The paper "Nike and Child Labour" is a good example of a business case study. Nike is one of the most prominent companies in the world today worth $4 billion. The company is comprised of various corporations that are located in countries such as; China, Korea, Pakistan, Vietnam, Thailand and Indonesia (thinkquest. org, 2011). By the year 1996, Nike had gathered $5 billion in sporting goods business and the logo of Nike attracted several celebrities to the culture of the American sports in various parts of the world. The company’ s products were a symbol of excellence to a large extent.
However, the image changed in its scope of view resulting in the company being linked to greed, abuse and lack of concern to the suffering of the people (Doorley & Garcia, 2006). While Nike is a prominent company across the world, there have been cases of child labor associated with the company. Accusations of child labor against Nike Company have been linked to its production in Pakistan. Although there are labor laws in Pakistan that are against child labor as well as slavery, the government of Pakistan has not been actively involved in curbing the problem of child labor in the country (Azam, 1999).
In addition, child labor accusations have been pointed out in relation to Nike subcontracting firms in developing countries. Nike and Child Labor Background NIKE is basically a company that is involved in the production of footwear, equipment, accessories and clothing to be distributed in the sports and athletic industries. It is noted to be the largest trader of these types of garments in the world. In particular, it is estimated that NIKE Company sells about nineteen thousand retail accounts in the United States alone.
The company also sells to about 140 other countries across the globe. Largely, the NIKE products are manufactured by independent contractors having footwear products and a number of them are manufactured in the developing nations. The manufacture of the NIKE products mainly occurs in Taiwan, Mexico, Italy, China, U.S. and Korea (The Nike Business, 2001). Nike’ s Best Practice There are various business practices that have been exemplified by Nike Inc e. g. product leadership and consumer intimacy. Product Leadership: this approach involves the development of a wide range of excellent products and services through creativity, quick commercialization of ideas and continuous pursuit for new strategies.
The outcome of the approach is first-class pricing e. g. Nike, Sony, and Intel among others (Bartholomew, 2008). Consumer Intimacy: this involves the production of products that meet the needs of the customers. This helps in drawing the loyalty of the customers. Nike has been able to obtain loyalty from its customers especially because of its brand and the quality of products it produces (Bartholomew, 2008). Child Labor and Ethical Issues There are approximately 700 factories of contract for Nike and 20% of the employees create products for the company.
Conversely, there are some articulated ethical issues associated with the company. Some reports suggest that the company has engaged in unethical acts in such that; it has exposed its employees to poor working conditions. Other reports suggest that the company is often noted to exercise harassment and exploitation (TED n. d.).
Azam, F. (1999) Nike Shoes & Child Labor in Pakistan. September 28, 2011, from, http://www1.american.edu/ted/nike.htm
Bartholomew, J. (2008). Building on knowledge: developing expertise, creativity and intellectual capital in the construction professions. New York: John Wiley and Sons
cbae.nmsu.edu (2006). References on Working Children in Pakistan. Accessed September 28, 2011, from, http://cbae.nmsu.edu/~dboje/nike/pakistan.html
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thinkquest.org. (1998). Businesses: Nike. Accessed September 28, 2011, from, http://library.thinkquest.org/trio/TTQ02189/nike.htm
UNICEF (2001). Child Labor. Accessed September 28, 2011, from, http://www.un.org