International Business

Presentation on

Nike The sweatshop

Debate

Submitted To
Name of Teacher : Mr. Asif Mahbub Karim
Associate Professor
Proctor & Chairman
Dept. of Business Administration
Port City International University

Submitted By

Name of Group:

Name of Students:

1.Mohammad Shafaet Karim, ID No : 00905439

2.Rahul Chandra Nath, ID NO : 00905451

3.Rabeya Akter, ID No : 00905469

4.Razia Sultana, ID No : 00905452

Program: MBA

Batch: 9

Q.1
Should Nike be responsible for the
working
condition at their subcontractors
factories
?
Yes, Nike should be responsible and accountable for working
conditions in subcontractors factories. Since Nike take
advantage of low cost destination by producing overseas, it
should not free itself from social responsibilities in the
countries where subcontractors are located.

Every part of the supply chain is partially responsible for the entire supply chain.
As Nike is the most visible and wealthiest part of supply chain, it carries the
biggest responsibility

Q.1
Should Nike be responsible for the
working
condition at their subcontractors
factories
?

Nike as global company has the power over subcontractors around the world
through it is ability to move production from country to another. Nike able to
force subcontractors to abide by labor law and regulations to make sure that
workers get at least minimum wages

Nike should Influence its subcontractors to improve their working conditions.

Firstly, why? Because before placing a contract, Nike has the working or labor
condition standards that the subcontractor is subject to meet and these
standards are continually reviewed and upgraded when necessary.

Although child labor may not be against the law in a host country , but it is
immoral to use child labor to maximize profit.

Q.2 How could Nike deal with the

negative publicity of the case study ?
As a global company Nike could take many steps to deal with negative
publicity of case study.
Some steps are :

Nike had been criticized for sourcing its products in factories/countries where low wages, poor
working conditions, and human rights problems were unchecked Nikes initial reaction to this
negative publicity was to ignore them.

Nike reasoned that they did not own the factories and were therefore not responsible for labor and
human rights violations. They claimed to be marketers and designers lacking knowledge about
manufacturing.

A third option would be to try to sway attention among their competitors who are known to
perform similar practices. Nike has taken most of the blame of unfair labor conditions, but they are
not the only culprits. Nike can take a stand and defend their plan of action in regards to the
changes already made, and in turn sway interests towards those of their competitors in regards to
what they have or havent done.

Q.2 How could Nike deal with the

negative publicity of the case study ?

The best tactical plan of action for Nike would be to address the concerns of the public
directly. Although previous attempts have failed, Nike should try an approach that
shows the public they acknowledge their mistakes and are planning to work toward
them for the greater good. Marketing campaigns focused on the happiness of offshore
workers based on the changes Nike has implemented should be released portraying
Nikes strong newfound ethical code. More attention should be put on the
implementation of their Corporate Responsibility Division and its purpose within the
company. Nike should also continue to promote their open door policy (allowing
activists to visit their factories) signifying their pride in their improvements,
persistently sending off the signals of their confidence in their plan of action.

Nike can establish this relationship by taking responsibility and effectively showing
change. In addition this campaign may win Nike favour and indirectly cause the
negative publicity to now move on to their competitors once the public are satisfied
with Nikes conformation.

Q.3 Do you think Nike should change

their current policy to deal with such
problems?
Yes, Nike should change their current policy because their policies
are very older and poor . For policy adjustment one strategy will
be to involve international agencies. Nike has some obligation to
the shareholders and improvement in competitive market place .
For this purpose Nike should do :

Nike could make changes in their current policies by a building an organization culture
that places a high value on ethical behavior that requires incentives and reward systems,
including promotions that reward people who engage in ethical behavior and sanction
those who do not. These changes could also help Nike by not hindering their ability to
compete in the marketplace as well.

Q.3 Do you think Nike should change

their current policy to deal with such
problems?

Nike should increase the wages of its workers.They should closely monitor the
management in their subcontractor factories to ensure that their workers are not
abused.

Nike should also continue to improve the working place of the employees and
regularly check the conditions of the workers in the factories.

Nike should fulfil its social responsibility and start improving the policies of the firm

Q.4 If sweatshops are a global problem

what might be a global solution to this
problem?
The firms are searching for low cost subcontractors in every corner
of the world. So the sweatshops are a world problem.
The possible solutions are :

A possible solution would be to change, or at least modify, the conditions under which sweatshops
continue to function.

Ensuring that suppliers are providing proper safety , workers rights with minimum age and minimum
wages.

Create an international organization with the authority to require companies to provide proper
working conditions

Still, certain countries will always have the advantage of low cost labor and will exploit that
advantage in the international marketplace. However, the disparity between the great differences in
labor cost can be lessened, but it can best be done by continuing to promote world free trade and
continuing to improve the quality of life in developing nations, where low cost labor is most abundant.