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Nike Case
✓ -low wages 1. Labor criticisms against Nike
-low age
-poor working conditions
-unfair profits (profits were not being
invested back into the community)
✓ No. 100% outsourced. Blame the 2. Was it fair nike was targeted?
contracting firms Phil knight perspective
✓ Yes. By chasing cheaper labor cost 3. Was it fair nike was targeted? Jeff
on earth, Nike actively rewards labor Ballinger perspective
abuses. When labor conditions
improve, Nike leaves the country and
effectively punishes the labor
improvements
,✓ Agressive- Defensive posture 4. Nikes response tactic was...
- as Nike denied accountability, the
firm increased its advertising to
demonstrate that the brand was not
vulnerable to the activists accusations
✓ college athletes, coaches, and athletic 5. Labor activists targeted
directors. As well as celebrity athletes
that endorsed the Nike Brand
✓ -reduced their profits 6. What impact did this have on
-tarnished their brand Nike ?
-made it difficult to recruit college
students for employees
-therefore Nike would have to offer
higher salaries
✓ -Hired Dusty Kidd into its public 7. How did nike respond?
relations department to draft a new
internal code of conduct and lead its
Labor Practices Department
-Hired Ernest and Young to conduct
an internal audit of its overseas
, factories
-Nike brought Andrew Young in to
conduct an independent evaluation of
its overseas factories
-Nike arranged for Dartmouth's School
of Business to independently survey
its overseas factory workers
✓ -Factories must default to U.S labor 8. Phil Knight announced a seres of
ages(16-apparel, 18-shoes) changes for Nike
-Factories must comply with OSHA
standards (max workers at 60 hours
per week and better trained managers
(language requirement)
-Nike made micro loans available to
workers
-Nike led the industry effort in the
Apparel Industry Partnership
-followed by leadership in the Fair
Labor Association
✓ Apparel Industry Partnership (AIP) 9. What industry efforts was nike the
leader of
Fair Labor Association (FLA)