Nike Case

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Words: 864

Pages: 4

Category: Business and Industry

Date Submitted: 07/26/2013 04:08 PM

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* Ethics are defined as morally right or wrong in sense of every human being and social issues are matters that affect every individual or member of society by having a direct or indirect impact on them. In this case, Nike was reported to exploit its employees at their subcontracted factories in Vietnam, Indonesia, China and Thailand. The employees were employed under hazardous working conditions, they were forced to do over-time with cheap wage rate and workplace abuse. They were also employing underage children and were only pay 14 cents an hour. These factories have higher proportion of women employees, majority of which are teens and early twenties. These Nike subcontractors were mistreating the employees by allowing them to take only one bathroom break and two water drinking breaks in the shift of 8 hours. The employees working in the factory were not provided with appropriate uniform and work shoes. This all activities were affecting the labor market at the factory negatively but Nike was unethically taking advantage of this labor market as it assisted them to cut down their cost on manufacturing expenses and increase their profit ratio.

* Nike is a multinational company whose main motive is to earn profits. When we consider the million dollar endorsements with Michael Jordan it’s an investment made by the company to capture the target market and earn profits associated with it. But on other hand it is very unethical to pay 14 cents an hour for an underage employee. This shows that Nike is not a socially responsible company who does not think in favor of their employees but is a profit oriented company. It is unethical to pay such a low wage to the employees whereas selling their pair of shoe for 160 to 180 dollars. The wages received by the employees was below the minimum wage required to earn daily livelihood. The employees were unable to fulfill their basic needs. They were exploited on the basis of wade rate because the subcontractor was aware of...