Nike was the poster child for cleaning up a scandalridden. Kidd, who was with nike from 19962006, provided students with an indepth look at nikes efforts to form a socially responsible company. At brown university, nike went so far as to pull out from a contract with the womens ice hockey team because of efforts by a student activist group that wanted a. Cbs centre for corporate social responsibility cbs working paper series porcelaenshaven 18 dk 2000 frederiksberg isbn 9878792117280 working paper no. Nike failed to address corporate responsibility during their early ventures because the two men who started the company just simply did not know any better. Nike s corporate social responsibility csr practices have been evolving since 1991. This appears, in some cases, to be enough for corporations to avoid bad exposure in media, or to be put under great pressure to stop the cooperation with the factory where the incongruity is claimed to have taken place.
Dusty kidd, vice president of corporate responsibility compliance at nike inc. In its approach to social responsibility, nike groups initiatives into six separate categories. Ethical issues in nike, the issue of sweatshops and. A few years ago, business of fashion reported that nike has successfully transformed its tarnished image to become a recognized sustainability leader, with morgan stanley ranking nike the most sustainable apparel and footwear company in north america for environmental and social performance, including its labor record. Nike became an international company when it opened an office in taiwan in 1975, and it now has branch offices all over the world.
Corporate social responsibility and the dilemma of antisweatshop activism its time that labor activists come to acknowledge what some prominent business scholars have concluded. Nike of exploiting child labor and sweatshop conditions in factories. In the article how nike solved its sweatshop problem, a history of nikes poor ethics over the years is explored. Managing ethical missteps sweatshops to leadership in employment practices nikes corporate social responsibility nikes csr practices environmental sustainability in 1990. Nike named top 10 for social responsibility reporting.
Behind the swoosh is the ultimate video for exploring the sweatshop issue. Csr rankingscsr rankings the corporate responsibility magazine rank 23rd nike inc. The pragmatic and ethical barriers to corporate social responsibility disclosure. Phil knight admitted the nike product has become synonymous with slave wages, forced overtime and arbitrary abuse. In the corporate world today, few terms are more discussed than sustainability and corporate social responsibility. Nike is facing a new wave of antisweatshop protests. Managing ethical misstepssweatshops to leadership in employment practices. In the case study, governance and sustainability at nike a, there is an outline of how nike has moved from a company with a very poor sustainability image to one who is playing offense pain, hsieh, adamson 20, 3 in. There is no need for an introduction, i have already done this. To achieve that, we need all parts of our value chain to understand and deliver on our goalsfrom our leaders to product designers, to the employees in our stores, and workers in contracted factories who make our products. Group3 irada ahmedova narmin balayeva fatima rajabzadeh ulkar mammadzadeh nike. Now, nikes sweatshop problem is threatening a comeback. Nikes main focus now to maintain the developed code of conduct based on the. Last year, morgan stanley ranked nike the most sustainable apparel and footwear company in north america for environmental and social performance, including its labour record.
Responsibility for sweatshops is local, not global jagdish bhagwati is an economist and professor at columbia university. Nike could comply with its competitors policy on lowcost supply chains overseas so that civil activists will not be able to point out nikes responsibility. This trend continues today, as nike continues to post audit data and social responsibility reports with the help of outside organizations to identify and work to solve issues surrounding their supply chain. Nike is facing a new wave of antisweatshop protests quartz. All this is hard to believe, given the steady stream of corporate social responsibility csr accolades in the last 10 years. The ethical and economic case against sweatshop labor. Every day, an increasing number of people navigate the internet and are exposed to various media.
Nike accused of tolerating sweatshops world news the. Many antisweatshop groups were studentled, such as the united students against sweatshops. Csr and sweatshops good corporation, bad corporation. By 1998, the company accepted it needed to take responsibility. Sustainability past, present and future 12 april 2014. Nike is the leading company in sports and fitness fields and located near beaverton, oregon csrwire, 2012. Nike and child labour had become indelibly linked in the public consciousness. It was going to be a longer journey than they might have imagined. Marshall global strategies mgt 448 shabbir karim october 12, 2009 nike the sweatshop debate beneath all the hoopla and controversy about nike being a successful company in the united states in which its earnings in 2009 according to. Through the materials they design into products, through the process of making those. Antisweatshop activists and labor market outcomes in indonesia ann harrison uc berkeley and nber and jason scorse uc berkeley march 2004 during the 1990s, human rights and antisweatshop activists increased their efforts to improve working conditions and raise wages for workers in developing countries.
Social media platforms have allowed for the rapid spread of information about factory. Nike and the sweatshop debate nike the sweatshop debate shelia d. Not so long ago the nike image was synonymous with sweatshops and unethical. Nike and child labour how it went from laggard to leader.
