Theoretical talk of Nikes labor criteria in foreign nations

What labor criteria regarding security, working conditions, overtime, and so on, should Nike keep overseas factories to: those prevailing in that country or those prevailing in the United States?

The unsuccessfully of labor standards that happen to be child labor, harmful working conditions, increased working time, and poor income in developing countries are still the major problems. In order to increase company profits, Nike then reduces the price by getting the low labor pay paid. The multinational companies such as Nike must developed code of do because of their suppliers to make its unidirectional and accurately. The meaning of an code of conduct is the code that provides a guideline of ethical habits and values recognise the business uses to check out when faced the challenge in a day-to-day work (Locke, 2007). He also declares that the code of carry out of Nike requires subcontractors to consider some basic labor, safety requirements, and environmental and health. Matching to Kochan (2007), the codes of conduct do not protect the labor rights or improve working conditions but can limit legal responsibility and prevent the company reputation only.

According to the truth, Nike faced the situation of the reduced labor specifications in overseas factories that will be the subcontractors. Nike had turn into a sweatshop -- image of the evils of globalization. The definition of sweatshops is unsafe and harmful working conditions including low wages, extended hours or use no overtime pay, health or safeness, and child labor (Banfe, 2001). The sweatshops will take place in the factories that have the issues of poor labor benchmarks (Miller, 2006). For example, the company that will pay the salaries less than minimum salary and forces employees to work overtime. The sweatshops and low labor requirements are the critical indicators that can impact the economical development (Park-Poaps, 2009). Corresponding to Miller (2006), the sweatshops dont help low informed staff in the producing countries from poverty due to the fact that individuals have less alternative options in choosing a job. A major American company Nike outsources the international factories to make their athlete shoes. This will likely caused the United States has the effect on unemployment rate (Greene, 2007). Because of the fact, huge labor markets are had a need to gratify the demand which increasing continuously (Schwartz, 2000). He also says that the requirement of the huge labor marketplaces may cause the ability is become not important. Regarding to Greene (2007), the wages are set based on the efficiency level. No company pays a labor wage beyond the efficiency level. The reason of poor labor specifications in conditions of minimum income and selecting child labor induced Nikes subcontractors to become sweatshop. The environment of minimum income should be cancel to refuse the issues of the poor labor specifications (Greene, 2007). The statistical research found that the anti-sweatshops campaign can improve the unskilled labor pay around twenty percent in the shoes or boots factories (Miller, 2006).

Regarding to basic safety, working conditions, overtime, Nike should contain the conditions with international factories which can be Indonesia, Vietnam, and China. If Nike persists on prevailing conditions in america, there is certainly unessential for Nike to consider outside the house countries manufacturers. Corresponding to Park-Poaps (2009), the research found that the international outsourcing firms have effect on the stakeholders and governance composition in conditions of the public pressure. Nevertheless, through the pressure that Nike received from many groups of association, the company should find the answer to enhance the working conditions or labor expectations from the Nikes international manufacturers. If Nike can enhance its labor requirements, Nike will get benefits from the public relations alternatively than placing more effort. Furthermore, Nike can reduce the price tag on developing public relationship strategies. Corresponding to Park-Poaps (2009) in the recent time, the American companies place importance on corporate public relation in order to answer and perform the general public response. The augmentation of labor specifications in overseas factories will make Nike has good companys reputation. In order to avoid the issues of the sweatshops, the improvement of education and a full time income wage should be done by the government in each country (Greene, 2007). Furthermore, the viable systems of labor conditions should be control and restrict by non-governmental association such as non-governmental organizations (NGOs) (Park-Poaps, 2009).

Nike offers a high public pressure from the challenge of sweatshop in the foreign subcontractor companies. Therefore, Nike should response to the general public by creating the ethical labor management strategies which value to human privileges and also public connection management strategies predicated on the moral practice (Park-Poaps, 2009). Nike can also create the codes of ethics in the organization culture. Corresponding to Kantor (2002), the rules of ethic can produce a good influence on corporate social responsibility (CSR). The company that does the corporate sociable responsibility can create the company reputation in the positive way. Nike should put more work in decision making when conducting business internationally by getting the ethical specifications in human tool management in offering company. Relating to Park-Poaps (2009) the ethical standards of the business can refer to the role of top management that can impact on the business reputations. The managers should present their higher specifications as role models to worker in the manner they should act (Kantor, 2002). If Nike methods the better honest labor standards, the company will acquire good commercial image. Moreover, Nike should hold the foreign subcontractors to prospects prevailing in the United States by having the possible benchmarks in term of working conditions and overtime that protect the essential protection under the law of employees. In the development period, the output limitation in a day should not exceed employee power and also shouldn't hurt the employees health (Schwartz, 2007).

Regarding to the Nike circumstance, the company cannot meet the satisfaction of stakeholder which is the employees. The issue of employees appears to be the influential concern rather than other stakeholders. According to Schwartz (2000), a good company must meet the satisfaction of its stakeholders that are customers, shareholders, and employees. He also argued that if the employees lose their careers, it is the company miscalculation. The emphasis of stakeholders especially in employees triggered the business has more cost adding (Greene, 2007). He also states that many companies stay away from the price of labor by changing the ways in doing business. For example, the automatic check-out counter-top in supermarkets and teller standard bank machines has been within the growing world. The price saving is turn into a major concern at the present time when the economic problems occur. In addition, the technology changing is also the possible factor to lessen the amount of workers. Therefore, the change in technology and the price saving could be the reason behind the unemployment in developed countries such as the USA. These factors lead the top company Nike needs to use the outsourcing manufacturers in overseas countries to create their products.

According to Locke (2007), the ways Nike reaction to the general public pressure are that all suppliers need to sign the code of do and post within the factories. Inside the code of conduct, it provides working out and the personnel to control most of suppliers. Furthermore, Nike has about 1000 mangers employed in those foreign factories to in charge of training Nikes code of carry out and labor routines. Locke also argued that the new authorization procedure for Nike is the three different types of audit that are a simple environmental, security and health audit, and a far more in-depth management and working conditions audit. However, the codes of conduct of Nike appear to be unsuccessful in some countries which the problems of poor pay and inordinate work hours or harassment (Locke, 2007). Hence, Nike should continue to check and evaluate the foreign subcontractor companies. In another way, Nike can use the trusty auditor businesses to inspect the correctness within those manufacturers.

In finish, the sweatshops will be the major problem of Nike in employing foreign subcontractors to manufacturer their products. To get rid of the sweatshops, the related associations or administration in those growing countries should come to provide for and examine Nikes subcontractors. The needed of the huge labor market segments in the real world can create the obstacle in the working conditions like a low income paid, no overtime pay, long-time working, and child labor. On the other hand, the training and a full time income income are also critical indicators that require to concern to be able to solve the problem of unskilled workers in expanding countries. Additionally, Nike should contain the foreign factories to prospects prevailing in subcontractor countries Vietnam, Indonesia, and China. To enhance the labor expectations regarding safety, working conditions, overtime, Nike should practice the ethical standards by concern on the human being right and basic needs of employees. The managers should act as the role model on the moral behavior to help make the employees to follow the rules of ethic. Furthermore, the rules of conduct are essential for the Nike foreign manufacturers to check out and practice in the appropriately way. If Nikes foreign subcontractors can enhance the labor criteria and working conditions utilizing the codes of carry out and the codes of ethic, Nike will get the power from the public relationship in term of company reputation and also avoid public pressure.

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