1 | Page
Kreft G202 Exam 3 Questions and Correct
Answers
Labor criticisms against Nike Ans: -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 Ans: No.
100% outsourced. Blame the contracting firms
Was it fair nike was targeted? Jeff Ballinger perspective Ans: 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... Ans: Agressive- Defensive posture
- as Nike denied accountability, the firm increased its advertising
to demonstrate that the brand was not vulnerable to the activists
accusations
© 2025 All rights reserved
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Labor activists targeted Ans: college athletes, coaches, and
athletic directors. As well as celebrity athletes that endorsed the
Nike Brand
What impact did this have on Nike ? Ans: -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? Ans: -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
© 2025 All rights reserved
, 3 | Page
Phil Knight announced a seres of changes for Nike Ans: -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 Ans: Apparel
Industry Partnership (AIP)
Fair Labor Association (FLA)
Could Nike have changed their strategy at some point to better
protect their brand? Ans: 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
© 2025 All rights reserved
Kreft G202 Exam 3 Questions and Correct
Answers
Labor criticisms against Nike Ans: -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 Ans: No.
100% outsourced. Blame the contracting firms
Was it fair nike was targeted? Jeff Ballinger perspective Ans: 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... Ans: Agressive- Defensive posture
- as Nike denied accountability, the firm increased its advertising
to demonstrate that the brand was not vulnerable to the activists
accusations
© 2025 All rights reserved
, 2 | Page
Labor activists targeted Ans: college athletes, coaches, and
athletic directors. As well as celebrity athletes that endorsed the
Nike Brand
What impact did this have on Nike ? Ans: -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? Ans: -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
© 2025 All rights reserved
, 3 | Page
Phil Knight announced a seres of changes for Nike Ans: -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 Ans: Apparel
Industry Partnership (AIP)
Fair Labor Association (FLA)
Could Nike have changed their strategy at some point to better
protect their brand? Ans: 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
© 2025 All rights reserved
