Originally founded by Phil Knight and Bill Bowerman, Nike is now the market leader in
the manufacturing of sportswear and gear and enjoys possessing more than 47% of the
market share across the globe. Nike’s mission is to bring inspiration and innovation to
every athlete (Nike Inc., 2012). According to them, you are an athlete if you possess a
body.
The company has over 700 shops around the world and has offices situated in 45 countries
outside the United States. Most of its factories are located in Southeast Asia including
China, Indonesia, Taiwan, India, Vietnam, Thailand, Philippines, Pakistan, and Malaysia.
It enjoys possessing the strength of being the market leader and access to cheap material
and labor. Moreover, it has to pay lower tariffs and duties; and with its presence in
numerous countries, its suppliers have lower bargaining power. However, it is constantly
under threat from the substitute goods which are swiftly gaining ground (Sookiew, 2012).
Introduction to the Case
This case focuses on the working conditions faced by the workers who work in the
factories under contract with Nike. The case reveals that the subcontractors were not
paying wages to their workers as per international standards. All the factories and
manufacturing units were divided into four main divisions: chemical, production, stitching
and assembly section. The production goals were so high that in order to meet the goals,
the workers had to work over time, and that too without incentives. The workers were
habitually abused verbally and physically by their supervisors. Many people were prone to
be the patients of kidney disease, liver cancer, heart attacks, infertility and many skin
related diseases in future due to pitiable working environment.
Introduction to Case Study
The case looks at the measures undertaken to resolve the issue. Few colleges and
universities joined hands to establish Workers Rights Consortium (WRC); aimed at
checking the malpractices of companies with special regards to employee rights.
University of Oregon (UO) decided to become a part of the campaign – a move which was
not supported by Phil Knight. He decided to call off all the donations that he had promised
UO and announced to abandon all future donations too. He did not agree to the terms and
conditions that were laid out by WRC and sought to reduce their influence. This case looks
at the influences, effects and probable strategies to combat the situation.
here are numerous participants and players in this case and all of these have their certain
