From Labor Exploitation to Ethical Sourcing: How Nike Rebuilt its Reputation Through Strategic Workforce Management

Introduction
The Nike Company has gone through tremendous criticism regarding the form of labor used by the contractors involved in supplying the products. The criticism affected the reputation of the Nike Company and this was reflected in the reduction of profits. For any organization intending to maintain its high status within the market place, it should ensure that ethical standards regarding the workers are highly upheld. The form of labor that any organization adopts should therefore be genuine and the laborer’s need to be recognized as vital assets within the company and thus should be accorded the respect that they deserve (Sislin and Murphy 2009). The contractors involved in the supply of Nike products used child labor and at times went to the extent of imposing overtime on all the workers so as to get maximum benefit from them. The administration of the Nike Company has come up with a mindset strategy that focuses on the improvement of the form of labor that the outsourced contractors use. Through this, the company has established a system that is concerned with ensuring that the workers’ rights are not violated and that their living standards are upgraded. This has been achieved by using the following strategic mindset.

Training
According to Halbert and Ingulli (2011), the lack of adequate programs to enlighten the children has led to most children being left in the streets while others choose to seek cheap employment to sustain their livelihood. The Nike Company has established a training program for children geared towards instilling knowledge in them to avoid ending up in the streets. The underaged group is also trained on the requirements of the job to enable them to provide useful labor; this training has played a vital role in increasing the effectiveness of the form of labor provided. On the other hand, all workers in the company are also trained regarding their rights in the working place as well as certain necessities which are required in the footwear industry. Continuous training of workers enables individuals to have a clear understanding of what is required from them in the workplace.

Health Issues 
Poor working conditions present in the workplace reduce the effectiveness of labour provided by the workers. For good health to be achieved Nike has the responsibility of increasing the amount of wages given to workers to enable them have a decent living standard. Improved living standards ensure that the diet taken by the workers is appropriate hence guaranteeing the workers a healthy life. Healthy lifestyles have a direct positive influence on the labor provided. Concerning the health of the employees the Nike Company has come up with a strategy where workers are given time to exercise to ensure that they attain a healthy body. Through this, the company has been able to improve the effectiveness of the labour that it gets from the workers (Hill and Jones 2012).

Top Management Involvement
The management of a company has a direct influence on the form of labor within the workplace. The laborers work effectively in case they have management support. The management’s positive attitude improves the productivity of the workers. The Nike Company has been at the forefront in the reorganization of the management structure to include only those personnel who are friendly and can therefore create a positive attitude among the workers (Jennings, 2011). The management is encouraged to form teamwork which will create a positive attitude for the workers hence leading to effective labor in the workplace.

Forming Individual Tasks
Various organizations adopt a system where workers are assigned duties according to their area of specialization. The Nike Company has followed this system where different duties in the production of footwear are awarded according to the specialty of the laborer. Through this, the level of effectiveness of labour in the workplace increases as the employees are motivated to work in their area of specialization.

Formation of a Trade Union
In contribution to this topic Firestein (2009), explained that forming a trade union in the workplace is a trusted tactic that improves the welfare of workers. The trade union adopted by the Nike Company ensures that the workers’ rights are protected; any misconduct performed by the workers is highly criticized. The members of the trade union have the responsibility of forwarding all the worker’s grievances to the top management. Through this, the laborers are provided with suitable working conditions.

Conclusion
Following the issue regarding labor exploitation by the contractors involved in the supplying of the products, Nike has come up with a policy that is aimed at ensuring that the labor that the contractors use is legal. The company has enhanced workers’ protection by forming unions that defend the interest of every single laborer in the working place. Establishing a minimum wage that should be paid to workers has improved the living standards of the laborers. This has had a direct effect on the health of the workers hence increasing the effectiveness of labour delivered in the working place.

References
Firestein, P. (2009). Crisis of Character: Building Corporate Reputation in the Age of Skepticism. New York: Sterling Publishing Company, Inc.
Halbert, T. & Ingulli, E. (2011). Law & Ethics in the Business Environment. London: Cengage Learning.
Hill, L. W. C., & Jones, R., G. (2012). Strategic Management: An Integrated Approach. NewYork: Cengage Learning.
Jennings, M., M. (2011). Business Ethics: Case Studies and Selected Readings. London: Cengage Learning.
Sislin, J., & Murphy, K. (2009). Approaches to Reducing the Use of Forced Or Child Labor: Summary of a Workshop on Assessing Practice. New York: National Academies Press.