Minimum Wage and Nike Marketing Phrase

Nike is in many ways the quintessential global corporation. Established in 1972 by former University of Oregon track star Phil Knight, Nike is now one of the leading marketers of athletic shoes and apparel on the planet. In 2006, the company has $15 billion in annual revenues and sold its products in some 140 countries. Nike does not do any manufacturing. Rather, it designs and markets its products, while contracting for their manufacture from a global network of 600 factories scattered around the globe that employ some 650,000 people. This huge corporation has made Knight into one of the richest people in America. The Nike marketing phrase â€Å"Just Do It! † has become as recognizable in popular culture as its â€Å"swoosh† logo or the faces of its celebrity sponsors, such as Michael Jordan and Tiger Woods. For all of its successes, the company has been dogged for more than a decade by repeated and persistent accusations that its products are made in sweatshops where workers, many of them children, slave away in hazardous conditions for less than subsistence wages. Nike's wealth, its detractors claim, has been built upon the backs of the world's poor. To many, Nike has become a symbol of the evils of globalization—a rich Western corporation exploiting the world's poor to provide expensive shoes and apparel to the pampered consumers of the developed world. Nike's â€Å"Niketown† stores have become standard targets for anti-globalization protesters. Several nongovernmental organizations, such as San Francisco–based Global Exchange, a human rights organization dedicated to promoting environmental, political, and social justice around the world, have targeted Nike for repeated criticism and protests. News organizations such as CBS's â€Å"48 Hours† hosted by Dan Rather have run exposes on working conditions in foreign factories that supply Nike. Students on the campuses of several major U. S. universities with which Nike has lucrative sponsorship deals have protested against the ties, citing Nike's use of sweatshop labor. For its part, Nike has taken steps to counter the protests. Yes, it admits, there have been problems in some overseas factories. But the company has signaled a commitment to improving working conditions. It requires that foreign subcontractors meet minimum thresholds for working conditions and pay. It has arranged for factories to be examined by independent auditors. It has terminated contracts with factories that do not comply with its standards. But for all this effort, the company continues to be a target of protests and a symbol of dissent. The Case against Nike Typical of the exposes against Nike was a â€Å"48 Hours† report that aired October 17, 1996. 3 Reporter Roberta Baskin visited a Nike factory in Vietnam. With a shot of the factory, her commentary began: The signs are everywhere of an American invasion in search of cheap labor. Millions of people who are literate, disciplined, and desperate for jobs. This is Nike Town near what use to be called Saigon, one of four factories Nike doesn't own but subcontracts to make a million shoes a month. It takes 25,000 workers, mostly young women, to â€Å"Just Do It. † But the workers here don't share in Nike's huge profits. They work six days a week for only $40 a month, just 20 cents an hour. Baskin interviewed one factory worker, a young woman named Lap. Baskin told viewers: Her basic wage, even as sewing team leader, still doesn't amount to the minimum wage †¦ She's down to 85 pounds. Like most of the young women who make shoes, she has little choice but to accept the low wages and long hours. Nike says that it requires all subcontractors to obey local laws; but Lap has already put in much more overtime than the annual legal limit: 200 hours. Baskin then asked Lap what would happen if she was sick or had something she needed to take care of, such as a sick relative, and needed to leave the factory? Through a translator, Lap replied: It is not possible if you haven't made enough shoes. You have to meet the quota before you can go home. The clear implication of the story was that Nike was at fault here for allowing such working conditions to persist in the Vietnam factory, which was owned by a Korean company. Another attack on Nike's subcontracting practices came in June 1996 from Made in the USA, a foundation largely financed by labor unions and domestic apparel manufacturers that oppose free trade with low-wage countries. According to Joel Joseph, chairman of the foundation, a popular line of high-priced Nike sneakers, the â€Å"Air Jordans,† were put together by 11-year-olds in Indonesia making 14 cents per hour. A Nike spokeswoman, Donna Gibbs, countered that this was false. According to Gibbs, the average worker made 240,000 rupiah ($103) a month working a maximum 54-hour week, or about 45 cents per hour. Gibbs also noted that Nike had staff members in each factory monitoring conditions to make sure the factory obeyed local minimum wage and child labor laws. Another example of the criticism against Nike is the following extract from a newsletter published by Global Exchange:5 During the 1970s, most Nike shoes were made in South Korea and Taiwan. When workers there gained new freedom to organize and wages began to rise, Nike looked for â€Å"greener pastures. † It found them in Indonesia and China, where Nike started producing in the 1980s, and most recently in Vietnam. The majority of Nike shoes are made in Indonesia and China, countries with governments that prohibit independent unions and set the minimum wage at rock bottom. The Indonesian government admits that the minimum wage there does not provide enough to supply the basic needs of one person, let alone a family. In early 1997 the entry-level wage was a miserable $2. 