1) Which criticisms leveled against Nike do you consider to be “fair”? Explain.
Nikes corporate practices are good indicators that the company is only interested in
exploiting low wages in third world countries. This is indicated by investing in these
countries through worker training or human resource investment but has continually
shifted its operation to the country with a lower wage.
Nike is in control of its subcontractors They dictate the price of a shoe and the cost of
operation to its subcontractors forcing them to set high quotas for their workers and to pay
low wages.
Based on the Ernst & Young report to do an “independent” inspection of Nikes factories,
Observers found the following:
77% of the employees suffered from respiratory problems
Thousands of females, mostly under the age of 25, worked 10. 5 hours a day, six days a
week for $10
More than half of the workers dealing with chemicals did not wear protective equipment,
nor did they understand the nature of the hazards around them.
Ironically, despite these observations, the report concluded that most employees were
happy with their pay and working conditions.
The issue of exposing workers to harmful chemicals has also arisen. Observers readily
have brought attention to a characteristic smell inside shoe factories. Toluene, a solvent in
primers and glues which has been used to bond shoe components, has been identified as
one of the culprits. It has also been found to be a cause of brain damage, cancer, head
aches, impaired coordination, and lassitude.
2) Which criticisms do you consider to be “unfair”? Explain.
One of the most difficult issues facing companies such as Nike is their willingness to profit
from the impoverishment found in third world countries. Most factory workers have little
formal education, are poor and come from rural areas where opportunities to earn a leaving
are meager. Consequently, the salaries paid by Nike factories may be attractive in
comparison to alternative employment options, but when juxtaposed against profits earned
from their labor, look quite sparse. However based on the Dartmouth research report,
Nikes wages are typically used to augment total household income and raise overall living
standards. It was also reported that in both Indonesia and Vietnam contract workers
consistently earned wages at or above government-mandated minimum wage levels.
Another issue that has created unrest concerns the long hours workers are expected on the
factory floor. We cannot expect underdeveloped countries to maintain the same working
standards that exist in more technologically developed ones. For individuals to work