For this particular case nike face lots of ethical ad social issues. Nike responses corporate social responsibility essay. Nike corporate social responsibility report introduction background. Now, nike is peddling a rather frank assessment of the limits of factory monitors and compliance, a move that will likely burnish its image even more. Managing ethical missteps sweatshops to leadership. Nikes corporate social responsibility nikes corporate social responsibility csr practices have been evolving since 1991. Forbes takes privacy seriously and is committed to transparency. He is also the author of in defense of globalization and a fellow at. To say nothing of the bad rep it creates for legitimate corporate social responsibility programs in ethical organizations. The corporate social responsibility practices of nike have evolved since its doom days and now customers and corporate clients seem to have their faith restored.
In 1998, the new york times exposed that nike paid workers in china and vietnam less than two american dollars a day. Nike employees continue to face poverty, harassment, dismissal and violent intimidation despite its pledge three years ago to improve conditions for the 500,000strong global workforce. A case study of the potential and shortcomings of corporate social responsibility as an idea by hanne voje in partial fulfilment of the master degree american studies, ilos supervisor mark luccarelli university of oslo, autumn, 2008. This report will investigate the nike example and how it has exploited workers in. Tie individuals with corporate social responsibility 2. How nike embraced csr and went from villain to hero triplepundit. Why did nike fail to address corporate social responsibility earlier. Nike s contracts with its sourcing factories required the factories to obey labor regulations and, in nike s view, this meant that any abuses were the factories responsibility. Escalating sweatshop protests keep nike sweating nike worked hard to improve conditions in its factories around the world, but activists say the company has been slipping back into using. Our concern for the welfare of persons affected by sweatshops includes, of course, sweatshop workers them. Clearly, we had leverage and responsibility with certain parts of the business, so why. Beaverton, or 9 november, 2006 nikes commitment to industryleading transparency in its social responsibility reporting has led to the company being named the top u. The american cartoonist garry trudeau began featuring a series of strips satirizing nike s sweatshop factories in his popular newspaper cartoon doonesbury. The nike case article pdf available in journal of business ethics 604.
Most of the workers at sweatshops are women, and because sweatshops are located. The bangladesh disaster and corporate social responsibility. Business for social responsibility, the lawyers committee for human rights. Nikes acquisitions include starter and umbro nike, inc. For nike to have its image associated with sweatshops in asia was more than. Managing ethical misstepssweatshops to leadership in. With control of over 60% of the business nike has become a pop culture and at the same time involved in corporate social responsibilities. A oneday conference, corporate social responsibility and sweatshops, will be held on march 23, to examine the current business practices, codes of conduct, and broader efforts of international corporations, national union organizations and independent watchdog groups in relation to apparel manufacturing. Nike, adidas and pumas use of lean manufacturing among the majority of. Corporate social responsibility how does this idea play.
This is standard corporate cutting and running, says angeles solis. Establish a new symbol representing improved labor. Its hard to believe, given the steady stream of corporate social responsibility csr accolades the company has racked up in the last 10 years. Nikes corporate social responsibility csr practices have been evolving since 1991. It is headquartered in oregon, united states and operates on a global scale. In nearly two decades, jones has helped to transform nike from a company that was synonymous with sweatshops to a recognised sustainability leader. December 11, 20 by reidbennett in company profile, corporate social responsibility and the clothing industry. It was only 20 years ago that nike was facing child labour and sweatshop allegations, with consumers protesting outside niketown stores. Using nike as a case study, the film documents first hand the widespread and oppressive and exploitative. At first, nike refused to accept responsibility, pointing out that nike had never manufactured its own footwear and apparel. We have a longstanding commitment to working with suppliers on improving manufacturing conditions and minimizing negative impacts to workers, local. From sweatshops to sustainability by jacqueline pompei improved technology and communications have connected modern society and have made our small world even smaller. Managing ethical missteps sweatshops to leadership in employment practices.
It specifically showcases how rough of a past nike has had with community and family environments, as they have ran sweatshops in bangladesh with extremely poor working conditions. Nike aims to be a brand with purpose that moves the world forward. How nike solved its sweatshop problem sustain case csr. Nike the sweatshop debate essay 1796 words 8 pages. Nikes transparency was an important step in their comeback, but the problems were still simply not going away. Nike is focusing corporate responsibility efforts in the areas in which they can have the greatest impact and create the most value. Corporate social responsibility how does this idea. Responsibility for sweatshops is local, not global. The case study of nike, inc is critical to understand the serious and major transformation a corporation underwent to sustainability and a circular economy, focusing on restoring waste to be put.