Lesson 4 - Allegations against Nike
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- Nike has over 700 contract manufacturers in more than 50 countries employing over 500,000 workers who have faced allegations of rights violations since the 1980s. - Cases from the 1990s in Indonesia, Pakistan, and Vietnam involved wages below minimum, child labor, and toxic working conditions in Nike's supply chain. - Further allegations in the late 90s/early 2000s included underpayment, overwork, retaliation against unions, and abuse of women workers.
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Running head SWEATSHOPS TO SWEATWASHING 1SWEATSHOPS TO SWEATW.docx
Running head: SWEATSHOPS TO SWEATWASHING 1
SWEATSHOPS TO SWEATWASHING 4
From Sweatshops to Sweatwashing:
An Analysis of Nike’s Corporate Social Responsibility
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Introduction
Nike, Inc. was founded in 1964 by Philip H. Knight, who acted as President and CEO (Arnold & Hartman, 2003, p. 11). Knight named his successor, William Perez, in 2004 (Holmes, 2004, para. 1); Perez only lasted 13 months in the CEO position. He was then replaced by Mark Parker in 2006 (Holmes, 2006a, para. 5). The brand is distributed in 52 countries and possesses 550,000 workers. Nike produces 175 million pairs of shoes per year. It has 500 contract suppliers, half of which are located in Asia (Arnold & Hartman, 2003, p. 11). This paper will examine the sweatshop scandal of the 1990’s that Nike was involved with. The effect of the sweatshops on people, planet, and profits will also be addressed. The paper will explore the company’s current CSR practices. The paper will also examine what greenwashing is and the types of greenwashing. A culminating theme of this paper is an analysis determining whether or not Nike is indeed greenwashing. Lastly, the paper will provide recommendations based on the analysis.
Overview of Nike’s Sweatshop Practices
In 1984 Nike closed its last United States factory. With no more domestic factories, the majority of its facilities were located in Asia, which is where sweatshop and labor issues are most prominent. This decision cost 65,000 American workers their jobs (Glenn, 2004, para. 3). Most workers in the foreign factories are generally teenagers or unmarried mothers, whose ages range from 17 to 30 years. On average, each worker makes about 4.3 pairs of shoes per day (Glenn, 2004, para. 5-10). Nike’s Asian factories are located primarily in China, Thailand, Pakistan, Vietnam, Cambodia, and Indonesia. The company moved its operation abroad in an effort to cut labor costs (Levenson, 2008, p. 168-170). In some cases, Nike was able to reduce its labor expenses by paying workers a mere 20 cents an hour, to work in factories that had poor ventilation and similar unsafe as well as abusive environments (Bernstein, 2004, p. 1; Sage, 1999, pp. 216-217). The factory workers in Indonesia earn a wage of $2.50. The reported livable wage in Indonesia is about $4.00, making the $2.50 wage insufficient. It is a similar situation for Chinese workers, who make about $1.60 per day; some workers claim they do not receive the entire $1.60. Three simple meals in China cost about $2.10. Clearly, it can be seen that Nike factory workers are not paid enough to live a basic life. It is reported many of these Asian factory laborers are unpaid for any overtime they perform (Glenn, 2004, para. 5-10). Because they cannot afford boarding costs on their own, 60-70% of Nike workers in Asian countries are financially forced to rent rooms from the company. Rooms are identical and one-story. These rooms feature concrete walls .
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Int. J. Production Economics ] (]]]]) ]]]–]]]Contents lists .docx
Int. J. Production Economics ] (]]]]) ]]]–]]]
Contents lists available at ScienceDirect
Int. J. Production Economics
0925-52
doi:10.1
n Corr
E-m
[email protected]
Pleas
Inter
journal homepage: www.elsevier.com/locate/ijpe
Improving supplier’s situation through supplier cooperation: The case of
Xintang jeans town
Bin Jiang a, Srinivas (Sri) Talluri n,b, Tao Yao c
a Department of Management, The Charles H. Kellstadt Graduate School of Business, DePaul University, Euromed Management Marseille, USA
b Department of Supply Chain Management, Eli Broad Graduate School of Management, USA
c The Harold and Inge Marcus Department of Industrial and Manufacturing Engineering, Pennsylvania State University – University Park, USA
a r t i c l e i n f o
Article history:
Received 12 November 2009
Accepted 9 March 2011
Keywords:
Supplier cooperation
Game theory
Labor conditions
73/$ - see front matter & 2011 Elsevier B.V. A
016/j.ijpe.2011.03.010
esponding author.
