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Nike Corporation

Nike Corporation
Labor Practice in Developing Countries
Over the past half century, the international flow of goods, services, and capital has grown rapidly. Globalization creates new economic, cultural, and social opportunities, but also poses the challenge of ensuring that workers throughout the world share in these opportunities. Multi National Corporations are investing in developing countries in order to exploit the new opportunities for division of labor on a global scale. This essay will examine & analyze the labor practice in Nike’s footwear and apparel factories in developing countries. In the mid-1990s Nike, one of the world's most successful footwear companies is hit by a spate of alarmingly bad publicity. After years of high-profile media attention as the company that can "just do it," Nike is suddenly being portrayed as a firm that relies on low-cost, exploited labor in its overseas plants. Nike officials vigorously deny the charges, claiming that Nike has no control over the independent contractors who manufacture Nike shoes. But, Nike must learn to deal with the tangle of conflicting data that surrounds the concept of a fair wage and working condition.
Company Background: Founded as an importer of Japanese shoes, NIKE, Inc. (Nike) has grown to be the world's largest marketer of athletic footwear and apparel. In the United States, Nike products are sold through about 20,000 retail accounts; worldwide, the company's products are sold in about 110 countries. Both domestically and overseas Nike operates retail stores, including NikeTowns and factory outlets. Nearly all of the items are manufactured by independent contractors, primarily located overseas, with Nike involved in the design, development, and marketing. In addition to its wide range of core athletic shoes and apparel, the company also sells Nike and Bauer brand athletic equipment, Cole Haan brand dress and casual footwear, and the Sports Specialties line of headwear featuring licensing...