Reference no: EM133171606
Case Study: Nike Sweatshops
Nike is the undisputed leader o athletic brands with around USD 30.6 billion global sales by June 2015. Nike already controls 58% of the market with Skechers and New Balance coming in second at only 5% of the market each.
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Athletic Footwear Share by Brand -June 2015
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Brand
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Dollar Share
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Nike/Brad Jordan
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58%
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Sketchers
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5%
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New Balance
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5%
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Asics
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4%
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Adidas
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4%
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Source: The NPD Group Inc./Real Tracking Service, January- June 2015
Since the 1970's, Nike has been accused of using sweatshops to produce footwear and apparel. The company has maintained that it has no control over subcontracted factories in Asian countries where cheaper labor is available and labor unions are prohibited.
In an article published in the journal Politics and Society, advocacy groups found out that sweatshop workers clock in nine to 13 hours of arduous labor a day for six days a week. These workers, majority of which are women in their teens or early 20's, have only limited time to rest and are sometimes forced to work overtime. Despite these efforts, they only make a measly amount of USD 2 or PHP 100 - not even close to the cost of everyday living (Rodriguez-Geravito, 2005).
The article also said that employee abuse by superiors is rampant in some factories. Laborers were exposed to corporal punishment if they have done anything wrong such as forcing workers to run in circles outside or "in one instance, a worker had his mouth taped shut after moving to an incorrect position," (Rodriguez-Garavito, 2005)