Griffith University 2705942
From the analysis made from the case study we have come across major issues. Which states that Nike is a part of sweatshops. The major issues analysed are health and safety issues, where theworking conditions of the people working in factories were not suitable for work. Another issuewe analysed was wages. Nike subcontracted its production of shoes and athletic gear todeveloping nations, the reason was clear to minimize the cost of production and increase profits.In some countries the workers were paid less than 1 dollar a day, the workers worked for sixdays a week mostly young women. Another major issue which was analysed was the ethics in business. Nike clearly lacked in ethics, all the root cause for the sweatshops to prevail were because of doing business unethically. In increasing the profits and keeping the shareholdershappy Nike forget its basic business ethics. After Intensive investigations our report concludesthat all the un-fair working conditions, health and safety issues, low wages problem have beencaused because of the subcontractors. accessories, another reason for sweatshops to prevail inunderdeveloped countries is because of their government. The government, in an attempt toimprove poverty and unemployment, has sometimes opened doors for labor abuses. After doingthe analysis of the case the main reason behind the sweatshops were un-ethical practice of business, the root cause of all the sweatshops is Nike being un-ethical in doing business, beforesubcontracting the work to subcontractors if Nike had a agreement of working conditions andlabor protection the problem would had not taken place. Following on from our analysis andconclusions, we recommend that, Nike should develop a standardize format, for labor protectionand work environment. All the subcontractors should enter into a contract with Nike and shouldfollow the companies’ rules for labor protection and the working environment; the subcontractors should meet the companies’ format of production to gain a contract. Another solution that we recommend is Nike should appoint inspection managers in all countries wherethe manufacturing takes place. The inspection managers should inspect the factories everydayand give a weekly report back to home country, if the managers find that the subcontractors areviolating the agreement they can terminate the agreement and take legal actions. As well asethics in business are concerned Nike should first incorporate some business ethics like humanrights protection, environmental issues, child labor protection.