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Wednesday, September 9, 2009
Friday, August 28, 2009
Nike...Nike...
A famous brand......
worldwide...
worldwide...
A company that makes news headlines......
World no.1....Roger Federal endorses it
Tiger woods is a fan....
Rafeal Nadal looks spectacular ....
Inspiring stars are often seen in
Nike............
.......So......
Is Nike really that great?........
What is Nike?
Nike is a large organisation that is known for producing popular and fashionable sportswear. It plays a big role in the sporting market. It is the one of the largest sellers of sporting goods and garments world wide. It originated in US. And operate and retails in 140 countries around the World including Australia. For many years, athletes and stars have worn the Nike brand in sporting events. Roger Federa, world no. 1 tennis player and Tiger Woods, world no.1 golfer, are sportsmen who are often attired in Nike’s clothing and are famous for it too.
what do we think of Nike......
Nike is known for adopting ‘sweats shop’ labour practice plants in poor developing countries around the world.
Although Nike has claimed that the employees who were exploited weren’t officially ‘Nike’s employee’ but were instead employees of other businesses that have a contract to source Nike’s shoes, many members of the community think that Nike should take responsibility for this ethical issue as these workers contribute to the production of goods that Nike sell.
Although Nike has claimed that the employees who were exploited weren’t officially ‘Nike’s employee’ but were instead employees of other businesses that have a contract to source Nike’s shoes, many members of the community think that Nike should take responsibility for this ethical issue as these workers contribute to the production of goods that Nike sell.
Time line of Nike's bad publicity
For over more than ten years, Nike has had a lot of bad publicity. For our ethics assignment, we have decided to give you an idea of how Nike has been ethical over the years.
( http://en.wikipedia.org/wiki/Nike,_Inc.
( http://en.wikipedia.org/wiki/Nike,_Inc.
1996
- 1996, A Vietnamese activist group documented that factories contracted by Nike have violated minimum wage and overtime laws in Vietnam, although Nike claims that this practice has since been halted.
Micheal Moore tells Nike off..
-The company has been subject to much criticism. Critics include Michael Moore.
empowering woman?
-Many people were outraged that Nike also engaged in practices in East Asian factories while advertising adds which referred to empowering woman in the U.S.
1996
- 1996, Nike was also criticized for allowing child labor in countries such as Cambodia and Pakistan to occur. These children worked in factories which manufactures soccer balls. Although Nike has made a slight effort to reduce the practices of child labour since the revelation, they continue to source their products from businesses that run in areas where inadequate monitoring make it hard to ensure that children are not used as employees.
2001
-An BBC documentary in 2001, uncovered a Nike contractor using child labour in their Cambodian factory. The documentary revealed that the girls who worked in the Cambodian factory worked for up to 16 hours a day and sometimes even for seven days a week.
Thursday, August 27, 2009
campaigns..
-For over a decade, many campaigns have been taken up by groups and activists. Many anti-sweatshop groups such as United Students Against Sweatshops have also conducted campaigns against Nike's business practices.
2008
- 2008 Channel 7 News found a number of cases of forced labour in one of the biggest Nike contractor's factories.
Wednesday, August 26, 2009
High Revenues for Nike
Overall, despite all of these bad publicities for the Nike brand, and the idea that consumers would rather shop from ethical and socially responsible companies, Nike’s annual revenues have increased from $6.4 billions in 1996 to nearly $17 billions in 2007. This is not a good sign. As members of the community and as consumers with the power to choose what we can buy and what we should buy, we ought to re-consider where we should shop and how we can be ethical when we need to buy a new pair of runners.
Tuesday, August 25, 2009
forums about Nike
so for our ethics project we decided that it would be interesting to see what the public has to say about Nike... These are the forums we started. We asked people if they prefered Nike shoes, and if they would rather buy from Nike or Adidas... From our questions and answers received, we discovered for the first time, that most sportswear manufacturerers uses poor labour practices from overseas. This isnt a good sign. But if we really do have to choose from Nike and Adias, definitely Adias is the way to go, as Nike is known for using forced and child labour.
A MUST SEE NEWS REPORT
A contractor making clothes for Nike has been using forced labour. Factors workers are made to live in poor conditions and are paid very little.
Nike often promote itself to be a good brand, but there is the hidden ethical issue.
Nike Sportswear are made in factories overseas’ poverty stricken companies. Seven news also claims that the company traps and lies to workers, making them sign contracts that they do not understand. And on arrival to the workplace, the workers had their passport taken a way from them and were force to work. Seven news claims that the company adopts human trafficking. Conditions are very poor. With workers having to live close to one another in a very suffocating and unhealthy manner.
The workers work six days a week for 45 Australian dollars. That’s less than the cost of a Nike t-shirt.
It is suggested that the workers are tricked into signing contracts that they do not understand, and from this are forced to work. They have no way of escaping.
Nike had issue a statement in which it states that it will investigate these claims made by channel seven.
