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Nike And Corporate Responsibility

Executive Summary – Nike Inc.

Peretti Vs. Nike:
In January 2001, Peretti choose the word ‘Sweatshop' to be printed in his Nikes. Nike rejected order citing the company's rules. In retort, Peretti order a pair of shoes with a ‘colour snapshot of 10-year-old Vietnamese girl who makes my shoes". With the email exchange between Nike and Peretti being forwarded all over the world, it led to a huge PR Nightmare for the organization. All through Mid-1990s, Nike has been subjected to negative press, lawsuits and demonstrations on college campuses alleging that firm's overseas contractors subject employees to work in inhumane conditions for low wages

History of Nike Inc.:
Philip Knight started his own athletic shoe distribution company in 1964 with shoes from Onitsuka Company. After 8 years, Onitsuka Company recognizing the huge potential of the American Shoe market, switched to a larger and more experienced distributor. Knight rather than searching for another shoe manufacturing company started his own new company – ‘Nike' Nike started with contract manufacturing from 2 firms in Japan and slowly moved to Taiwan and Korea. Its manufactured facility in the United states were closed down because of the high costs Rather than owing a shoe or apparel factory, Nike contracts the production of its products to independently owned manufacturers Except for New Balance Inc. Most of the Nike's competitors also use overseas contracts

Sweatshop Movement vs. Nike:
"Sweat shop Movement" started when Kathie Lee Gifford, who on hearing that her personal collection – ‘Katherine Lee Collection @ WalMart' were being made in sweatshops, vowed to do whatever she could to promote the anti-sweatshop cause. The movement slowly started targeting other brands. Nike being the number-one athletic brand in the world soon found itself under attack by the rapidly growing anti-sweatshop movement. Soon different people started accusing Nike of unethical practices.
· Joel Joseph, Chairman of...