Nike Case Study

61,193 views

Published on

Nike Force Labour

Published in: Business, Career
6 Comments
25 Likes
Statistics
Notes
No Downloads
Views
Total views
61,193
On SlideShare
0
From Embeds
0
Number of Embeds
106
Actions
Shares
0
Downloads
1,636
Comments
6
Likes
25
Embeds 0
No embeds

No notes for slide

Nike Case Study

  1. 1. NIKE CASE STUDY<br />PRESENTED BY<br />
  2. 2.
  3. 3. SHAHBANI<br />
  4. 4. AZMIE<br />
  5. 5. AZLINA<br />
  6. 6. MEEN<br />
  7. 7. Company mission<br />
  8. 8. Company mission<br />“ To be the world’s leading sports and fitness company”<br />
  9. 9. Company history<br /><ul><li>The SWOOSH logo is a graphic </li></ul> design created by Caroline Davidson in <br /> 1971.<br /><ul><li> She was paid $35 by for the logo design.
  10. 10. The 1st shoe with the NIKE SWOOSH </li></ul> was introduced in Spring 1972.<br /><ul><li> NIKE pronounced NI-KEY, is the winged </li></ul> goddess of victory according to Greek <br /> mythology.<br />
  11. 11. Company history<br />1962: Philip H Knight founds Blue Ribbon Sports (BRS) to import Japanese running shoes.<br />1963: BRS takes its first delivery of 200 shoes from Onitsuka Tiger Co.<br />1964: BRS becomes partnership between Knight $ William Bowerman.<br />1966: The company’s 1st retail outlet opens.<br />1968: Company is incorporated; the Bowerman Cortez design become a big seller.<br />1971: BRS begins manufacturing its own product overseas & the Swoosh trademark and the Nike was introduced.<br />
  12. 12. BOWERMAN CORTEZ DESIGN<br />
  13. 13. NEW CORTEZ DESIGN<br />
  14. 14. CASE SUMMARY<br />
  15. 15. CASE SUMMARY<br />DEVELOPING AN EFFECTIVE PUBLIC RELATIONS STRATEGY.<br /><ul><li> This case is about how NIKE been confronted by watchdog group regarding their subcontractor workers issues in Asia.
  16. 16. NIKE has responded and took a proactive action to ensure the best practices in Human Resources Management, Environment protection and safety policies. </li></li></ul><li>MOVIE REVIEW<br />
  17. 17. MOVIE<br />
  18. 18. QUESTION REVIEW<br />
  19. 19. QUESTION 1<br />What could Nike’s Corporate Responsibility team do to improve Nike’s public image?<br />
  20. 20. QUESTION 2<br />Why did Nike’s attempt to address it critics prove unsuccessful?<br />
  21. 21. QUESTION 3<br />What damage, if any, has been done to Nike? Did Nike react appropriately? Did it overreact?<br />
  22. 22. QUESTION 4<br />Many of Nike’s competitors subcontractor production to Asian factories that are similar to the factories used by Nike, why was Nike singled out by human rights and labour right activist?<br />
  23. 23. QUESTION 5<br />What responsibility does Nike have to the workers in the factories of its subcontractors? What wage rates should it require them to pay their workers?<br />
  24. 24. QUESTION 6<br />According to its corporate Web site (www.nikebiz.com) Nike seems to be more forthright in delineating what it believes to be more corporate responsibility issuing, for example, an annual Nike responsibility report? <br />Is Nike now doing enough for its contract workers?<br />
  25. 25. CASE DISCUSSION<br />
  26. 26. QUESTION 1<br />What could Nike’s Corporate Responsibility team do to improve Nike’s public image?<br />
  27. 27. Q1: Answer<br /><ul><li>CONDUCTING PRESS CONFERENCES & ISSUING </li></ul> PRESS RELEASE OUTLINING THE STEPS THAT NIKE <br /> HAD TAKEN TO ENSURE COMPLIANCE WITH ITS <br /> CODE OF CONDUCT.<br /><ul><li> ESTABLISHING & POSTING PROGRESS ON IMPROVING LABOUR CONDITIONS ON THE CORPORATE WEB SITE.
