Theoretical discussion of Nikes labor standards in foreign nations

Theoretical discussion of Nikes promote standards in foreign nations What diligence standards regarding asylum, functional conditions, extra time, and the like, should Nike hold foreign factories to those familiar in that country or those prevailing in the join States?The unsuccessfully of labor standards which argon child labor, hazardous working(a) conditions, excessive working hours, and poor wages in developing countries are still the major problems. In order to attach fraternity profits, Nike then reduces the bell by having the low labor wages paid. The multinational corporations such as Nike needs to developed code of pack for their suppliers to subscribe to its unidirectional and justly. The meaning of a code of conduct is the code that provides a guideline of good behaviors and values which telephoner uses to follow when faced the problem in a day-to-day work (Locke, 2007). He in any case states that the code of conduct of Nike requires subcontractors to consi der some prefatorial labor, safety standards, and environmental and health. harmonise to Kochan (2007), the codes of conduct do not protect the labor rightfields or purify working conditions but sack limit legal liability and prevent the company reputation only. concord to the case, Nike faced the problem of the low labor standards in foreign factories that are the subcontractors. Nike had become a sweatshop attribute of the evils of globalization. The definition of sweatshops is unsafe and unhealthy working conditions including low wages, long hours or work with no overtime pay, health or safety, and child labor (Banfe, 2001). The sweatshops exit occur in the factories that have the problems of poor labor standards (Miller, 2006). For example, the company that pays the salaries less than minimum wages and forces employees to work overtime. The sweatshops and low labor standards are the important factors that tolerate impact the economic development (Park-Poaps, 2009). Acco rding to Miller (2006), the sweatshops dont help low educate histrions in the developing countries from poverty due to the fact that people have less alternative choices in choosing a job. A big Ameri give notice company Nike outsources the foreign factories to manufacture their athlete shoes. This ordain caused the United States has the impact on unemployment rate (Greene, 2007). Due to the fact, huge labor markets are demand to satisfy the take on which increasing continuously (Schwartz, 2000). He also states that the requirement of the huge labor markets will cause the natural endowment is become not important. According to Greene (2007), the salaries are set found on the productivity level. No company can pay a labor wage beyond the productivity level. The reason of poor labor standards in terms of minimum wages and hiring child labor caused Nikes subcontractors to become a sweatshop. The screen background of minimum wages should be cancel to deny the problems of the po or labor standards (Greene, 2007). The statistical analysis form that the anti-sweatshops campaign can increase the unskilled labor wages around twenty percent in the footwear factories (Miller, 2006).Regarding to safety, working conditions, overtime, Nike should hold the conditions with foreign factories which are Indonesia, Vietnam, and China. If Nike persists on prevailing conditions in the United States, on that point is unessential for Nike to look for outside countries manufacturers. According to Park-Poaps (2009), the research found that the foreign outsourcing firms have impact on the stakeholders and governance structure in terms of the man pressure. Nevertheless, through the pressure that Nike received from many groups of association, the company should find the solution to improve the working conditions or labor standards from the Nikes foreign manufacturers. If Nike can nurture its labor standards, Nike will receive benefits from the public relations rather than putt ing more effort. In addition, Nike can reduce the appeal of developing public relation strategies. According to Park-Poaps (2009) in the recent time, the American companies amaze importance on corporate public relation in order to answer and perform the public receipt. The enhancement of labor standards in foreign factories could make Nike has good companys reputation. To bend the problems of the sweatshops, the forward motion of education and a living wage should be done by the government in apiece country (Greene, 2007). Moreover, the viable systems of labor conditions should be control and restrict by non-governmental association such as non-governmental organizations (NGOs) (Park-Poaps, 2009).Nike has got a high public pressure from the problem of sweatshop in the foreign subcontractor companies. Therefore, Nike should response to the public by creating the ethical labor management strategies which respect to human rights and also public relation management strategies base d on the moral practice (Park-Poaps, 2009). Nike can also establish the codes of ethics in the corporate culture. According to Kantor (2002), the codes of ethic can produce a good effect on corporate social state (CSR). The company that does the corporate social responsibility can create the company reputation in the imperative way. Nike should put more effort in decision making when doing business internationally by having the ethical standards in human resource management in supplying company. According to Park-Poaps (2009) the ethical standards of the company can refer to the role of top management that can impact on the company reputations. The managers should present their high standards as role models to employee in the way they should behave (Kantor, 2002). If Nike practices the better ethical labor standards, the company will receive good corporate image. Moreover, Nike should hold the foreign subcontractors to those prevailing in the United States by having the realizab le standards in term of working conditions and overtime that protect the basic rights of employees. In the production period, the productivity limitation in spite of appearance a day should not exceed employee strength and also should not hurt the workers health (Schwartz, 2007).Regarding to the Nike case, the company could not meet the satisfaction of stakeholder which is the employees. The problem of employees seems to be the influential use up rather than opposite stakeholders. According to Schwartz (2000), a good company needs to meet the satisfaction of its stakeholders which are customers, shareholders, and employees. He also argued that if the employees lose their jobs, it is the company mistake. The emphasis of stakeholders especially in employees caused the company has more cost adding (Greene, 2007). He also states that many companies try to avoid the cost of labor by changing the slipway in doing business. For example, the automated check-out counter in supermarkets and teller bank machines has been found in the developing world. The cost saving is become a major concern at the present time when the economic problems occur. In addition, the technology changing is also the possible factor to reduce the number of workers. Therefore, the change in technology and the cost saving could be the cause of the unemployment in developed countries such as the United States. These factors charter the big company Nike needs to use the outsourcing manufacturers in foreign countries to produce their products.According to Locke (2007), the ways Nike response to the public pressure are that all suppliers need to sign the code of conduct and post inwardly the factories. In the code of conduct, it provides the training and the staff to control all of suppliers. In addition, Nike has approximately one kibibyte mangers working in those foreign factories to responsible for training Nikes code of conduct and labor practices. Locke also argued that the new approva l process of Nike is the three different types of audit which are a basic environmental, safety and health audit, and a more in-depth management and working conditions audit. However, the codes of conduct of Nike seem to be unsuccessful in some countries which the problems of poor wages and inordinate work hours or harassment (Locke, 2007). Hence, Nike should continue to check and estimate the foreign subcontractor firms. In another way, Nike can use the trusty auditor firms to inspect the accuracy within those manufacturers.In conclusion, the sweatshops are the major problem of Nike in doing business with foreign subcontractors to manufacturer their products. To eliminate the sweatshops, the link associations or government in those developing countries should come to look after and inspect Nikes subcontractors. The needed of the huge labor markets in the real world can create the obstacle in the working conditions such as a low wages paid, no overtime pay, long-time working, and child labor. On the other hand, the education and a living wage are also important factors that need to concern in order to solve the problem of unskilled workers in developing countries. Moreover, Nike should hold the foreign factories to those prevailing in subcontractor countries Vietnam, Indonesia, and China. To improve the labor standards regarding safety, working conditions, overtime, Nike should practice the ethical standards by concern on the human right and basic needs of employees. The managers should act as the role model on the ethical behavior to make the employees to follow the codes of ethic. In addition, the codes of conduct are important for the Nike foreign manufacturers to follow and practice in the correctly way. If Nikes foreign subcontractors can improve the labor standards and working conditions by using the codes of conduct and the codes of ethic, Nike will get the benefit from the public relation in term of company reputation and also avoid public pressure.