Cross Cultural Perspective – Nike Corporation
Cross Cultural Perspective – Nike Corporation
In this essay, I will attempt to present an analysis of the ethics and social responsibility issues that an organization can face when it is a global organization. One of the most recognized organizations globally would without a doubt have to be the Nike Corporation. Several years ago the Nike Corporation came under fire for using child labor in Pakistan and Cambodia to make their soccer balls. Because Nike came under fire for this unethical and inhumane practice, the organization attempted to reduce this practice. Pakistan and Cambodia have strict child labor and slavery laws, however, the government has done very little to regulate it. Contracts for production are still being granted in areas of Pakistan where there is not sufficient monitoring or regulation to make sure that child labor laws are being observed and enforced. The United States Constitution deems that child labor is not only illegal but also inhumane and that any organization caught practicing or even encouraging forced labor or violating child labor laws will be prosecuted. The general thought process of Nike and many other global organizations is that they can operate their production with the lowest cost of labor. This leads the organizations to enter into violations of child labor laws. An investigation was conducted where Nike was found to have a large number of cases that involved forced labor or child labor law violations in some of the large apparel factories of Nike. In a particular factory in Malaysia, it was found that Nike was operating production in terrible working conditions for the employees in addition to the forced labor. It was found that Nike had underage children working in sweatshops up to seventy hours a week in unhealthy conditions making their products. Pakistan has a population of approximately 1 million people and it is also an important location or “hub” per say for the production of goods that are to be
In this essay, I will attempt to present an analysis of the ethics and social responsibility issues that an organization can face when it is a global organization. One of the most recognized organizations globally would without a doubt have to be the Nike Corporation. Several years ago the Nike Corporation came under fire for using child labor in Pakistan and Cambodia to make their soccer balls. Because Nike came under fire for this unethical and inhumane practice, the organization attempted to reduce this practice. Pakistan and Cambodia have strict child labor and slavery laws, however, the government has done very little to regulate it. Contracts for production are still being granted in areas of Pakistan where there is not sufficient monitoring or regulation to make sure that child labor laws are being observed and enforced. The United States Constitution deems that child labor is not only illegal but also inhumane and that any organization caught practicing or even encouraging forced labor or violating child labor laws will be prosecuted. The general thought process of Nike and many other global organizations is that they can operate their production with the lowest cost of labor. This leads the organizations to enter into violations of child labor laws. An investigation was conducted where Nike was found to have a large number of cases that involved forced labor or child labor law violations in some of the large apparel factories of Nike. In a particular factory in Malaysia, it was found that Nike was operating production in terrible working conditions for the employees in addition to the forced labor. It was found that Nike had underage children working in sweatshops up to seventy hours a week in unhealthy conditions making their products. Pakistan has a population of approximately 1 million people and it is also an important location or “hub” per say for the production of goods that are to be
References: Retrieved from: http://www.nikebiz.com/crreport/content/communities/5-4-0-case-study-homeless-world-cup.php Retrieved from: http://www.nikebiz.com/crreport/content/communities/5-5-0-case-study-nine-million.php Retrieved from: http://www.nikebiz.com/crreport/content/communities/5-4-0-case-study-the-nike-foundation.php Retrieved from: http://www1.american.edu/ted/nike.htm