Globalization Of Nike

In its 45 years of existence, Nike has developed from a small operation to a household name, present on all continents. However, in the 1990's Nike came under scrutiny for various unethical practices.

• Explain how Nike came to that situation through its expansion strategy.

According to the working paper, Nike was the largest shoes firm in the world. Nike has reached this position mainly due to its expansion strategy. This strategy consists of outsourcing its production to countries where lower cost producers is available such as Korea, Thailand, China Taiwan, Asia, Indonesia, and Vietnam. In doing so, Nike implemented a large number of factories in several countries in various continents. As a result, Nike ended up opening more than 700

With this strategy Nike has gained the market share. Over the years Nike has gained billion of dollars in revenues, which led him to the state of the largest footwear shoes in the world. However, this success has a cost. The number of criticisms towards Nike is increasing gradually. This situation led some analysts question on the way Nike sees Globalization. As the abuses of Nike is accused are appeared in many popular and international publication drive people see Nike in other way. This created a big public relation problem for Nike. Anti-globalization movements, activist groups, NGOs, and websites finally take Nike as their target to criticize

This code had as purpose to induce them to comply with some basic labor and environmental/health standards. This code of conduct was sent to each factory so the suppliers sign it and post it in their factories. Moreover, since 1998 Nike has made big efforts to increase minimal wage for its workers, and insisted that all of its footwear suppliers adopt the US Occupational Safety and Health Administration (OSHA). A second way Nike approached this situation is by creating additional staff or departments to face the growing criticisms. Among these department we count; Labor Practices, and Nike environmental Action Team (NAT). These organizations were organized under the Corporate Responsibility and Compliance Department. The compliance department has as duty to visit all the Nike factories on a regular basis. The employees who are working under these departments are trained in accord of the code of conduct, and have as responsibility to improve labor and environmental standards in the Nike factories. Thirdly, Nike has developed a kind of inspection, named SHAPE inspection under its suppliers to force them complying with the code of conduct. Afterwards, Nike specialists with the aid of other consultants made a set of audits of the labor practices for a more assessment of the wages paid, age of the employees, health and environmental conditions etc… In addition to these