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Strategic Management
, Sixth Edition
Charles W. L. Hill, University of Washington
Gareth R. Jones, Texas A&M University
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Case Discussion Questions
Discussion Questions for Case 10--Nike: Sweatshops and Business Ethics
- Should Nike be held responsible for working conditions in foreign factories that it does not own, but where
sub-contractors make products for Nike?
- What labor standards regarding safety, working conditions, overtime and the
like should Nike hold foreign factories to: those prevailing in that country, or those prevailing in
the United States?
- An income of $2.28 a day, the base pay of Nike factory workers in Indonesia,
is double the daily income of about half the working population. Half of all adults in Indonesia are farmers, who receive less
than $1 a day. Given this, is it correct to criticize Nike for low pay rates
for subcontractors in Indonesia?
- Could Nike have handled the negative publicity over sweatshops better? What might have been done differently?
Not just from the public relations perspective, but also from a policy perspective?
- Do you think Nike needs to make any changes to its current policy? If so, what? Should Nike make changes even if they hinder the ability
of the company to compete in the marketplace?
- Is the WRC right to argue that the FLA is a tool of industry?
- If sweatshops are a global problem, what might be a global solution to this
problem?
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