Should Nike Be Held Responsible for Working Conditions in Foreign Factories - Case Study Example

? Nike Case Study Should Nike be held responsible for working conditions in foreign factories that it does not own, but where subcontractors make products for Nike? Yes. I believe Nike should be accountable for any act concerning workers’ poor conditions in factories situated beyond United Sates’ borders despite the company not owning them. This is because what these factories are trading comprises Nike’s products besides being the main entity benefiting immensely from this mode of distribution channels. In addition, products manufactured as well as distributed by these companies subcontracted to Nike also are products of the mainstream. Therefore, Nike ought to compel these companies to conform to the already set guidelines meant to protect workers in their respective states. These include both international and national rights usually put in place to safeguard human rights by availing conducive working conditions for workers in states where these companies belong. In addition, Nike Company based on the fact it funds all its subcontracting manufacturing factories, it should be responsible for any act infringing of human rights as outlined by varied states’ constitutions and international law. 2. What labor standards regarding safety, working conditions, overtime, and the like, should Nike hold foreign factories to? Nike ought to implement specific safety standards and humanitarian working conditions in all subcontracted factories globally with the intention of avoiding losing its reputation. This is because for several decades Nike Company has experienced bad publicity due to numerous accusations lodged against it by trade unions, global regimes and University students based on poor working conditions. Numerous economic experts claim creation of Nike’s wealth is through enslaving poor people especially in developing countries. This is evident when Connor cites Nike Company is a rich Western corporation whose main objective is to provide expensive shoes to the well off people in developed countries while in turn exploiting the less privileged. Nike ought to ensure transparency and accountability in various factories, which it has entered into contract with in quest to market its products globally. In addition, its management ought to encourage workers in airing their grievances without victimization to their respective supervisors and managers (Lichtig & Wisley, n.d). This is by the enforcing adherence of laws in all its factories in order to avail adequate and effective protective equipments especially to workers working in departments dealing with obnoxious chemicals. Some of these protective facilities include gloves, masks, industrial boots as well as overall coats, which are vital in avoiding lethal complications caused by uncontrolled exposure to chemicals in the factories. Besides, Nike Company ought to compel its factories to implement both minimum wage and working duration policies stipulated by regimes of varied states in which they operate (Lichtig & Wisley, n.d). 3. In Indonesia, an income of $2.28 a day, the base pay of Nike factory workers, 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 these national standards, is it appropriate to criticize Nike for the low pay rates of its subcontractors in Indonesia? Yes. Nike Company deserves criticism it currently receives from all global quarters due to poor wages, which almost all its factories situated beyond US borders pays their workers. I think Nike should not pay its workers based on what majority of casual workers and farmers in Indonesia usually receive. Therefore, it is ethical that Nike and all its subcontracted factories pay their workers decently to enable people live comfortably besides motivating them. In addition, Indonesia being the highest producer of Nike products, its workers ought to receive special privileges as a sign of the mainstream’s appreciation but not to exploit them. Nike ought to review its payment standards especially for the entire work force in Indonesia. This is because Indonesian regime has always claimed minimum wage offered to Nike’s employees is not enough to cater for basic needs of a single person. According to Indonesian labor groups, a livable wage in Indonesia should be at least $4.00 per day for a family person. However, based on studies so far contacted show Nike Company only pays slightly half of $4.00 to its employees in Indonesia, hence prompting many of them live below poverty line. 4. How should Nike have handled the negative publicity over sweatshops? Discuss from a public relations perspective and also from a policy perspective? It is essential when experiencing bad publicity a company or any other institution to find an appropriate remedy intended to rectify this predicament as fast as possible to avoid further damages to its reputation. . In this context, a company like Nike having its image as a highly profitable business associated with sweatshops, poor working conditions and mistreatment of workers in Asia is a big embarrassment. This is evident even in the media where this particular company has the image of a firm ready to exploit its workers by offering poor wages in its quest to attain more profits in the market (Lichtig & Wisley, n.d). Nike Company should first stop using toxic substances, which studies have proven to be lethal to its unsuspecting workers. In addition, it ought to incorporate health and payment standards in its policies, which every foreign factory subcontracted to must embrace and implement (Lichtig & Wisley, n.d). This is to heighten the welfare of its workers besides regaining their reputation, which the media and other related channels have greatly criticized. Besides, Nike should have representatives in every firm in order to oversee all its subcontracted factories implement the already set policies as necessitated. In addition, in a bid to improve its reputation despite the already tarnished publicity, Nike ought to embark on sponsoring cultural and sporting events like football tournaments besides cultural shows. This is especially among communities where the company has already attained a bad publicity due to former policies especially by subcontracting corporations in their quest to benefit themselves while exploiting the poor. This will aid to reform people’s negative perceptions towards the corporation, which include not intending to have any association with it for being exploitative. Besides, Nike Company in its quest to regain confidence with the community, it may embark on starting a Micro Enterprise Loan Program intended to help women especially in the developing states (Lichtig & Wisley, n.d). This is to help them start small enterprises meant to boost their income though it may be tricky in some states (Lichtig & Wisley, n.d). 