Case Study Nike The Sweatshop Debate Essay Example | Topics and Well Written Essays - 1250 words

Case Study Nike The Sweatshop Debate - Essay Example Nike has changed its course of action in recent years from one of sheer denial and arguments to one of policy and change. The fact that the company responded only to global media pressure and the fact that standards only changed in Indonesia because of workers strikes and consumer pressure leave something to be desired about the ethical standards of Nike. However, it is important to recognize that Nike did change, though the implementation of the 1997 policies, almost ten years later, are not fully in effect. Nike should be held ethically responsible for the working conditions in foreign factories of subcontractors. In a business decision, regardless of the international boundaries, it is important to follow a certain level of ethical standards. While it is impossible to judge if Nike absolutely knew of the sub-standard conditions, it is logical to assume that Nike could not have ignored the possibility, regardless of the information from Mr. Young, who said that the conditions were adequate in the factories. Yet, in countries where minimum age and working condition laws are not contusive to an appropriate and healthy lifestyle, Nike, by simple association, should maintain a level of dignity for their products. However, the legalities of the situation become more intricate for Nike, being an American based business, subcontracts to (mainly) Asian factories. In 1992, Nike implemented a Memorandum that "required its subcontractors to comply with local laws regulating wages and working cond itions and mandated that documentation of compliance with the Memorandum be maintained for Nike's inspection," and "required subcontractors to adhere to environmentally safe practices and to certify that they did not discriminate on the basis of gender, race, religion, age, ethnic origin, or sexual orientation," yet by 1997 the subcontractors in question were obviously ignoring the Memorandum (Shaw p 6 1999). The fact that Nike created this Memo shows that in early years, the company was knowledgeable of the situation-otherwise, there would not have been a reason to respond (via the Memorandum) to negative media attention. The fact that Nike shows a response based on findings and media attention furthers the idea that they should be held legally, on an international basis, for their business practices-even those that fall under the laws of other countries. 2. What labor standards regarding safety, working conditions, overtime, and the like should Nike hold foreign factories to: those prevailing in that country, or those prevailing in the United States In 1997, the ILO (International Labor Organizations 268th Session Geneva 1997) at a Geneva Convention outlined the need for international labor laws to prevent the mistreatment of workers and, especially of children: (a) freedom of association and the effective recognition of the right to collective bargaining; (b) the elimination of all forms of forced or compulsory labour; (c) the effective abolition of child labour; and (d) the elimination of discrimination in respect of employment and occupation. On that note, the shoes Nike sells from eighty to one-hundred and fifty dollars costs anywhere from twelve cents to five dollars to