ail addresses: [email protected] (B. Jiang),
bus.msu.edu (S. Talluri), [email protected] (T.
e cite this article as: Jiang, B., et al., I
national Journal of Production Econ
a b s t r a c t
Inferior labor conditions in developing countries have raised Western customers’ awareness of
sweatshops. Developing countries’ suppliers are facing growing pressure from Western clients on
ethical issues associated with the production of low-cost goods at the expense of worker health, safety,
and welfare. Inferior working conditions not only adversely affect worker well-being, but also
negatively impact performance and productivity, which is detrimental to the entire supply chain in
the long-run. In this paper, we consider the case of Xintang International Jeans and Textile City, the
largest manufacturing base of jeans in China, which sought to shed its sweatshop image. Working
closely with the administration of this manufacturing base, we applied operations research techniques
to analyze local suppliers’ possible operations strategies based on considerations of price and delivery
guarantees, two critical dimensions of competition in the apparel and textile industry. Our analysis
highlighted the fact that local suppliers’ cooperation may be an effective way for improving labor
conditions in the long-run. Our work has significant implications for societal improvement in
developing countries through better labor conditions and increased cooperation while maintaining a
healthy level of competition.
& 2011 Elsevier B.V. All rights reserved.
1. Background
China’s advantages in the global apparel and textile market-
place are moving well beyond cheap equipment, materials, and
labor. Industries in China are leveraging economies of scale and
low labor costs in an effort to achieve a global competitive
advantage via a new form of industrial organization referred to
as ‘‘factory town’’, which is akin to an industrial cluster. In an
apparel factory town, all materials and processes needed to m.
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This document contains questions related to environmental management and pollution control. It discusses several case studies involving chemical plants, waste management, and industrial disasters. It asks the student to identify activities with environmental impacts, legal requirements, and steps for ISO certification. It also asks about principles of equal opportunity employment and how to maintain business growth while upholding values. Disaster management plans and safety procedures for chemical companies are discussed. Methods of waste management, provisions for hazardous waste, and the roles of regulatory agencies are outlined.
Business environment
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Business environment
WE ARE PROVIDING CASE STUDY ANSWERS
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Running head SWEATSHOPS TO SWEATWASHING 1SWEATSHOPS TO SWEATW.docx
Running head: SWEATSHOPS TO SWEATWASHING 1
SWEATSHOPS TO SWEATWASHING 4
From Sweatshops to Sweatwashing:
An Analysis of Nike’s Corporate Social Responsibility
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Introduction
Nike, Inc. was founded in 1964 by Philip H. Knight, who acted as President and CEO (Arnold & Hartman, 2003, p. 11). Knight named his successor, William Perez, in 2004 (Holmes, 2004, para. 1); Perez only lasted 13 months in the CEO position. He was then replaced by Mark Parker in 2006 (Holmes, 2006a, para. 5). The brand is distributed in 52 countries and possesses 550,000 workers. Nike produces 175 million pairs of shoes per year. It has 500 contract suppliers, half of which are located in Asia (Arnold & Hartman, 2003, p. 11). This paper will examine the sweatshop scandal of the 1990’s that Nike was involved with. The effect of the sweatshops on people, planet, and profits will also be addressed. The paper will explore the company’s current CSR practices. The paper will also examine what greenwashing is and the types of greenwashing. A culminating theme of this paper is an analysis determining whether or not Nike is indeed greenwashing. Lastly, the paper will provide recommendations based on the analysis.
Overview of Nike’s Sweatshop Practices
In 1984 Nike closed its last United States factory. With no more domestic factories, the majority of its facilities were located in Asia, which is where sweatshop and labor issues are most prominent. This decision cost 65,000 American workers their jobs (Glenn, 2004, para. 3). Most workers in the foreign factories are generally teenagers or unmarried mothers, whose ages range from 17 to 30 years. On average, each worker makes about 4.3 pairs of shoes per day (Glenn, 2004, para. 5-10). Nike’s Asian factories are located primarily in China, Thailand, Pakistan, Vietnam, Cambodia, and Indonesia. The company moved its operation abroad in an effort to cut labor costs (Levenson, 2008, p. 168-170). In some cases, Nike was able to reduce its labor expenses by paying workers a mere 20 cents an hour, to work in factories that had poor ventilation and similar unsafe as well as abusive environments (Bernstein, 2004, p. 1; Sage, 1999, pp. 216-217). The factory workers in Indonesia earn a wage of $2.50. The reported livable wage in Indonesia is about $4.00, making the $2.50 wage insufficient. It is a similar situation for Chinese workers, who make about $1.60 per day; some workers claim they do not receive the entire $1.60. Three simple meals in China cost about $2.10. Clearly, it can be seen that Nike factory workers are not paid enough to live a basic life. It is reported many of these Asian factory laborers are unpaid for any overtime they perform (Glenn, 2004, para. 5-10). Because they cannot afford boarding costs on their own, 60-70% of Nike workers in Asian countries are financially forced to rent rooms from the company. Rooms are identical and one-story. These rooms feature concrete walls .
