In the mid-1990s, Nike, one of the world’s most successful shoe manufacturer, is hit by a flood of shockingly bad publicity. After years of high-profile media attention as the company, “just do it”, Nike can as a company, which is based on low-cost, exploited labor in its overseas plants is suddenly portrayed. Nike officials vigorously deny the charges, claiming that Nike has produce no control over the independent contractor, the Nike shoes. But the activists do not retreat. Finally … Read more »

In the mid-1990s, Nike, one of the world’s most successful shoe manufacturer, is hit by a flood of shockingly bad publicity. After years of high-profile media attention as the company, “just do it”, Nike can as a company, which is based on low-cost, exploited labor in its overseas plants is suddenly portrayed. Nike officials vigorously deny the charges, claiming that Nike has produce no control over the independent contractor, the Nike shoes. But the activists do not retreat. Finally, Nike has to learn to deal with the claims and activists with the tangle of conflicting data surrounding the concept of a “fair” or “living” wage.
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from
Debora L. Spar,
Jennifer Burns
Source: HBS Premier Case Collection
23 pages.
Release Date: 19, January 2000. Prod #: 700047-PDF-ENG
Hitting the Wall: Nike and International Labor Practices HBR case solution