Nike Case Study

Essay by devalynUniversity, Bachelor'sA, June 2007

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The Nike Sweatshop DebateShould Nike be held responsible for working conditions in foreign factories that it does not own, but where subcontractors make products for Nike?Nike is definitely not only responsible but also accountable for the working conditions of foreign factories that it does not own which it subcontracts with. Nike should have taken the initiative to be responsible of the contractors/employees working in other countries on a global scale. For example: Recently, Pepsi Cola was in the news for allegations of having pesticides in their drink products in India. Pepsi ensured that it was not just meeting standards in the Indian Market, but has the same standards of water purification across the world. Pepsi was found in a similar situation such as Nike, they should have realized that even though they were getting cheap labor in other countries that they needed to be socially responsible to ensure that the workers get minimum wages and work in conditions that are acceptable on a global scale.

What labor standards regarding safety, working conditions, overtime, and the like should Nike hold foreign factories to: those prevailing in that country, or those prevailing in the United States?Nike needs to adopt a policy for its overseas operations which will allow them to enjoy the cost advantages that they are realizing by off shoring manufacturing of shoes, yet which will give them the integrity of being a humanitarian company. For example, if Nike adopts the normal standards in the country of manufacturing then it is not able to comply with some of the human rights related issues that global organizations should comply with. Thus, it is very important that Nike adopts a series of standards that ensures that workers get at least the minimum wages in the respective country but the working conditions should be...