2. CASE STUDY
Mini case
Niki sweatshop Labor
Back ground
Niki is a Multinational company of USA. It is founded by Phil Knight in 1964. It is famous
for its sports products. Having sales of 20$ billion and more than 50% of sales is outside
the USA. Niki starts its business from 500$. It produces its goods from Asian countries
because of low wage rate and high unemployment in these countries. These Asian
countries eager to attract FDI and improve their economics.
CRITICAL ASPECT
The wage rate is low were Niki product manufacture
Low wage rate
Unhealthy condition
Human rights
Lack of labor laws
Child labor
CSR violates
STATISTICS
12 billion annual sales
More than 50% sale outside the USA
Initial investment is 500$
20$ per hour wage rate in USA
1$ per hour wage rate in Asia
CONCLUSION
Niki have to face the allegation of low labor environmental condition and is not
according to standard labor laws. But Niki denied these allegation and start monitoring

3. the manufacturing units. Niki have to work on the social income statement and have to
monitor its social responsibility.
QUESTIONS & ANSWERS
Answer no 1: The criticism on Niki is right because the company not only
focus on making wealth but also have to make its social value. Company must practice
social responsibility. Company should make its business ethics and coprate governance
laws restrict. Company has to monitor its social responsibility policy.
Answer no 2: Following action will prevent the Niki from sweatshop labor
Niki have to perform social audit and financial audit as well.
International human right and labor laws must be practice.
Use certain personality to maintain the image of company.
Practice social responsibility.
Company has to manage a fixed wage rate or benchmark.
Improve its overseas operation.
Answer No 3: Yes, company especially multinational companies have to
practice the social responsibility to maintain its image and to boost its growth. When a
company goes beyond the border they have to face the social and culture differences.
Now the world is like a global village and social aspects of company is important as well
as its financial aspects. Considering all these views we find the importance of
coprate social responsibility.