Nike Case

Nike

Nike and the Swoosh symbol are trademarks of Nike, Inc.

Nike became the a symbol of the “evils of globalization” CBS 48 hours exposes poor working conditions in Vietnam factory Human rights groups and college students protest against Nike Nike goes on the defensive Mediocre efforts largely fail to sway public opinion

Summary of the Case

Case based on activities late 90s & early 00s – believe written about 2006-07.

Nike became the a symbol of the evils of globalization – rich companies exploiting the people in developing nations to produce expensive goods for pampered consumers of developed countries; became the target for antiglobalization protests by human rights organizations

1996 - Expose by 48 hours and reports from human rights organizations put Nike on the defensive; Made in the USA, an organization largely financed by labor unions and domestic apparel manufactures that oppose free trade with low wage countries because of job loss in US, used “Air Jordans” as an example of how high-priced apparel was produced by children making pennies an hour

Nike goes on the defensive

Fair Labor Association

Factory audits

Press conferences

Contract terminations

1996 Nike hired Andrew Young, ex-ambassador to the UN and Congressional representative to assess conditions in its foreign factories – report was mildly critical; report was criticized as being based only on what factory managers allowed to be revealed

1997 - Global Exhange Nike accused of moving factories from South Korea and Taiwan to China, Indonesia, and Vietnam when new freedoms were gained and wages went up in these countries; accused Nike of even violating China lax labor laws

1997 – Global Exchange obtained and leaked a confidential report by Ernst & Young that revealed poor working conditions in a Vietnam factory they audited – Nike countered in a press conference that it had commissioned the report so that they could take action if there were issues as intended....