Nike has long been haunted by the curse of not being able to mass market its standards globally wherever it operates. Since Nike owns subsidiaries as well as has forged long-term relationships with same contractors operating in now different regions of the world instead of where they used to operate before, this has become increasingly challenging for Nike to control its practice of fair labor standards, regulations that ensure that employees are not made to work extra hours, or through forceful engagement of children to work in their facilities inducing negative feelings about the company.
Nike has faced lots of accusations on its control over employees working under different contractors in Asian regions specifically where regional enmity exists at large. In order to resolve this issue, Nike had to take on a variety of changes, from the inception of a new division, the recruitment of a new labor division manager, overall communications structure of the organization.
Encouraging organizational citizenship behavior by engaging employees into collaborative decision making and focus groups on different company issues, especially introduction of new policies and procedures.
Paying its employees well above the minimum wage to encourage positivism in employees towards the company.
These practices can be monitored and enforced using a variety of mechanisms:
- Collect anonymous feedbacks from employees about their managers
- Carry out surveys on wage management structures followed in the region where Nike operates.
- Apart from regular external audits, Nike should carry out unannounced internal audits as well to ensure its fair labor practices are appropriately enforced.
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