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Globalization project: Nike

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Kyle Thomas

on 26 June 2013

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Transcript of Globalization project: Nike

Although Nike's impact on globalization has been beneficial for the developed world because it has supplied them with a vast variety of cheap athletic wear, but it has had a less beneficial impact because of its poor worker rights and the negative image it has given America in developing foreign countries.
Nike And Its Effects On Globalization: Has It Been For The Better?
By: Kyle Thomas & Haley Quattrucci
Nike is an American company that was founded on January 25, 1964 under the name of Blue Ribbon Sports by Bill Bowerman and Phil Knight. It officially became called Nike, Inc. on May 30, 1978 (History & Heritage). Nike is known for its apparel in the sports industry, such as shoes, cleats, shirts, shorts, etc. Nike has been a leading sponsor for many athletes in a variety of sports across the globe. It's Swoosh symbol and "Just Do It" slogan are iconic throughout the world. Nike's total profit was 24 billion dollars as of 2012 (Nike CNNMoney).
Thanks to Nike, developed countries are able to buy the best in sports gear and everyday apparel. Developed countries now have a huge access to...
the lightest cleats
thinnest shirts
the most stylish shoes
the best basketball shoes
the most powerful bats
the most current NFL apparel

This is huge because now countries like...
and the Netherlands
Air Jordan III Commercial- Hang Time
can all purchase the same sportswear professional US athletes wear during their games
A Chinese basketball player can go out and buy a pair of Lebron X's at a Nike Store 5 miles away thanks to Nike and its globalization
So how does this help America and the world?
This is significant because Nike makes a tremendous profit, especially in China. It is expected to grow at a compounded annual growth rate of 17% through the next four years. That makes Nike reach $32 billion by 2017.
With this money Nike can...
Invest more money into its going green program.
By 2020
Nike aims to:
• Eliminate the waste in product design, using
materials, energy, and resources that can be readily recycled, renewed or reabsorbed back into nature.
• Eliminate all substances that are known or suspected to be harmful to human health or the health of natural systems.
• Close the loop and take full responsibility for its products at all stages of the life cycle, including the end of a product’s useful
life when consumers are likely to dispose of it.
This is important because now Nike is reducing its pollution not only in America, but in its factories around the world. All thanks to foreign profit
Donate more money to their charities, funds organizations, etc.
Nike has been able to donate $37,000 to the Asian Family Center and the Boys & Girls Club.
The Asian Family Center helps struggling Asian's that have recently moved to America. This is significant because this puts Nike in a good light because their Asian customers see they are trying to help their people.
So what are the downsides of Nike's globalization?
(CSR Press Release)
(Where Does Nike Stand in China)
Nike has established a variety of sweatshops in many foreign countries
Already in the 1980s, Nike had been criticized for sourcing its products in factories/countries where low wages, poor working conditions, and human rights problems were rampant.
Over the course of the 1990s, a series of public relations nightmares – involving underpaid workers in Indonesia, child labor in Cambodia and Pakistan, and poor working conditions in China and Vietnam – combined to tarnish Nike’s image.
This is important because even though Nike says they create jobs overseas, what they don't say is how the workers are treated. And there is strong evidence of poor working rights in Nike factories.
In the early 1990s, Nike products were being manufactured in six Indonesian factories, employing more than 25,000 workers. Four of these factories were owned by Nike’s Korean suppliers. As Nike’s presence in Indonesia increased, the factories supplying its products (about six million pairs of shoes per year) came under greater scrutiny. Reports by a variety of NGOs and labor activists claimed that these plants were rife with exploitation, poor working conditions, and a range of human rights and labor abuses. Many Indonesian shoe factories did not even pay the minimum daily wage (at the time, 2,100 rupiah or about US $1).
A Day?!
This is hugely significant because Nike employees are being paid so little, they cant even afford basic necessities for themselves, let alone their families.
This minimum daily wage is estimated to only cover 70% of the basic needs of one individual
In June 1996, Life magazine published an article on child labor in Pakistan, which included a photo of a 12 year old boy stitching a Nike soccer ball. This article and its accompanying photo unleashed another wave of criticism against Nike and a call by various consumer groups, trade unions, and NGOs to boycott Sialkot-produced soccer balls.
This is important because it shows that people in America know about these human right violations Nike's globalization is causing, yet they aren't doing anything to stop it.
Nike's poor image in developing countries has also given the United states a bad image
Notwithstanding the arrival of IPEC and Nike’s new child labor policies, the ILO reports that many local employers continue to use children in their stitching centers and that in response to increased monitoring of standards in Sialkut, some soccer ball production has moved to other, nearby but less regulated areas of Pakistan.
As Nike moves to lesser regulated areas, people in those countries cant avoid Nike and its exploitations. People in developing countries begin to hate Nike, its products, and its consumers. Many of which are Americans.
This picture is extremely important because it summarizes exactly what happens during Nike's exploitations. Foreign and poor people are forced to make shoes and clothes, none of which they can ever hope to wear because of their salaries. Then, they are shipped to the US where thousands of people purchase those exact same goods. This puts America in a bad light because the workers in developing countries grow resentful of the US. They hate seeing people spoil themselves with the goods they create because they are suffering while others are living the "high-life"
All of this Nike hate has also resulted in Anti-Nike movements across the globe
Although these movements are great, they will never work. Nike is too big of a company for people to stop purchasing goods from. In a perfect world, people wouldn't support Nike because of their actions. Sadly, this world isn't perfect and people will be happy to buy a $10 shirt regardless of how it was made.
Created by:
Kyle Thomas
Haley Quattrucci
Full transcript