Quiz 6: Implementing Corporate Social Responsibility

Business

The corporation N, the mother of sports apparel and shoes, came under the limelight for overworking and discriminating against its workers in their contract factories. It met sharp criticism when an Indonesian union newspaper exposed the harsh working conditions of a factory of N in 1988, since then it became an object of condemnation, surveillance, and investigation from various organizations and advocators of human rights who took the predicament of workers in the sweatshop industry. The company, similar to other giant companies dealing with sweatshops, was constantly mocked with caricatures and numerous articles in newspapers, highlighting its oppressive system and the exploitation of its workers. The responsibility of N towards its workers is to decrease the prolonged working hours, no usage of forced or child labor, and increase the wage of its workers based on minimum wage, providing legally mandated benefits, and creating a sustainable environment by eliminating toxic chemicals in shoemaking in their contract factories. The company N has not been able to carry to its responsibilities fully since its business strategy and cultures clash with its principles of conduct for contractors. It has been continuously violating its ethical codes when it comes to contractors. Workers are still constrained to meet last-minute production targets since Nike products are seasonal that is usually ordered based on the changing trends. There are reports of managers transgressing the laws of conduct by disciplining and harassing the workers such as forcing the workers to kneel down for many hours since they failed to adhere to the company dress code. The code of conduct has already addressed the issues faced by its workers, thus it does not require more responsibility, However, for N to become a more responsible and ethical company that caters to the interests of the workers, it should comply with the codified code of conduct at all costs and enact edicts that check the power of managers, and a phased business strategy should be adopted to prevent last-minute stress and extended working hours for the workers.

N, a giant corporation of sports apparel and shoes, came under the spotlight for overworking and discriminating against its workers in their sweatshops. It faced sharp criticism when a country I union newspaper disclosed the harsh working conditions of a Nike factory in 1988 since then various organizations exposed its inhumane labor practices. Over time, N became an object of condemnation, surveillance, and investigation from various organizations and advocators of human rights who took the predicament of workers in the sweatshop industry. The company, similar to other giant companies dealing with sweatshops, was constantly mocked with caricatures and numerous articles in newspapers, highlighting its oppressive system and the exploitation of its workers. Nike was vulnerable to brand attacks since several progressive advocacy organizations, including the NLC, SW, etc., united to exhibit the stark reality with the company's practical operation and the inspirational messages that it promoted in advertisements. Knight, the CEO of N, attempted to address the inhumane labor practices by increasing the minimum wage of the workers in the contract factories, although not recruited directly by the company. Knight was determined to save the brand image and responded immediately from the criticisms and issues raised by the activities regarding its exploitative practices. The company expanded its efforts to eliminate workplace violations and became the only company that discontinued the use of PC, a toxic chemical, in shoemaking. The response made by N was commendable, however, it necessitates additional improvement. Rather than mitigating conflicts with the advocators or human rights activists, N should have concentrated more on the implementation of the code of conduct effectively and checking the abusive powers of the contractors who are managing the sweatshop factories. The company also violates its established rules since its business strategy and culture clash with ethical issues such as pressurizing to meet production targets. The code of conduct has addressed minuscule problems faced by the workers; sweatshop workers in countries V and C are still exploited with prolonged working hours with less pay. Instead of focusing on the problems plaguing the company, on the contrary, CEO Knight was occupied with engaging in legal battles and endless skirmishes with advocators and displaying an image of a reliable organization generating thousands of employment opportunities for the poor in the emerging economies.

The corporation N became an object of condemnation, surveillance, and investigation from various organizations and advocators of human rights who took the predicament of workers in the sweatshop industry. The company, similar to other giant companies dealing with sweatshops, was constantly mocked with caricatures and numerous articles in newspapers, highlighting its oppressive system and the exploitation of its workers. Aside, from human rights advocacy groups that exposed the inhumane practices of the company, Kasky registered a lawsuit against the company for deception, misleading allegations, and fraudulent publicity, asserting that it had presented inaccurate statements concerning its labor practices. He maintained that N engaged in fraud, deceit, and deception to market their shoes and shirts while its practical operation contradicted with the messages it advertised. He alleged the N deceit that customers by falsely reassuring them that their purchases did not sustain sweatshops. He set forth six misleading claims. Under the state of C law, any of its citizen can litigate on the interest of the public for illicit marketing practices and the CUJ law does not necessitate anyone to present evidence of personal damages, the law demands only the statement of the judge. This provision encouraged Kasky to file a lawsuit against N.  Nike should be subjected to misleading advertisement lawsuits which are based on announcements made in editorial advertisements, letters inscribed by managers, and newspaper statements for countering the critics since it gave less importance on the implementation of the code of conduct effectively and neglects to examine the abusive powers of the contractors who are managing the sweatshop factories. The company also violates its established rules since its business strategy and culture clash with ethical issues such as pressurizing to meet production targets. The code of conduct has addressed minuscule problems faced by the workers; sweatshop workers in countries V and C are still exploited with prolonged working hours with less pay. Instead of focusing on the problems plaguing the company, on the contrary, CEO Knight was occupied with engaging in legal battles and endless skirmishes with advocators and displaying an image of a reliable organization generating thousands of employment opportunities for the poor in the emerging economies, which in reality, is filled with inhumane working conditions. The company showed a rather distorted image and fails to eradicate the real problems.