Unethical Business Practices: Nike Case Study
The role of the government also plays a major role in these challenges that are faced by Nike. As we know that government laws and regulations differ from country to country and this makes manufacturing of products very difficult challenge for the international companies like Nike. The host governments have laws concerns against consumer protection, information and labeling, employment, wages and salaries and safety of the workers who work in those firms. The international organizations must keep these rules and regulations in their minds and should abide by them. The most visible changes in the legal-political factors develop and grow out of international trade agreements and the emergence of international trade alliance between different countries for example, GATT or EU etc. (Stockdale & Crosby, 2004)
What happened is that the various roles that the host governments of different countries like China, Vietnam or Indonesia played in this particular global business’s operations were that they turned a blind eye towards the poor working conditions of the manufacturing plants. Another role that these governments played was that they did not do anything about the very low wages of the workers for example, in Vietnam the workers were paid 20 cents per hour or a mere $1.60 per day but in actual the living wage in Vietnam was actually $3 per day. And neither of these governments did do anything about child labor problems or the sweatshop problems. The ethical challenges (that is the sweatshop debate) that confront the global business of Nike are as follows:
On 17 October 1996, CBS News ran a 48 hour program covering the inhumane treatment of workers by their supervisors, the payment of wages below the legal minimum wage, and the sexual abuse of several women workers at Nike 's shoe manufacturing plants in Vietnam. Workers had been physically assaulted on the job. Temporary workers were paid, on an average, 20 cents per hour while team leaders were paid $42 per
What happened is that the various roles that the host governments of different countries like China, Vietnam or Indonesia played in this particular global business’s operations were that they turned a blind eye towards the poor working conditions of the manufacturing plants. Another role that these governments played was that they did not do anything about the very low wages of the workers for example, in Vietnam the workers were paid 20 cents per hour or a mere $1.60 per day but in actual the living wage in Vietnam was actually $3 per day. And neither of these governments did do anything about child labor problems or the sweatshop problems. The ethical challenges (that is the sweatshop debate) that confront the global business of Nike are as follows:
On 17 October 1996, CBS News ran a 48 hour program covering the inhumane treatment of workers by their supervisors, the payment of wages below the legal minimum wage, and the sexual abuse of several women workers at Nike 's shoe manufacturing plants in Vietnam. Workers had been physically assaulted on the job. Temporary workers were paid, on an average, 20 cents per hour while team leaders were paid $42 per