46 a day. Labor groups estimate that a livable wage in Indonesia is about $4. 00 a day. In Vietnam the pay is even less—20 cents an hour, or a mere $1. 60 a day. But in urban Vietnam, three simple meals cost about $2. 10 a day, and then of course there is rent, transportation, clothing, health care, and much more. According to Thuyen Nguyen of Vietnam Labor Watch, a living wage in Vietnam is at least $3 a day. In another attack on Nike's practices, in September 1997 Global Exchange published a report on working conditions in four Nike and Reebok subcontractors in southern China. 6 Global Exchange, in conjunction with two Hong Kong human rights groups, had interviewed workers at the factories in 1995 and again in 1997. According to Global Exchange, in one factory, a Korean owned subcontractor for Nike, workers as young as 13 earning as little as 10 cents an hour toiled up to 17 hours daily in enforced silence. Talking during work was not allowed, with violators fined $1. 20 to $3. 0, according to the report. The practices were in violation of Chinese labor law, which states that no child under 16 may work in a factory, and the Chinese minimum wage requirement of $1. 90 for an eight-hour day. Nike condemned the study as erroneous, stating that the report incorrectly stated the wages of workers and made irresponsible accusations. Global Exchange, however, continued to be a major thorn in Nike's side. In November 1997, the organization obtained and then leaked a confidential report by Ernst & Young of an audit that Nike had commissioned of a factory in Vietnam owned by a  Nike subcontractor. 7 The factory had 9,200 workers and made 400,000 pairs of shoes a month. The Ernst & Young report painted a dismal picture of thousands of young women, most under age 25, laboring 10 1/2 hours a day, six days a week, in excessive heat and noise and in foul air, for slightly more than $10 a week. The report also found that workers with skin or breathing problems had not been transferred to departments free of chemicals and that more than half the workers who dealt with dangerous chemicals did not wear protective masks or gloves. It claimed workers were exposed to carcinogens that exceeded local legal standards by 177 times in parts of the plant and that 77 percent of the employees suffered from respiratory problems. Put on the defensive yet again, Nike called a news conference and pointed out that it had commissioned the report and had acted on it. 8 The company stated it had formulated an action plan to deal with the problems cited in the report, and had slashed overtime, improved safety and ventilation, and reduced the use of toxic chemicals. The company also asserted that the report showed that its internal monitoring system had performed exactly as it should have. According to one spokesman: This shows our system of monitoring works †¦ We have uncovered these issues clearly before anyone else, and we have moved fairly expeditiously to correct them. Nike's Responses Unaccustomed to playing defense, Nike formulated a number of strategies and tactics to deal with the problems of working conditions and pay at subcontractors. In 1996, Nike hired Andrew Young, onetime U. S. mbassador to the United Nations and former Atlanta mayor, to assess working conditions in subcontractors' plants around the world. Young released a mildly critical report of Nike in mid-1997. After completing a two-week tour that covered 15 factories in three countries, Young informed Nike it was doing a good job in treating workers, though it should do better. According to Young, he did not see sweatshops, or hostile conditions †¦ I saw crowded dorms †¦ but the workers were eating at least two meals a day on the job and making what I was told were subsistence wages in those cultures. Young was widely criticized by human rights and labor groups for not taking his own translators and for doing slipshod inspections, an assertion he repeatedly denied. In 1996, Nike joined a presidential task force designed to find a way of banishing sweatshops in the shoe and clothing industries. The task force included industry leaders such as Nike, representatives from human rights groups, and labor leaders. In April 1997, the task force announced an agreement for workers rights that U. S. companies could agree to when manufacturing abroad. The accord limited the work week to 60 hours and called for paying at least the local minimum wage in foreign factories. The task force also agreed to establish an independent monitoring association—later named the Fair Labor Association (FLA)—to assess whether companies are abiding by the code. 10 The FLA now includes among its members the Lawyers Committee for Human Rights, the National Council of Churches, the International Labor Rights Fund, some 135 universities (universities have extensive licensing agreements with sports apparel companies such as Nike), and companies such as Nike, Reebok, and Levi Strauss. In early 1997, Nike also began to commission independent organizations such as Ernst & Young to audit the factories of its subcontractors. In September 1997, Nike tried to show its critics that it was involved in more than just a public relations exercise when it terminated its relationship with four Indonesian subcontractors, stating that they had refused to comply with the company's standard for wage levels and working conditions. Nike identified one of the subcontractors, Seyon, which manufactured specialty sports gloves for Nike. Nike said that Seyon refused to meet a 10. 7 percent increase in the monthly wage, to $70. 0, declared by the Indonesian government in April 1997. 