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Essay / Research Paper Abstract
This 3 page paper discusses the strategies and practices of Nike in using cheap labor from outsource suppliers. The legal, cultural and ethical issues are considered along with the role of host governments. The bibliography cites 3 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEsweatdebate.rtf
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Unformatted sample text from the term paper:
t the employees of the subcontractors, with Nike accused of using sweatshops, where poor employees are exploited. When looking at Nike it may be argued that this has been a
strategy that has emerged as a result of different influences, out of commercial acumen to create profits, with the duty to satisfy shareholder needs for profits as well as consumer
desires for affordable sportswear. The company has a number of influences. Legal influences are seen wherever the firm operates, the need to comply with consumer regulations as well as
general legalities including employment law are all present. The ability to outsource many operations, including manufacturing, means that the firm reduces the areas where it may be legally liable or
responsible, passing these risks and costs onto the subcontractors. Nike is a multinational operation; as such there are a number of cultural influences. The firm is strongly associated with
the US, and as such US cultural ideals, which can be a significant disadvantage when the country is undertaking politically unpopular or controversial actions. By subcontracting the cultural issues that
arise in the way HRM planning and strategy needs to be implemented is also avoided, with Nike even arguing that in terms of the poor condition that some wages and
conditions are not poor when considered in the context of the host country. It is the ethical challenges that have been the
greatest challenge. For example, it has been cited that in the Dominican Republic the wages paid to those manufacturing Nike goods are only $.70 an hour and with sweatshirts stitched
on a total of 6.6 minutes it has been calculated that the labour on a childs sweatshirt that costs US$ is only $0.11 even though is sells for $22.99 (Skenazy,
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