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In doing this it has made greater margins on the cost of mere cents to its workers. When Nike was getting pummeled on the subject in the 1990s, it typically responded with anger and panic. Executives would issue denials, lash out at critics, and rush someone to the offending supplier's factory to put out the fire before it spread. Since then, Nike has constructed an elaborate program to deal with labor issues in the 900-odd supplier factories (none owned by Nike) that churn out its products in some 50 countries (www.american.edu).
In Conclusion, Management challenges will grow more as rising global salaries dissipate the easy cost gains from offshore outsourcing...
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