessities “ (Wilsey). Nike manufacturing operations in Indonesia were paying workers (mainly women) about $2.25 a day, which officially was 20% below the poverty line for an adult (Tsogas 34).
Also I think the writer is trying to get the consumer to write to the companies and tell them, to remind them, what their subcontractors is not right or fair. " The workers are lucky - One senior Nike employee told researchers: I don't think the workers in our factories are treated badly… Working conditions are
Industrial Dispute are for the most part thought to be negative to both managers and workers. The debate can impel labourers to strike or generally stop working until the requested conditions are met. Labourers may likewise picket outside the business trying to empower clients from supporting the business. Such action puts a strain on the business and forestalls both the specialists and bosses from profiting. In the United States, many strikes are driven by labourers’ unions who advocate reasonable treatment and working conditions for their individuals.