Nike Is Bad

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This document criticizes Nike for exploiting child labor and poor working conditions in sweatshops located in developing countries. It notes that Nike takes advantage of lax labor laws in places like China and Vietnam to open sweatshops and avoid organized labor. While Nike claims to oppose sweatshops, the reality is that children as young as 8 years old work long hours in its overseas factories under difficult conditions. Many groups protest Nike's practices and call for improved monitoring and enforcement of international labor standards.

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IMPORTED BEERS DATAMarkup %140%Forecast Demand4.0%Annual Inventory Holding Cost RateActual Last QtrNext 4 QuartersProduct CodeCostPriceEnding Inventory12347979$ 10.49$ 14.69301001201251306786$ 11.59$ 16.232590951021082389$ 12.45$ 17.4320859090855453$ 11.43$ 16.0012668090909327$ 13.49$ 18.8915777880809134$ 16.22$ 22.718105951001054276$ 9.88$ 13.8310607075755532$ 10.43$ 14.60281101201251257612$ 12.28$ 17.19221301301301405583$ 15.73$ 22.02550607080175Inflation100%102%104%97%102% The actual data from the end of the last quarter is shown with the costs and prices - Imported Beers in Kegs. We plan our pricing by using a markup factor of 1.4 or 140% This is our forecast of quarterly sales of the Imported Beer line for Kegs. And this is the forecast of inflation factors for the next four quarters. The inflation for the last quarter is shown as 100% as a basis for the next four quarters. Note that we expect the usual seasonal cost reduction three quaters hence. The total number of kegs of Imported Beer in ending inventory is 175. Our capacity for Kegs is 190 for Imported Beers. The annual inventory holding cost rate is 4%. Sheet2 Sheet3 Nike An Organizational Profile of Supply Chain Abuse Prepared for Professor Carlene Rose Lakes Region Community College Principles of Management BUS2310L What is Nike? When I say “Nike”, what is the first thing that you think of? To the average American, one who is likely reading this essay, Nike is an American footwear and fashion company, maybe you think of their shoes, maybe you think of their signature swoosh trademark (one that has become recognizable around the world in the recent decade), maybe if you’re an athlete, you think of the relevant brands associated for your sport, maybe if you were a human rights activist, you’d think of abuse, and in some cases, you might think “employer”. Whatever you associate with Nike, whether it be its brands, history, or influence, it’s undeniable that it’s easily one of the most recognizable American companies who have left an indelible mark upon the world. This multi-faceted company can be seen in many lights, evoking many different emotions and ideas of what it means to have an international influence, whether it be in terms of responsibility for behaviors abroad, national pride, being a foreign invader, being a job maker, or even just being a trend setter. The purpose of the organization profile will be to examine the conditions in which the Nike Supply Chain exists and has existed, closely observing what abuses have occurred, what changes have been made to change these issues, and if they have improved. The History of Nike Originally founded in 1964 as Blue Ribbon Sports, Nike was a company serving as a distributor for a Japanese brand (one that would later come to be known as ASICS) in the United States. The company was originally founded by two men, Phil Knight a ...

