Powerful brands often symbolize comfortable working areas with high wages together with safe working conditions along with health insurance coverage. But what about the so called sportswear brand Nike, which employs 650,000 workers worldwide and exploits labor by making them work for more than 60 hours a week in sweatshops while punishing those workers who refuse to do overtime. 25% to 50% of factories restrict access to drinking water and toilets. The irony is that for a company to avoid decline and grow profitably it must keep stakeholders satisfied and have a certain benefit which leads not only the company but everyone involved to accomplish a similar goal. Still Nike is growing profitably while excluding the wellbeing of one very important group of stakeholders called employees. What I think comes next will be up to the managers to cope with the media alerts and possible government intervention onto improving welfare of Nike’s workers. Also Nike should try to avoid bad reputation as ethical issues can bring up strikes from workers and high negative impacts on demand
Reference: