On April 1, 2008, about 20,000 workers in Vietnamese factories that make Nike shoes walked off the job. The workers at the plants (managed by a Taiwanese company) were demanding higher wages. At the time of the strike, the Nike workers were being paid 14% above the minimum wage for Vietnam. However, consumer prices in Vietnam have risen 19% in one year. The inflation rate has been the impetus for a number of labor strikes over the past year. By April 2, 2008, the strike was settled. The workers were given a 10 percent raise to their $5 hourly wage. If Nike's wages that it was paying were legal, why did it settle the strike by agreeing to pay more?

Question

Quizplus · Accepted Answer

Nike's decision to settle the strike by agreeing to pay more can be seen as addressing an ethical dilemma related to organizational abuse (by ensuring fair wages), considering its stakeholders (workers, consumers, and the broader community), and exercising social responsibility by going beyond legal requirements to address the workers' needs and the impact of inflation.

On April 1, 2008, About 20,000 Workers in Vietnamese Factories