Thursday, June 7, 2012

Nike Production

Nike is more than 700 stores around the world under contract and has offices in 45 countries outside the United States. Most of the factories are located in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, the Philippines and Malaysia. Nike is hesitant to provide information about the contract companies it works with to disclose. Due to harsh criticism from some organizations like CorpWatch, Nike has information about its contract factories in its Corporate Governance Report.

Human rights issues
Sweatshops
Nike has been criticized for contracts with factories (also known as Nike sweatshops) in countries such as China, Vietnam, Indonesia and Mexico. Vietnam Labor Watch, an activist group, has documented that factories have a contract from Nike, minimum wage and overtime laws violated in Vietnam as late as 1996, although Nike claims that this practice was stopped. The company has been subject to much critical coverage of the often poor working conditions and exploitation of cheap labor overseas in the free trade zones where their goods are produced usually used. Sources of this criticism is Naomi Klein's book No Logo and Michael Moore documentaries.
In the 1990s, Nike faced criticism for using child labor in Cambodia and Pakistan in the factories, he asked to make soccer balls. Although Nike took action to contain or at least reduce the practice, they continue their production to companies in areas where making inadequate regulation and supervision is difficult to ensure that child labor is not used for contract operated.
In 2001 a BBC documentary revealed prevalence of child labor and poor working conditions in a Cambodian factory used by Nike. The documentary about six girls who all worked seven days a week, often 16 hours a day focused.
Campaigns of many colleges and universities, especially anti-globalization groups, as well as several anti-sweatshop groups such as the United Students Against Sweatshops taken. Despite these campaigns, however, Nike has annual revenues of U.S. $ 6.4 billion in 1996 to nearly U.S. $ 17 billion in 2007, reported after the annual press conference of the company.
A study of July 2008 by the Australian Channel 7 News found a large number of cases in which forced labor in one of the largest clothing manufacturer Nike. The factory in Malaysia was found by an undercover crew, the instances of squalid living conditions and forced labor filmed. Nike has declared that it take corrective action to ensure that abuse does not continue.
From July 2011, Nike said that two thirds of its factories for the production of Converse products still do not meet the company standards for worker treatment. July 2011 An Associated Press article stated that employees reported in the factories in Indonesia constant abuse from superiors.

Olympic Games in China
Nike also sparked controversy during the 2008 Olympic Games in Beijing, China, when its sponsored athlete Liu Xiang Chinese, the Olympic 110 meters hurdles back and left the track after a false start by another competitor. Liu said that he withdrew because of an ankle injury. However, an anonymous message on the Internet was published, allegedly from a source close to Nike, and claimed that the company forced Liu to retire when he was hardly to be gained so that tarnish their image. Nike responded by announcing that "we have immediately asked relevant [Chinese] government departments, the ones to investigate the rumor."

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