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Business Issue For Nike

Nike has some business issues in the past and they also are having many complaints that have to do with their shoes. The controversy started with Nike over sweatshops, child labor allegations, and a strike in a China factory. Nike has over seven hundred shops and offices in forty-five counties that aren’t in the United States. Most of the factories that they use are in Asia. There problems began after pressure to disclose information about their factories by CorpWatch.

The criticism started with the Nike sweatshops found in China, Mexico, Vietnam, and Indonesia. Here is were they found minimum wage violations and violations with overtime laws in the countries, which was last documented in the late 90s. They have also been criticized for having poor working conditions and exploiting cheap labor overseas, where their products are produced. As late as 2011, Nike has stated that 2/3 of their factories don’t meet the standards for the treatment of their workers. It was reported that in Indonesia constant abuse happens to the workers at the hands of their supervisors.

In the 90s, they also were criticized for child working in factories in Cambodia and Pakistan, where their soccer balls were manufactured. Although Nike corrected this practice, the factories are still open and it is hard to monitor them for child labor. The Cambodian factory was featured on a 2001 BBC documentary that showed six girls that worked at the factory for sixteen hours a day, seven days a week.

In April of 2014, Yue Yuen Industrial Holdings Dongguan shoe factory went on strike, this factory produces Nike. The workers complained about being under paid, they would only make about 250 Yuan a month, which is just over forty dollars a month US. Since the strike pay has gone up to around 3000 Yuan a month or four hundred and eighty three dollars US. This factory has been running for over twenty years and employees over seventy thousand people.

Recent business issues with Nike have come with their shoes and how they are made. The complaints have been about how they don’t hold up like they use to and getting a refund from the company. Loyal customers are now turning away from Nike because their shoes fall apart in as little as a month and once inspected by the company, the customers are told that it was just normal wear and tear. This could be because of the design of the shoes or the material they make them with but either way customers are not liking Nike’s business practices anymore.