This Case Assignment for this module looks at an update of Nike and the ongoing issue of sweatshops. The case is found in:
Byars, S., & Stanberry, K. (2018). Impact of culture and time on business ethics, chapter 5. Business Ethics. Rice University, OpenStax. Retrieved from
http://cnx.org/content/col25722/1.3 p. 138. CC BY 4.0 license
Overseas Manufacturing
How can the purchase of a pair of sneakers be seen as an ethical act? Throughout the 1990s, the U.S. shoe and sportswear manufacturer Nike was widely
criticized for subcontracting with factories in China and Southeast Asia that were little more than sweatshops with deplorable working conditions. After
responding to the criticisms and demanding that its suppliers improve their workplaces, the company began to redeem itself in the eyes of many and has
become a model of business ethics and sustainability. However, questions remain about the relationship between business and government.
For instance, should a company advocate for labor rights, a minimum wage, and unionization in developing countries where it has operations? What
responsibility does it have for the welfare of a contractor’s workers in a culture with differing customs? What right does any Western company have to insist
that its foreign contractors observe in their factories the protocols required in the West? What, for example, is sacred about an eight-hour workday? When
Nike demands that foreign manufacturers observe Western laws and customs about the workplace, arguably this is capitalist imperialism. Not only that, but
Western firms will be charged more for concessions regarding factory conditions. Perhaps this is as it should be, but Western consumers must then be
prepared to pay more for material goods than in the past.
Some argue that demanding that companies accept these responsibilities imposes cultural standards on another culture through economic pressure. Others
insist there should be universal standards of humane employee treatment, and that they must be met regardless of where they come from or who imposes
them. But should the market dictate such standards, or should the government?
The rise of artificial intelligence and robotics will complicate this challenge because, in time, they may make offshoring the manufacture and distribution of
goods unnecessary. It may be cheaper and more efficient to bring these operations back to developed countries and use robotic systems instead. What
would that mean for local cultures and their economies? In Nike’s case, automation is already a concern, particularly as competition from its German rival,
Adidas, heats up again.
For the Case 2 assignment review:
TeamSweat. (2011, July 28). Nike sweatshops: Behind the swoosh [Video file]. Retrieved from https://www.youtube.com/watch?
time_continue=1097&v=M5uYCWVfuPQ.
And,
Bain, M. (2017). Nike is facing a new wave of anti-sweatshop protests. Quartz. Retrieved from https://qz.com/1042298/nike-is-facing-a-new-wave-of-antisweatshop-protests/
Mintz, S. (May 2012). Social responsibilities of a U.S. company doing business abroad. Retrieved from https://www.ethicssage.com/2012/05/socialresponsibilities-of-a-us-company-doing-business-abroad.html
St. Clair, J. (September 2018). Nike’s bad air. Retrieved from https://www.counterpunch.org/2018/09/10/105150/
Required Readings:
Bain, M. (2017). Nike is facing a new wave of anti-sweatshop protests. Quartz. Retrieved from https://qz.com/1042298/nike-is-facing-a-new-wave-of-antisweatshop-protests/
Byars, S., & Stanberry, K. (2018). Business Ethics. Rice University, OpenStax. Retrieved from https://d3bxy9euw4e147.cloudfront.net/oscmsprodcms/media/documents/BusinessEthics-OP.pdf. pp. 131-154. CC BY 4.0 license
Mintz, S. (May 2012). Social responsibilities of a U.S. company doing business abroad. Retrieved from https://www.ethicssage.com/2012/05/socialresponsibilities-of-a-us-company-doing-business-abroad.html
St. Clair, J. (September 2018). Nike’s bad air. Retrieved from https://www.counterpunch.org/2018/09/10/105150/.
Reference source for SLP 2:
World Health Organization. (2018). WHO global report on trends in prevalence of tobacco smoking 2000-2025 (2nd Ed.), pp. 11-18. Retrieved from
https://apps.who.int/iris/bitstream/handle/10665/272694/9789241514170-eng.pdf?ua=1.
