FINAL THOUGHTS

People all around the world experience many different options and opportunities when it comes to living and working conditions. These options and opportunities depend on many factors. The place a person is born, the amount of money their family owns, the people they are connected to (job placement, money, food, etc.), the color of their skin, the country they live in, where the list can go on forever for the factors that create a person to gain the opportunity for appropriate living conditions in life. Most of these factors are nearly impossible to choose, which makes certain opportunities seem like inequalities. The largest factors that is impossible for someone to choose the opportunity is: where they are born, the color of their skin and whether they are male or female. It is sad to say that the placement of inequality is due to the lack of opportunity one faces. If it is broken down even further, global inequalities are suffered by those who were born in third world countries and a place where the opportunities are not as apparent as those in modernized nations. There are not many choices when it comes to the opportunities many of these people face.



Nike has found a way to increase profits while keeping production costs low. They outsource their products to third world countries as a way to find cheap labor. The people willing to work 70-80 hours a week are those who want to keep food on the table and want to support their families’ basic needs (Dutton 2008). Nike isn’t short at firing workers because new hires can happen daily with unemployment rates quite high in these poor countries. Many people are willing to work for next to nothing in order to provide their family with some type of money. Regulation of worker treatment and working conditions for these factories is tough to follow for Nike especially since they have 800,000 employees at 700 factories in some 52 countries (Dutton 2008). With these high numbers, regulation is nearly impossible; however Nike has constructed plans to develop a supplier code in order to regulate its overseas production sites. Top executives believe it all starts with communication, by staying in contact with their suppliers.


Other ways for change are for Nike to identify its goals and what it wants to accomplish ethically and morally. Next they need to go into deep understanding and detail on what is going on within these factories and the problems that are being faced (Dutton 2008). After this, the needed changes can be addressed and a strategic plan can be put into place. Placing the right person in the correct position is also very important. With the right personnel the company can provide appropriate action that is efficient and effective. It is also tough to employ these changes over night because many believe that executing these changes will increase costs and become inefficient. As we all know the whole reason behind outsourcing products into these countries is to reduce the cost and find the cheapest labor. Others believe however; that it will increase productivity and provide better conditions if labor practices are followed (Dutton 2008).

Attention to these sweatshops is slowly becoming more prevalent and the issues are being taken into consideration. Global inequalities are still ongoing; however the opportunities these third world citizens can explore are increasing. The focus of the American way is in need of a facelift and needs to be relooked upon. The increase in greed and outsourcing is fueling the fire to modern day slavery in foreign countries. The racial tensions are visible and the dehumanization of the people of these countries has been accepted for too long. In order for change, democracy has to be the forefront for remodeling the structure of capitalism. America was founded on democracy and that everyone should have equal opportunity. Modern America has been priding itself on capitalism where the rich get richer and having money equals power. In fact, Nike came to terms with Tiger Woods on a contract worth 100 million dollars (22 million a year) just as long as he wore their product. Even a portion of this money could go towards helping a working family in a Nike sweatshop live slightly better than $1.25 a day (Keady 2009). With greater awareness to the sweatshop issues and the ability to recognize wages that a family can live on in third world countries, America can do its part in providing slightly more equality throughout the world.



After reviewing much material on Nike and listening to both sides of the matter, I have understood the deeper reasons multinational corporations make the decisions that they do. They want their company to be the best that it can be when they are there and after they leave. Whether this is financially or ethically CEOs want people to love and respect their business. The risks many take (Phil Knight CEO of Nike) can propel a company into the elite class of corporations and provide the world with many of their products. Nike has been a prime example of the steps and lines it takes to cross in order to find cheap labor and make a profit. I have a fond understanding of the less privileged in the world and those who strive for a better life. It has been inspiring and motivational for me to find a better way of doing things. Western culture is widespread among the world and globalization will only speed up the process. I have also understood where many of these ideas that top CEO’s come from. They are primarily business decisions and driven off of a capitalistic market. Potential businessmen and CEOs have the opportunity to change current practices and to provide the world with moral and ethical decisions. Nike can be a reverential frontrunner for respecting humanity, while still offering opportunity and not always placing an emphasis on profits for the betterment of themselves.

