Question

Discusses the cost to Nike in dollars and in reputation for their treatment of workers overseas. Include answers to the questions:1. What was the cost to correct the worker issues including wages, housing, working conditions and other? 2. What did Nike do to correct the worker problems? 3. What was the impact to Nike’s reputation?

Answer 1

What was the cost to correct the worker issues including wages, housing, working conditions and other?

Nike had paid a huge cost to correct the issue of worker including not only their wages , hosing , working consition but also for the human rights violation .The worker who faced the discrimination and the disappointment was made to improve thorugh the criticism of the media, public an polictical waves .which was then corrected .

2. What did Nike do to correct the worker problems?

Nike did following things to correct the worker problems

• It esnures the factories to start paying the minimum legal wages to the worker and also the compensation to those wokrer who have been cheated out of their wages .
• immediately return all the deposit which were illegaly taken from the worker whne they were hired
• Stopped doing morning calisthenics as compulsory
• investigation of all the allegations of the fights by the security guards and provide treatmnet if any etc and a lot more thing were done to correct the issue of the workers

3. What was the impact to Nike’s reputation?

when the reports of human rights violaton ws given to Phil Knight and other top officials in 1997 about the violations in asian factories .The Nke primary selling is thier brand image .It was not good for the Nke to face such embaracment to have thier image associated with sweatshops  , there was threatened sales revelations , the apparel and shoe producers could not afford to continue to view the names wrapped in garbages.The sales start to drop and the Companyw as portrayed in the media as a firm who just exploit its worker and supress thier voice and take thier wages illegally .

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