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Case Study 1: Nike Sweatshops

Nike is the undisputed leader of athletic brands with around USD


30.6 billion global sales. By June, Nike controls 58% of the markets
with Sketchers and New Balance coming in second at only 5% of the
market each.

Athletic Footwear Share by Brand- June 2015


BRAND DOLLAR
Nike Brand Jordan 58%
Sketchers 5%
New Balance 5%
Asics 4%
Adidas 4%
Source: The NPD Group, Inc. / Retail Tracking Service, January-June
2015
Since the 1970s, 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 sweatshops worker clock in nine to 13 hours of
arduous labor a day, six days a week. These workers, majority of which
are human n their teens or early 20s, 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-Garavito, 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 “[i]n one instance, a worker had his mouth taped shut after
moving to an incorrect position,” (Rodriguez-Garavito, 2005)

Guide Questions
1. Is Nike responsible for the perpetuation of sweatshops?
In my own perspective, Nike is responsible for the perpetuation of
sweatshops since although they don't control the subfactories in Asia it
is still under their name and they should take responsiblities to it and
take actions because if they don't it can cause long term damage to their
company reputation that can lead to declining of sales.

2. Keeping in mind the core principles, what actions should Nike take to
stop inhumane practices such as slave wages, forced overtime, unsafe
working conditions and arbitrary abuse?
The Nike should stop inhumane practices by takiny actions such as
publicly making changes within their company or business. They should
become more transparent amd honest to the people about their labor
activities. They should reveal more reports in their employees wages,
acknowledge issues they are facing and reveal complete list of factories
that are under to them. They should also increase the salaries of their
workers and forbids child labor. They should also give their employees a
proper, clean and safe workplace. Lastly, they should strictly required all
the Nike factories to comply on their Code of Conduct.
3. As consumers, are people responsible, too? What can they do?
Yes, people as consumers are responsible too. Since I believe that the
consumers can also done something to also stop the unhumane practice
of some factories of Nike. They can report it to the government and
make complaines to the company itself.

Case Study 2
A Zara security staff member was caught on video, refusing to let a
woman wearing a hijab to enter its store in Paris, after the jihadist
attacks on November 13, 2015, where 129 died.
According to the news, the staff member has been heard telling the
unidentified woman that people whose heads are covered with caps,
hats, beanies, hoods and hooded veils cannot enter the store. The woman
asks him if she cannot enter the store, wearing a veil cannot enter the
store. The man responds, “If things change, they’ll change but I don’t
make the rules.”
Many are threatening the boycott the clothing company.
Guide Questions:
1. Do you think the security staff member and the manager were
justified to refuse entry to the woman? Explain your answer?
In my point of view, I believe it is not because their reason for not
letting the woman enter is unjustiable since it can be considered as
discrimination. Also, through what they did it can affect to their
company's image and may affect their company's customer services
image.
2. Inditex (Zara Main Company) has an 11-point code of ethics. One of
them is No Discrimination. What do you think the company should do?
The Zara Main Company should apply right systems and protocol in
their company. They should have clear, revised and updated written
code of ethics especially the No Discimination. They should also
implement it and make sure that all employees and branches is well
aware with these. They should also requires training for their employees
and have a punishment for those employees who go against with their
Code of Ethics.

Case Study 3: The Biggest Bribe Cases


Guide Questions:
1. According to the article, what are the common reasons of companies
for engaging in bribery?
They pay foreign companies to expand their legal processes and so that
they can obtain contract for their businesses practices. They also pay
bribery to hand over favor with the legislatiors and other officials.

2. Research on how bribery is punished under Philippine Laws. Do you


think the consequences are heavy enough to deter companies from
engaging in the bribery ?
The bribery is punished under the Philippine Laws through criminal
offenses, usually felonies, which are often punishable by imprisonmenr
at more than one year. Punishment for bribery includes fines,
resititution, community service and probation. Additionally, public
officials, or employees of public agencies, who accept bribes may have
to leave office, or be dismissed from their jobs for accepting bribes.
They may find themselves ineligible to work in public service, or unable
to work for governmenr agencies in the future where for me it is enough
to deter companies from engaging in the bribery.

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