  28. 28. RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.</li></li></ul><li>Q1: Answer<br /><ul><li>CONDUCTING PRESS CONFERENCES & ISSUING </li></ul> PRESS RELEASE OUTLINING THE STEPS THAT NIKE <br /> HAD TAKEN TO ENSURE COMPLIANCE WITH ITS <br /> CODE OF CONDUCT.<br /><ul><li> ESTABLISHING & POSTING PROGRESS ON IMPROVING LABOUR CONDITIONS ON THE CORPORATE WEB SITE.
  29. 29. RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.</li></li></ul><li>Q1: Answer<br /><ul><li>CONDUCTING PRESS CONFERENCES & ISSUING </li></ul> PRESS RELEASE OUTLINING THE STEPS THAT NIKE <br /> HAD TAKEN TO ENSURE COMPLIANCE WITH ITS <br /> CODE OF CONDUCT.<br /><ul><li> ESTABLISHING & POSTING PROGRESS ON IMPROVING LABOUR CONDITIONS ON THE CORPORATE WEB SITE.
  30. 30. RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.</li></li></ul><li>Q1: Answer<br /><ul><li>CONDUCTING PRESS CONFERENCES & ISSUING </li></ul> PRESS RELEASE OUTLINING THE STEPS THAT NIKE <br /> HAD TAKEN TO ENSURE COMPLIANCE WITH ITS <br /> CODE OF CONDUCT.<br /><ul><li> ESTABLISHING & POSTING PROGRESS ON IMPROVING LABOUR CONDITIONS ON THE CORPORATE WEB SITE.
  31. 31. RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.</li></li></ul><li>Q1: Answer<br /><ul><li> NIKE SHOULD TAKING ACCOUNT OF BUSINESS IMPACTS & THE DESIRES OF STAKEHOLDERS, TO PROVIDE AN OPEN & PROGRESS INCORPORATING RESPONSIBLE PRACTICE INTO OPERATIONS.
  32. 32. TO MONITOR THE IMPLEMENTATION THE CODES OF CONDUCT & TO FOCUS ON THE ROOT OF THE PROBLEMS.
  33. 33. RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.</li></li></ul><li>Q1: Answer<br /><ul><li> NIKE SHOULD TAKING ACCOUNT OF BUSINESS IMPACTS & THE DESIRES OF STAKEHOLDERS, TO PROVIDE AN OPEN & PROGRESS INCORPORATING RESPONSIBLE PRACTICE INTO OPERATIONS.
  34. 34. TO MONITOR THE IMPLEMENTATION THE CODES OF CONDUCT & TO FOCUS ON THE ROOT OF THE PROBLEMS.
  35. 35. RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.</li></li></ul><li>Q1: Answer<br /><ul><li> NIKE SHOULD TAKING ACCOUNT OF BUSINESS IMPACTS & THE DESIRES OF STAKEHOLDERS, TO PROVIDE AN OPEN & PROGRESS INCORPORATING RESPONSIBLE PRACTICE INTO OPERATIONS.
  36. 36. TO MONITOR THE IMPLEMENTATION THE CODES OF CONDUCT & TO FOCUS ON THE ROOT OF THE PROBLEMS.
  37. 37. RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.</li></li></ul><li>QUESTION 2<br />Why did Nike’s attempt to address it critics prove unsuccessful?<br />
  38. 38. Q2: Answer<br /><ul><li> NIKE IGNORE THE PROBLEMS & DENYING THEIR RESPONSIBLITY TOWARD TEHIR CONTRACTOR MANUFACTURING.
  39. 39. NIKE UNABLE TO BALANCE BETWEEN BUSINESS OBJECTIVE AND LABOUR PRACTICES ISSUES.