SUMMARY OF THE SECOND NEWS REPORT
The workers work six days a week for 45 Australian dollars. That’s less than the cost of a Nike t-shirt.
It is suggested that the workers are tricked into signing contracts that they do not understand, and from this are forced to work. They have no way of escaping.
Nike had issue a statement in which it states that it will investigate these claims made by channel seven.
SUMMARY OF THE SECOND NEWS REPORT
Nike has moved its 100 of workers to better living houses after seven news reveal that one of its contractors is using forced labour with workers having their passports taken from them. Human rights activists are going to take legal action. After an investigation, Nike has stated that the working conditions of the workers were unacceptable and promised to move hundreds of workers out of crowded living spaces. The Employees want their passport back. Australian Union say that workers are treated like slaves.
SUMMARY OF THE THIRD NEWS REPORT
Hundreds of workers have been freed from poor and slavery working conditions. They have been moved to better housing which will cost Nike millions. The workers are given better conditions and privilege e.g. free flights home, apartments, refund of fees, unstricted access to passport.
Thoughts and ideas
This seven news report from 2008, shows that even though it was uncovered in the late 90s that Nike's products are made by employees who are exploited, and despite that in recent times, Nike has attempted to promote itself as being more socially responsible, it is still unethical.
With its many donations and charitiy work, a decade on from having their name first tainted, Nike has not yet done anything to stop sourcing their products from factories that adopts harsh labour.
Many of us were all left wondering; 'Isnt it about time they took responsibility and show some concern ?'
Nike...A globalised company....
In today's business environment, there is an expectation from consumers that large corporation should show more concern for society at large and adopt business ethics. Managers of large organisations need to address many issues that relate to topics that can cause conflicts in society and that can relates to the running of their business.
As a well-known business, and like many other transnational corporations, Nike needs to ensure that it has an objective to act in a way which reflects the interests of its stakeholders (e.g. people who owe shares, customers, workers).
It is often believed that if large organisations were to successfully satisfy the needs of their stakeholders they will benefit financially from it.
Changes in social attitudes, such as heighten concern for justice and ethics, put pressure on large organisatins to conform to society's expectations. The danger of not conforming to society's views can cause negative consequences to a business (e.g. bad reputation, lower revenues, higher staff turnover).
In our opinions, Nike needs to address the issue of employing cheap labour and exploiting employees. They need to adopt better business ethics.
Business ethics a 'a relative term that refers to the belief of a business and what that business considers right and wrong. These beliefs should guide the busines practices of Nike.
Business thoeries often suggest that strong business ethics should allow for better corporate reputations and due to this better reputation, the organisation's profit and performance should improve.
To ensure for better reputation, Nike needs to ensure that not only do they adopt better business ethics they should adopt triple bottom line.
'Triple bottom line is an approach to management in which an organisation broadens their financial priorities to include environment perforamance and social responsibility.'
In other words, Nike should not only care about just their finanical gains and profits, but to also recognise the importance of showing a concern for society. Consumers will generally buy from company's of better reputation and of equal price range.
As a well-known business, and like many other transnational corporations, Nike needs to ensure that it has an objective to act in a way which reflects the interests of its stakeholders (e.g. people who owe shares, customers, workers).
It is often believed that if large organisations were to successfully satisfy the needs of their stakeholders they will benefit financially from it.
Changes in social attitudes, such as heighten concern for justice and ethics, put pressure on large organisatins to conform to society's expectations. The danger of not conforming to society's views can cause negative consequences to a business (e.g. bad reputation, lower revenues, higher staff turnover).
In our opinions, Nike needs to address the issue of employing cheap labour and exploiting employees. They need to adopt better business ethics.
Business ethics a 'a relative term that refers to the belief of a business and what that business considers right and wrong. These beliefs should guide the busines practices of Nike.
Business thoeries often suggest that strong business ethics should allow for better corporate reputations and due to this better reputation, the organisation's profit and performance should improve.
To ensure for better reputation, Nike needs to ensure that not only do they adopt better business ethics they should adopt triple bottom line.
'Triple bottom line is an approach to management in which an organisation broadens their financial priorities to include environment perforamance and social responsibility.'
In other words, Nike should not only care about just their finanical gains and profits, but to also recognise the importance of showing a concern for society. Consumers will generally buy from company's of better reputation and of equal price range.
An interesting article about Nike
Article found from 1998, when it was revealed that Nike adopts bad business practices
Source directly from:
http://www.pbs.org/newshour/bb/business/jan-june98/nike_5-13a.html
Source directly from:
http://www.pbs.org/newshour/bb/business/jan-june98/nike_5-13a.html
2005
In 2005, after many requests from activists and groups, Nike published the names and addresses of all the factories around the world that makes their products. The move came after campaigners demand that the company should be more open about their business practices around the world and who which businesses that they have contracts.
