introuduction to nike, inc. supply chain
cross-cultural Strategies
Nike, Inc. is one of the most recognized multi-national corporations in the world. For the last 25 years, the company has re-invented the athletic apparel and shoe industry; generating hundreds of billions of dollars in revenue since its creation. Today, the Nike "swoosh'" is a global icon seen from New York City to Manila, Phillipines. The Nike brand trenscends class, race, religion, creed, sexual orientation, and geo-political borders. It is not unusual to see impoverished children in third-world African countries proudly wearing donated t-shirts and shorts displaying the Nike symbol and simultaneously carrying an AK-47 rifle to protect his village's well, the only water source for hundreds of miles.
Nike's explosive growth has not been without consequence though; as it has been singled out as one of those global companies targeted by a broad range of campaigning NGOs and journalists as a symbolic representation of the business in society. Faced with increasing labor and manufacturing costs in the 1990s, Nike began to outsource its supply chain operations to contract-factories operating in nations such as Bangladesh, Taiwan, the Philippines, Thailand, Vietnam, Moldova, Argentina, Nicaragua, Mexico, Sri Lanka, Turkey, China, India, and many more. Many of these contract-factories were accused of sub-standard working conditions and wages, but had little negotiating leverage until recent public outcries uncovered what many deemed where unfair labor practices. As a result, Nike was admonished by many human labor watchdog groups, sued in Kasky v. Nike, INC., and boycotted by many university students and faculty.
In Nike’s case, the issues are those of human rights and conditions for workers in factories in developing countries. In the face of constant accusations, Nike has responded with a considered response, supported by corporate website reporting. It now has a well developed focus for its corporate responsibility on improving conditions in contracted factories, aiming for carbon neutrality, and making sports available to young people across the world. Additionally, Nike has sought to create a culture of transparency in its day to day operations; which is shows on its Web page, http://nikeinc.com/pages/responsibility.
When one visits this site, they can see how the company is striving to improve its relationships with supply chain by creating more favorable working conditions, higher wages, and more management oversight of its contract-factories. Nike has realized the importance of cooperation among its suppliers, customers, and critics. In the next few Web pages we will learn where Nike has started, where it is now, and where it is headed in regards to sustainability, labor relations, and supply chain operations.
Nike's explosive growth has not been without consequence though; as it has been singled out as one of those global companies targeted by a broad range of campaigning NGOs and journalists as a symbolic representation of the business in society. Faced with increasing labor and manufacturing costs in the 1990s, Nike began to outsource its supply chain operations to contract-factories operating in nations such as Bangladesh, Taiwan, the Philippines, Thailand, Vietnam, Moldova, Argentina, Nicaragua, Mexico, Sri Lanka, Turkey, China, India, and many more. Many of these contract-factories were accused of sub-standard working conditions and wages, but had little negotiating leverage until recent public outcries uncovered what many deemed where unfair labor practices. As a result, Nike was admonished by many human labor watchdog groups, sued in Kasky v. Nike, INC., and boycotted by many university students and faculty.
In Nike’s case, the issues are those of human rights and conditions for workers in factories in developing countries. In the face of constant accusations, Nike has responded with a considered response, supported by corporate website reporting. It now has a well developed focus for its corporate responsibility on improving conditions in contracted factories, aiming for carbon neutrality, and making sports available to young people across the world. Additionally, Nike has sought to create a culture of transparency in its day to day operations; which is shows on its Web page, http://nikeinc.com/pages/responsibility.
When one visits this site, they can see how the company is striving to improve its relationships with supply chain by creating more favorable working conditions, higher wages, and more management oversight of its contract-factories. Nike has realized the importance of cooperation among its suppliers, customers, and critics. In the next few Web pages we will learn where Nike has started, where it is now, and where it is headed in regards to sustainability, labor relations, and supply chain operations.