Business environment
This document provides information about assignments for an MBA course on business environment. It details 5 cases related to environmental management in chemical plants and industries. For each case, it lists several questions and provides detailed answers explaining important concepts like ISO certification, legal compliance, environmental impacts of industries, waste management methods, roles of regulatory authorities, and principles of environmental protection. Students are encouraged to send their course details to get fully solved assignments or call for emergency assistance.
Industrial Disputes
The document discusses industrial disputes, defining them as disagreements between employers, employees, or workers related to employment terms or conditions. It outlines the parties to disputes, their effects, weapons used by labor and management, and causes. Measures to improve relations include progressive management, strong unions, mutual trust, accommodation, agreement implementation, worker participation, sound policies, and government role in settling disputes.
Int. J. Production Economics ] (]]]]) ]]]–]]]Contents lists .docx
Int. J. Production Economics ] (]]]]) ]]]–]]]
Contents lists available at ScienceDirect
Int. J. Production Economics
0925-52
doi:10.1
n Corr
E-m
[email protected]
Pleas
Inter
journal homepage: www.elsevier.com/locate/ijpe
Improving supplier’s situation through supplier cooperation: The case of
Xintang jeans town
Bin Jiang a, Srinivas (Sri) Talluri n,b, Tao Yao c
a Department of Management, The Charles H. Kellstadt Graduate School of Business, DePaul University, Euromed Management Marseille, USA
b Department of Supply Chain Management, Eli Broad Graduate School of Management, USA
c The Harold and Inge Marcus Department of Industrial and Manufacturing Engineering, Pennsylvania State University – University Park, USA
a r t i c l e i n f o
Article history:
Received 12 November 2009
Accepted 9 March 2011
Keywords:
Supplier cooperation
Game theory
Labor conditions
73/$ - see front matter & 2011 Elsevier B.V. A
016/j.ijpe.2011.03.010
esponding author.
ail addresses: [email protected] (B. Jiang),
bus.msu.edu (S. Talluri), [email protected] (T.
e cite this article as: Jiang, B., et al., I
national Journal of Production Econ
a b s t r a c t
Inferior labor conditions in developing countries have raised Western customers’ awareness of
sweatshops. Developing countries’ suppliers are facing growing pressure from Western clients on
ethical issues associated with the production of low-cost goods at the expense of worker health, safety,
and welfare. Inferior working conditions not only adversely affect worker well-being, but also
negatively impact performance and productivity, which is detrimental to the entire supply chain in
the long-run. In this paper, we consider the case of Xintang International Jeans and Textile City, the
largest manufacturing base of jeans in China, which sought to shed its sweatshop image. Working
closely with the administration of this manufacturing base, we applied operations research techniques
to analyze local suppliers’ possible operations strategies based on considerations of price and delivery
guarantees, two critical dimensions of competition in the apparel and textile industry. Our analysis
highlighted the fact that local suppliers’ cooperation may be an effective way for improving labor
conditions in the long-run. Our work has significant implications for societal improvement in
developing countries through better labor conditions and increased cooperation while maintaining a
healthy level of competition.
& 2011 Elsevier B.V. All rights reserved.
1. Background
China’s advantages in the global apparel and textile market-
place are moving well beyond cheap equipment, materials, and
labor. Industries in China are leveraging economies of scale and
low labor costs in an effort to achieve a global competitive
advantage via a new form of industrial organization referred to
as ‘‘factory town’’, which is akin to an industrial cluster. In an
apparel factory town, all materials and processes needed to m.
Hitting the Wall: Nike and International Labor Practices
Nike pursued a business strategy of outsourcing manufacturing to low-cost countries to reduce costs and increase profits. However, this exposed the company to criticism over poor labor practices in foreign factories. Nike was accused of exploiting workers through low wages and unhealthy conditions. While Nike initially denied responsibility, increasing public pressure and protests led the company to implement reforms like establishing a code of conduct, increasing oversight of factories, and joining industry partnerships and organizations to improve labor standards. However, critics argued Nike still failed to adequately address the key issue of low wages for workers. The document examines Nike's failures to uphold corporate social responsibility in its early business practices and slow response to addressing labor concerns.
