Nike: How Nike Became the Shoe Giant

Question 1 

Yes, we should inflict western values on this society. Business ethics practices ensure that companies remain accountable and take responsibilities that affect the workplace, environment, culture, and communities’ social structures. Nike has a social responsibility to its employees, regardless of their nationality, to ensure that its workers are safe, treated with dignity and respect, and offered reasonable work hours and wages. Nike prefers Indonesia as its government is lenient on companies that do not meet the required ethical guidelines. Nike is a globally recognized company but uses its privilege to take advantage of vulnerable populations. However, for it to be considered an honest company, it has to balance the need to enhance profits and protect its workers regardless of their country. It is evident that the Indonesian workers need a source of income but are unaware of Nike’s profits and the wages they deserve. The compensation paid by Nike should be enough to help them meet their basic needs and afford them extra income regardless of whether the Indonesian government has a guideline or not. 

Question 2 

After the labor rights violations video, Nike denied the allegations and largely blamed their suppliers/contractors and the local governments for failing to enforce labor rights. Vada Manager, the then director of global issues for Nike, claimed that Jim Keady was garnering publicity for his lawsuit against Nike and St John’s University (athletic business.com). He went on to categorically state that Nike doesn’t operate sweatshops and that it had made progress in the Indonesian factories. Some of the ethical issues Nike have been accused of in the video are: 

Violation of Workers Rights 

Most employees at the Nike factories in Indonesia are women aged between 17 to 29 years, proving child labor use. Most of the workers live in extreme poverty as their wages aren’t enough to meet even some of their essential needs. 

The conditions in the factories are hazardous. Workers are not provided with the necessary masks and protective gear. Most workers complain of headaches from glues and other chemicals that are used in the shoemaking factory. Some workers work for 60 or more hours without being paid overtime (Team Sweat, 2011). The excessive work hours are detrimental to their families as they cannot spend time with their children. 

Factory managers abuse and harass the workers every time the target quotas are not met. It is reported that the supervisors physically assaulted the factory workers inflicting mental abuse on them. Women are denied legal menstrual leaves and dismissed in case of getting pregnant. 

Workers are also discouraged from joining independent unions and are threatened that they might go to jail or get dismissed. According to the film ‘Behind the Swoosh’ (2011), Jim Keady witnesses the unionized employees being physically assaulted by military guards. 

Environmental Pollution with Toxins 

Nike factories in Indonesia pile up rubber, fabric, laces, wholly formed soles. Every day, a portion of the trash is burnt down, releasing harmful toxins and carcinogens into the atmosphere. During rainy seasons, the rubber piles erode into the watersheds. Environmental pollution has adverse effects on workers, their children, and the people near the factories. 

Question 3 

In a bid to improve its public perception, Nike has now become more transparent about its labor practices by publishing a 108-page report that details factory conditions and all the contracted factories. Nike has also allowed human rights groups to visit their factories and carry out audits (Lutz, 2015). Since the Jim Keady film, Women no longer need to produce physical proof of menstruation, physical intimidation of unions has ceased, workers are paid for their overtime hours, and the wages have been raised to a minimum. It has also focused on its environmental impact and invested heavily in sustainable raw materials. 

Question 4 

Yes, my opinion has changed from viewing Nike as a successful corporation that aims to inspire people through sports to a successful company that takes advantage of a vulnerable population to maximize their profits. I will not be buying Nike products as it is a show of support to Nike’s labor rights violations. 

References 

Team Sweat. (2011, June 28).  Nike Sweatshops: Behind the Swoosh  [Video]. YouTube.  https://www.youtube.com/watch?v=M5uYCWVfuPQ 

Senn, Z. (2015, April 18).  Challenges abound for families of Indonesian shoe factory workers . modbee.com. https://www.modbee.com/living/article18774009.html 

Lutz, A. (2015, June 6).  How Nike shed its sweatshop image to dominate the shoe industry . Business Insider. Retrieved March 8, 2021, from  https://www.businessinsider.com/how-nike-fixed-its-sweatshop-image-2015-6?IR=T