  40. 40. THE WATCHDOG GROUP ARE NOT CONVINCE WITH IMPLEMENTATION OF THEIR CODE OF CONDUCT AND HUMAN RESOURCES MANAGEMENT ISSUES.</li></li></ul><li>Q2: Answer<br /><ul><li> NIKE IGNORE THE PROBLEMS & DENYING THEIR RESPONSIBLITY TOWARD TEHIR CONTRACTOR MANUFACTURING.
  41. 41. NIKE UNABLE TO BALANCE BETWEEN BUSINESS OBJECTIVE AND LABOUR PRACTICES ISSUES.
  42. 42. THE WATCHDOG GROUP ARE NOT CONVINCE WITH IMPLEMENTATION OF THEIR CODE OF CONDUCT AND HUMAN RESOURCES MANAGEMENT ISSUES.</li></li></ul><li>Q2: Answer<br /><ul><li> NIKE IGNORE THE PROBLEMS & DENYING THEIR RESPONSIBLITY TOWARD TEHIR CONTRACTOR MANUFACTURING.
  43. 43. NIKE UNABLE TO BALANCE BETWEEN BUSINESS OBJECTIVE AND LABOUR PRACTICES ISSUES.
  44. 44. THE WATCHDOG GROUP ARE NOT CONVINCE WITH IMPLEMENTATION OF THEIR CODE OF CONDUCT AND HUMAN RESOURCES MANAGEMENT ISSUES.</li></li></ul><li>Q2: Answer<br /><ul><li> NIKE IGNORE THE PROBLEMS & DENYING THEIR RESPONSIBLITY TOWARD TEHIR CONTRACTOR MANUFACTURING.
  45. 45. NIKE UNABLE TO BALANCE BETWEEN BUSINESS OBJECTIVE AND LABOUR PRACTICES ISSUES.
  46. 46. THE WATCHDOG GROUP ARE NOT CONVINCE WITH IMPLEMENTATION OF THEIR CODE OF CONDUCT AND HUMAN RESOURCES MANAGEMENT ISSUES.</li></li></ul><li>QUESTION 3<br />What damage, if any, has been done to Nike? Did Nike react appropriately? Did it overreact?<br />
  47. 47. Q3(a): What damage, if any, has been done To Nike? <br />Nike initial response was to ignore the problem and suggested that any problems were the responsibility of Nike’s subcontractor<br />
  48. 48. Q3: Answer<br />The above action has lead to the following damages:<br />Nike Image Shattered <br />More “Negative News About Nike’s Labor<br />Practices” Emerged<br />Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image<br />Nike Logo and Tagline are Associated <br />With Bad Labor and Ethic Practice<br />Out of Court Settlement Confirms Nike’s <br />Bad Labor Practice<br />Nike’s Management Reputation<br />
  49. 49. Q3: Answer<br />The above action has lead to the following damages:<br /><ul><li>Nike action is seen as a irresponsible and inhumane
  50. 50. Instead of rushing to mitigate the crisis of workers exploitation, Nike choose toe deny the existence of the crisis</li></ul>Nike Image <br />Shattered <br />More “Negative News About Nike’s Labor<br />Practices” Emerged<br />Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image<br />Nike Logo and Tagline are Associated <br />With Bad Labor and Ethic Practice<br />Out of Court Settlement Confirms Nike’s <br />Bad Labor Practice<br />Nike’s Management Reputation<br />
  51. 51. Q3: Answer<br />The above action has lead to the following damages:<br />More “Negative <br />News About Nike’s <br />Labor Practices” <br />Emerged<br /><ul><li>Activists took advantage to embarrassed Nike even more</li></ul>Nike Image Shattered <br />Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image<br />Nike Logo and Tagline are Associated <br />With Bad Labor and Ethic Practice<br />Out of Court Settlement Confirms Nike’s <br />Bad Labor Practice<br />Nike’s Management Reputation<br />
  52. 52. Q3: Answer<br />The above action has lead to the following damages:<br /><ul><li>Many campaigns boycotting Nike’s products were organized especially throughout US/ Europe
