Ethics In Hrm Case Study

 

reduces the

 Nike’s

ability to monitor on a regular basis the production processes and workingconditions of these factories (Locke, 2002)

Outsourcing the route of problems

Nike's global supply chain is a complex network that directly connects and impacts a widerange of people around the globe: consumers, buyers, suppliers, workers and communities

2

.Debora (2002) says that, Nike from the beginning had the strategy of signing contract withsuppliers in countries like Taiwan and South Korea ,

where costs were lower and production reliable

.In 1982, 86% of their shoe productions were from these countries and as the economical stateof these countries have developed, Nike moved to new low cost regions of china andIndonesia that in particularly had six factories that supplied NikeAs Nike for decades being involved in huge outsourcing networks of suppliers, it involves inoutsourcing human resource heavily with an interest to reduce the firms cost over labour,capital, technology, and resources. And this activity of the firm does appears to be the mainsource for all the human resource issues like need for improvement in labour workingconditions and issues regarding child labour. And sev

eral of the firm’s labour practices are

based in countries that are in developing phase, were cheap labour along with lack of effective government rules over human rights prevailed (Locke, 2002). (Debora)As thecompany would save costs by outsourcing all

manufacturing, there w

on’t be any in

-houseproduction. Thus all the products are made through many independent contracting factories,creating Nike as one

of the world’s first “virtual”

corporations manufacturing firm with nophysical assets. Meanwhile, the company pour the saved money in to marketing by celebrityendorsements, using high-profile athletes to establish an invincible brand identity around theNike name (2002)

International labour problems

For long time Nike has been well known for it habit of sourcing its products infactories/countries where low wages, poor working conditions and human rights problems

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