nike_code_of_conduct.pdf
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The 4 Criteria's we chose..

1.) Working Conditions
2.) Child Labor
3.) Wages
4.) Abuse
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Nike admits abuse at Indonesian plants
Link: http://news.bbc.co.uk/2/hi/asia-pacific/1184103.stm 


The article “Nike admits abuse at indonesian plants” supports more on the Negitave than the Positive. One of the worlds best sport companies: Nike, has Admitted that Its Indonesian factories are being verbally and physically abused by the factory when the Nike code of Conduct apposes to such behavior. 9 of Nike’s factories have been caught of forcing their workers to work overtime, workers being bullied and having limited access to health care. Workers have complained that some were punished for being late by being made to clean toilets of run around the factory. Most of Nike’s factory workers are female. Workers also reported of being forced into sexual relationships and workers being fondled by managers. Other Complaints are:

·         30% of workers are being bullied and sexually molested

·         Salaries are above minimum wage but not enough to save or help provide family.

·         60% to 90% find it hard to get medical or sick leave at factory clinics.

·         Indonesian workers get paid $1 for a day of making Nike products one after the other.

Nike is aware of the word spreading about its abuse to workers in their factories are finally taking action as even Nike sponsored athletes have started joining campaigns against abuses at Nike factories. Nike has decided to start immediate action to improve the conditions in the factory and help provide needs for the factory workers. Spokes woman Maria Eitel declared to ensure that the company would provide training for the managers and hire monitors to ensure pay and sick leave rules are followed. In the full article provided by BBC News, many laws and rules from the Nike Code of Conduct are violated. According to the Nike Code of Conduct, the rules violate any verbal or physical abuse to the workers.       

     Contractors must recognize the dignity of each employee, and the right to a work place free of harassment, abuse or corporal punishment. Decisions on hiring, salary, benefits, advancement, termination or retirement must be based solely on the employee’s ability to do the job. There shall be no discrimination based on race, creed, gender, marital or maternity status, religious or political beliefs, age or sexual orientation.”- Nike Code of Conduct 2007. Nike’s Code of Conduct is also specifying the general health and care each employee deserves. “The contractor has written environmental, safety and health policies and standards, and implements a system to minimize negative impacts on the environment, reduce work-related injury and illness, and promote the general health of employees.”-Nike Code of Conduct 200
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Child Labor
Link:
http://www1.american.edu/TED/nike.htm

This article “Nike Child Labor” is mainly about the negative, with no positive points on Nike child labor and it focuses on a Newspaper Article by a columnist ‘Stephen Chapman’ arguing about "But why is it unconscionable for a poor country to allow child labor? Pakistan has a per-capita income of $1,900 per year - meaning that the typical person subsists on barely $5 per day.” The article justifies that there is child labor among Nike factories, mostly in Asia and this a broken law by Nike as Nike’s Code of conduct specifies against it.

       The contractor does not employ any person below the age of 18 to produce footwear. The contractor does not employ any person below the age of 16 to produce apparel, accessories or equipment. If at the time Nike production begins, the contractor employs people of the legal working age who are at least 15, that employment may continue, but the contractor will not hire any person going forward who is younger than the Nike or legal age limit, whichever is higher. To further ensure these age standards are complied with, the contractor does not use any form of homework for Nike production. “ – Nike Code of Conduct 2007
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Sweatshop
http://www.toolness.com/nike/faq.html
 

This article “Sweatshop” is mainly focused on the negative. It tells you that Nike is devoted to keep the investors happy and if the workers have any small demand, the answer is NO and that is because if Nike accept their demands, the profits would drop which is not good news for the shareholders. Because they pay their workers a minimum wage salary, they don’t receive any money for personal reasons as the monthly wages are used for daily living. They do not get enough money to save or start their own business and Nike is gaining from that as the workers are forced to keep working at a Nike factory. This article states that Nike is not following the Code of Conduct. The code of conduct states that The contractor provides each employee at least the minimum wage, or the prevailing industry wage, whichever is higher; provides each employee a clear, written accounting for every pay period; and does not deduct from employee pay for disciplinary infractions.”- Nike Code of Conduct 2007
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Strike Hits Nike Vietnam factory
http://news.bbc.co.uk/2/hi/business/7324242.stm


 In this Article “Strike hits Nike Vietnam factory” the Positive side (supporting Nike) is that the average monthly salary is higher than usual telling us that Nike is following the Code of conduct. Although, the negative point of view (against Nike) is that the Vietnam factory went on strike due to the workers demanding 20% rise and better canteen lunches. Strikes are becoming more common as the living costs have gone up.   Overall Nike’s Code of Conduct is not being upheld as the code of conduct specifies in Proving at least The minimum wage, or the prevailing industry wage, whichever is higher; provides each Employee a clear, written accounting for every pay period; and does not Deduct from employee pay for disciplinary infractions”-Nike Code of Conduct 2007.
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Worker Protests
Link: http://www.ehow.com/about_5485125_nike-sweatshops.html
 

In this Article “Worker Protests” Negative points are made but there are also points to help solve the problem. Factories places in Indonesia, China and Vietnam all have a salary of minimum wage. But to stop this, in 1997 more than 10,000 workers from Nike’s Indonesian factories went on strike to protest against low and unpaid wages. 1300 people from the factories of Vietnam went on strike demanding a raise of 1% per hour. The next year (1998), 3000 workers in china went on strike against dangerous working conditions and low wages. Pressured by the human rights group, Nike started making efforts to improve conditions for its workers. In 1998, petroleum-based chemicals used in most factories were replaced by less harmful alternatives and the factories increased wages, higher than the minimum wage. In 2002, Nike finally issued a company Code of conduct to all its factories. The 2004 Responsibility   report went further on health and labor standards and Nike also included a list of its factories and their addresses throughout the world. But Nike is still illegally going against the company’s set rules. Still 50% to 100% of Nike factories make the employers work for more than the hours permitted by the code of conduct and the workers are still paid less than the local minimum wage.

REFRENCES:

Nike admits abuse at Indonesian Plants- BBC/Nike admits abuse at Indonesian Plants/22 Feburary 2001/http:/ -/news.bbc.co.uk/2/hi/asia-pacific/1184103.stm
Child Labor- AZAM faraz/TED Case studies/1997/http://www1.american.edu/TED/nike.htm
Sweatshop- Nike Sweatshops/Sweatshops//http://www.toolness.com/nike/index.html
Strike hits Vietnam factory-BBC/Strike Hits Nike Vietnam factory/Tuesday, 1 April 2008/http://news.bbc.co.uk/2/hi/business/7324242.stm
Worker Protests- TURNER Bambi//http://www.ehow.com/about_5485125_nike-sweatshops.html