Nike faced a major public relations crisis in the mid-1990s when allegations surfaced about labor abuses in their subcontracted factories in China and Indonesia. Workers were forced to work long hours in unsafe conditions for low pay and some experienced physical and verbal abuse. This damaged Nike's reputation severely and led to declining sales. Nike was forced to take action to improve working conditions in their factories in response to the crisis.
Nike faced a major public relations crisis in the mid-1990s when allegations surfaced about labor abuses in their subcontracted factories in China and Indonesia. Workers were forced to work long hours in unsafe conditions for low pay and some experienced physical and verbal abuse. This damaged Nike's reputation severely and led to declining sales. Nike was forced to take action to improve working conditions in their factories in response to the crisis.
Nike faced a major public relations crisis in the mid-1990s when allegations surfaced about labor abuses in their subcontracted factories in China and Indonesia. Workers were forced to work long hours in unsafe conditions for low pay and some experienced physical and verbal abuse. This damaged Nike's reputation severely and led to declining sales. Nike was forced to take action to improve working conditions in their factories in response to the crisis.
INTRODUCTION In the mid-1990s, Nike faced a major public relations crisis when allegations of labor abuses in its subcontracted factories in China and Indonesia began to surface. The media launched a global campaign against the company, accusing it of forcing workers to work long hours in unsafe conditions for low pay. THE PROBLEMS • Workers in Nike’s subcontracted factories were No forced to work long hours , often in unsafe specific working conditions. hours
• Workers were paid low wages.
Low wages
Physic • Some of the workers were subjected to physical and verbal abuse. al Abuse . THE IMPACT
Nike was forced to take
Nike's reputation was action to improve Sales began to decline. severely damaged. working conditions in its factories. CONCLUSION
Nike's public relations nightmare is a cautionary tale for all companies.
It shows that companies need to be vigilant in protecting their reputations and that they need to be proactive in addressing allegations of labor abuses.