11 On May 12, 1998, in a speech given at the National Press Club, Phil Knight spelled out in detail a series of initiatives designed to improve working conditions for the 500,000 people that make products for Nike. 12 Among the initiatives Knight highlighted were the following: We have effectively changed our minimum age limits from the ILO (International Labor Organization) standards of 15 in most countries and 14 in developing countries to 18 in all footwear manufacturing and 16 in all other types of manufacturing (apparel, accessories, and equipment. . Existing workers legally employed under the former limits were grandfathered into the new requirements. During the past 13 months we have moved to a 100 percent factory audit scheme, where every Nike contract factory will receive an annual check by Pricewaterhouse Coopers teams who are specially trained on our Code of Conduct Owner's Manual and audit/monitoring procedures. To date they have performed about 300 such monitoring visits. In a few instances in apparel factories they have found workers under our age standards. Those factories have been required to raise their standards to 17 years of age, to require three documents certifying age, and to redouble their efforts to ensure workers meet those standards through interviews and records checks. Our goal was to ensure workers around the globe are protected by requiring factories to have no workers exposed to levels above those mandated by the permissible exposure limits (PELs) for chemicals prescribed in the OSHA indoor air quality standards. 3 These moves were applauded in the business press, but they were greeted with a skeptical response from Nike's long-term adversaries in the debate over the use of foreign labor. While conceding that Nike's policies were an improvement, one critic writing in the New York Times noted: Mr. Knight's child labor initiative is †¦ a smoke screen. Child labor has not been a big problem with Nike, and Philip Knight knows that better than anyone. But public relations is public relations. So he screen. Child labor has not been a big problem with Nike, and Philip Knight knows that better than anyone. But public relations is public relations. So he have to keep a close eye on him at all times. The biggest problem with Nike is that its overseas workers make wretched, below-subsistence wages. It's not the minimum age that needs raising, it's the minimum wage. Most of the workers in Nike factories in China and Vietnam make less than $2 a day, well below the subsistence levels in those countries. In Indonesia the pay is less than $1 a day. The company's current strategy is to reshape its public image while doing as little as possible for the workers. Does anyone think it was an accident that Nike set up shop in human rights sinkholes, where labor organizing was viewed as a criminal activity and deeply impoverished workers were willing, even eager, to take their places on assembly lines and work for next to nothing? 14 Other critics question the value of Nike's auditors, Pricewaterhouse Coopers (PwC). Dara O'Rourke, an assistant professor at MIT, followed the PwC auditors around several factories in China, Korea, and Vietnam. He concluded that although the auditors found minor violations of labor laws and codes of conduct, they missed major labor practice issues including hazardous working conditions, violations of overtime laws, and violation of wage laws. The problem, according to O'Rourke, was that the auditors had limited training and relied on factory managers for data and to set up worker interviews, all of which were performed in the factories. The auditors, in other words, were getting an incomplete and somewhat sanitized view of conditions in the factory. 5 The Controversy Continues Fueled perhaps by the unforgiving criticisms of Nike that continued after Phil Knight's May 1998 speech, beginning in 1998 and continuing into 2001, a wave of protests against Nike occurred on many university campuses. The moving force behind the protests was the United Students Against Sweatshops (USAS). The USAS argued that the Fair Labor Association (FLA), which grew out of the presidential task force on sweatshops , was an industry tool, and not a truly independent auditor of foreign factories. The USAS set up an alternative independent auditing organization, the Workers Rights Consortium (WRC), which they charged with auditing factories that produce products under collegiate licensing programs (Nike is a high profile supplier of products under these programs). The WRC is backed, and partly funded, by labor unions and refuses to cooperate with companies, arguing that doing so would jeopardize its independence. By mid-2000, the WRC had persuaded some 48 universities to join the organization, including all nine calmpuses of the University of California system, the University of Michigan, and the University of Oregon, Phil Knight's alma mater. When Knight heard that the University of Oregon would join the WRC, as opposed to the FLA, he withdrew a planned $30 million donation to the university. 16 Despite this, in November 2000, the University of Washington announced it too would join the WRC, although it would also retain its membership in the FLA. 7 Nike continued to push forward with its own initiatives, updating progress on its website. In April 2000, in response to pressure that it was still hiding poor working conditions, Nike announced it would release the complete reports of all independent audits of its subcontractors' plants. Global Exchange continued to criticize the company, arguing in mid-2001 that the company was not living up to Knight's 1998 promises, and that it was intimidati ng workers from speaking out about abuses.

