Nike The sweatshop debate
...The reporter discovered that Nike hired millions of workers who are literate, disciplined, and desperate for jobs at wages lower than minimum wage. Another example of the criticism against Nike came from a newsletter published by Global Exchange. The newsletter uncovered that the majority of Nike shoes were made in Indonesia and China, countries with governments that prohibit independent unions and set the minimum wage at rock bottom. ... In September 1997, Global Exchange published a report on working conditions at four Nike and Reebok subcontractors in southern China. ... In November 1997, the organization obtained and then leaked a confidential report by Ernst & Young of an audit that Nike had commissioned of a factory in Vietnam owned by a Nike subcontractor. ... Nike formulated a number of strategies and tactics to deal with the problems of working conditions and pay in subcontractors. ... In early 1997, Nike also began to commission independent organizations such as Ernst & Young to audit the factories of its subcontractors. Finally, on May 12, 1998 Nike founder Phil Knight spelled out a series of initiatives designed to improve working conditions for the 500,000 people that make products for Nike through subcontractors. ... Even though Nike has admitted there have been problems in some overseas factories and has attempted to do things to rectify the problems, the company continues to be a target of protests and a symbol of dissent. Statement of the ProblemOn the May 12, 2001, Nikeˇ¦s CEO Phil Knight made six commitments to improving the working conditions in Nikeˇ¦s international factories. The six commitments were: A...