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  • Essay / Effect of Sweatshops on Nike - 1413

    This article will follow up on the leading question asking why does Nike create sweatshops in developing countries? The main focus of this section will be on the working conditions in the sweatshops subcontracted by Nike. Many sweatshops in developing countries operate on the overexploitation of low-wage human capital. Salaries are considered even lower in U.S. dollars because the purchasing power of the home country is often lower than that of the United States. Regardless of the already inflated profit margins resulting from sweatshop conditions, the Nike corporation does little to create harmonious conditions, free from the laborious pressures placed on sweatshop workers. As we will see, the working conditions in these sweatshops provide cheap labor free from lawsuits and union problems. In Cicih Sukaesih's article, he talks about his trials and tribulations dealing with a Nike contractor who fired him, and with the unions he is trying to rally for better working conditions. In Jeff Ballinger's article, "Nike's Voice Looms Large," we'll learn about Nike's anti-sweatshop solidarity groups and the real reasons they're against Nike. Caroline Kaeb's article tells us about the gross human rights violations seen in sweatshops, as well as the laws that do nothing to protect these workers. Finally, an "Update on Nike and Michael Jordan" follows Sukaesih's article, suggesting that the real root of the problem lies in the lack of help from key media figures here in North America. The Root of the Problems When looking at the problem of sweatshops in Asia, it is easy to blame the subcontractors themselves for taking advantage of the workers, and perhaps that is the right way to look at things. However, Sukae...in the middle of the document......explains that due to the fact that multinational companies can only be judged in their home country, this allowed Nike to escape prosecution. This, coupled with little help from Nike and its advocates, allowed Nike to expand its production line that abuses workers. It is strange to see such conditions repeated when it was the norm in Britain 150 years ago, but perhaps this is the natural process of economies of scale. (2001). Social Policy 32(1), 33. Ballinger, J. (2001). Nike's voice looms large. Social Policy, 32(1), 34-37Kaed, C. (2008) Emerging issues related to human rights accountability in the extractive and manufacturing industries: Accountability models and risks. Journal of International Human Rights, 6(2), 327-353. Sukaesih, C. (2001). Indonesian workers are organizing. Social policy, 32(1), 38-39.