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UNETHICAL BEHAVIOUR OF NIKE

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by

Komal Razi

on 29 September 2014

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Transcript of UNETHICAL BEHAVIOUR OF NIKE

ISSUE OF SWEAT SHOPS
UNETHICAL BEHAVIOUR OF NIKE
DARK SIDES OF NIKE
Problems face by workers:
Extreme expoitation such as hazardous working conditions,lack of living wage and benifits.
Workplace abuse or harassment
Child labor
Socially injustice

Uneducated workers

Poeple start boycotting nike products

27% drop in their stock price and slower sales growth
Paid less and work overtime.
Reduce PRODUCTION COST.
Company shifts the job overseas.
While millions of American worker unemployed.
Nike should increase the wages of its workers

It should live up to its social responsibility and start improving the policies of the firm.

They should closely monitor the management in their contracted factories to ensure that their workers are not abused.
They should immediately solve problems regarding their company to avoid criticisms from different labour unions and organizations.

Nike should always keep in mind that ethics is very important in business because it will affect the perception of the stakeholders.

The company should also continue to improve the working place of the employees and regularly check the conditions of the workers in the factories.
CONCLUSION
UNETHICAL ISSUES OF NIKE
1998, Chinese workers protest about low wages and dangerous working conditions.
Indonesian workers earn $2.46 a day, Vietnamese workers earn $1.60 while Chinese workers earn $1.75 a day.
In Vietnam, 1300 workers protest for a raise of one cent per hour.
Nike could easily afford to pay a living wage—labor costs account for only $2.50 a pair. If Nike doubled the average pay their per-pair profit would drop only from $164 a pair to $161.5
PROTEST AGAINST NIKE
Sweat shops is a place where employees do not work in safe and sanitary working conditions. “It is a common occurrence for workers to faint from exhaustion, heat, fumes and poor nutrition during their shifts.”
Women workers at a Nike were forced to run around the factory’s premise in the hot sun because they weren’t wearing regulation shoes.

Many women fainted during the run and were taken to the hospital.

Vietnamese women were hit over the head by their supervisor for poor sewing
ISSUE OF CHILD LABOR
In pakistan, more than 200 children, some as young as 4 and 5 years of age, are involved in the production line Of its soccar ball.
In no country should Nike sweatshops be legal. Nike is abusing its power, and it has to stop
More negative news generated about nike's child labour Practices
NOT JUST DO IT BUT DO IT RIGHT
There are cruel and unique punishments and fining for many false reasons, such as being found talking, and being older than the age of 25
Many people and organizations criticized Nike.
Campaigns have been taken up by many including colleges and universities against Nike.
Very first time that Nike has had to face real questions about its labor practices abroad People critisize the issue of child labor and has expressed concern over the working conditions in foreign factories, Nike should take immediate actions, or they lost EVERYTHING.
• Only a boycott by the United States and other nations will have any impact on slavery and child-based industries. Futhermore the U.S constitution states that child labor is an illegal and inhumane practice and any U.S. company found
• this directly effect their customers and nike suffered a lot because of their un ethical act and in experience they got highly reduction in their net profit.

• nike's indirectly shows that they are guilty and they want appologize.


Some Promises
Decent wages will be given.
The minimum age for Nike factory workers will be raised to 18 for footwear factories and 16 for apparel factories.
Nike will expand its worker education program, making free high school
WHAT NIKE'S RESPOND TO IT
Pakistan has laws against child labor and slavery, the government has taken very little action to combat it.
NIKE ABUSE IN INDONESIA (2011)
ANALYSIS OF INDONESIA CONTROVERSY
Nike purchased the Converse Company in the year 2007.

In 2011 workers from the Pou Chen Group factory in Sukabumi, Indonesia rioted against abuse happening within the factory.
Consisting of both physical and mental abuse.

Working for an hourly wage just $0.50,
Barely enough to live off with bunk type housing and food.

Abuse had hit such an extreme workers kept shut and bore the cruelty.
One woman reported that she was fired after she spoke up against the management.
1. Individualism;
Means to maximize profits and shareholders wealth without breaking the law.
In the normative theory of individualism, Nike is an ethical company.

2. Utilitarianism looks at the overall happiness of the stakeholders.
Recently stated, stakeholders include the factory workers/families, factory management, and also Nike.

3. Kantianism includes:
Acting rationally and be consistent in your behavior.
Helping others act rationally, respect others decisions, and to act in good will.

4. Virtue Theory includes four virtues;
Courage & Honesty
Temperance & Justice.
FEEL FREE TO ASK QUESTIONS
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