0 penilaian0% menganggap dokumen ini bermanfaat (0 suara)
370 tayangan5 halaman
Nike outsources the manufacturing of its sportswear to contractors in countries like Vietnam, China, and Indonesia to take advantage of low labor costs. However, this model has led to ethical challenges as many workers are paid less than a living wage and work in poor conditions that would not be allowed in the US. Legally, some factories violate laws by employing underage workers. Culturally, enforcement of contracts setting standards for worker treatment has been challenging. The host governments also share responsibility for ensuring adequate laws and enforcement related to workers' rights, wages, and safety. Moving forward, Nike faces strategic challenges in ensuring its partners comply with codes for workers' welfare and safety globally.
Deskripsi Asli:
MGT 448 week 4 individual paper University of phoenix. Nike: The sweatshop debate.
Nike outsources the manufacturing of its sportswear to contractors in countries like Vietnam, China, and Indonesia to take advantage of low labor costs. However, this model has led to ethical challenges as many workers are paid less than a living wage and work in poor conditions that would not be allowed in the US. Legally, some factories violate laws by employing underage workers. Culturally, enforcement of contracts setting standards for worker treatment has been challenging. The host governments also share responsibility for ensuring adequate laws and enforcement related to workers' rights, wages, and safety. Moving forward, Nike faces strategic challenges in ensuring its partners comply with codes for workers' welfare and safety globally.
Nike outsources the manufacturing of its sportswear to contractors in countries like Vietnam, China, and Indonesia to take advantage of low labor costs. However, this model has led to ethical challenges as many workers are paid less than a living wage and work in poor conditions that would not be allowed in the US. Legally, some factories violate laws by employing underage workers. Culturally, enforcement of contracts setting standards for worker treatment has been challenging. The host governments also share responsibility for ensuring adequate laws and enforcement related to workers' rights, wages, and safety. Moving forward, Nike faces strategic challenges in ensuring its partners comply with codes for workers' welfare and safety globally.
2 Nike: The Sweatshop Debate With globalization and increased drive towards free trade across the different regions of the world companies can seek ways to tap into cost benefits and wider markets to expand and grow, but they must also put up with challenges of operating in a different cultural and ethical environment while also subjecting to the local laws and customs. In the following paragraphs, this paper will look into Nikes global operation with sole focus on the sweatshop scandal that has rocked the company for years and the legal, cultural and ethical challenges that Nike as a company faces operating in foreign countries along with other relevant issues. Ethical, Legal and Cultural Challenges Nike specializes in the design and marketing of sports wares across the globe, the company which was established in 1972 is not involved in the manufacturing process of the wares it markets; rather it outsources it to contract manufacturers in countries like Vietnam, China and Indonesia (Hill, 2013). This allows the company to take advantage of extremely low labor cost and in turn generate huge profits. Part of the ethical challenges that arises with such model is the documented evidence that Nike is indirectly exploiting workers in these countries as most workers who make Nike products that retail at a premium are being paid wages that are less than the daily livable wage and are made to work in appalling conditions (Hill, 2013). In addition, they are exposed to toxic materials that affect their health; a situation that would not be allowed in the United States (Hill, 2013). Legally, the company has also been faced with some challenges that arise as a result of it mode of operations as it concerns its outsourced manufacturing process. Some of the factories in which the Nike products are manufactured have workers who are way below the age limit
Nike: The Sweatshop Debate
3 imposed by the national legislation of the countries concerned. For instance, China has set the age of 16 as the minimum age for factory workers but it is common to see young kids around age 10 working in these factories; which is a clear case of child labor, a global menace that the world is seeking to tackle (Hill, 2013). Culturally, Nike has also experienced some challenges with its global operations in foreign countries. With regard to this case study, one cultural challenge is the way some cultures treat contractual agreements compared to the American culture. Nikes claim to have set out minimum standards as it concerns the workers welfare is clearly contradicted by the actions of the contractor. This could point to the fact that contracts are not taken seriously in these cultures and it will continue to pose a challenge to Nikes operations. Role of Host Government Government has a role to play in the business environment, as it is responsible for policies and legislation that help promote trade. In a global business environment, the host government to a foreign business is responsible for putting in place legislation that guides the operations of foreign businesses. Issues of workers welfare, minimum wage, health and safety of employees are to be well spelt out by the host government in a bid to protect its citizens while still being able to promote investment. In Nikes case, the failure of the respective host governments to put in place legislations or enforce it where it exists created the room for exploitation of workers in their countries. Strategic and Operational Challenges Nike as a global company is exposed to some strategic and operational challenges one of which is to ensure compliance with established codes imposed to ensure workers welfare and safety in the countries its products are manufactured. Ensuring that corporate responsibility is
Nike: The Sweatshop Debate
4 transferred to the operations of its partners in the countries in which it operates is also a major challenge for Nike considering the battering that the companys image has received in recent times this has to be given proper operations.
Nike: The Sweatshop Debate
5
Reference Hill, C. W. (2013). International business. Competing in the global marketplace (9th ed.). New York: McGraw-Hill .