Question

In: Operations Management

In developing countries some of the working conditions are poor in comparison to the United States....

In developing countries some of the working conditions are poor in comparison to the United States. Companies such as Nike go overseas to find affordable labor and supply costs. What would you do as a CEO of a company, such as Nike, to aid in improving the welfare of these countries?

Solutions

Expert Solution

Sometimes, companies expand globally in order to enable them to acquire cheaper labour prices than in their country. In developing countries, the conditions that workers have to deal with and the work environment they work under in unfitting and harsh. As the CEO of Nike, I would allow the workers at my factories to be able to select the way they would prefer working. Not only that, this will also allow the workers some level of freedom as far as their productivity is concerned, it will become all-time high. Workers need to be represented by a union which is the problem, especially in developing nations. Therefore, as a CEO of a big corporation i would indulge in the practices followed by the union organizations in my country and try to achieve such a balance with the workers of the other nations and give them basic human rights of freedom of speech and expression and allow them to be able to be satisfied with their employment as well as receive fair compensation for their efforts. Even if it increases the net wage paid for the process.

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