NIKE Social Responsibilities In SouthEast Asia
NIKE
Social Responsibilities in Southeast Asia
Contents
Introduction 1
Thesis 1
Key Topics 2
Topic 1 2
Topic 2 4
Topic 3 6
Conclusion 8
Reference Page 9
Figure 1: From NIKE’s FY1999 through FY2013 their Gross Profit has more than tripled, from $3.51B to $11.55B. 2
Figure 2: The original prototype Nike running shoe with the waffle tread pattern. This was the first of many innovations for the company. 3
Figure 3: Nike manufacturing facility in Vietnam. The employees work 10 hrs a day 6 days a week. And average about $100.00 a day. That is double the average daily wage in Vietnam. 5
Figure 4: Overview of Nike manufacturing facilities in Vietnam. Almost 9% of all Nike manufacturing facilities are located in Vietnam. But over 31% of Nike’s manufacturing workforce is from Vietnam. 6
Introduction
Nike is a multinational corporation engaged in the design, development, marketing and sales of athletic footwear, apparel, and equipment. The company was founded in 1964 by a former University of Oregon track runner, Philip Knight, and his track coach Bill Bowerman. They named the company Blue Ribbon Sports. They were importing running shoes from a Japanese company and selling them in the Pacific Northwest. They continued to grow until in 1971 Blue Ribbon Sports started to manufacture their own line of footwear overseas for import into the United States. At the same time they introduced the now iconic swoosh logo and the NIKE brand named after the Greek goddess of victory (Pederson, 2001). From the very beginning Phil Knight and Bill Bowerman had sold shoes manufactured in Asia. It only made sense that they would continue to maintain the bulk of their manufacturing operations in Asia. The low cost of labor in Asia translated directly to Nike’s bottom line. Nike came under extreme pressure in the mid to late 1990’s regarding their labor practices. The manufacturing facilities in Asia were deemed Nike Sweatshops because of the perceived conditions that their
Social Responsibilities in Southeast Asia
Contents
Introduction 1
Thesis 1
Key Topics 2
Topic 1 2
Topic 2 4
Topic 3 6
Conclusion 8
Reference Page 9
Figure 1: From NIKE’s FY1999 through FY2013 their Gross Profit has more than tripled, from $3.51B to $11.55B. 2
Figure 2: The original prototype Nike running shoe with the waffle tread pattern. This was the first of many innovations for the company. 3
Figure 3: Nike manufacturing facility in Vietnam. The employees work 10 hrs a day 6 days a week. And average about $100.00 a day. That is double the average daily wage in Vietnam. 5
Figure 4: Overview of Nike manufacturing facilities in Vietnam. Almost 9% of all Nike manufacturing facilities are located in Vietnam. But over 31% of Nike’s manufacturing workforce is from Vietnam. 6
Introduction
Nike is a multinational corporation engaged in the design, development, marketing and sales of athletic footwear, apparel, and equipment. The company was founded in 1964 by a former University of Oregon track runner, Philip Knight, and his track coach Bill Bowerman. They named the company Blue Ribbon Sports. They were importing running shoes from a Japanese company and selling them in the Pacific Northwest. They continued to grow until in 1971 Blue Ribbon Sports started to manufacture their own line of footwear overseas for import into the United States. At the same time they introduced the now iconic swoosh logo and the NIKE brand named after the Greek goddess of victory (Pederson, 2001). From the very beginning Phil Knight and Bill Bowerman had sold shoes manufactured in Asia. It only made sense that they would continue to maintain the bulk of their manufacturing operations in Asia. The low cost of labor in Asia translated directly to Nike’s bottom line. Nike came under extreme pressure in the mid to late 1990’s regarding their labor practices. The manufacturing facilities in Asia were deemed Nike Sweatshops because of the perceived conditions that their