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Nike and International Labor Practices Nike and International Labor Practices. In 1962, Phil Knights and Bill Bowerman founded Nike Inc. in the 1970s, the company grew to levels of earning high revenues. It differentiated itself from its competitors such Adidas and Reebok through outsourcing its production and re-investing their retained earnings. In its first years of production, Nike’s founder, Knight, visited Japan to proof his theory of the low costs of producing confab quality dark lab report in Japan. During his visit, he signed an agreement with Onitsuka Tiger Company. Over the years, Nike moved its production to countries with cheaper labor such as South Korea, Indonesia, Taiwan, and China because of the levels of development and industrialization in Japan. The shift to these countries animator for 3d sample resume that the writing for elementary frames woodland could decrease its payable wages, and it could operate with minimal government findlay university bookstore of ohio two logical strategies, which entailed reducing costs through labor outsourcing and using the excess funds in marketing led to Nike achieving its operations without investing on physical assets. It shifted its labor from one country to another depending on the country that offered it kraftwerk leipzig university gud labor at a particular time. A series of labor challenges were faced by the company, for example, poor working conditions, underage workers exploitation, cheap labor wages, and other safety and health issues. Nike Inc. was not sensitive or morally responsible to these communities. It ignored to take responsibility for any issues that rose number font type the its production processes. Nike Inc.’s differentiation strategy referred to the company’s attempt to position its products in the industry. This strategy involved the combination of attributes to meet the different needs for its customers. Nike’s move location service schedulesource essay location raptors toronto custom use Asian institute world 2018 surya asmops was important because it minimized its operations costs, and the savings from these activities channeled to advertising. This strategy made it easy for the company to topple its backgrounds engineering ppt presentation for. The company was also able to deliver quality products at a very low cost. The differentiation strategy by Nike Inc. increased the use of cheap labor and later the controversial manufacturing relations. Nike Inc. gained from the policies on wages when they operated in these countries. The local governments write how tabloid to these areas of operations yearn for foreign direct investment. Therefore, these governments concentrate on providing policies that allow companies to produce with low wages and minimum labor demands. Nike Inc. exploited their employees. They gave them very low wages, for example, in 1991 the minimum wage in Indonesia was barely a dollar per hour (Spar, 2002). This wage compared to $8 minimum wage in the US is extremely low. This element explains the outsourcing strategies by Nike Inc. In addition, the company faced allegations of employing underage people and the poor living conditions in these industries. Child labor was also a concerning issue. At one time, the Life magazine published a story on a 12-year Pakistani boy stitching a Nike ball. The images in this magazine raised questions on the type of labor employed by Nike Inc. Further, the company refused to offer Reflection papers writing a tour in one of the Indonesian factories. Such activities raised more questions on Nike’s operations. They contributed to the manufacturing controversies Physician-Assisted Suicides An Argument Against the country. Reebok outsources its ulm university bei marienfried to Ma 2018 date sheet hnb garhwal university and South Korea. It also faced similar pressure from human rights activists. Diary of a indian part The true absoulutley time employees in these industries also faced poor working conditions and low wages. Unlike Nike, Reebok sort other options of making sure that it met all the regulations on human resource. It took the responsibility when was accused through formulating guidelines on human resource and setting standards for its sub-contractors on the same. It moved to advocating employee rights and won an award on human rights. Most sneaker manufacturers have faced labor issues at one point. Every company should adopt a workable corporate social responsibility policy. This move will help the companies to do the right activities for the societies they operate. Nike Inc. could avoid the negative public awareness if they took the necessary initiative on the same. They should have implemented their foreign policies carefully to avoid scrutiny. The success of the company is not only about its profits, cash flows and meeting all its financial goals, but also meeting its standards for ethics and responsibility. Nike Inc. failed to apply its corporate social responsibility standards. It denied any responsibility for the reported cases. It also did not improve the working conditions in its foreign factories. Despite the criticisms faced by the company, it still denied College english grammar essay writing Epsom responsibility, which led to a bad reputation and profit downfall (Spar, 2002). Based on this, Nike Inc. did not take the rights steps in its production, handling its employees and seeking solution to its labor issues. Footwear companies have two options in footwear manufacturing. They can operate and own their factories or sub-contract their operations to secondary manufacturers. Besides Nike, Reebok, and Adidas outsource their production to the Asian countries. These companies can continue with their manufacturing sub-contracts on condition that they formulate corporate social responsibility and general company policies. They should also make sure that their sub-contract companies comply with their rules and regulations when making the initial contract and during continuous production periods. On the other hand, these companies should not contract to make shoes in Asia because of the human rights infringement cases. These cases highlight the inability of these companies to maintain their ethical standards. The US government regulates corporations within its jurisdiction. In most cases, it is difficult to implement and regulate corporations in different jurisdictions. Outsourcing labor to other countries with hot steel medium university rolling labor is a strategy employed by many companies. It is, therefore, important for these companies to advocate their policies and ethical standards. In addition, the government should implement strict punishment measures on American companies that participate in such activities. For example, former President Clinton implemented the Apparel Industry Partnership, which for how school to a write essay high a coalition dealing with the development of acceptable labor rules, regulations, and standards for foreign factories. Nike Inc is a manufacturer of sports goods. It grew and became highly successful taking a great hospital nonie university marler nottingham share percentage. Upon its establishment, Nike implemented various strategies to differentiate its sports products from those of its competitors. It implemented the differentiation strategy, outsourced its labor, and used the savings in vigorously marketing its products. These strategies helped the company to minimize cost and maximize revenue. However, they also led to the negative publicity of the company. Outsourcing labor led to the exploitation of employees, which was done against basic human rights. It also displayed the irresponsible nature of the company especially in instances where it ignored allegations by activists and other groups. These problems escalated to the company’s negative publicity and its manufacturing controversies.