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http://www.oregonlive.com/opinion/index.ssf/2009/10/when_will_nike_just_do_it_on_s.html
http://ethisphere.com/how-nike-is-changing-the-world-one-factory-at-a-time/

Nike Sweatshops Resistant to Change

As one of the largest supplier of athletic wear, Nike produces its products in many third world countries. Many people and advocates have tried to stop the buildup of these sweatshops in these countries and even trying to change the working conditions inside these buildings. The reality is, this hasn't slowed Nike's production or even put a mere dent in the profits they are reeling in. Many citizens of these poor countries are non-whites and do not have the many privileges those in the West have acquired. This makes it hard for these people in these poor countries to make a living and provide for their families. This brings Nike's perspective more clear on their resistant to change. For those working in these large factories it is a better alternative than to the other options they could choose to work.

Many poor Africans have few opportunities when it comes to getting a job that is able to satisfy the needs of their family. Sweatshops provide a more appealing choice where the labor is not so backbreaking such as laborers on construction sites. Alternative jobs are often worse than working in sweatshops and don’t support a more consistent stay. Some economists agree that women working in sweatshops in Indonesia can make up to five times more than in the subsistence agricultural market. This makes it easier for sweatshops to find workers in these countries and there are always people lining up.

Sweatshops may be seemingly slightly better than the opportunities many in third world countries could obtain, however, the wages and working conditions are not even close to specifications those hold in first world countries. Another negative aspect sweatshops impose is the people they hire within their factories. A study was shown that 60% of Honduran sweatshop workers were previously employed before taking a position at one of these factories. Many were not too destitute and also were more educated than the rest of the population looking for jobs.

Sweatshops may have proven to not help those third world citizens get out of poverty. With few options of work and sweatshops the only opportunity, combined with no regulation of working conditions, leads to worker abuse. Those poor citizens are willing to do anything for work and a low salary working indoors is enticing. In order to combat this problem, organizations need to be put into place and regulations enforced. Sweatshops will still show resistant to change unless action and a global code is put into place. As long as multinational corporations are able to set up these factories in third world countries and have a surplus of worker demand then the conditions will continue to remain the same hardships will be faced by many citizens of these countries.

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Reference: http://www.accessmylibrary.com/coms2/summary_0286-24377425_ITM

Web Resources

http://www.thirdworldtraveler.com/Boycotts/NikeThird_facts.html

- Interesting facts on Nike shoe production in third world countries

http://www.businessweek.com/magazine/content/04_38/b3900011_mz001.htm

- New plans Nike is going to take when confronting the sweatshop issue.

http://www.toolness.com/nike/

- Interesting mission statement on how Nike views sweatshops and the accusations they have against them.


http://en.wikipedia.org/wiki/Sweatshop

- Full information on swatshops and how Nike is seen around the world and in the US.

http://www1.american.edu/TED/nike.htm

- Good site that represents all details surrounding Nike and their production. Also information on child labor and how much their workers are producing.

www.youtube.com/watch?v=xVuScVCF1Ws

- Video on child labor in sweatshops. Explains about Nike and the child labor they use.

http://www.viet.net/~nike/childlabor.htm

- Interesting perspective on child labor in Vietnam. Uses a type of letter explaining what is going on.

http://www.slideshare.net/chuckoluckorama/nike-is-bad

- A little powerpoint used to explain Nike and how it is perceived as bad.

http://www.educatingforjustice.org/stopnikesweatshops.htm

- A campaign page giving information on how to stop sweatshop activity.

http://www.organicconsumers.org/clothes/nikesweatshop.cfm

- Organic activists page gives their points of view on Nike sweatshops and their history.

http://homepage.mac.com/barbarap2/home/laborcrises/Nike.htm

- Action that has been taken by Nike and their sweatshops.

http://urbanlegends.about.com/library/weekly/aa022101a.htm

- Interesting request made by a person to have their shoes personalized. Gives a different outlook on what Nike will do to cover their tracks.

http://www.feministezine.com/feminist/modern/Women-in-Slavery-Sweatshops.html

- Good article responding to issues faced in class. Talks about women in slavery and Nike sweatshop activity.

www.youtube.com/watch?v=zCszZ5lwAgA

- Youtube video using hidden cameras inside sweatshops and the conditions workers are exposed to.

http://industry.bnet.com/technology/10005375/apple-and-high-tech-face-sweat-shop-pr-back-eye/

- Giving a new perspective on sweatshops using technology. Looking at previous Nike sweatshops and comparing them to the Apple company.

http://www.webster.edu/~woolflm/sweatshops.html

- Another class related concept of women and working in sweatshops. Talking about the use of women and their role in sweatshops (Nike).