Research and Development of Anti-Retroviral Drugs Essay

‘Discuss the reasons why the research and development of anti-retroviral drugs (ARVs) has impacted differently on people suffering from HIV/AIDS in developed and developing world’ HIV/AIDS still does not have a know cure, but has a treatment that slows down the affects of HIV/AIDS which is called ARV (anti-retroviral drug) The ARV drug is a very â€Å"exclusive† drug because as it is very expensive, around $400 a month if not more depending on which stage you are in, and that is a huge dilemma because many people cannot afford to pay that amount of money so they are not able to receive the treatment. If people in the first world countries cannot receive the drug, how do people in the third world receive the drug? In third world countries the drugs are given to them for free, but on the 47% gets the full treatment. The drugs are given to them by of the drug company itself of other companies that buy the ARVs from the company and send it to the place where it is needed, for example Africa. Africa is the location where the most HIV/AIDS cases are, and is also the one getting the least amount of treatment. The reason for this is because the ARV drug company wants to get their money back for all the research they put in, so giving the ARVs for free would become a great loss economically for them. The first aspect of this issue is the social part. Infrastructure is a big problem because as buildings coast a lot to construct they are not able to put up many, and you must also have trained people able to work there, which are hard to find in Africa. There are very few amount of places where you can go get tested but they have a limited amount of treatments and supplies. This is a huge problem because if people go to get better they have to wait or not get better at all due to the lack of resources. I would solve this issue by having not many small structures but several big structures so the supplies have a greater chance to arrive and more money is used wiser and more efficiently. Another social aspect of this problem is the education. In Africa the education is something that not everyon e gets, so they are not aware about how they get the disease, how they can prevent it or what are  the affects. A reason for why in Africa they do not receive the education is because there are a very few amount of teachers, and the teachers that they have may also be contaminated and are not able to execute their job correctly. HIV/AIDS affects everyone in their community because the disease spreads fast in their case (the people in Africa). This is due to their sexual behavior. Their culture does not have monogamy or a custom of only one sexual partner, but they have many different sexual partners, and that is why HIV/AIDS spreads so quickly in Africa. They also do not use protection because it is not available to most people and so chances are higher to get HIV/AIDS. Another cultural aspect is that there is a lot of prejudice against testing. Many people do not want to get tested for HIV/AIDS because one, they are scared the test might come back positive, second if it does result positive how will they tell their family/friends and thirdly how will they get the treatment they need to get. If the people get tested and do want to not tell anyone, because of various reasons, and as a result the problem amplifies and does not get solved. Another problem for the cultural aspect is get the people to take responsibility and try to change. Of coarse it is easier to ignore the problem and pretend it is not there, but that would not be helping the matter, it would be making it worse. How to solve these problems would be, in my opinion, have protection available to them, encourage testing, reassure the people that there will be a treatment for them, make them understand the severity of this issue and that if we do not take action it may get a lot worse, have session/groups for them to talk about their worries, experience ect. However before doing this we must solve the bigger problem, how do we give them the treatment for free. Another aspect of the issue is the ethical/moral part. The richer countries to some extent have an obligation to help the poorer countries, but the third world countries should not relay or take advantage because also the richer countries have their own problems to solve. For insists America is going though a very tough crisis but at the same time they are helping the less fortunate get better. The poorer countries should also take action and do something to help themselves, because they should be putting the money where it really needs to go to, the people. This leads us to another aspect of the issue, the political portion. Politics have caused a lot of mayhems in the world because they sometimes do not have they  priorities sorted out. For example in Africa instead of investing their money in this issue of HIV/AIDS and the treatments, they have decided to invest their money on weapons and in their natural recourses such as oil. It is very hard to run a third world country but it should not be an excuse. To solve these concerns although it is a difficult task but one way to solve them, in my opinion, is to have people from the first world talk and discuss about what they can do together (with the people of the third world) instead of just have the first world do everything on their own. The last aspect of this issue is the economic part. Africa is already a poor continent, having a poor economy is not helping either. They do not have enough money to circulate and this stops Africa growing, having sick people also stops the economy from growing because it is another matter they have to face. Child labor increases due to the fact that the adults are sick and are unable to work and the poor people have no way in getting better because there aren’t enough doctors. In conclusion a way to resolve the problem in the distribution of the ARVs is to have several multi-national pharmaceutical companies sponsor the ARVs, so other independent companies do not have to buy the drug and then distribute them, but by sponsoring the drug, the ARV drug company directly gives the drug to the third world countries without loosing it’s money. The multi-national pharmaceutical companies get advertisement and so they also gaining not loosing their money. As you can see this is a win, win situation. The main issue here is that the ARV drug company does not want to loose the money that they put in research so they make the drug excessively high-priced because to produce the drug is a coast next to nothing. Once the people receive the treatment, they should help educate not only the affected people but also the people that haven’t been affected yet. I believe by doing this, the transmission of the HIV/AIDS with decrease significantly and things will start to get better. I do believe that this problem is solvable.

