Nike and the Negative Controversy with Sweatshops
The following will discuss the ethical and social issues in the Nike, Inc. and Sweatshops case. It will also discuss why Nike should be held responsible for what happens in factories that it does not own, and whether Nike has a responsibility to ensure that factory workers receive a “living wage”. It will also discuss if the wage guidelines of FLA or WRC seem most appropriate. Finally it will discuss if it is ethical for Nike to pay endorsers millions while its factory employees receive a few dollars a day.
There are a number of ethical issues that surround the Nike, Inc. and Sweatshop case study. The most important ethical issue is
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This is because since the workers are there to produce the products for Nike, the fact that Nike does not actually own the facilities is irrelevant. Ultimately Nike is the beneficiary to the work that is being done at the factory. The only way I could see Nike getting out of some responsibility is if the factory produced products for other companies as well. It is only ethically correct that Nike be responsible for making sure employees received a “living wage”. Nike should make sure this is achieved by including it in part of the contract for the independent factories that are making the products for Nike since Nike is not the direct payer, the individual factories are responsible for paying the wages of their employees. The wage guidelines for the Worker Rights Consortium (WRC) seems most appropriate because it states that factories should pay a living wage that takes into account the wage required to provide factory employees with enough income to be able to afford housing, energy, nutrition, clothing, health care, education, potable water, child care, transportation, and savings (Carroll, 2011). Even though Nike opposes the WRC and is a member of the Fair Labor Association (FLA), the WRC seems more appropriate in order to ensure people are able to provide for their families. I understand the idea behind Nike paying endorsers to promote their product. However, I do not agree with Nike paying millions of dollars