Business: Factory and Nike
` case? 2. Why should Nike be held responsible for what happens in factories that it does not own?
Does Nike have a responsibility to ensure that factory workers receive a “living wage”? Do the wage guidelines of FLA or WRC seem most appropriate to you? Why?
3. Is it ethical for Nike to pay endorsers millions while its factory employees receive a few dollars a day?
4. Is Nike’s responsibility to monitor its subcontracted factories a legal, economic, social, or philanthropic responsibility? What was it 10 years ago? What will it be 10 years from now?
5. What could Nike have done, if anything, to prevent the damage to its corporate reputation?
What steps should Nike take in the future? Is it “good business” for Nike to acknowledge its past errors and become more socially responsible?
6. What are the goals of the
Jonah Peretti decided to customize his Nike shoes and visited the Nike iD website. The company allows customers to personalize their
Nikes with the colors of their choice and their own personal 16-character message. Peretti chose the word “sweatshop” for his Nikes.
After receiving his order, Nike informed Peretti via e-mail that the term “sweatshop” represents
“inappropriate slang” and is not considered viable for print on a Nike shoe. Thus, his order was summarily rejected. Peretti e-mailed Nike, arguing that the term “sweatshop” is present in Webster’s dictionary and could not possibly be considered inappropriate slang. Nike responded by quoting the company’s rules, which state that the company can refuse to print anything on its shoes that it does not deem appropriate. Peretti replied that he was changing his previous order and would instead like to order a pair of shoes with a “color snapshot of the 10-year-old Vietnamese girl who makes my shoes.” He never received a response.1
THE PR NIGHTMARE BEGINS
Before Nike could blink an eye, the situation turned into a public relations nightmare. Peretti
forwarded
Does Nike have a responsibility to ensure that factory workers receive a “living wage”? Do the wage guidelines of FLA or WRC seem most appropriate to you? Why?
3. Is it ethical for Nike to pay endorsers millions while its factory employees receive a few dollars a day?
4. Is Nike’s responsibility to monitor its subcontracted factories a legal, economic, social, or philanthropic responsibility? What was it 10 years ago? What will it be 10 years from now?
5. What could Nike have done, if anything, to prevent the damage to its corporate reputation?
What steps should Nike take in the future? Is it “good business” for Nike to acknowledge its past errors and become more socially responsible?
6. What are the goals of the
Jonah Peretti decided to customize his Nike shoes and visited the Nike iD website. The company allows customers to personalize their
Nikes with the colors of their choice and their own personal 16-character message. Peretti chose the word “sweatshop” for his Nikes.
After receiving his order, Nike informed Peretti via e-mail that the term “sweatshop” represents
“inappropriate slang” and is not considered viable for print on a Nike shoe. Thus, his order was summarily rejected. Peretti e-mailed Nike, arguing that the term “sweatshop” is present in Webster’s dictionary and could not possibly be considered inappropriate slang. Nike responded by quoting the company’s rules, which state that the company can refuse to print anything on its shoes that it does not deem appropriate. Peretti replied that he was changing his previous order and would instead like to order a pair of shoes with a “color snapshot of the 10-year-old Vietnamese girl who makes my shoes.” He never received a response.1
THE PR NIGHTMARE BEGINS
Before Nike could blink an eye, the situation turned into a public relations nightmare. Peretti
forwarded