scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 4,517
Case Study Hitting the Wall Nike and International Labor Practices Nikes strategy of shaving costs caused ethical dilemmas that ultimately damaged its reputation Nike outsources all of its manufacturing This approach has provided Nike with huge profits from a 1972 level of 60000 to a startling 49 million in just ten years Bartlett Ghosal Birinshaw 2004 Production is now globalised with different countries concentrating on different parts of the process depending on what they are good at or what they can do most efficiently or cheaply Poorer countries get the less lucrative activities such as lowly paid semi-skilled or unskilled production or assembly Ballinger Olsson 1997 This approach also allows Nike to keep an arms-length arrangement with its subcontractors stating that it is not they who employ cheap labor but their contracted suppliers hence the responsibility lies with the latter Ballinger Olsson 1997 This strategy resulted in Nike requiring steep wage concessions from its subcontractors to continue its intense growth patterns Nike has always paid the lowest possible wages in Indonesia claiming year after year that it could not afford even to pay the countrys minimum wage Each year Nike contractors in Indonesia refused to pay minimum wage raises of a few cents a day Thanks to a corrupt and inefficient government they usually got away with it Global Exchange 1998 Adding to this problem was the issue of child labor Nike went into Pakistan knowing full well that child labor is an ages-old practice there and taking no precautions whatsoever to prevent the use of child labor in the production of its soccer balls We have to conclude that Nike expected to profit from its Pakistani contractors known usage of bonded child labor White M 1997 Nike further tarnished its reputation by attempting to dilute information that had come to the attention of the general public regarding its practices resulting in a lawsuit Mike Kasky is suing
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA