Nike is a worldwide global corporation that has its shoes manufactured on a contract basis in places like Asia, China, and Vietnam. Although it does not actually own any of the manufacturing locations, it has long been accused of having its products manufactured in facilities that exploit workers. Although Nike admits some wrongdoing in the manufacturing facilities of its contractors, it claims to have started a commitment to improve working conditions in those facilities.
Nike has suffered attacks from a number of agencies and organizations throughout the world that claim that the workers who manufacture Nike shoes are denied the basic essentials of living "a fair wage and decent benefits. All that occurs while several sport megastars are reaping in multimillion dollar contracts to promote Nike shoes. Over the years, Nike formulated tactics to deal with the problems of working conditions and compensation in subcontractors. It hired a strong consultant (Andrew Young), commissioned an independent audit of its subcontractors, and spelled out initiatives to improve those working conditions. Still, Nike's critics were not satisfied. They protested on university campuses and accused Nike of continuing to hide the conditions of workers.
STRATEGIC ISSUES AND DISCUSSION QUESTIONS.
1. Should Nike be held responsible for working conditions in foreign factories that it does not won, but where sub-contractors make products for Nike?.
Although Nike may be technically removed from responsibility in some areas, it clearly has the obligation to be certain that exploitation by subcontractors do not occur. Certainly the pay and working conditions that the workers of subcontractors receive is due in large part to the contract that has been negotiated by Nike. If Nike had chosen to make improved working conditions a part of the arrangement, them those benefits may have been passed on to the workers. Still, Nike is a publicly owned firm whose goal is to improve the wealth of its shareholders.