INT 220 Global Dimensions in Business Module 6-2
Global Supply Chain Case Study Southern New
Hampshire University
Global Supply Chain Case Study
INT 220: Global Dimensions in
Business Amy Dunlap
June 9, 2025
Challenges in Nike’s Global Supply Chain
, Nike, a global leader in sportswear, has faced significant criticism
regarding its supply chain management, particularly concerning
labor practices in developing countries. Key challenges include labor
exploitation, with reports of sweatshop conditions, child labor, and
low wages in factories across Asia, including Indonesia, Vietnam, and
China (Locke, 2013). These issues have damaged Nike’s reputation
over the years. Another major challenge has been supply chain
transparency, as critics argue that Nike lacked sufficient oversight in
subcontracting, leading to unethical labor practices in supplier
factories (Fair Labor Association, n.d.). Additionally, public and media
backlash, driven by high-profile campaigns from activists and
exposes by outlets such as ProPublica and Supply Chain Dive,
pressured Nike to reform its practices. Regulatory and compliance
risks also pose difficulties, as varying labor laws across countries
complicated the enforcement of ethical standards (Locke, 2013)
These challenges highlight the complexities multinational
corporations face in maintaining ethical supply chains while ensuring
cost efficiency.
Risks and Advantages of Global Supply Chains
Global firms like Nike encounter both risks and advantages in
managing their supply chains. One major risk is reputation damage,
as scandals related to labor abuse can lead to consumer boycotts
and loss of brand trust (Davis, 2025). Regulatory fines are another
concern, since violations of labor laws in different countries can
result in legal penalties (Locke, 2013). Supply chain
Global Supply Chain Case Study Southern New
Hampshire University
Global Supply Chain Case Study
INT 220: Global Dimensions in
Business Amy Dunlap
June 9, 2025
Challenges in Nike’s Global Supply Chain
, Nike, a global leader in sportswear, has faced significant criticism
regarding its supply chain management, particularly concerning
labor practices in developing countries. Key challenges include labor
exploitation, with reports of sweatshop conditions, child labor, and
low wages in factories across Asia, including Indonesia, Vietnam, and
China (Locke, 2013). These issues have damaged Nike’s reputation
over the years. Another major challenge has been supply chain
transparency, as critics argue that Nike lacked sufficient oversight in
subcontracting, leading to unethical labor practices in supplier
factories (Fair Labor Association, n.d.). Additionally, public and media
backlash, driven by high-profile campaigns from activists and
exposes by outlets such as ProPublica and Supply Chain Dive,
pressured Nike to reform its practices. Regulatory and compliance
risks also pose difficulties, as varying labor laws across countries
complicated the enforcement of ethical standards (Locke, 2013)
These challenges highlight the complexities multinational
corporations face in maintaining ethical supply chains while ensuring
cost efficiency.
Risks and Advantages of Global Supply Chains
Global firms like Nike encounter both risks and advantages in
managing their supply chains. One major risk is reputation damage,
as scandals related to labor abuse can lead to consumer boycotts
and loss of brand trust (Davis, 2025). Regulatory fines are another
concern, since violations of labor laws in different countries can
result in legal penalties (Locke, 2013). Supply chain
