Peretti Vs. Nike
Executive Summary Nike Inc.
Peretti Vs. Nike:
In January 2001, Peretti choose the word Sweatshop' to be printed in his Nikes. Nike rejected order citing the company's rules. In retort, Peretti order a pair of shoes with a colour snapshot of 10-year-old Vietnamese girl who makes my shoes". With the email exchange between Nike and Peretti being forwarded all over the world, it led to a huge PR Nightmare for the organization. All through Mid-1990s, Nike has been subjected to negative press, lawsuits and demonstrations on college campuses alleging that firm's overseas contractors subject employees to work in inhumane conditions for low wages
History of Nike Inc.:
Philip Knight started his own athletic shoe distribution company in 1964 …show more content…
These students who attended the internship then staged a large number of campus demonstrations against Nike. They formed the United Students Against Sweatshops (USAS).
Fair Labor Association and Worker Rights Consortium: In 1998, the Presidential task force of industry and human rights representatives created the Fair Labor Association to accomplish the goal of developing a workplace code of conduct and a system for monitoring factories for ensuring compliance. Nike was one of the first companies to join FLA. Members follow the principles set forth in the organization's workplace code of conduct. WRC asserts that the prevailing industry or legal minimum wage in some countries is too low and does not provide employees with the basic human needs they require. Factories should instead pay a higher living wage' that takes into account the wage required to provide factory employees with enough income to afford housing, energy, nutrition, clothing, etc. Nike being a member and supporter of FLA opposes the WRC. …show more content…
Companies can make great strides in one area only to take a few steps backward when a new demand is made of them. Nevertheless, as they move along the learning curve, companies almost invariably go through the following five stages.
"It's not our job to fix that." In the defensive stage, the company is faced with often unexpected criticism, usually from civil activists and the media but sometimes from direct stakeholders such as customers, employees, and investors. The company's responses are designed and implemented by legal and communications teams and tend to involve either outright rejections of allegations ("It didn't happen") or denials of the links between the company's practices and the alleged negative outcomes ("It wasn't our fault").
"We'll do just as much as we have to." At the compliance stage, it's clear that a corporate policy must be established and observed, usually in ways that can be made visible to critics Compliance is understood as a cost of doing business; it creates value by protecting the company's reputation and reducing the risk of
Peretti Vs. Nike:
In January 2001, Peretti choose the word Sweatshop' to be printed in his Nikes. Nike rejected order citing the company's rules. In retort, Peretti order a pair of shoes with a colour snapshot of 10-year-old Vietnamese girl who makes my shoes". With the email exchange between Nike and Peretti being forwarded all over the world, it led to a huge PR Nightmare for the organization. All through Mid-1990s, Nike has been subjected to negative press, lawsuits and demonstrations on college campuses alleging that firm's overseas contractors subject employees to work in inhumane conditions for low wages
History of Nike Inc.:
Philip Knight started his own athletic shoe distribution company in 1964 …show more content…
These students who attended the internship then staged a large number of campus demonstrations against Nike. They formed the United Students Against Sweatshops (USAS).
Fair Labor Association and Worker Rights Consortium: In 1998, the Presidential task force of industry and human rights representatives created the Fair Labor Association to accomplish the goal of developing a workplace code of conduct and a system for monitoring factories for ensuring compliance. Nike was one of the first companies to join FLA. Members follow the principles set forth in the organization's workplace code of conduct. WRC asserts that the prevailing industry or legal minimum wage in some countries is too low and does not provide employees with the basic human needs they require. Factories should instead pay a higher living wage' that takes into account the wage required to provide factory employees with enough income to afford housing, energy, nutrition, clothing, etc. Nike being a member and supporter of FLA opposes the WRC. …show more content…
Companies can make great strides in one area only to take a few steps backward when a new demand is made of them. Nevertheless, as they move along the learning curve, companies almost invariably go through the following five stages.
"It's not our job to fix that." In the defensive stage, the company is faced with often unexpected criticism, usually from civil activists and the media but sometimes from direct stakeholders such as customers, employees, and investors. The company's responses are designed and implemented by legal and communications teams and tend to involve either outright rejections of allegations ("It didn't happen") or denials of the links between the company's practices and the alleged negative outcomes ("It wasn't our fault").
"We'll do just as much as we have to." At the compliance stage, it's clear that a corporate policy must be established and observed, usually in ways that can be made visible to critics Compliance is understood as a cost of doing business; it creates value by protecting the company's reputation and reducing the risk of