‘Nike lists a hundred-and-twenty-four plants making its goods in China, among seven-hundred around the world, many of them in dirt poor countries. It also documents inspections of five-hundred-and-sixty-nine factories working for it, in some of which it found evidence of physical and verbal abuse.’ (quoted directly from http://www.bbc.co.uk/)
‘Nike lists a hundred-and-twenty-four plants making its goods in China, among seven-hundred around the world, many of them in dirt poor countries. It also documents inspections of five-hundred-and-sixty-nine factories working for it, in some of which it found evidence of physical and verbal abuse.’ (quoted directly from http://www.bbc.co.uk/)
Texts from an Article in 2000
‘Sportswear giant Nike is bracing itself for bad publicity from consumer groups which claim the company has breached core labour standards.’ http://www.highbeam.com/
On Monday, anti-Nike group NikeWatch is to launch a report into workplace practices at Nike's Indonesian factories in which the group says workers are earning as little as 40 cents an hour to make Nike products.
(sourced directly from http://www.highbeam.com/ )
On Monday, anti-Nike group NikeWatch is to launch a report into workplace practices at Nike's Indonesian factories in which the group says workers are earning as little as 40 cents an hour to make Nike products.
(sourced directly from http://www.highbeam.com/ )
Another project of Nike’s include the Nike's Reuse-A-Shoe program. Started in 1993, is Nike's longest-running program which benefits both the environment and the community by collecting old athletic shoes of any type and recycling and processing them. The materials that are recycled and processed is then used to create sports surfaces e.g. basketball courts, running tracks and playgrounds.
damaged reputation comes with a cost
In response to criticism in the past, and damages done to the company’s reputation, Nike has made several improvements. Articles have claimed that Nike has taken more concern to business ethics and social responsibilties, and have finally recognised the benefits and need for being ethical and gaining community’s approval.
It has been claimed that Nike has made drastic changes e.g. more donations. This shows that the organisation is taking serious its past mistakes. Articles have stated that Nike have in recent years attempt to cater for better work culture and business ethics. Nike claims to have conducted investigations into poor working condition.
Nike changes to its business ethics consists of
· offering workers better safety packages so they would not come into contact with harsh chemicals
· Plans have been made to improve working environments and cater for a safe environment
· The company discourages child labour
It has been claimed that Nike has made drastic changes e.g. more donations. This shows that the organisation is taking serious its past mistakes. Articles have stated that Nike have in recent years attempt to cater for better work culture and business ethics. Nike claims to have conducted investigations into poor working condition.
Nike changes to its business ethics consists of
· offering workers better safety packages so they would not come into contact with harsh chemicals
· Plans have been made to improve working environments and cater for a safe environment
· The company discourages child labour
Nike’s is known for employing cheap labour in developing countries
In the past decade, Nike has constantly been criticised for their over sea labour practices. Bad publicity for the brand has hit news headlines over the years. Ethical issues ranging from; employing cheap labour overseas, using forced labour and child labour are issues that were often linked to the brands name.
Nike’s reputation has been tainted. And in our opinion, Nike is an unethical globalised business that should adopt better business ethics’. In researching this large scale organisation, we still believe that Nike’s work practices overseas are still poor, but Nike’s attempt to become more socially responsible since criticisms from the public back has been a better improvement.
Some changes.........
Despite that in recent years Nike has implemented some socially responsible practices,e.g donating to charities and funding for good causes around the world, Nike is still considered as being a successful yet unethical company who supports the exploitation of employees in return for high productivity.
Although Nike's proactive work concerning charities and donations is to be commended, the label of being a large organisation that is not very ethically is hard to get rid off.
Although Nike's proactive work concerning charities and donations is to be commended, the label of being a large organisation that is not very ethically is hard to get rid off.
Good contribution of Nike
Good contribution of Nike in2007 includes:
· Annual donation to charities
· Donates money (millions) , goods and sporting supplies
· Developed programs such as the Nikego program in 2002 to assist children maintain fitness
· In the England, the company has funded school playgrounds in the past
· Offers loans to who start small businesses in developing countries
· On a world wide basis, donates to a variety of charities
· “Nike’s community investment efforts are directed toward two principal platforms – getting kids physically active and helping address the challenges of globalisation faced by women and girls,” said Bob Speltz, Nike’s director of global community affairs.
· In 2004, Us employees contribute more than 70 000 hours volunteer work
2002
The NikeGO programme, launched in the US in September 2002, is said to have helped around 150,000 children become more active, using athletics stars like Kathy Freeman to motivate young kids and teens to take more exercise and play sport for fun.
2004
From an article found on ethical corporation.com
Nike claims that they are making efforts to become more ethical as they have distributed up to 3.3% of tax profit to charities in 2004. Nike’s contribution to showing concern for society consists of a $16.2 million cash, ‘some 43% donations and 21.1 million dollars in products and in kind services’.
Thursday, June 11, 2009
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