SOC-100 Nike Global Stratification PDF

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Ysidro Arredondo SOC-100 Professor Deborah Wilson July 19, 2021

Nike and Global Stratification The most popular globally recognized sports apparel brand called Nike was found in 1964 by Phillip H. Knight. To this day, Knight still holds the title of Nike chairman and CEO. Based out of Beaverton, Oregon, According to Arnold & Hartman (2003), Nike employs close to 600,000 workers in over 52 countries that manufacture over 175 million pairs of shoes per year. Nike also manufactures sports and fitness footwear, apparel, equipment, and accessories for worldwide distribution. Nike, like many other multinational corporations, often outsource their manufacturing efforts to third-world countries. When these large corporations outsource labor to third-world countries, they risk a higher chance of those local facilities being involved in severe human rights violations, such as forced labor and child labor. The local culture is impacted by global stratification by these corporations providing jobs for their community. However, more often than not, acts such as forced labor and child labor will be overlooked due to the positive effects of having jobs. According to Arnold & Hartman (2003), In 1988, “Rather than a crackdown on the abusive conditions in the factories, Nike has resorted to an elaborate international public relations campaign to give the appearance that it cares about the workers.” In doing so, this will often win over the host nation workers even though they only make about $1.60 per day, which doesn’t even cover the cost of food. However, in 1998, Nike self-reflected © 2016. Grand Canyon University. All Rights Reserved.

about their role in the global workplace and made some significant changes regarding their responsibility to take care of their workers. Although many corporations such as Nike attempt to make it seem as they genuinely care about their worker, they still find ways around by having the freedom to structure their functions around environmental and labor standards. According to Parella, K. (2014), “Their functions—from product concept, development, manufacturing, sales, shipping, and customer service—can be distributed across a variety of actors and several continents so that no two functions occur in the same place. This freedom allows businesses to escape the dictates of national regulation in favor of a less regulated space”. Nike was outsourcing many jobs to third-world countries, which has had a significant impact here in the United States. Of those 600,000 employees in over 52 countries, only 22,000 employees are here in the United States. Nike could give many of those jobs to people in the United States to decrease the unemployment ratio. However, I do believe that this would also drive up the cost of Nike products. Another positive effect of global stratification is that those who have jobs with Nike will continue to have job security due to minimal changes being made to decrease the governance gap created by globalization. According to the U.N. Special Representative for Business and Human Rights John Ruggie, “The root cause of the business and human rights predicament today lies in the governance gaps created by globalization - between the scope and impact of economic forces and actors, and the capacity of societies to manage their adverse consequences.” I believe the clear winner here is Nike; they get to continue to outsource the majority of their manufacturing functions that significantly cut costs and allows them to make a more significant profit on every product they sell.

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References:

Arnold, D. G., & Hartman, L. P. (2003). Moral Imagination and the Future of Sweatshops. Business & Society Review (00453609), 108(4), 425–461. https://doiorg.lopes.idm.oclc.org/10.1046/j.0045-3609.2003.00173.x Parella, K. (2014). Outsourcing Corporate Accountability. Washington Law Review, 89(3), 747– 818.

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