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1. What are the ethical and social issues in this case?

Nike has become the object of anti-sweatshop critics and media publicity since the mid-1990s. In 1996 and 1997 founded sweatshops in the United States and in 1996 occurred at Wal-Mart from Kathy Lee Gifford's reports about Michael Jordan and Nike, then the movement against sweatshops back in the media spotlight, issues of ethics and social were a major discussion about labor practices bad child labor and low wages. Labor under age, working hours, no overtime pay and remuneration. Cases of child labor laws, low wages which caused huge controversy in ethical business practices and negative perceptions. Peretti accused does not understand of labor laws because it has hired minors (16-18 years old) with low wages, a tailor who received 31 cents per hour & required to work 20 hours a day. They were providing economic opportunities for other countries & took

advantage of overseas workers as cheap labor costs such as outsourcing to efficient & reduce costs of productivity. Nike used it in Southeast Asia to avoid of strict regulations of the USA & Europe. Safety, health and poor working environment Workers of Nike were allowed to break in one bathroom and drinking of water twice during each eight-hour shift until supervisors involved in the incident fainted. Thomas Nguyen, founder of the Vietnam Labor Watch reported cases of worker abused at Nike, he reported that supervisors of Nike punishing 56 women to wearing work shoes did not fit, and forced them to walk around of the factory under the scorching heat of the sun. In the incident twelve workers fainted and they were sent to the hospital. 1997-1998, Nike was accused of trying to take advantage by the report through a series of publicity advertisements. In the film of Moore, The Big One was called Nike has a serious threat to the health and safety of workers, but it denied by Nike because Moore considered did not include of Knight promised to change the age of the workforce. From 14 to 16 years. Joel Joseph, chairman of the USA Foundation, accused Nike pay Indonesian workers under 14 cents per hour to make the company's line of Air Jordan shoes & total salary of six Nike factories in Indonesia was reported were less than sub

contract $ 20 million per year that Jordan received from endorsement contract with Nike.

2. Why should Nike be held responsible for what happens in factories that it does not own? Does Nike have a responsibility to ensure that factory workers receive a living wage? Do the wage guidelines of FLA or WRC seem most appropriate to you? Why? Nike responsible for what happens in factories that it does not own to keep and protect reputation name of Nike, so they paid wage to the workers. NIKE committed to socially responsible required by law, expected a leader, respect the labor and employment rights of all employees, to minimize the impact on the environment, provide a safe and healthy work place, and promote the health and wellbeing of employees. Nike should provide workers a safer work environment, certain ethical and moral standards, the code of ethics applies to Nike and their subsidiaries worldwide. Nike was not responsible for the standard of living wage because it was the responsibility of local government who must decide it. The wage guidelines of FLA or WRC seem most appropriate to me because FLA said that the company would pay the minimum wage or the prevailing industry wage in the country where they operate, Work Rights Consortium (WRC) to promote living wage minimum wage which workers should be paid enough to meet their basic needs, food, clothing and shelter as well as allow a little extra for discretionary spending

4. Is Nikes responsibility to monitor its subcontracted factories a legal, economic, social, or philanthropic responsibility? What was it 10 years ago? What will it be 10 years from now? Yes, Nikes responsibility to monitor its subcontracted factories, economic risk, social, environmental, and subcontracted obligation to perform a specific task. Nike should hire an

independent instructor to ensure compliance with local regulations, and sub-contractors who commits an offense should be given a warning and an opportunity to fix the situation, if they still continues after being warned, Nike must lay off doing business with subcontractors and replacing with another. By

FLA, the company would pay the minimum wage or the prevailing industry wage in the country where they operate, Workers Rights Consortium (WRC) to promote `living wage ' & the minimum wage, the worker should be paid for their basic needs of food, clothing and home, also allowed a little extra for discretionary spending. After more than ten years, they still have not been changed in the garment industry to better living conditions, the majority of women workers around the world. Relocating industry through continuous, company continues to make the highest profits with the lowest pay, no matter how they do it. CSR refers to the obligation of the company, especially for the stakeholders, CSR has a social obligation of business and is committed to exit substantially exceed philanthropy, communications firm to defend the people and companies. CSR is important, particularly in todays for social & political climate, determining the business needs of the community and its obligations to the community.

8. Nike seems to be a much more respected company today than it was back when the antisweatshop movement began. What has changed in Nike and the world to explain this? Nike was more respected today than previous because they did some improvements by implementing 6 recommendations to improve working conditions in factories subcontracting. Improved labor conditions in the production facility, Safety and Health environment of work place, Working Hours, Remuneration and Freedom of Association to give employees chance to negotiate or improve wages and working conditions. Nike joined with FLA that aimed at developing a code of Expanding education with

ethics and a system for monitoring labor factories to ensure compliance.

scholarship, so all worker could take a program and they have option to study (a significant and very positive). Finally, Nike joined the World Wildlife Fund program to reduce greenhouse gases, and in 2007, Nike won the No. 3 ranking list of the "100 Best Corporate Citizens" published by CRO magazine. Nike ranking rise from No. 13 in 2006 and No. 31 in 2005.56