Video:
TeamSweat. (2011, July 28). Nike sweatshops: Behind the swoosh [Video file]. Retrieved from https://www.youtube.com/watch?
time_continue=1097&v=M5uYCWVfuPQ.
World Bank. (2014, June 30). Treating River Blindness and other neglected tropical diseases [Video file]. Retrieved from https://youtu.be/6WDETcrqNFA.
Optional:
Merck (2019). Over 30 years: the Mectizan donation program. Retrieved from
https://www.merck.com/about/featured-stories/mectizan.html
Required Readings:
Bain, M. (2017). Nike is facing a new wave of anti-sweatshop protests. Quartz. Retrieved from https://qz.com/1042298/nike-is-facing-a-new-wave-of-antisweatshop-protests/
Byars, S., & Stanberry, K. (2018). Business Ethics. Rice University, OpenStax. Retrieved from https://d3bxy9euw4e147.cloudfront.net/oscmsprodcms/media/documents/BusinessEthics-OP.pdf. pp. 131-154. CC BY 4.0 license
Mintz, S. (May 2012). Social responsibilities of a U.S. company doing business abroad. Retrieved from https://www.ethicssage.com/2012/05/socialresponsibilities-of-a-us-company-doing-business-abroad.html
St. Clair, J. (September 2018). Nike’s bad air. Retrieved from https://www.counterpunch.org/2018/09/10/105150/.
Reference source for SLP 2:
World Health Organization. (2018). WHO global report on trends in prevalence of tobacco smoking 2000-2025 (2nd Ed.), pp. 11-18. Retrieved from
https://apps.who.int/iris/bitstream/handle/10665/272694/9789241514170-eng.pdf?ua=1.
Video:
TeamSweat. (2011, July 28). Nike sweatshops: Behind the swoosh [Video file]. Retrieved from https://www.youtube.com/watch?
time_continue=1097&v=M5uYCWVfuPQ.
World Bank. (2014, June 30). Treating River Blindness and other neglected tropical diseases [Video file]. Retrieved from https://youtu.be/6WDETcrqNFA.
Optional:
Merck (2019). Over 30 years: the Mectizan donation program. Retrieved from
https://www.merck.com/about/featured-stories/mectizan.html
Required Readings:
Bain, M. (2017). Nike is facing a new wave of anti-sweatshop protests. Quartz. Retrieved from https://qz.com/1042298/nike-is-facing-a-new-wave-of-antisweatshop-protests/
Byars, S., & Stanberry, K. (2018). Business Ethics. Rice University, OpenStax. Retrieved from https://d3bxy9euw4e147.cloudfront.net/oscmsprodcms/media/documents/BusinessEthics-OP.pdf. pp. 131-154. CC BY 4.0 license
Mintz, S. (May 2012). Social responsibilities of a U.S. company doing business abroad. Retrieved from https://www.ethicssage.com/2012/05/socialresponsibilities-of-a-us-company-doing-business-abroad.html
St. Clair, J. (September 2018). Nike’s bad air. Retrieved from https://www.counterpunch.org/2018/09/10/105150/.
Reference source for SLP 2:
World Health Organization. (2018). WHO global report on trends in prevalence of tobacco smoking 2000-2025 (2nd Ed.), pp. 11-18. Retrieved from
https://apps.who.int/iris/bitstream/handle/10665/272694/9789241514170-eng.pdf?ua=1.
Video:
TeamSweat. (2011, July 28). Nike sweatshops: Behind the swoosh [Video file]. Retrieved from https://www.youtube.com/watch?
time_continue=1097&v=M5uYCWVfuPQ.
World Bank. (2014, June 30). Treating River Blindness and other neglected tropical diseases [Video file]. Retrieved from https://youtu.be/6WDETcrqNFA.
Optional:
Merck (2019). Over 30 years: the Mectizan donation program. Retrieved from
https://www.merck.com/about/featured-stories/mectizan.html
Sample Solution