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Case 4 - Nike.rtfd/TXT.rtf Question: Nike: Please reflect on the potential influences of “external environments” on a firm; in this case, which aspects of the environment have impacted Nike’s labor practices and how? Hitting the Wall: Nike and International Labor Practices Moore: Twelve year olds working in [Indonesian] factories? That’s O.K. with you? Knight: They’re not 12-year-olds working in factories... the minimum age is 14. Moore: How about 14 then? Does that bother you? Knight: No. — Phil Knight, Nike CEO, talking to Director Michael Moore in a scene from documentary film The Big One, 1997. Nike is raising the minimum age of footwear factory workers to 18... Nike has zero tolerance for underage workers. 1 — Phil Knight, 1998 In 1997, Nguyen Thi Thu Phuong died while making sneakers. As she was trimming synthetic soles in a Nike contracting factory, a co-worker’s machine broke, spraying metal parts across the factory floor and into Phuong’s heart. The 23 year-old Vietnamese woman died instantly.2 Although it may have been the most dramatic, Phuong’s death was hardly the first misfortune to hit Nike’s far-flung manufacturing empire. Indeed, in the 1980s and 1990s, the corporation had been plagued by a series of labor incidents and public relations nightmares: underage workers in Indonesian plants, allegations of coerced overtime in China, dangerous working conditions in Vietnam. For a while, the stories had been largely confined to labor circles and activist publications. By the time of Phuong’s death, however, labor conditions at Nike had hit the mainstream. Stories of reported abuse at Nike plants had been carried in publications such as Time and Business Week and students from major universities such as Duke and Brown had organized boycotts of Nike products. Even Doonesbury had joined the fray, with a series of cartoons that linked the company to underage and exploited Asian workers. Before these attacks, Nike had been widely regarded as one of the world’s coolest and most successful companies. Now Nike, the company of Michael Jordan and Tiger Woods; Nike, the sign of the swoosh and athletic prowess, was increasingly becoming known as the company of labor abuse. And its initial response — “We don’t make shoes” — was becoming harder and harder to sustain.3 Nike, Inc. Based in Beaverton, Oregon, Nike had been a corporate success story for more than three decades. It was a sneaker company, but one armed with an inimitable attitude, phenomenal growth, and the apparent ability to dictate fashion trends to some of the world’s most influential consumers. In the 1970s, Nike had first begun to capture the attention of both trend-setting teenagers and financial observers. Selling a combination of basic footwear and street-smart athleticism, Nike pushed its revenues from a 1972 level of $60,000 to a startling $49 million in just ten years.4 It went public in 1980 and then astounded Wall Street in the mid-1990s as annual growth staye ...

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Running head: SWEATSHOPS TO SWEATWASHING 1 SWEATSHOPS TO SWEATWASHING 4 From Sweatshops to Sweatwashing: An Analysis of Nike’s Corporate Social Responsibility Aaaaaaa Bbbbbbb Subject Cccccccc 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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204 Chapter 6 The Challenge of Globalization: What Are the Consequences? The Noble Feat of Nike NORBERG Norberg contributed this article to London's The Spectator in June 2003. In the essay, he takes issue with those who think that globalization is the invention of "ruthless international capitalists." In arguing his case, Norberg centers his discussion on one symbol of globalization-Nike-suggesting that we simply have to look at our "feet" to understand Nike's "feat" in advancing a benign form of globalization. Norberg is the author of In Defense of Global Capitalism, and writer and presenter of the recent documentary Globalization Is Good. Since 2007, Norberg has been associated with the Cato Institute, a conservative Washington-based think tank. Before Reading Check your sneakers. Where were they made? What do you think the workers earned to manufacture them? Do you think they were exploited? Explain your response. Nike. It means victory. It also means a type of expensive gym shoe. In the minds of the anti-globalisation movement, it stands for both at once. Nike stands the victory of a Western footwear company over the poor and dispossessed. Spongy, smelly, hungered after by kids across the world, Nike is the symbol of the unacceptable triumph of global capital. A Nike is a shoe that simultaneously kicks people out of jobs in the 2 West, and tramples on the poor in the Third World. Sold for 100 times more than the wages of the peons who make them, Nike shoes are hate- objects more potent, in the eyes of the protesters at this week's G8 riots, than McDonald's hamburgers. If you want to be trendy these days, you don't wear Nikes; you boycott them. So I was interested to hear someone not only praising Nike sweatshops, 3 but also claiming that Nike is an example of a good and responsible business. That someone was the ruling Communist party of Vietnam. Today Nike has almost four times more workers in Vietnam than 4 in the United States. I travelJed to Ho Chi Minh to examine the effects of multinational coroorations on poor countries. Nike being the most and Vietnam being a dictatorshio with a "The Noble Feat of Nike" by Johan Norberg, The Spectator, June 7, 2003. Reprinted by permission. Johan Norberg The Noble Feat of Nike 205 documented lack of free speech, the operation is supposed to be a classic of conscience-free capitalist oppression. In truth the work does look tough, and the conditions grim, if we 5 compare Vietnamese factories with what we have back home. But that's not the comparison these workers make. They compare the work at Nike with the way they lived before, or the way their parents or neighbours still work. And the facts are revealing. The average pay at a Nike factory close to Ho Chi Minh is $54 a month, almost three times the minimum wage for a state-owned enterprise. Ten years ago, when Nike was established in Vietnam, the workers had 6 to walk to the factories.

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Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has Promise and Perils, and different effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. Nike and Starbucks are a key examples of globalisation because, although they began in the USA, They are now worldwide, well known brands, in the analyze of both case studies of Nike and Starbucks we will follow this table of Contents.

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