Production costs
To what extent is it ethical for Nike to abuse and exploit its workers in less developed countries like Indonesia in order to have lower production costs?
Sample Answer
The ethical implications of Nike’s labor practices in less developed countries like Indonesia are complex and multifaceted. On the one hand, Nike has a responsibility to its shareholders to maximize profits, and this often means outsourcing production to countries where labor costs are lower. On the other hand, Nike also has a moral obligation to treat its workers fairly and to ensure that they are not subjected to abuse or exploitation.
There is evidence to suggest that Nike has, in the past, engaged in unethical labor practices in Indonesia. For example, a 1991 report by Jeff Ballinger documented a number of abuses at Nike factories in Indonesia, including low wages, excessive overtime, and physical and verbal abuse. In response to these allegations, Nike launched a number of initiatives to improve its labor practices, including a code of conduct for its suppliers and a monitoring program to ensure that the code was being followed.