Nike Inc. has 900 supply factories that are located in 50 countries. The claims of Nike human right violation state that Nike has outsourced its work to underdeveloped countries to get benefit from cheap labor. However, Nike has not paid attention to the working standard and working hours in its overseas factories. Nike is accused of providing horrible working conditions and low wages to its factory workers. In addition, the company is also accused of hiring child labors in its factories. The factories of Nike have been critically renamed as sweatshops. The issue of Nike sweatshop has been highlighted by a number of magazines and human right activists. The issue of human right violation gained international attention when the Life
Magazine of the United States published the story of a child labor stitching Nike footballs. Before the rise of this issue, Nike was believed to be the Goddess of American public. However, after the violation of human rights, the company confronted criticisms from all over the world. A number of articles, stories, and documentaries were published that unfolded the dreadful reality of the global production.
According to the regulatory practice, basic labor rights must be same every part of the world regardless of the geographic location. In order to deal with human rights challenges, Nike must make adjustments to its agreements with Asian subcontractors.
There are diverse perspectives regarding the global labor practices. The issues of child labor and poor working conditions are at the core of global debates. Human right activists, around the globe, directed the attention towards on the real or alleged exploitation of workers. The exploitation of workers is more common in third world and developing economies. A lot of critics charge MNCs with the exploitation of unjust labor practices and working conditions. The argument that sweatshops violate basic human rights is supported by a number of scholars. On the other side, a number of economists believe that the presence of sweatshops is a foreseeable feature of economic development. According to these arguments, any attempt to eliminate sweatshops would hinder the process of economic development in developing countries.
According to the regulatory perspective, workers have basic human rights, and it is unfair to violate those rights. The violation of basic labor rights is unfair despite the geographical location of the workplace. The labor practices and working condition of positive MNC deviants can be used as a model by other MNCs. The positive MNCs deviant serves as a model for businesses that wish to take capitalize on the opportunity offered by globalization. It allows global businesses to move beyond the issues of sweatshop. The fair labor practices and working conditions could result in numerous benefits for businesses. Some of these advantages involve enhanced productivity, better employee morale, and improved reputation (Denis and Bowie, 2003).
Background of the Problem
The demand for athletic-style shoes increased rapidly in 1980s. The factors that increased demand for athletic-shoes included public concerns about physical ...