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Essay / Zara Fashion Case Study - 2240
Nike ranked number one for many key attributes, such as innovation, people management, social responsibility, global competitiveness and quality of products and services (Fortune, 2015). Nike's financial companies suffered from the scandal because it was brought before the American courts. In 1991, Life Magazine published an article on child labor in Pakistan, where Nike was the first company affected. They allegedly employed children as young as nine years old to make soccer balls and sports shoes, and had to work grueling hours in inhumane conditions. Child labor in Pakistan is a very significant problem, this has been repeatedly demonstrated by international media, but nothing has been done by governments (TED, 1999). According to Unicef, in 2011, more than thirteen million children were working in Pakistan, of which 73% were boys and 27% were girls (Unicef, 2011). They work in different industries such as agriculture and manufacturing (Appendix 3). Following these allegations, Nike felt public relations impacts in the short term, but in the long term, the company's growth and sales were not affected. Only their image has suffered, but the image that customers now have is