Nike Case Study Essay - 863 Words

Nike Case Study â€Å"Nike is criticized for using sweatshops in countries like Indonesia and Mexico. The company has been subject to much critical coverage of the often poor working conditions and the exploitativeness of the cheap overseas labor.† – answers.com 1. Should Nike be held responsible for working conditions in foreign factories that it does not own, but where sub-contractors make product for Nike? Yes, but I do not believe that the firm is 100% responsible since it is the sub-contractors who operate and create conditions for workers. Low-cost manufacturing is Nike’s strategy, and it is realized by outsourcing the manufacturing process to cheap labor countries. If Nike were responsible for all of working†¦show more content†¦Union organizers have been beaten, thrown in jail, black listed, and even killed. In some countries, such as Mexico, the government often cooperates with factory owners as they try to bust organizing drives. 3. An income of $2.28 a day, the base pay of Nike factory workers in Indonesia, is double the daily income of about half the working population. Half of all adults in Indonesia are farmers, who receive less than $1 a day. Given this, is it correct to criticize Nike for low pay rates for subcontractors in Indonesia. No, it is not. I believe that it is the local economy that determines if the wage is too low or not. If Nike factory in Indonesia allocates income double of that of about half the working population there, I think Nike should rather be applauded for providing working opportunities to the local community. However, as Nike’s factory improve the unemployment condition for the local community, local government would not bother to help the community to improve their economy anymore. Then, the local community will always be dependent on Nike factory, and the community will have to live with the factory no matter how bad the Nike factory treat workers. This kind of situation would not boost the economy of the community, therefore Nike will be considered as a greedy corporation. 4. Would Nike have handled the negative publicity over sweatshops better? What might have been done differently? Not just from the public relations perspective,Show MoreRelatedNike Case Study1004 Words   |  5 PagesRSS Case Study: E-recruitment gets Nike on track Posted by HR Zone in Strategies on Thu, 09/12/2004 - 16:54 0 inShare The Nike employer brand is extremely powerful in attracting potential talent to the business making the process of handling applications and supporting the resourcing process effectively and efficiently critical to business success; implementing e-recruitment was identified as the way to solve this businesses hiring problems. The issue Nike currently receives aroundRead MoreNike Case Study1112 Words   |  5 PagesCase Study- Nike 1. Discuss how Nikes growth can be attributed to its targeting of diverse market global segments. 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