I am not a huge fan of Michael Moore so when I had to watch the clip of him speaking with Nike’s CEO Phil Knight I was skeptical. I have to say though that I was thoroughly surprised and enjoyed it. He gave a great insight into the wrongdoings that the Nike company has been committing for years. Nike is obviously an extremely successful company that is revered by many. I’m sure it’s a model for many businesses as well. Their business model is one that cuts costs while still increasing profit. By outsourcing all of the manufacturing to Indonesia there is a ton of cost that is saved. Michael Moore showed how Nike is paying its workers next to nothing. Most of the workers are below the age of 18 as well. This is obviously something that in our society is unnacceptable. Phil Knight was not willing to take accountability for him and his company that have made billions of dollars.
This however is a fact that most companies are profit driven and their social responsibility is just that. Nike is just like countless other companies that outsource its production to developing countries in order to cut costs. There are plently of companies who manufacture in the United States and are able to run high profit companies. Then I think of companies like American Apparel who choose to do all their manufacturing in house. Everything is done under the American Apparel brand. This company as most know is not doing well and could file for bankruptcy. The margin between costs and profit are becoming smaller and smaller. Looking at companies like this can you blame Nike for choosing to outsource to developing countries? Obviously the way they treat their workers is inhumane and it is not something that I agree with, but I understand why companies choose to do this. In this case as in most cases looking at large companies greed drives Phil Knight’s business model. Will this ever change looking at companies? And if this does will people enjoy rising costs due to rising production costs? I believe they won’t which is why this problem is a catch 22.