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NIke Class Concepts

Many of the products Nike produces are often made in foreign third world countries. Within these countries are people who do not have the resources necessary to leave their homeland and find work elsewhere. This brings hardships on their families and a daily fight for survival. The low paying wages Nike gives the people of these countries is only enough to get them by on a daily basis. These people do not experience white privilege. This is where the color of their skin and the education they posses would be enough to get a quality paying job in a more industrialized nation. Instead, they are forced to undertake a work ethic where the motivation is to make enough money for their family to survive.

A problem many people did not face in third world countries prior to industrialization was the strict slave like conditions in multinational corporations. In pre industrialization it was the norm to go to work and work hard in order to support your family. The work ethic gradually increased to set standards for workers to get the highest production returns necessary. As the post industrial era came about people became consumers. This led companies to produce more and thus provided greater profit for them. With the increase in profit came the increase in greed. Next came the outsourcing of products and not taking care of the conditions workers are subject to. Those working in these locations are the poor of the world. They are known as the “failed consumer” and are unable to live a comfortable life.

Nike is one of these companies employing the failed consumer, having a majority of their employees be paid slave wages. This leads those people to make it nearly impossible to support their family. Nike can be seen as a synopticon. The industrialization and consumerism era has done this to Nike where it can be seen as ‘the many watching the few” (multinational corporations). This is a place many businesses want to see themselves and the power they hold. This power can be used positively and negatively. Much of the negative attention comes when a corporation employs those in poor working conditions and bad wages (Nike). With the proper steps and the right moral and ethical ideal, multinational corporations can be perceived better in the global spotlight (Nike).

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Nike Progress

Nike is a large multinational corporation. The size of this business draws criticism from many labor force groups and those who oppose underage workers in third world countries. Many of the decisions Nike makes come under fire because of their labor practices. Although there are many negative attributions associated to Nike in third world countries, there are positive changes the corporation is making in improving working conditions.

Nike was looked down upon in the 90s due to their increasing profits and their outsourcing of products in poor countries. In those times when problems occurred the public relations staff would hurry off and extinguish any falsehoods by either, closing factories, or denying these claims. Many critics find problems in the 900 supplier factories in as many as 50 countries. Nike has implemented a team to go in and inspect hundreds of these factories and make sure they are all up to grade with labor laws and working conditions. They have visited over 600 factories and even revisited the places with the most problems. They have also encouraged the Fair Labor Association to follow up on these factories and add input on any wrongdoings. For those countries that keep violating the labor codes, Nike is quick to pull their production from those areas. Nike has also expanded its inspections to environmental and health issues regarding the safety of its employees.

Public demonstrations are not as common anymore with the Nike Corporation. This is due in part of the implemented staff Nike has hired dealing with factory inspections and labor laws. The inspectors however are limited and not able to catch all problems surrounding the many factories. Many protesters are able to go straight to the company itself and identify any problems. These problems are then taken into consideration and looked at in depth. Many other retailers such as Wal-Mart and Target who can control their prices, for the most part, do practically nothing for regulating labor in other countries.

While Nike is making progress, it is far from being a beneficial place to work in third world countries. This is due to their ability to move to countries that will not let its workers create a union. This keeps labor cheap and the ability for Nike to keep producing many products. Although Nike implementing new labor conditions will help the working conditions for its employees, it still fails to recognize the payroll disparity faced by the workers.


Reference- http://www.businessweek.com/magazine/content/04_38/b3900011_mz001.htm

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A Little Nike History

Nike is a sportswear company that has been around since the mid 1960s. Nike started small in Beaverton, Oregon and has grown to a global level. It employs many people throughout the world and has often been accused of operating sweatshops in third world nations. Nike is one of the top athletic apparel companies and many people strive to have their products. Owning these products says a lot about one’s image. Many people purchase Nike merchandise to satisfy a certain status level. Several individuals who purchase many of Nike’s products fail to recognize the hardships and inequalities many workers have faced when constructing these items.


Nike gets its name from the Greek goddess of Victory. The Nike swoosh was developed in 1971 and has been a large trademark for this corporation. Anywhere around the world someone can look at that symbol and know that its Nike. It wasn’t until 1972 that the first shoe line was released. Soon after that Nike had its first athletic spokesman, Ilie Nastase, a top tennis player. Nike has since prided itself on top professional athletes and wants to send a message that its products are for extreme dedicated athletes. Also, that by wearing these products a person can be more successful in the sport they participate in. This branding image has been very successful and has affected Nike’s business to explode.

