From the decade of 1990s Nike Inc is facing criticisms from different Essay

From the decade of 1990s Nike Inc is facing criticisms from different human rights organizations and government bodies - Essay Example Nike management is using the sweatshops for manufacturing of the products where the labor law is violated. The manufacturing units of Nike are mainly in the Asian countries like China, Vietnam, Indonesia etc where they can get labor in a relatively lower cost, also they are getting free trade zones there. The minimum wages law is violated there as well as the working conditions are poor there. Some media have also proved that the working conditions are not standard in Nike factories. Also there were claims that Nike is using child labors. Nike is using forced labor as reported by different media. Recently in July, 2011 an article claimed that Nike the employees of Nike factory abused by the supervisors constantly. So the main problem is that Nike management has failed to ensure a standard human resource policy in the company. Problem Symptoms The problem symptoms are as follows: Certain reports are claiming that Nike is not sticking to a standard human resource policy from the 1990s. Some customers are avoiding Nike on morale ground as they are violating the labor law continuously. Problem Statement As in the manufacturing Factories Nike Inc is violated the labor laws, the human resource organizations and the government bodies are protesting this in different countries as well as some customer started to avoid the products in a morale ground. Part B The Problem Nike Inc, a major manufacturer of apparel and sports equipment is violating the labor laws in its manufacturing factories which are situated mainly in the Asian countries. As the labors are not treated well in the factories so the international media is continuously focusing on this matter. They have collected some proves which made clear the fact that Nike is violating the labor laws really. Several issues are against the company, because of which some consumers also avoid using the products of Nike on the moral ground. Fishbone Diagram Key Findings From the fishbone diagram it has been found that sever al factors are there and because of all these Nike was able to violate the labor laws from the 1990s. The main factor is the management. The human resource policy of the management is below standard, which causes the problem mainly. Moreover the long term strategy of the company is not good at all. If the company continues this type of labor policy then the company can’t make profit in the long term. The government of the respective countries is also responsible for this situation. Nike is continuing this practice from the 1990s, but the respective governments have not taken such hard step so that the company will think about the matter seriously. The government has made the trade free zones for the foreign companies, and it is attractable for the companies as they can do business in low cost. They can also get low cost