Nike's Labor Practices-Business Ethics Case Studies|Business Ethics Articles

Nike's Labor Practices

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : BECG018 For delivery in electronic format: Rs. 300;
For delivery through Shipping & Handling Charges extra: Rs. 300 +Shipping & Handling Charges extra


HR Practices and Policies
Case Length : 12 Pages
Period : 1996 - 2001
Pub. Date : 2002
Teaching Note : Available
Organization : Nike, CBS News, Vietnam Labour Watch
Industry : Apparel and Footwear Industry
Countries : USA, Vietnam


The case describes the maltreatment of employees and sweatshop conditions in Nike's Asian factories. In many Asian countries, Nike violated local labor laws.

According to the Vietnam labor watch, Nike did not pay the minimum wages, did not provide proper working conditions, and did not take adequate health and safety measures. In addition, Nike turned a blind eye to child labor and sexual harassment in its factories. Though the company has taken some measures to improve the situation, it has failed to improve the working conditions and put an end to the ill treatment of its employees.

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Conflict between economic performance and social obligations, non-profit organizations/special interest groups in creating awareness of malpractices


  Page No.
Breach of Code of Conduct 1
Background Note 2
The VLW Report 3
Nike's Reaction 4
Three Years Later 5
Exhibits 7


Maltreatment, employees, sweatshop, Nike, Asian, local labor laws, Vietnam labor watch, wages, proper working conditions, adequate health, safety measures, blind eye, child labor, sexual harassment, factories

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