The following work deals with the topic of backgrounds of outsourced production in Asian countries at the example of Nike.
According to philosophers like Thomas Hobbes and Karl Marx, humans have a self-interested nature because they first think about their own advantages without thinking about consequences of their behaviour when they save costs. Companies like Nike save costs by outsourcing their production into Asian countries, and consumers save costs by spending as little money as possible.
The negative consequences of that are the employer’s bad working conditions which include a poor place of work with too little space, too many working hours per day despite low salaries and the risk of health problems due to work with glue. Moreover, this causes a bad reputation for Nike itself. A more general disadvantage is the widening gap between rich and poor, which leads to inequality and a lack of motivation of the poorer people.
Nevertheless, there are advantages for the Asian countries. Companies and factories are created and by that, places of employment are created which means a regular income and the possibility of exportation of products. Furthermore, the factories have to pay taxes which can be invested into a social system and the infrastructure. In spite of these advantages, there is the need of improving the conditions of outsourcing the production.
Table of Contents
1 Introduction
2 Concepts of men
Thomas Hobbes
Karl Marx
3 Where does Nike produce its products and why?
4 What exactly are the consequences of cheap production in Asia?
4.1 Disadvantages
4.2 Do advantages exist about the production in third world countries?
5 Solution
6 Conclusion
7 Bibliography
Research Objectives and Key Themes
The primary objective of this report is to analyze the economic motivations behind outsourcing production to Asian countries, using Nike as a central case study, while critically evaluating the ethical consequences regarding labor conditions and global inequality.
- Philosophical underpinnings of self-interested human behavior (Hobbes and Marx)
- Geographic distribution and economic rationale for Nike's Asian supply chain
- Analysis of working conditions, exploitation, and social impact in production countries
- Balancing economic development benefits with the necessity for fair labor practices
Excerpt from the Publication
4.1 Disadvantages
First of all, the working conditions of the employers in Asia need to be clarified to have an idea what is the problem about it. We all know Nike stores with a big logo to attract customers. But in the “factories in the industrial zone” of Manila, the capital of the Philippines, no logos can be seen. Over there, it is not about recognizing the brand, the bad working conditions at the Philippines or in different Asian countries are rather meant to be hidden. The employers have to work in “windowless workshops made of cheap plastic and aluminium […] [with] open doors [as] the ventilation system”. But not only the working place is capable of improvement. The workers are wanted to work as much as possible, “the maximum number of working hours [is] extracted from each day. Nevertheless, they are paid rarely.
One 40 year old woman has been interviewed by reporters of “Stiftung Warentest”. She left her family to work for Nike to finance her children’s education. Her maximum salary is 70€ per month and for herself there are only about 10€ left per month. The consequence is that she can neither buy clothes for herself nor visit her family. A different woman has health problems because she has to work with glue. The glue causes problems in breathing, skin diseases and infertility. To solve their problems, usually it is possible to go on strike but this is prohibited and will be punished by a dismissal. Moreover, even a lot of children have to work in Asia, in numbers there are 114 million child workers in Asia and the Pacific, which means every eighth child has to work.
Summary of Chapters
1 Introduction: This chapter outlines the globalization-driven trend of outsourcing production to third world countries and sets the scope for examining Nike’s impact on Asian labor markets.
2 Concepts of men: This section explores philosophical perspectives from Thomas Hobbes and Karl Marx to explain the self-interested nature of human behavior in an economic context.
3 Where does Nike produce its products and why?: This chapter identifies the core Asian production hubs for Nike and explains the cost-saving rationale behind these location choices.
4 What exactly are the consequences of cheap production in Asia?: This chapter investigates the stark disadvantages for local workers and analyzes potential economic benefits like job creation and infrastructure development.
5 Solution: This section proposes potential improvements, such as better education and fair wage policies, while discussing the responsibility of both the producer and the consumer.
6 Conclusion: The final chapter summarizes that while outsourcing supports economic development, systemic improvements in working conditions and ethical accountability are essential.
7 Bibliography: This section lists all scientific and media sources referenced throughout the report.
Keywords
Globalization, Outsourcing, Nike, Labor Conditions, Exploitation, Self-interest, Ethics, Third World Countries, Economic Development, Inequality, Human Rights, Fair Trade, Supply Chain, Production Costs, Corporate Responsibility.
Frequently Asked Questions
What is the core subject of this report?
The report examines the phenomenon of outsourcing production to Asian countries, specifically analyzing the impact of Nike's business model on workers and the underlying motivations for such strategies.
What are the central thematic areas?
The key themes include the philosophical roots of human self-interest, the economic advantages of low-cost production, and the subsequent social and ethical challenges in the global supply chain.
What is the primary research goal?
The goal is to understand why companies outsource to Asia and to assess whether these actions are justifiable from a moral and ethical perspective, despite the undeniable economic incentives.
Which scientific method is applied?
The author uses a qualitative approach, combining philosophical theories (Hobbes/Marx) with empirical data on supply chains and descriptive analysis of labor reports.
What does the main body address?
It covers the philosophical concepts of human nature, analyzes current production statistics for Nike, details the harsh working conditions of laborers, and explores potential solutions for ethical improvement.
Which keywords characterize this work?
The work is defined by concepts such as globalization, labor exploitation, ethical business practices, corporate social responsibility, and international economic development.
How do Thomas Hobbes and Karl Marx contribute to the analysis?
Their theories serve as a theoretical framework to explain why entrepreneurs and consumers prioritize cost reduction and financial gain, often at the expense of others' well-being.
What is the author's stance on the "Veil of Ignorance" by John Rawls?
The author suggests applying this thought experiment to corporate decision-making, arguing that if managers were unaware of their own social standing, they would prioritize fair conditions for factory workers.
Does the author recommend a complete stop to outsourcing?
No, the author argues that outsourcing can benefit developing economies; however, it must be accompanied by better wages, reasonable working hours, and humane treatment of workers.
- Quote paper
- Lea Tappert (Author), 2018, The Real Costs of Nike Air Max. Why Companies Outsource Their Production, Munich, GRIN Verlag, https://www.grin.com/document/1033809
