Nike Global Company - Essay Example

It must be pointed out that these countries have cheap availability of skilled, semi-skilled and unskilled labor resources because of poverty, inconsistent economic growth rate, and sporadic employment generation. Obviously, Nike, being a multinational company, focuses on branding and charges relatively higher prices for its brands so it observed considerable costs saving when it produced and contracted in these nations. Also, the governments of these countries are unable to successfully implement labor reforms and policies thereby enabling Nike to manipulate labor resources of poor countries.

Nike was allegedly involved in illicit practices such as paying low wages, work overload, inflexible working hours, discrepancies in recruitment and selection program, use of poisonous chemicals and inputs in production process, non-availability of fringe benefits and medical facilities to employees, workplace harassment, exploitation and induction of child labor within its production sites located in the aforementioned Asian countries. This is where Nike was heavily criticized by media personnel, human rights and community welfare organizations for not fulfilling labor laws outside US market while making profits at the expense of poor labor.

(Ferrell and Jackson, pp. 547 - 549)Nike had no other option but to rebuild its image in front of concerned actors thereby maintaining its reputation and goodwill in the marketplace. Its sales reduced substantially and public image shattered when private information was disclosed by renowned newspapers and electronic media channels. Nike, as a response, launched campaigns to provide clarifications and in turn strengthen its relationships with its potential customers. This strategy was although a move in the right direction as Nike visited the high school, college and university students that extol Nike’s quality and product range and make purchase decisions accordingly.