What's the most important asset of Nike?
Nike's most important asset is its brand. Nike was founded in 1964 and has grown to become a leading brand in sports apparel and equipment. While Nike faced allegations in the 1990s of exploiting workers in developing countries, it has since worked to improve factory conditions and wages. Nike's brand recognition and reputation for quality products associated with sports icons like Michael Jordan have made its brand its most valuable asset.
DISPUTE-UNIT-5.pdf
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The Global Compact, Human Rights, and Nike, Inc.
Focusing on human rights, this presentation uses a critical psychology lens to articulate the business case for an action plan to imbed the Global Compact in the strategies and operations of Nike, Inc., with an eye to engaging its contract factories. The action plan integrates best practices proposed by the Global Compact. Because of their ambitious scope, critical psychology approaches often suffer from lack of opportunity for practical applications. Notwithstanding, this presentation highlights the theory's undoubted usefulness in the context of the Global Compact.
Mnc challenges ppt
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Industrial disputes act
DEFINITION OF INDUSTRIAL DISPUTES BY THE ID ACT, VARIOUS FORMS OF INDUSTRIAL DISPUTES, WITH THERE EXPLANATIONS ,CAUSES OF INDUSTRIAL DISPUTES AND THERE EFFECTS ALSO(POSITIVE AND NEGATIVE), THE MOST IMPORTANT IS THE PREVENTIVE MEASURES AND THE FORMS OF SETTLEMENT OF VARIOUS DISPUTES IN AN INDUSTRY LEVEL WITH PROPER EXAMPLE AND PROCESS OF ALMOST ALL THE FORMS OF DISPUTES SETTLEMENT INCLUDING CONSULTATIVE MACHINERY.
Presentation globalisation & Health and Safety
The document discusses several issues related to globalization and its impact on health, safety, and the environment from multiple perspectives. It describes the Bhopal disaster and ongoing protests. It provides examples of poor working conditions and regulatory failures in factories in China and Bangladesh producing goods for Western companies. These include long hours, low pay, few protections, and incidents with deaths from fires in locked facilities. There is debate around the costs and benefits of regulations and the moral responsibilities of companies and consumers regarding overseas production.
Industrial disputes ppt pdf- Dr. kokila saxena
Industrial disputes are disputes between employer-employees, Employees-employees & Employer-employer on the terms of employment. We have been provided with a strong industrial disputes resolving mechanery in two different kinds such as- Preventive mechanery & Settlement Mechanery
Day 23
The document discusses several factors that impact a worker's wages including differences in training, education, experience, abilities, geographic location, and potential discrimination. It also discusses the historical role of labor unions in protecting workers' rights and outlines key laws like the Wagner Act that protect the right to unionize and the Taft-Harley Act that allowed right-to-work laws. The document then explains concepts like collective bargaining and binding arbitration between unions and employers.
Similar to Lesson 4 - Allegations against Nike (20)
Business environment. 9901366442 / 9902787224 / www.mbacasestudyanswers.com
Business environment. 9901366442 / 9902787224 / www.mbacasestudyanswers.com
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Running head SWEATSHOPS TO SWEATWASHING 1SWEATSHOPS TO SWEATW.docx
Running head SWEATSHOPS TO SWEATWASHING 1SWEATSHOPS TO SWEATW.docx
Int. J. Production Economics ] (]]]]) ]]]–]]]Contents lists .docx
Int. J. Production Economics ] (]]]]) ]]]–]]]Contents lists .docx
Hitting the Wall: Nike and International Labor Practices
Hitting the Wall: Nike and International Labor Practices
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International intergovernmental organizations play an important role in addressing global political issues and preventing the spread of infectious diseases across borders. As political and economic ties between countries increase, more international organizations have formed to provide a platform for global policymaking through discussion and negotiation. These organizations contribute to issues like avian influenza by distributing disease information, establishing research networks, and formulating cooperative policies between countries. They have made efforts such as subsidizing poor nations' response efforts, demanding disease reporting, planning early warning systems, stockpiling antiviral drugs, and raising funds for prevention activities.
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Lesson 13 - Activity 2 Q.2,3
China has a three-level landscape of relief from west to east:
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Lesson 9 - Test Revision
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