Ethical Processes Within Companies Nike Essay Example | Topics and Well Written Essays - 1500 words

Ethical Processes Within Companies Nike - Essay Example Indera Nababan, the member of the Yakoma, a nonprofit organization in Indonesia, also said that the company pays the underaged employees with a basic minimum wage of 5,200 Indonesian rupiahs, equivalent to US $2.17, that is barely enough for them to survive and show up at work the next day. (Harsono, 1996) Another instance of the was seen in Cambodia where Nike, a company which offers millions of dollars worth of sponsorship deals, was caught having children, as young as 12 years old, as employees. These children were being paid a mere 31 pounds a month. This evidence was caught on tape by BBC journalists filming undercover at the Nike factory in Cambodia. Moreover, a child was found having false papers as a proof of age to get the job. (Johnson, 2000) In response to the allegations that were made regarding the underage employment in Indonesia, Phil Knight, CEO of Nike, declared a set of policies that were going to be adopted by Nike as code of conduct (Connor, 2001). These included setting a minimum age of 18 years for employment in the footwear factory in Indonesia. Also, the company promised to meet U.S. Occupational Safety and Health Administration’s (OSHA) standards in the work environment. Moreover, the employees were promised to be given education of high school equivalen t courses in the factories.These policies were enough to change the picture of child labor Indonesia. The decision of minimum age was widely considered to be a brave step by Nike to eradicate child labor, at least from its domain.Nike took another bold step and pulled out its factory in Cambodia after being stamped with the child labor scandal. Following the allegations, Nike management in Britain initiated