5. What changes should Nike make to its current policy? Should Nike make changes even if they hinder the ability of the company to compete in the marketplace? Nike Company should also incorporate varied changes to reform current policies and the way its subcontracting firms are running their respective programs. The initial step towards this change entails reviewing payment terms of every subcontracting factory with the intention of ensuring welfare of workers. This is by ensuring each worker receives same amount of salary like any other staff working for Nike Company in US. This implies Nike Company ought to change payment policies especially in all its subcontracting factories to align with the United States Occupational Safety and Health Administration (Lichtig & Wisley, n.d). However, this in some way might interfere with certain firms’ income because they will incur high costs on wages despite being an essential move intended to motivate workers towards giving quality services. In addition, Nike Company ought to enforce the 60-hour limit code in factories in all its subcontracting factories. It is essential Nike as a company to take the necessary measures intended to rebuild its tarnished image in the market. This ought to take place even despite negatively interfering with Nike’s minor strategies in the market. This is in agreement with Philip Knight’s suggestion (who is the company’s top official) to consider the publicity of the entire firm as indispensable and worth of rebuilding it immediately to regain people’s trust (Lichtig & Wisley, n.d). 6. Is the WRC right to argue that the FLA is a tool of industry? Yes. WRC has a right to protest against FLA because it is a virtual establishment besides being one of the world’s powerful clothing firms. These companies usually own sweatshops besides being in the forefront anti sweatshops development in the US. Any monitoring organization ought to shun any possible association with industries or companies this caliber because their participation will compromise the entire monitoring process (Wit & Meyer, 2010). Besides, FLA conducts interviews on workers under the supervision of their employers, which makes them fear to tell the truth of what really takes place in its factories. Therefore, monitoring authorities ought to consider approaching these workers unexpectedly besides contacting private interviews with them to avoid victimization and let them unveil what the company conceals deemed by humanitarians as unhealthy (Wit & Meyer, 2010). 7. If sweatshops are a global problem, what might be a global solution to this problem? The only way to conduct a successful anti-sweatshop campaign in quest to end this global menace is by having all the involved stakeholders on board besides compelling them through laws to participate fully during the initiative. For instance, consumers, workers and companies should join programs that are against sweatshops like Ethical Trading Initiative in UK whose core intention encompasses creating awareness geared to end sweatshops (Collins, 2008). In addition, in states where corporations outsource job opportunities should also contribute towards ensuring good working conditions for workers especially in clothing firms (Collins, 2008). 8. “Corporate responsibility encompasses not only what companies do with their profits, but also how they make them.” [Assigned text page 74.] Research and discuss two international companies that have conducted themselves as good corporate citizens and provide specifics on how each has done so. Provide citation of authority. Coca-Cola is major firm in US, which specializes in making nonalcoholic drinks whose headquarter in at Atlanta (Coca-Cola Company, 2013). The company has participated in several cooperate responsibility initiatives with the intention of aiding the poor besides participating in resolving some of the current prevailing environmental predicaments (Coca-Cola Company, 2013). For instance, in 2012 this firm joined with DEKA R&D to provide safe drinking water to communities without enough water. This was by availing a water purification system supposed to help communities for several years (Coca-Cola Company, 2013). These initiatives took place in Asia, Africa, and America in form of EKOCENTERS, which offers variety of resources like sustainable energy, safe water, wireless communication and health care services (Coca-Cola Company, 2013). IBM cooperation is an American technology cooperation situated in New York (IBM, 2011). The Company similar to Coca-Cola has also taken part in varied co-operate responsibility programs meant to assist communities globally (IBM, 2011). For instance, IBM offered grant to Chicago meant to increase both high school and community college graduation rates, hence prepare graduates to exploit the 21st century work force. Through this grant, Chicago will be in a position to prepare a business plan that will personalize education and encourage building of skills (IBM, 2011). References Coca-Cola Company. (2013). Coca-Cola Launches Global Ekocenter Partnership to Deliver Safe Drinking Water and Basic Necessities to Rural Communities. CSR Wire. Retrieved on 5th October 2013. From Collins, J. (2008). Reforming global sweatshop reform. New Labor Forum, 17(3), 110-115,136. Retrieved on 5Th October from http://search.proquest.com/docview/237219627?accountid=458 IBM. (2011).Mayor Emanuel Announces IBM Grant to Reinvigorate Chicago's K-12 Schools and City Colleges, Help Increase Student Readiness for 21st Century Jobs. CSR Wire. Retrieved on 5th October 2013 From http://www.csrwire.com/press_releases/33052- Mayor-Emanuel-Announces-IBM-Grant-to-Reinvigorate-Chicago-s-K-12-Schools-and- City-Colleges-Help-Increase-Student-Readiness-for-21st-Century-Jobs Lichtig, S. & Wilsey, M. (n.d). The Nike Controversy. Retrieved on 5th October 2013. From http://www.stanford.edu/class/e297c/trade_environment/wheeling/hnike.html Wit, B. & Meyer, R. (2010). Strategy: Process, content, context ; an international perspective. Andover, Hampshire: Cengage Learning. Read More