  53. 53. This may “directly/ indirectly” affected Nike’s customers’ purchase decision as Nike experience reduction in Net Profit</li></ul>Nike Image Shattered <br />More “Negative News About Nike’s Labor<br />Practices” Emerged<br />Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image<br />Nike Logo and Tagline are Associated <br />With Bad Labor and Ethic Practice<br />Out of Court Settlement Confirms Nike’s <br />Bad Labor Practice<br />Nike’s Management Reputation<br />
  54. 54. Q3: Answer<br />The above action has lead to the following damages:<br />Nike Image Shattered <br />More “Negative News About Nike’s Labor<br />Practices” Emerged<br />Nike Logo and Tagline <br />are Associated With <br />Bad Labor and Ethic <br />Practice<br /><ul><li>Nike “swoosh” logo and tagline are becoming the symbols of “bad labor and ethic” practices</li></ul>Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image<br />Out of Court Settlement Confirms Nike’s <br />Bad Labor Practice<br />Nike’s Management Reputation<br />
  55. 55. Q3: Answer<br />The above action has lead to the following damages:<br /><ul><li>Nike reached an agreement to settle the lawsuit out of court ( Kasky vs. Nike) by agreeing to pay US1.5 million to the Fair Labor Association
  56. 56. The action indirectly shows that Nike is “guilty” and “responsible” for the work conditions and employees wellbeing of its subcontractor.</li></ul>Nike Image Shattered <br />More “Negative News About Nike’s Labor<br />Practices” Emerged<br />Out of Court <br />Settlement Confirms <br />Nike’s Bad Labor <br />Practice<br />Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image<br />Nike Logo and Tagline are Associated <br />With Bad Labor and Ethic Practice<br />Nike’s Management Reputation<br />
  57. 57. Q3: Answer<br />The above action has lead to the following damages:<br />Nike Image Shattered <br />More “Negative News About Nike’s Labor<br />Practices” Emerged<br />Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image<br /><ul><li>Nike Management failed to live up to the expected standards of an ethical corporate citizen as per what Nike projecting its image in its advertisement</li></ul>Nike Logo and Tagline are Associated <br />With Bad Labor and Ethic Practice<br />Nike’s Management <br />Reputation<br />Out of Court Settlement Confirms Nike’s <br />Bad Labor Practice<br />
  58. 58. Q3(b) Did Nike react appropriately? <br /> (c) Did it overreact?<br />The team answer is No, Nike fail to react appropriately.<br />The team finds Nike is actually “under-react”. <br />
  59. 59. QUESTION 4<br />Many of Nike’s competitors subcontractor production to Asian factories that are similar to the factories used by Nike, why was Nike singled out by human rights and labour right activist?<br />
  60. 60. Q4: Answer<br /><ul><li>Majorities of the human rights and activists are US-based .
  61. 61. Nike is associated as a US brand/ product.
  62. 62. Nike is associated with “luxury” products.
  63. 63. Nike is also seen as the leader among its </li></ul> competitors <br />
  64. 64. Q4: Answer<br /><ul><li>Majorities of the human rights and activists are US-based .
  65. 65. Nike is associated as a US brand/ product.
  66. 66. Nike is associated with “luxury” products.
  67. 67. Nike is also seen as the leader among its </li></ul> competitors <br />
  68. 68. Q4: Answer<br /><ul><li>Majorities of the human rights and activists are US-based .
  69. 69. Nike is associated as a US brand/ product.
  70. 70. Nike is associated with “luxury” products.
  71. 71. Nike is also seen as the leader among its </li></ul> competitors <br />
  72. 72. Q4: Answer<br /><ul><li>Majorities of the human rights and activists are US-based .
