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Marc Kasky Vs Nike Essay

2517 words - 10 pages

MM 5001BUSINESS ETHICS AND LAWNIKE VERSUS MARC KASKY"IMPLEMENTING SOCIAL RESPONSIBILITY"MBA R48 - March 2014Christian Valentino S. 29112494MASTER OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS AND MANAGEMENTINSTITUT TEKNOLOGI BANDUNG2014NIKE VERSUS MARC KASKYMARC KASKYMarc Kasky of San Francisco sees his world as a community and has a long history of caring about the other in it. Marc Kasky stop buying Nike product in the mid-1990s after reading stories about working conditions in overseas factories where they were made. By then Nike, Inc., had become the main focus of the antisweatship cause, accused of exploiting low-wage workers who made its shoes and clothing. The more Kasky read about Nike, the more convinced he was that it was not only victimizing workers, but lying about it too. Kasky (with help from his friend sued Nike in April 1998 for false advertising, alleging it had made untrue statements about its labor practices.NIKE, INC.,Nike is a world's largest producer of athletic shoes and sport apparel. Nike succeeded by following two basic strategies. Its product strategy is to design innovative, fashionable footware and apparel for markets in developed nations, they have the items manufactured by contractors in low-wage economies. At first, Nike's manufacturer was done in Japanese factories, South Korea, and Taiwan. When these countries took up higher value-added production in electronics and wages rose, they began to shiftes poduction to China, Indonesia, and Vietnam.Nike, as a big profitable company, have a responsibility for their workers at the factories making its products. The responsibilities appropriate compensation / payment based on workers working hours, safety and healthy workplace, the company should not employed child labor in the factories, the company should provide all legaly mandates benefits for the workers, give safety insurance to all the workers, provide convinience working place, and avoid the sexual harrasment and abusement. However, since Marc Kasky take some legal action againts Nike, Nike was not really concern about their workers, and more concern about generate much profits. The workers only get $0.14 an hour for making a $80 Nike shoes.Nike move their factories to developed countries, such as Indonesia and Vietnam due to lower wages cost and in this case, the factories can reduces their cost for every shoes made. Nike should more concern about the people in their factories. All of workforce are forced to do the job beyond their capacity. All this "slavery" can reduce the productivity and Nike must conduct the new more humane regulation in Indonesia and Vietnam.Facing charges provided by Marc Kasky, Nike could have better carried out its social problem and begin to make the Code of Conduct that elaborates 51 specific labor, safety, health, and environmental standards in their factories. The policies about the workers is good but the implementation is not good enough, Nike need to give more effort, such as hiring...

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