Nike Case Study Essay
1. Should Nike be held responsible for working conditions in foreign factories that it does not own, but where subcontractors make products for Nike?
Some people probably think that designing and marketing its products is what Nike is responsible for. But outsourcing its manufacturing divisions into foreign countries doesn´t release Nike from the responsibility. During a developing process manufacturing is one of the most important intermediate steps and because of that it belongs to Nike´s responsibilities, no matter if they own the manufacturer or not. Everybody knows that it is hard to keep the overview about every developing stage but if you decide to put this step into a foreign country, you have to …show more content…
In my opinion a company like Nike has very experienced managers in executive positions. The intention of outsourcing manufacturing into foreign countries like Korea can lead to many problems. Before you start operating in those difficult locations you have to make up arrangements. One of them should be an audit team which checks the actual situation and report it to the current person in charge. They would have seen that there are very strong disproportions in manufacturing factories and would have done something against it. I don’t know why but making and signing contracts is one of the main functions an area manager does and especially in this case they missed drawing up contracts with factory owners to prevent those bad working conditions.
Anyway the way how Nike handled this difficult situation was not bad but perhaps too late. To “establish an independent monitoring association – later named the Fair Labor Association (FLA)” has been a good alternative but validity was not that high because “companies could accept” it but did not have to. I think Nike’s whole policy has to be revised so that situations like this will never happen again.
5. Do you think Nike needs to take any changes to its current policy? If so what? Should Nike make changes even if they hinder the ability of