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Nikes Faces New Worker Abuse Claims in Indonesia

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“Nike Faces New Worker Abuse Claims in Indonesia”

The article, “Nike Faces New Worker Abuse in Indonesia” by Stephen Wright, explores the terrible sweatshop conditions and unfair treatment of employees in Nike’s Indonesia factory. In 2003, Nike bought Converse for $309 million and Nike started to make Converse products in two-thirds of their factories. In 2007, one of the Nike factories in Indonesia started to produce Converse products. Ever since the merger, factory workers started to speak out against unfair working conditions, physical abuse, name calling, low wages and working long hours. According to the article, one employee stated that, “We're powerless…Our only choice is to stay and suffer, or speak out and be fired.” (Wright) Employees were also being punished if they did not meet their target goals for the day, one of the punishments being standing in the sun for several hours. According to the article, “an internal report Nike released to the AP (Associate Press) after it inquired about the abuse show that nearly two-thirds of 168 factories making Converse products worldwide fail to meet Nike's own standards for contract manufacturers… twelve are in the most serious category, indicating problems that could range from illegally long work hours to denying access to Nike inspectors” (Wright) The report also stated that Nike had failed to follow their Code of Ethics. (The ethical implications of outsourcing of production in developing countries, mainly Asian , are valued differently by stakeholders. It is thus possible to propose two categories, the first favorable outsourcing in low-cost countries and reluctant to ethical considerations and the second sensitive to ethical considerations of outsourcing.) The report by the Associated Press put Nike in a bad spotlight. The bad publicity affected Nike’s image and cause a lot of unwanted attention to the issues going on in the factories. Having a tarnished public image affects the stakeholder relationship because having a bad reputation makes the company less desirable to its stakeholders.…...

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