Case Analysis Nike the Sweatshop Debate

CASE ANALYSIS NIKE THE SWEATSHOP tump over Summary of the Facts Nike was established in 1972 by former University of Oregon track headliner Phil Knight. Nike has $10 billion in yearbook revenues and sells its products in 140 countries. Nike has been dogged for more than a decade by reiterate accusations that its products are do in sweatshops where doers, many another(prenominal) of them children, slave away in dangerous conditions for less than subsistence w advances. Many reporters, TV shows, companies and organizations endure repeatedly exposed negative comments towards Nike.For example, a 48 Hours news report aeriform on October 17, 1996 regarding a Nike grind in Vietnam, which was visited by reporter Roberta Baskin. The reporter notice that Nike hired millions of workers who are literate, disciplined, and desperate for jobs at wages lower than minimum wage. another(prenominal) example of the criticism against Nike came from a newssheet published by Global transf er. The newsletter uncovered that the majority of Nike shoes were do in Indonesia and China, countries with governments that prohibit independent unions and hatful the minimum wage at tilt bottom. In September 1997, Global Exchange published a report on on the job(p) conditions at four Nike and Reebok subcontractors in southern China. In November 1997, the organization obtained and accordingly leaked a confidential report by Ernst &038 Young of an audit that Nike had commissioned of a factory in Vietnam owned by a Nike subcontractor. Nike formulated a reckon of strategies and tactics to deal with the problems of operative conditions and render in subcontractors. In early 1997, Nike besides began to commission independent organizations such as Ernst &038 Young to audit the factories of its subcontractors.Finally, on whitethorn 12, 1998 Nike founder Phil Knight spelled out a series of initiatives designed to improve working conditions for the 500,000 people that make produ cts for Nike through subcontractors. heretofore though Nike has admitted there go for been problems in some overseas factories and has attempted to do things to rectify the problems, the company continues to be a target of protests and a symbol of dissent. direction of the Problem On the May 12, 2001, Nikes CEO Phil Knight made sextet commitments to improving the working conditions in Nikes international All Nike shoe factories exit meet the U.? actories. The six commitments were The minimum age for Nike factory workers will be raise to 18 for footwear? Nike will embarrass non-government? factories and 16 for apparel factories. organizations in its factory monitoring, with summaries of that monitoring Nike will expand its worker education program, making? released to the public. free mellow school equivalency courses available to all workers in Nike footwear Nike will expand its micro-enterprise bring program to benefit four? factories. housand families in Vietnam, Indones ia, Pakistan, and Thailand. Nike has yet to hold up to these commitments they made to its workers and customers. Nike continues to be criticized by clement rights organizations and the media because they feel ignored demands that labor and human rights groups have requested. Causes of the Problem Nike has treated sweatshop allegations as an bribe of public relations rather than human rights. Nike has not released documentation to date of their reports from the working conditions in the factories. .