Case Study

Case Study-China Sweatshop
Kelvin Lanier
MGT 448
July 22, 2012
Jean Greer

This essay will cover various topic related to Nike and the production of its products. Nike has profited billions since its inception. Phil Knight has become one of the wealthiest man in the United States. Nike has products in 140 countries and profit $15 billion annually. Nike has always used third world coutries to produce its shoes. The conditions and the qualities of these shops have come under question in recent years. This essay will explore: Are the workers being paid enough, are the workers to young, and the role the government plays.
The question as to whether the workers are paid enough seems to be open for debate. Many studies have done to determine if the workers are adequately being compensated. For example, Robert Basin, a CBS reporter asked a young woman named Lamp who works in a Vietnamese Sweatshop   how does the pay work? She stated that the pay is below minimum wage. The woman also stated she couldn’t leave if she wanted to. Nike has always upheld it’s position as being equal to the workers. Nike postion is that   it only abides by the countries standard of living. The notion that the gap between the United States and contries like Vietnam, Malaysai, and South Korea are wide seems to support Nike claims.   Some workers have complain about severe weight loss.

Once organizations like Nike, chooses to become a global company, it should often absorbs an raise in profitable income. Although, entities similar to   Nike have to overcome some tough barriers before establishing a successful business in an international nation. A list of concern problems: are child labor laws, wages, and outsourcing’s effect on sales. As a result of this, most popular established companies have presented many cases to defend their positions on conducting business in the foreign nation. One such example is a Nike sweatshop labor case that stirred up a large amount of controversy over ethical...