Nike and Working Conditions at Factories in Indonesia

TitleNike and Working Conditions at Factories in Indonesia
Publication TypeCase Study
Year of Publication1995
AuthorsLadenson, R
Corporate Authorsof Center for the Study of Ethics in the Professions, IIT
Date Published04/1995
PublisherCenter for the Study of Ethics in the Professions, Illinois Institute of Technology
Publication Languageeng
Keywordsbusiness , BUSINESS ethics , SOCIAL , Social Justice
AbstractIn the last five years, as wages have risen in countries such as South Korea and Taiwan, the Nike Shoe Company has shifted many of its production sites to Indonesia. It costs about $5.60 to produce a pair of shoes in Indonesia which sell for $45 to $80 in the United States. Indonesian girls and young woman who sew the shoes start at an entry level rate of $1.35 a day. Union protections are non-existent in Indonesia. If there is a strike the military will often break it up. When questioned about labor conditions in Indonesia Nike representatives take the position that they work with contractors in Indonesia who are responsible for making the shoes. The Nike Company, say these representatives, do not run the factories, and if there are complaints about the treatment of workers, it is not within the Nike Shoe Company's scope to investigate or do anything about them. Is the Nike Shoe Company's position ethically responsible? If so, why? If not, why not? If not, what would be a reasonable position for the Company to take?
NotesCase study from the 1995 Intercollegiate Ethics Bowl. Copyright, Robert Ladenson, Center for the Study of Ethics in the Professions, Illinois Institute of Technology, 1995.
URLhttp://ethics.iit.edu/EEL/Nike.pdf
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