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How Does Nikes Questionable Manufacturing Practices in Asia Affect Their Brand Image - Dissertation Example

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How does Nikes questionable manufacturing practices in Asia affect their brand image CHAPTER ONE Introduction: Social responsibility is traditionally associated with participating in social, cultural and charitable activities, along with participating in the civil life of one’s organization or the community…
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How Does Nikes Questionable Manufacturing Practices in Asia Affect Their Brand Image

Download file to see previous pages... Critics accuse Nike for malpractices and gaining fame and success without any Foreign Direct Investment (FDI) in its own manufacturing plants. Instead of improving the working conditions in its manufacturing plants the company spends more on marketing by using faces of high profile celebrities such as Michael Jordan to popularize its brand and attract customers (Mujtaba et al. pg. 1, 2005). With Jordan, the company’s sales went through the roof. After him a number of celebrities were heavily paid to endorse the brand. These included Tiger Woods, Ken Griffey Jr., Pete Sampras and Andre Agassi (Sporting Goods Companies: Nike, n.d.). The issue of malpractices by Nike was disclosed in the 90s decade. The issue of low paid foreign factory workers first became prominent when the world renowned celebrity, Kathy Lee Gifford, was accused for endorsing garments that were manufactured by low wages workers in the developing countries. Gifford promised to participate in improving the condition of the workers. The famous brand, Nike, also became a subject of similar controversy. Nike was accused of having sweatshops in the developing countries where workers were paid even below the minimum wages standard (Mujtaba et al. pg. 1, 2005). ...
The social activists criticized the unethical practices of the firm in public and exerted pressure on the firm to take a look at their corporate responsibility. Nike customers all over the world criticized the malpractice by the firm. Social activists called on the customers to boycott Nike products until necessary actions were taken by the firm to improve the working conditions of the workers all over the world, especially in Asia (Mesarosch, pg. 1. 2008). While these charges might be true or simple perceptions, the accusations did affect the brand image of Nike in a negative way as not being a socially responsible firm. Since then Nike has been battling with such charges and trying to improve its image as a socially responsible firm (Mujtaba et al. pg. 1, 2005). The aim of this paper is to highlight how Nike has suffered due to its malpractices in Asia. I shall also discuss in brief the history of the brand and the malpractices for which it received criticism. For that matter relevant literature and peer reviewed articles will be explored to evaluate the situation. Towards the end a conclusion shall be made which will be based on the research. Nike and Its Brand Image: Nike is a massive billion dollar firm that produces sports products. It factories are situated all over the world and likewise its products are sold all over the world. Since 1990’s Nike has expanded its product range and has started producing clothes, watches, bags and golf gear. It has also gained partnership with an electronic company to produce Nike electronics. Nike has achieved tremendous success which is evident from the fact that it has taken over ALL STAR CONVERSE which was one of the biggest rivals of the firm (Hossain, pg. viii, 2010). For the past four decades, ...Download file to see next pagesRead More
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