Group D-11

FLIPSIDE

Reality (in pictures)

Reality (in numbers)

Retail Price (Nike)

$90

Factory Price to Nike

$22.50

Profit to factory
Materials

$1.12
$14.60

Overheads

$3.41

Labor costs

$3.37

Country

Labor costs (per year)

US

$32000

France

$39000

Germany

$64000

Japan

$40000

Indonesia

$1000

Why the obligation?

Right to
equitable
remunerati
on
Right to
education

Right to
safe
working
conditions
Right
against
exploitatio
n
(overtime)

Implicit role or Explicit role?

Extremely low
margins for
contractors

Contracts
awarded on
the basis of
cost alone

Nexus
between
contractors
and
government

Indirect
support to
contractors
policies

Way forward
Customer
s
Sharehold
ers

Media

Nike
Manageme
nt Policies

Dont Just Do it!

Do it right.