Case study- Re-write

A Case Study - Nike's Unethical Involvement in Sweatshops

Donna Walker (221000)

Columbia Southern University

Introduction

This case study will analyze the findings of my research into Nike's involvement with sweatshops in Asian countries such as Indonesia and China. This case study will consider if we should impose western values on this society, and does Nike show social responsibility, integrity, and ethical practices in the case of these sweatshop workers. Then I will detail Nike's standpoint in this situation and determine if this is a fair assessment of their ethical standards while describing some of the ethical issues that Nike is facing in this case. My research will also detail some of the improvements that Nike has accomplished since this 2011 video to include what types of code of ethics or new ethical standards have been implemented within the organization. Finally, I will reveal if my opinion of Nike has altered since viewing this video and completing this research as well as noting if this will change my buying behavior with respect to Nike products.

Nike & Factories in Indonesia & China

The Editors of Encyclopedia Britannica (2016), noted that Nike was founded by Bill Bowerman & Phil Knight in 1972 after having changed the name from its original Blue Ribbon Sports and would later become Nike Inc in 1978. Bowerman a coach at Oregon University and Knight a former athlete of Bowerman's would work together throughout the 1980's and into the 1990's where Bowerman would be on the board of directors until his passing in 1999. Bowerman's one goal and ambition was to make good athletic shoes that were affordable to athletes, whether young, or old using innovations that offered something athlete's innovative abilities. Bowerman's innovative, thoughtful, thinking of others personality seems in sharp contrast to being one of the founders of a company that would intentionally take advantage of those of less fortune and circumstances.

Warraq (2007) noted how western values could seem a bit loose, provocative, and frivolous to many countries, making it difficult for westerners to understand other cultures and their rights versus our own. It is through that understanding that I would say that inflicting our western values of Democracy on Indonesia, Vietnam, China, and other countries that were involved with the sweatshop would be difficult. Yet there is a decided difference in inflicting our values and being valued as a human as well as a worker, which is what Nike did not do to the individuals making their product in those countries.

Yang, Colvin & Wong (2013) noted that that the working conditions in the factories of developing countries that many corporations such as Nike use to have their products made are dangerous, deplorable, as well as unethical. These conditions can include forced work, significantly lower pay, work days exceeding 14 hours, unsanitary, no bathroom breaks, and without a day off and this is only scratching the surface of the unethical treatment of these workers. Corporations that allow their workers, regardless of the country to work in these conditions, under such duress, are incapable of understanding social responsibility, and have little to no integrity. It is unimaginable to think that corporations would feel that treating a human this way would be accepted here in the United States, regardless of where the factories are located because here in the states we don't even allow our animals to be treated in the manner or to live in the manner of the factory workers.

Nike's Standpoint on their Ethical Standards

Wilsey & Lichtig (n.d.) noted that Phil Knight, CEO of Nike stated that Nike would adhere to several new internal laws to include discontinuing the usage of toxic glues that allow poisonous toxins into the air of the factory as well as ensuring that the quality of air in the factories stays clean and healthy. Additionally they pledged to increase the age of workers to 16 years old in the apparel factories and 18 years old in the shoe factories as well as offering free educational classes to help employees receive the knowledge of high school equivalency however, these classes were only available after work hours. Nike also spoke repeatedly about their membership of the Fair Labor Association (FLA) and in 2005 introduced a new training program for management to increase their cultural skills while developing a better management style.

Young & Welford (2003) addressed some of the ethical issues facing Nike then and even up through the 2011 video including workers being physically and mentally abused, unsafe working conditions, as well as unsanitary working conditions. In addition Nike paid workers unfair wages, worked them beyond acceptable hours, did not offer acceptable breaks if they received breaks at all, as well as forcing workers to work around toxic chemicals without proper ventilation or mask to protect their respiratory system. Finally, one of the worst ethical issues that Nike was guilty of perpetrating in this instance was the inability to admit they were doing wrong while trying to pretend they were unaware of anything improper was going on in those factories.

Nike's Ethical Improvements Following the 2011 Video

According to Transform Manufacturing (2017), Nike has made advances in improving their code of ethics through implementing a code of conduct for all parts of the company including factory workers in developing countries. They have also vowed to be more transparent throughout the company, especially where the factories are concerned, including offering the names, locations, and demographic information on these factories in an attempt to help improve working conditions and treatment in developing country factories. Nike has also set a goal for the corporation for 2020 to be more sustainable, offering contract factory workers a share in productivity gains, as well as ensuring that the factories continue to meet and exceed employee needs within these factories as noted Transform Manufacturing (2017).

Conclusion

Nike was the founded through the innovation of Bill Bowerman and his desire to offer superior shoes to athletes of all ages and wages to help them compete and become the best athletic version of themselves. His innovation started by using his wife's waffle iron to mold rubber into the waffle pattern in an effort to offer more traction and later became partners with one of his former athletes Phil Knight. However, I cannot see where a person with these types of goals and ambitions to help others would have envisioned the company abusing and unethically treating workers as a means to making these shoes. I believe that greed and the loss of vision for the company have led to poor decisions and loss of integrity especially among the American public. They have implemented various plans and made goals to increase their transparency and increase working conditions in developing country factories as well as increasing sustainability by 2020 in all parts of the corporation.

Yet I must be honest that my view of Nike changed significantly once viewing the video and it just brought to mind just how lost people could get where money and power are concerned. I have never been a big Nike fan, however saying that I will not buy or support Nike in any capacity whatsoever would be nearly impossible when taking into consideration that it would include not watching American Football, Baseball, Basketball, as well as our own 2016 Olympics in Rio. I don't know that boycotting Nike completely is a possibility and even if it were possible, then we would just be taking a job away from those factory workers instead I feel we need to hold Nike accountable for the misdeed they have inflicted and require them to make restitution to those they harmed as well as making sure they rectify the conditions and pay moving into the future.

References

The Editors of Encyclopedia Britannica. (2016, October 04). Nike, Inc. Retrieved February 10, 2017, from https://www.britannica.com/topic/Nike-Inc

Transform Manufacturing. (2017). Retrieved February 11, 2017, from http://about.nike.com/pages/transform-manufacturing

Warraq, I. (2007, August 17). The Superiority of Western Values in Eight Minutes. Retrieved February 10, 2017, from http://www.westminster-institute.org/articles/the-superiority-of- western-values-in-eight-minutes/

Wilsey, M., & Lichtig, S. (n.d.). The Nike Controversy. Retrieved February 9, 2017, from

https://web.stanford.edu/class/e297c/trade_environment/wheeling/hnike.html

Yang, N., Colvin, C., & Wong, Y. (2013, January). Navigating corporate social responsibility components and strategic options: The IHR perspective. Academy of Strategic Management Journal, 12(1), 39. Retrieved February 14, 2017, from Academic OneFile.

Young, W., & Welford, R. (2003, Summer). Benchmarking retailers on ethical trading. The Journal of Corporate Citizenship, 67. Retrieved February 9, 2017, from Academic OneFile.