Nike Hitting the Wall

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Submitted By savage466
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Hitting the Wall: Nike and International Labor Practices

1. Does Jeff Ballinger have a convincing argument about Nike? Does Nike have a convincing response?

There is no denying of the fact that Jeff Ballinger has a convincing argument about Nike. As he was assigned to run AAFLI office in Indonesia, he was very much inclined to investigate the labor practices and minimum wage compliance by overseas American companies. Moreover, Nike was in news at that time regarding its critical labor practices, so it became the only prominent target. Ballinger, during the course of his studies about the company and research about the labor practice, revealed that Nike encouraged its contractors to hit some unrealistic production quotas by mistreating the labors. It was also revealed that there were heavy traces of corruption which was degrading the law practices and there were hardly any prosecutions made. According to him, Indonesian workers were paid so low that it hardly fulfilled their basic necessities. The comparison between the pay stub of Indonesian factory and Michael Jordan endorsement contract was even harder hitting based on his technical calculations. According to his report, an average Indonesian worker would take 44,492 years to match the money made by Michael Jordan's one endorsement contract. Followed by the extreme media coverage on this, CBS found that Indonesian workers were only paid 19 cents an hour. Despite hiring Ernst & Young to carry on the audits in the factories, Nike could not resist the criticism coming their way. Initially Nike's response to all this was very unstable. The company took no responsibility of the poor working conditions in the factories. They continued to emphasize that they have nothing to do with the management of the contractors. But as the criticism kept on mounting about the labor practices followed in factories, Nike took…...

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