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Nike became the a symbol of the “evils of globalization” CBS 48 hours exposes poor working conditions in Vietnam factory Human rights groups and college students protest against Nike Nike goes on the defensive Mediocre efforts largely fail to sway public opinion
Summary of the Case
Case based on activities late 90s & early 00s – believe written about 2006-07.
Nike became the a symbol of the evils of globalization – rich companies exploiting the people in developing nations to produce expensive goods for pampered consumers of developed countries; became the target for antiglobalization protests by human rights ...view middle of the document...
1997 – Nike and others on a presidential Task Force that became the Fair Labor Association (FLA) announce a workers’rights agreement that US companies would apply when manufacturing abroad including maximum hours worked, minimum wage allowed and requirement for independent auditing of factories
1997-Nike terminates 4 Indonesian subcontractors who refuse to comply
1998 – CEO Phil Knight announces Nike initiatives to improve conditions – minimum age at 18 though many countries had lower ages, 100% factory audit by Pricewaterhouse Cooper teams; limited exposure of toxic chemicals but the press said it was a smokescreen to cover poor wages by concentrating on child labor that wasn’t the main concern and was only a PR attempt
1998-2001 – Many universities protest against Nike as most have lucrative sponsorships with Nike (United Students Against Sweatshops – USAS); they establish the Workers Rights Consortium (WRC) to audit factories that manufacture products under collegiate licensing programs
2000 – Nike agreed to release audit results
Nike Case Team #1
subcontractors and accountability