Large corporations from the United States have moved a large portion of their factories overseas to circumvent the strict working regulations within the United States. The company that became Nike began life in as an importer and distributor of Japanese track shoes made by Onitsuka Company, Ltd. Many legal challenges must be considered many of which include legal, cultural and ethical differences, trade regulations, employment law, and public policy. Wages in Vietnam are already at rock bottom. Companies with international production facilities could not be confident of controlling the legislation that might come out of public hearings filled with horror stories of sweatshop abuse in factories of familiar brand names. The Indonesian and China government prohibits independent unions and controls the minimum wage to be set at rock bottom, but these are the countries where the majority of Nikkei shoes are now made.
Nike seems to be dragging its feet with regards to the issues at the heart of the problem: The company has to make sure to hold foreign factories to appropriate labor standards regarding these issues. Nike should form an independent monitoring board in Vietnam consisting of representatives from neutral parties, including government labor officials, NGOs, and labor unions There are many excellent organizations as well as respected individuals, who would be willing to serve on such a board. However, internationally, mainly in poor third world countries, that is far from the truth. There have been some in the past, and there certainly will be more in the future. And I really do have to add this: The first of these was the omission of a commitment to pay workers a living wage based on purchasing power.
We are … concerned that this agreement will reinforce the tendency to view voluntary corporate codes of conduct as a substitute for the enforcement of existing laws and the adoption of legislation and trade agreements designed to protect the rights of workers in the global economy. As a result of newly gained freedom to organize wages began to rise. The Indonesian and China government prohibits independent unions and controls the minimum wage to be set at rock bottom, but these are the countries where the majority of Nikkei shoes are bike made.
Your Answer debbate very helpful for Us Thank you a lot! These dissenters believed that these documents proved corporations such as Nike stuey only involved in the AIP for a public relations boost, not to make substantial changes in their behavior. Human rights organizations are pressuring Nike to follow suit in other U. Using this approach to underpay Nike workers is illegal and unethical.
There are going to be incidents.
I will analyze the legal, cultural, and ethical challenges presented, the roles that governments played In the global operation, and finally, I will summarize the strategic and operational challenges facing global managers as illustrated in the case. In regard to legal and cultural challenges, Nikkei was found to have had major labor practice issues, including hazardous working debqte, violations of overtime laws, and violation of wage laws.
When the Nixon administration cut the yen dollar loose from its exchange rate that had existed since the end of World War II.
The first list deals with the problems that were most evident in China. However, internationally, ddebate in poor third world countries, that is far from seeatshop truth. Companies tend to respond well to severe monetary fines. South Korea and Taiwan democratized, electing governments and granting workers unprecedented rights; however, as these countries have grown more free, Nike has removed its production, relocating to places such as China and Indonesia, where labor laws are not enforced, and the governments are more repressive.
Case Study: The Nike Sweatshop Debate
Each factory will be given three months from the srudy the final report was made to make corrections to bring the air quality levels to those set forth by the OSHA. Would you like to get a custom case study? The first initiative was to stop the use of a toxic adhesive called toulene.
Competing In the Global Marketplace.
Welcome to the world of case studies that can bring you high grades! The following were recommendations in of how the company could debatte about using its far reaching capabilities to change the way labor practices were upheld throughout the world. American companies have sought to outsource their manufacturing through cheap labor, and Nikkei has been accused of for abusing its overseas workforce in sweatshops.
Some operational challenges include global training and development programs; overseeing working conditions and implementing policies to improve workers rights. Since stusy issue of labor exploitation in Asia was brought to the media spotlight, Nike has assumed a policy of reformation for its abuses. Some question, however, the true effect that shudy corporations have on the governments of China, Indonesia, and Vietnam.
If you contact us after hours, we’ll get back to you in 24 hours or less. This greatly discourages labor rights advocates who had felt that Nike was making serious amends to its exploitative practices.
Sweatshop Debate: Nike Case Study Essay Example for Free – Sample words
Kennedy Memorial Center for Human Rights. As recently as Nikkei found themselves embroiled in another foreign government debacle; this time atudy organization touted the issue themselves. Both are Vietnamese companies and both are producing high-quality shoes for Western shoe companies such as Reebok and Fila. Beside Nike factories, we had an opportunity to visit two other shoe factories in Vietnam: Vietnamese workers—and their supporters around the world—will not simply be grateful for the jobs and ignore the deplorable labor practices in the factories.
Human rights groups hope that Nike will work with them to pressure local governments to release jailed labor leaders and change labor laws and practices to reflect internationally recognized labor rights. The ultimate goal is political rather than economic. Large corporations from the United States have moved a large portion of their factories overseas to circumvent the strict working regulations within the United States.