KREFT G202 EXAM 3 EXAMPREP 2026
QUESTIONS WITH COMPLETE SOLUTIONS
AND EXPLANATIONS VERIFIED
◉ Labor criticisms against Nike. Answer: -low wages
-low age
-poor working conditions
-unfair profits (profits were not being invested back into the
community)
◉ Was it fair nike was targeted? Phil knight perspective. Answer: No.
100% outsourced. Blame the contracting firms
◉ Was it fair nike was targeted? Jeff Ballinger perspective. Answer:
Yes. By chasing cheaper labor cost on earth, Nike actively rewards
labor abuses. When labor conditions improve, Nike leaves the
country and effectively punishes the labor improvements
◉ Nikes response tactic was.... Answer: Agressive- Defensive posture
- as Nike denied accountability, the firm increased its advertising to
demonstrate that the brand was not vulnerable to the activists
accusations
,◉ Labor activists targeted. Answer: college athletes, coaches, and
athletic directors. As well as celebrity athletes that endorsed the
Nike Brand
◉ What impact did this have on Nike ?. Answer: -reduced their
profits
-tarnished their brand
-made it difficult to recruit college students for employees
-therefore Nike would have to offer higher salaries
◉ How did nike respond?. Answer: -Hired Dusty Kidd into its public
relations department to draft a new internal code of conduct and
lead its Labor Practices Department
-Hired Ernest and Young to conduct an internal audit of its overseas
factories
-Nike brought Andrew Young in to conduct an independent
evaluation of its overseas factories
-Nike arranged for Dartmouth's School of Business to independently
survey its overseas factory workers
, ◉ Phil Knight announced a seres of changes for Nike. Answer: -
Factories must default to U.S labor ages(16-apparel, 18-shoes)
-Factories must comply with OSHA standards (max workers at 60
hours per week and better trained managers (language
requirement)
-Nike made micro loans available to workers
-Nike led the industry effort in the Apparel Industry Partnership
-followed by leadership in the Fair Labor Association
◉ What industry efforts was nike the leader of. Answer: Apparel
Industry Partnership (AIP)
Fair Labor Association (FLA)
◉ Could Nike have changed their strategy at some point to better
protect their brand?. Answer: Yes. When reebok was accused of
violating workers' rights in Indonesia, the company responded
proactively w new labor guidelines.
-explicit language of human rights
-set forth specific standards for company's contractors and
promised to audit these contractors to ensure compliance
-proactive engagement from Reebok took away the activist leverage
QUESTIONS WITH COMPLETE SOLUTIONS
AND EXPLANATIONS VERIFIED
◉ Labor criticisms against Nike. Answer: -low wages
-low age
-poor working conditions
-unfair profits (profits were not being invested back into the
community)
◉ Was it fair nike was targeted? Phil knight perspective. Answer: No.
100% outsourced. Blame the contracting firms
◉ Was it fair nike was targeted? Jeff Ballinger perspective. Answer:
Yes. By chasing cheaper labor cost on earth, Nike actively rewards
labor abuses. When labor conditions improve, Nike leaves the
country and effectively punishes the labor improvements
◉ Nikes response tactic was.... Answer: Agressive- Defensive posture
- as Nike denied accountability, the firm increased its advertising to
demonstrate that the brand was not vulnerable to the activists
accusations
,◉ Labor activists targeted. Answer: college athletes, coaches, and
athletic directors. As well as celebrity athletes that endorsed the
Nike Brand
◉ What impact did this have on Nike ?. Answer: -reduced their
profits
-tarnished their brand
-made it difficult to recruit college students for employees
-therefore Nike would have to offer higher salaries
◉ How did nike respond?. Answer: -Hired Dusty Kidd into its public
relations department to draft a new internal code of conduct and
lead its Labor Practices Department
-Hired Ernest and Young to conduct an internal audit of its overseas
factories
-Nike brought Andrew Young in to conduct an independent
evaluation of its overseas factories
-Nike arranged for Dartmouth's School of Business to independently
survey its overseas factory workers
, ◉ Phil Knight announced a seres of changes for Nike. Answer: -
Factories must default to U.S labor ages(16-apparel, 18-shoes)
-Factories must comply with OSHA standards (max workers at 60
hours per week and better trained managers (language
requirement)
-Nike made micro loans available to workers
-Nike led the industry effort in the Apparel Industry Partnership
-followed by leadership in the Fair Labor Association
◉ What industry efforts was nike the leader of. Answer: Apparel
Industry Partnership (AIP)
Fair Labor Association (FLA)
◉ Could Nike have changed their strategy at some point to better
protect their brand?. Answer: Yes. When reebok was accused of
violating workers' rights in Indonesia, the company responded
proactively w new labor guidelines.
-explicit language of human rights
-set forth specific standards for company's contractors and
promised to audit these contractors to ensure compliance
-proactive engagement from Reebok took away the activist leverage
