Nike: Sweatshop Debate

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Running head: Nike: A SWEATSHOP DEBATE

Nike: A Sweatshop Debate
University of Phoenix
MGT/448
Instructor J. Ryan
April 17, 2012

Nike: A sweatshop debate.
Nike, a multi-billion dollar corporation, is the world’s primary supplier of athletic shoes and attire. Over the past several years, Nike has been involved in much controversy over its possible sweatshops. The following will address the legal, cultural, ethical, strategic and operational challenges Nike faces because of this controversy, as well as their roles in resolving this issue.
Legal, Cultural, and Ethical Challenges Even though Nike may subcontract its companies to foreign countries, it is still Nike’s responsibility to ensure the manufacturing sites are operated with integrity. With all of the negative press, and investigations that took place to prove Nike was guilty of running sweat shops, Nike had to take corrective actions overseas and consider the effect the negative press had on its financial stand as well the effect it had from an ethical point of view. They developed a code of conduct and terminated contracts with suppliers who did not comply. According to Hill (2009, p 154), Nike has “signaled a commitment to improving working conditions. It requires that foreign subcontractors meet minimum thresholds for working conditions and pay. It has arranged for factories to be examined by independent auditors.” Nike has also created minimum age requirements for factory workers as well as enforcing OSHA standards for chemicals that workers are using in the factories.
Roles
Nike is responsible for being compliant as well as the host governments who have a responsibility to protect the citizens who live and work in these countries. The enforcement of labor laws and the protection of the employee must be a priority. By ensuring that the contracted factories are regularly monitored for…...

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