Institutions of American Government Essay Example | Topics and Well Written Essays - 1000 words - 1

Institutions of American Government - Essay Example In my opinion, however, it may be more accurate to say that media is a contest terrain of both the American and world politics. Out of America’s democratic tradition, American media is known as the fourth branch of government. Democratic thinkers argue that although formally, there are three branches of government (or the executive, legislative, and the judicial branches of government), media adds to the first three categories. Actually, media is outside of formal ambit of government. However, if it wishes to, the state can have effective control of the media. State control on the media is feasible via restrictions and regulations. It is also feasible to control media via technology. The military is well known to have the capability to scramble radios, disrupt media transmission lines, and shut down electronically media’s operations. The American government and the military have even the capability to shut down or censor the internet if they want to. They can even use à ¢â‚¬Å"ethical† hacking to bring down a website. Yet, at the same time, there is no need for America’s elite to shut down or censor the internet. Shutting down or imposing censorship in the internet will be to the disadvantage of America’s elite because shutting down or censoring the internet can also mean crippling or slowing down business operations. Other than this, shutting down or censoring the internet too much will mean losing the political vantage that America enjoys over her enemies. Democracy and freedom are America’s fighting slogans against communist and Islamic fundamentalism. Shutting down or censoring the internet will be costly politically for American to win the political, military, and moral war over perceived enemies. Elite dominance over the media has not been formal anyway. It is not as if government directly threatened media

Obesity in America Annotated Bibliography Example | Topics and Well Written Essays - 750 words

Obesity in America - Annotated Bibliography Example This essay looks into some of the sources on the topic on obesity in America. Braun, M. (2012, September 18). Most Americans May Be Obese by 2030, Report Warns. ABC News. Retrieved November 3, 2012 from http://abcnews.go.com/Health/americans- obese-2030- report- warns/story?id=17260134 This website discloses obesity trends in the US and how it influences the economic conditions. This presents an interesting perspective to the topic and is a captivating area of inquiry. According to the article, over 50 percent of the US population could be obese by 2030. This could result into a drastic increase in the health cots from $18 billion to $66 billion annually and this cripple the health care system. The article however notes that this situation could be averted. This article is highly valuable in my research as it provides a way forward. It states that if individuals reduced their BMI by a slight 5 percent, a considerable number of individuals could be saved from obesity and related conditions and as a result health care costs could be reduced. Programs must be implemented an establishing a healthy environment for the young increase the chances of them growing up as healthy adults. In a nutshell, the article proposes an achievable goal. This article is highly important when handling the issue on how to control obesity in the population. It discusses the treatment approaches, lifestyle modifications, assessments, goals, pharmacotherapy and bariatric surgery. Normal behavior therapy is made up of behavior therapy, physical activity and a diet aspect. The article underscores the benefits of setting down lifestyle modification together with bariatric surgery and pharmacotherapy to attain the full benefits. The article was significant in my research as it underpinned the increasing numbers of the condition and the role played by health care