A few years later in 1980 after the launching of their first shoe line, Nike decided to go public while having a 50% market share in the United States shoe industry. This market share occurred even before television commercials became prevalent. During the production of commercials the slogan, “Just Do It,” was formed, which is now a highly visible motto for athletes. With the increase in popularity and a net worth that kept on growing, Nike needed to build more factories and produce more products. It became so successful that Nike steadily grew to other countries of the world.

With the increase in demand and the need to produce more products, Nike needed to find cheaper labor and a larger workforce. These locations were found in some of the poorer countries of the world such as Vietnam, Indonesia, China and Mexico. Many Labor Watch Unions have witnessed minimum wage violations and overtime infraction laws in Vietnam as recent as 1996. Much of their goods are produced in these Free Trade Zones where cheap labor is exploited. Nike has schmoozed its ways around certain regulations by developing factories in other regions of the world with less of an emphasis on monitoring regulations. These sweatshops are not slowing down and are in fact being created more so in poorer, less-governed regions. The cheap labor is driving profits for Nike which increased its yearly revenue from 6.4 billion dollars in 1996 to 17 billion in 2007.

Nike has been aware that many of its practices are not accepted by everyone. They say they have taken steps to minimize the dangerous working conditions and long hours they employ third world individuals to endure. Nike is still being criticized for its poor wages and locations it chooses for producing its products. For being one of the largest athletic suppliers in the World Nike must lead by example and place more of an importance on humanity and less of an emphasis on earning a buck.

- Reference: http://en.wikipedia.org/wiki/Nike,_Inc.


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Outsourcing of Nike Products

Topic Overview

Nike is one of the biggest suppliers of athletic apparel in the world today. Much of these products are produced overseas and in areas with cheap labor and production costs. These cheap labor costs lead owners and other stakeholders within the company to earn large profits. The low labor costs are putting a burden on many of the workers in these third world countries. The construction of these products takes place mostly in Vietnam, China, and South Korea. Outsourcing to these countries is necessary for Nike because the workers are not able to form unions and it keeps costs down. Many of the locations within these countries take place in large factories with poor facilities and hazardous risks. A common name for these low quality facilities are known as "sweatshops." Bambi Turner explains more on Nike and the history they hold.

While outsourcing jobs to cheaper third world countries is good for many atop the Nike food chain, this keeps jobs from being created within the US and only solidifies the struggle many people in these poor countries share with poverty and health risks. Many can defend the fact that those working in these locations are surviving by the wages they make in these sweatshops. An argument can be made that if it weren't for Nike outsourcing to these countries, then many of the workers would be left off to starve to death and be unemployed. It is also important to consider the opportunities and weaknesses sweatshops deliver to these third world countries.

Why Nike?

As a Sport Management major I come into close contact with many athletic related services, products and events. Nike is a large supplier to many of those related in my field. Recently this year Washington State University also changed it's official contract of athletic apparel over to Nike (formerly Russel). The passion I share for sports carries me over into my desire to discover the true realities that unfold with a large multinational corporation. I aspire to uncover the inner workings of a large corporation and their needs to outsource overseas. Working in athletics I find it very intriguing to have the opportunity to view many of the Nike products. I am interested in where these products come from, who makes them, and the hardships that are overcome for seemingly simple items.

Class Themes

This topic relates to the themes in class to such that many inequalities are occurring with the workers in Nike factories overseas. Much of the burden is falling on the workers in these factories because of the harsh working conditions and low paying wages they are receiving. Not much attention is paid to the working facilities or the opportunities many third world citizens can explore. With a spotlight and deeper look into a multinational corporation hopefully more people will see the inequalities and lack of opportunity many face. A deeper look into outsourcing and sweatshops along with the reasons behind it, will hopefully engage more citizens to act in a more humane and caring manner.

What To Get From This Topic

I wish to understand the deeper reasons multinational corporations make the decisions that they do. Whether it is financial, or personal I find it captivating the risks large corporations are willing to take. I also wish to find a better understanding for the less privileged in other countries and the hardships they must overcome in order to become successful. I also hope to find many connections between western culture and that of other countries of the world. Also where ideas are generated and the consequences for the actions many powerful leaders and businessmen make.