  73. 73. Nike is associated as a US brand/ product.
  74. 74. Nike is associated with “luxury” products.
  75. 75. Nike is also seen as the leader among its </li></ul> competitors <br />
  76. 76. Q4: Answer<br /><ul><li>Majorities of the human rights and activists are US-based .
  77. 77. Nike is associated as a US brand/ product.
  78. 78. Nike is associated with “luxury” products.
  79. 79. Nike is also seen as the leader among its </li></ul> competitors <br />
  80. 80. QUESTION 5<br />What responsibility does Nike have to the workers in the factories of its subcontractors? What wage rates should it require them to pay their workers?<br />
  81. 81. Q5: Answer<br />NIKE GREATEST RESPONSIBILITY AS A GLOBAL COMPANY IS TO PLAY A ROLE IN BRINGING ABOUT POSITIVE SYSTEMATIC CHANGE FOR WORKERS WITHIN THEIR OWN SUPPLY CHAIN, AND IN THE INDUSTRY.<br />
  82. 82. Q5(b): Answer<br />NIKE RESPONSIBILITY<br />Force Labour<br />Child Labour<br />Compensation<br />Benefits<br />Hours of work/ overtime<br />Child Labour<br />
  83. 83. Q5(b): Answer<br />NIKE RESPONSIBILITY<br />Force Labour<br />Child Labour<br />Compensation<br />Benefits<br />Hours of work/ overtime<br />Child Labour<br />
  84. 84. Q5(b): Answer<br />NIKE RESPONSIBILITY<br />Force Labour<br />Child Labour<br />Compensation<br />Benefits<br />Hours of work/ overtime<br />Child Labour<br />
  85. 85. Q5(b): Answer<br />NIKE RESPONSIBILITY<br />Force Labour<br />Child Labour<br />Compensation<br />Benefits<br />Hours of work/ overtime<br />Child Labour<br />
  86. 86. Q5(b): Answer<br />NIKE RESPONSIBILITY<br />Force Labour<br />Child Labour<br />Compensation<br />Benefits<br />Hours of work/ overtime<br />Child Labour<br />
  87. 87. Q5(b): Answer<br />NIKE RESPONSIBILITY<br />Force Labour<br />Child Labour<br />Compensation<br />Benefits<br />Hours of work/ overtime<br />Child Labour<br />
  88. 88. Q5(b): Answer<br />NIKE RESPONSIBILITY<br />Force Labour<br />Child Labour<br />Compensation<br />Benefits<br />Hours of work/ overtime<br />Child Labour<br />
  89. 89. QUESTION 6<br />According to its corporate Web site (www.nikebiz.com) Nike seems to be more forthright in delineating what it believes to be more corporate responsibility issuing, for example, an annual Nike responsibility report? <br />Is Nike now doing enough for its contract workers?<br />
  90. 90. Force Labour<br />Child Labour<br />Compensation<br />Benefits<br />Hours of work/ overtime<br />Child Labour<br />
  91. 91. Force Labour<br />Child Labour<br />Compensation<br />Benefits<br />Hours of work/ overtime<br />Child Labour<br />
  92. 92. Force Labour<br />Child Labour<br />Compensation<br />Benefits<br />Hours of work/ overtime<br />Child Labour<br />
  93. 93. Force Labour<br />Child Labour<br />Compensation<br />Benefits<br />Hours of work/ overtime<br />Child Labour<br />
  94. 94. Force Labour<br />Child Labour<br />Compensation<br />Benefits<br />Hours of work/ overtime<br />Child Labour<br />
  95. 95. Force Labour<br />Child Labour<br />Compensation<br />Benefits<br />Hours of work/ overtime<br />Child Labour<br />
  96. 96. Force Labour<br />Child Labour<br />Compensation<br />Benefits<br />Hours of work/ overtime<br />Child Labour<br />
  97. 97.
  98. 98.
  99. 99. The End<br />

×