Critically evaulate the view that international organisations and Essay

Critically evaulate the view that international organisations and global governance systems are undemocratic - Essay Example Indeed, it is very much possible to see that global institutions such as International Monetary Fund (IMF), World Bank and World Trade Organisation (WTO) do play an active role in the governance, political and economic organisation of many countries from around the world. Importantly, the issue of deficit of democracy primarily arises from the fact that while the nation states are at least theoretically accountable to the national civil society, the international institutions are accountable to none. All the nation states do not wield equal power in many of the transnational institutions. Moreover, if we look at the internal structure and power balance within, most of the international institutions are tilting towards the rich countries of the Global South. Global Institutions, Global Governance and Lack of Global Democracy The making of accelerated globalisation was characterised by the shift of governance from the national to the global. The nation state is being increasingly chall enged by the forces of globalisation. At present, the democracy is solely expressed through national governments and their institutions. In other words, the national parliament is the only abode of democracy. However, the rise of international organisations has led to their growing clutch on the national economies, politics and policies. It is followed the rise of unaccountable forces of neoliberal capitalism which effectively surpass any idea of national and popular sovereignty. It has led to a kind of global elite consolidation as there exists no world parliament. Still, the absence of world parliament does not automatically translated as the absence of global sovereignty. Global sovereignty certainly exists as the consolidated and concentrated power of global market forces and their institutions. It is primarily because of this lack of democracy within, the meetings of international finance and trade institutions attract huge resistance from activists and political groups from ar ound the world. The voting rights in a major institution such international monetary fund is based on proportional vote wherein ‘one country, one vote’ principle is not followed. On the contrary, countries get their voting rights based on their economic share in the institution. The United States in particular and the West in general are also able to exert disproportional influence in the decision making bodes of IMF and World Bank. One of the major problems with international governance organisations is that they do not directly draw their legitimacy form any popular sources. In other words, the legitimacy of the global institutions is solely depended upon their ability to intervene and act decisively in certain situations and places. Although, there is a lot of talk on the emergence of a global civil society which could effectively counter the lack of democracy in global governance institutions, nothing yet has materialised. Conversely, the so-called global civil soci ety itself is predominantly dominated by many Non Governmental Organisations which are accountable not to the people but to the funding agencies. In the question of transparency too, the status of global transnational organisations is not very different from the global finance or political institutions. Here, the very lack of representation of the voice of the developing

Market Risk Premium(MRP) Essay Example | Topics and Well Written Essays - 500 words - 2

Market Risk Premium(MRP) - Essay Example It is usual for financial managers and Boards of Directors to be more conservative so that they do not err in costs therefore when they arrive at a hurdle rate, the rate at which investors will start becoming reluctant to invest in their company, and fix a price band that is slightly higher. Through this, they seek to manage costs more prudently to avoid shocks to themselves, but at the same time they cause the investors to shy away from them and lose funding. This is more prevalent in developed markets but in contrast in the emerging markets, due to hidden and accruable values, the investors, both local and overseas are bolder hence the incremental values are higher carrying more MRP. Despite higher taxes, higher volatility and consequently higher MRP on equity this is preferred over debt as the returns are likely to be better. Another factor for this preference is that unless there is and an event like 9/11 or the Enron crisis, historically the socks have always outperformed the debt or bonds. Since the market favors equity, it becomes important to calculate MRP on daily, indeed even several times daily, to present both clear and emerging pictures for the investing public to act upon. On the other hand, this also assists the financial managers to plan their fundraising exercises. MRP is also valuable as it offers insights into past movement and likely future scenario except for events that happen to change it abruptly. At the same time, such subtle changes might also shed light on some expected movements that can affect future calculations. Those who are against MRP forward the argument that MRP movement causes reactions that might be sharp in some cases as they cause a cascading effect. This can sometimes be detrimental and erode confidence and capital.