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Sweatshops Fraud

Business
by

Jyoti Sharma

on 14 October 2013

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Transcript of Sweatshops Fraud

Jody, Jyoti, Amy
Sweatshops
Video
Final Outcomes
What we think
What are Sweatshops?
A factory or workshop mostly in the clothing industry where the workers are employed at very low wages, long working hours and poor conditions.
Background of the Company
Sweatshops, illegal?
violated more than 2 labor laws
workers got paid less than the legal minimum wage (hourly wage: $0.50)
forced to work overtime without getting paid extra
workers were denied breaks that are required by law
child labor was involved
forced to work in dangerous conditions such as exposure to dangerous chemicals and in places with poor air quality
physically and verbally abused
Workers were treated like "slaves"
Nike was founded in 1964
engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services
Nike moved most of its factories to China, Indonesia and Vietnam, where the wage rates are some of the lowest in the world
this is when the illegal actions became involved
Promises Made
Nike made a total of 6 commitments:
All Nike factories will meet the U.S. Occupational Safety and Health Administration's (OSHA) standards in indoor air quality
The minimum working age will be changed to 18 for footwear factories and 16 for apparel factories
Nike will include non-government organizations in its factory monitoring, with summaries of that monitoring released to the public
Nike will expand its workers education program, therefore making free high school courses available to all its footwear factories workers
Nike will expand its micro-enterprise loan program to benefit four thousand families in Vietnam, Indonesia, Pakistan, and Thailand
Funding university research and open forums on responsible business practices
In the end, no individual went to jail for this crime, but Nike did make a promise to the world that they will make improvements with sweatshops.
Why we chose this?
Everyone is aware of the topic about sweatshops and child labor. We chose to do our topic about the sweatshops in Nike because we thought that it was important for everyone to know the conditions and details about this worldwide company. Another thing is that, most people have products that are purchased from Nike so it had a huge impact on many people.
We think that the consumers of this common and popular sports company deserve to know the truth about where and how their product was made.
Recognition for Sweatshops
Nike has a long history of workers working in sweatshops in their overseas factories, which are mostly located in Asia
After two decades of working in countries like Taiwan and South Korea, they moved their production to other countries like China, Indonesia and Vietnam because the workers in the previous countries proved to the government that the jobs they were doing were unethical and the conditions and pay did not meet the standards
There were also children working in the sweatshops which is considered as child labor
No Charges Made
Although Nike did commit a crime against humanity, they were not charge with anything because in foreign countries like China and Vietnam, there are no laws against the use of Sweatshops or child labor
Even though they were never charged with a crime, many labor organizations pressured Nike to make changes, improvements and had investigations to ensure that this issue will not repeat again in the future
Nike was doing something illegal because:
Currently the world's leading supplier of athletic shoes/ apparel and a major manufacturer of sports equipment
Improvements
made
We think that the company should have been sued or charges should have been made. As well, we think that they should have had to close down some of the factories that were involved in the scandals. We believe that Nike should of taken responsibility of their actions toward their workers because clearly, they were mistreating many people just for the sake of the company's money. Forcing people to work in dangerous conditions or forcing children to work for multiple hours is not a light crime that everyone can look pass through.
Thoughts & Conclusion
Currently, Nike is the world's leading supplier of athletic shoes/ apparel and a major manufacturer of sports equipment and we believe that this company will continue to grow in the future.
When Nike's sweatshop crisis was announced to the public, there was a huge impact on many people. It changed many thoughts about this company and customers became scared, hesitant and ashamed. They were ashamed of supporting such company that had unimaginable rules and orders behind the company name.
Although the population of Nike fell at one point, they continued with their work, made many promises, changed working conditions and completely changed their company around. With that, they were able to redeem their standards.
Full transcript