I.

Summary

Child labor is defined as work that deprives children of their childhood, their potential
and their dignity, and that is harmful to physical and mental development. Work that
interrupts a child's schooling by not allowing them to attend or forcing them to leave
early is also considered child labor.

According to the International Labor Organization (ILO), affects more than 215 million
children who are forced to work as means of survival or to support their families.

Nike is the world's leading supplier of athletic shoes and apparel named after the greek
goodness of victory, Nike. It was originally founded as Blue Ribbon Sports by Bill
Bowerman and Phil Knight in 1964. Currently employs around 23,444 workers and had
more than $25 billion in revenue on 2013.

In 1996 Life magazine showed a now famous picture showing nike involved in child
labor. The photo showed a twelve year old boy, Tariq, surrounded by the pieces of a
Nike soccer ball which he would spend most of a day stitching, it was found that Tariq
and other children were only being paid for the grand sum of 60 cents for stitching nike
soccer balls all day. The picture raised outrage from the public, particularly from
activists across North America not only because it showed child labor, but because it
showed him working in such terrible conditions.

This was not the first time Nike had been under scrutiny from the public for similar
situations regarding poor work environments being found in Indonesia, China, and
Vietnam. This led to a huge outrage by the general public across the United States.
People were protesting at Nike outlets holding up signs and expressing their anger at
Nike for what they believed to be an immoral act. Nike soon responded by making a
code of conduct that the companies making their merchandise must follow.

It gives a very good status symbol when you said that you are working for Nike, But
what if the person is a 9yr old child? What image will it give you as a customer when
you buy those products or brands that employ child labor?
 II.Statements of Facts

Pakistan has a population of approximately 1 million and an important centre for

production of goods for export to international markets, particularly sporting
goods. Pakistan has a per-capita income of $ 1, 900 dollar per year. It means
that with only $5 dollar per day, a typical person can survive. Due to high rate of
inflation it became difficult for a low income population to survive. Because of
poverty and unsustainable income, child labor spread all over Pakistan. It
became one of the most important centre for production of goods to international
markets. Export from Sialkot brought income of almost $385 million into the
Pakistan economy. Half of the world’s soccer ball are made in Pakistan, and
each one of them passes through a process of production where child labor is
involve.

Nike and the local production company aims to minimize lost and earn the
highest amounts of profit. Because of that they are involved in illegal practices,
which is child labor, a practice which is not highlighted by the government of the
developing countries. Nike and SAGA sports both benefit with the access of
cheap labor in Pakistan. Nike’s entrance to Pakistan market was part of its long
term strategic planning to minimize their expenses.

III.Statement of the Problem

 Nike has been accused of using child labor in the production of its soccer ball in
Pakistan. The country has low capita income per year so many of industries
enter to Pakistan because of cheap labor. Nike enter the Pakistan market for
their long term strategic plan to lessen their expenses. Pakistan has laws against
child labor and other inhumane practices but the government take a little action
to implement it. Because of lack of implementation of laws child labor still exist in
different part of Pakistan especially in Sialkot.
 Child labor exist in Sialkot both in export sector and domestic sector. It shows
that the government tolerating companies or other industries in performing child
labor. Also the government carries lack of willingness to do anything to solve this
kind of problems. Due to child labor it creates high rate of uneducated people in
the country of Pakistan. Instead of going to school some children forced to work
for their families to sustain their basic needs and to earn some money.

 Increasing the demand of product produced by child labor means encouraging

more child labor, encouraging more birth rates, more slavery, and increasing the
sweatshops and discouraging education. This factor affect the perspective of
children the mere fact that they earn money, the high chances that they will
choose to work than to educate their selves. It creates more slavery because the
production is increases. Children who doesn’t have enough knowledge on
precaution and in other equipment they are prone to accidents.

IV. Solution

 It was very alarming knowing that a huge company is using their powers to
manipulate others, especially those children who are being forced to work in
order to lessen the production cost and gain more income. The best way to end
child labor is to buy more of the products that the children produce which is
augmented by Stephen Chapman.

This would increase the demand as they produce more, they will earn more
giving them a chance to rise above poverty. But, this would encourage more child
labor, more birth rates, more slavery and discouraging education as the parents
of those children would want them to earn more.
  In order to decrease child labor and create a beneficial effect for the children’s
future, Nike could create a program for their laborers. Nike should provide a
rightful salary to their employees. They could also hire children of legal age and
not those who are under-aged.

V. Recommendation

Child Labor is a great threat that should be faced by the company of Nike, if they
really want to protect the image of the company they should make a plan to change and
pay for those children who work so hard but don’t have nothing in return. They should
secure the health of their employees and make sure that they are all safe and capable
of handling different equipment. Children are prone to danger and different hazard, they
are supposed to study until they reach their maturity that makes them ready for the job.

Therefore, this program will lessen and decrease the incidence of child labor. To their
under-aged laborers they could make a contract wherein they could study through
scholarship from Nike until they reach legal age, then they could be a working student.
Studying, then at the same time, earning salaries for their family needs. Nike Company
should support the equal economic growth of the country, as they improve one’s
economic system they should also follow the rules and regulations especially those who
are made to protect the citizens of the country where they established their labors.