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Nike workers case study
Nike workers case study
Child labour in england wikipedia
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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.
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.
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.
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...
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
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 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.
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:
Nike should hold the standards regarding safety and working conditions that are prevailing in that country. However, when the sweatshop workers try to tolerate the conditions and wages, firms that are making investment in that country should not intervene the movement. In countries around the world, garment w...
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...
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.
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.
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)
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
Child labor is one of the biggest concerns occurring around the world. Over one hundred million children work in dangerous conditions in agriculture, mining, and other sectors. People around the world are working to end child labor and help them reunite with their families as well get them an education. Child labor violates human rights due to its inhumane actions that result in the amount of casualties, injuries and poverty. This global issue cannot be resolved unless laws and regulations are reinforced strictly.