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Global Poverty Alleviation: A Case Book pp 321–348Cite as

Global Corporations and Supply Chain Management

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Abstract

We end this book with two important corporate cases on supply chain management: Nike and Walmart. Both cases illustrate the struggles of large companies in their work to be profitable, global, and sensitive to poverty and environmental issues in the communities in which they operate.

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Notes

  1. 1.

    Nike Inc. “Corporate Responsibility Report 2001,” p. See also Amanda Tucker, Nike Director of Compliance for Americas, transcribed by Richard Wokutch, “Nike and its Critics,” Organization and Environment 14, (June 2001), 207–34; 212.

  2. 2.

    Nike. “Code of conduct.” www.nike.com/nikebiz/nikebiz/jhtml?page=25&cat=compliance&subcat=code (accessed July 15, 2002)

  3. 3.

    Ibid, n. 4.

  4. 4.

    See Nike, Inc. An online look: inside Nike’s contract factories. www.nike.com/nikebiz/nikebiz/jh=html?page=25&cat=overview&subcat=facftorytour. Accessed July 15, 2002.

  5. 5.

    Discussion with Amanda Tucker, Director of Compliance, Nike, Inc, and Fukumi Hauser, Director of Global Compliance, Monitoring, and Training (4 November 2002) and e-mail from Amanda Tucker (26 July 2002).

  6. 6.

    Balinger, Jeff. Once again, Nike’s voice looms larger than that of its workers. www.BehindTheLabel.org/oped.php?etor_id=22. Accessed July 15, 2002.

  7. 7.

    World Bank International Economics Department. Development Data Group, World Development Indicators. (1999).

  8. 8.

    http://www.nike.com/nikebiz/news/pressrelease.jhtml?year=2001&month=05&letter=g (accessed July 15, 2002). See also, http://cbae.nmsu.edu/~dboje/NIKphilspeech.html (accessed July 15, 2002).

  9. 9.

    http://cbae.nmsu.edu/~dboje/NIKphilspeech.html (accessed July 15, 2002); see also http://www.nikebiz.com/labor/time.shtml

  10. 10.

    Connor, Tim. 2001. Still waiting for Nike to do it. San Francisco, CA: Global Exchange; http://www.globalexchange.org/economy/corporations/nike/stillwaiting.html (accessed July 15, 2002), p. 1.

  11. 11.

    Connor, op. cirt. N. 12, p. 5.

  12. 12.

    For Nike’s overview of the challenges and successes of these initiatives to date, see http://www.nike.com/nikebiz/news/pr/2001/p_challenges.jhtml (accessed July 28, 2002).

  13. 13.

    Currently, there are over 100 individuals in Nike’s Compliance Department, including more than 20 people permanently housed overseas.

  14. 14.

    Daniel Akst, “Nike in Indonesia, through a different lens,” New York Times (March 4, 2001), sec. 3 p. 4; Editorial, “Smelly sneakers,” The Asian Wall Street Journal (March 2, 2001), p. 6; “Knight speaks out on improving globalization,” Financial Times (August 1, 2000), p 15; Holger Jensen, “A Tale of Two Swooshes in Indonesia,” Rockymountainnews.com, 7/2/2000 [related article in the San Jose Mercury News (July 5, 2000), p B6]; David Lamb, “Economic Program Revitalizing Thailand’s Countryside,” Los Angeles Times (February 27, 2000), p. A34; Business Brief, “Indonesian Workers to Get Boost in Entry-Level Wages,” Wall Street Journal (March 24, 1999), p. B2; Editorial, “For Citizens of Vietnam, Nike is the Place to Work,” Oregonian (March 6, 1999), p. C7.

  15. 15.

    O’Rourke, Dara. Monitoring the monitors: a critique of pricewaterhousecoopers labor monitoring. http://web.mit.edu.dorourke/www/pdf/wc.pdf. Accessed July 15, 2002.

  16. 16.

    Balinger, ibid. n.8.

  17. 17.

    Results of the report can be found at www.theglobalalliance.org/section/cfm/6/3/. Accessed July 15, 2002.

  18. 18.

    “Envor Defends Nike’s Practices in Vietnam.” Financial Times, April 12, 1999, p. 4.

  19. 19.

    Interview with Steve Hewitt, Nike-Vietnam. Corporate Responsibility Manager. 7/6/01.

  20. 20.

    “Nike Critic Praises Gain in Air Quality at Vietnam Factory”. New York Times, March 12, 1999.

  21. 21.

    Nike has done business with many of the same Vietnamese suppliers for over 25 years.

  22. 22.

    Conversation with Dusty Kidd, April 27, 2001.

  23. 23.

    Phil Knight, “New Labor Initiatives,” (May 12, 1998), text at http://cbae.nmsu.edu/~dboje/NIKphilspeech.html (accessed July 15, 2002), also reported in “PBS Newshour,” http://www.pbs.org/newshour/forum/may98/nike.html (accessed July 15, 2002) (confirmed in discussion with Dusty Kidd). For additional information on the loan program, see http://www.nike.com/nikebiz/nikebiz.jhtml?page=26&item=asia (accessed July 15, 2002) and http://www.nike.com/nikebiz/nikebiz.jhtml?page=25&cat=communityprograms&subcat=smbixloans (accessed July 15, 2002).

  24. 24.

    Good Works International, LLC. “Report: The Nike Code of Conduct.” (1997) pp. 33, 47–48.

  25. 25.

    Tim Connor, “A Response to Andrew Young’s Report into Nike’s Code of Conduct,” The Nike-watch campaign at Oxfam community aid abroad, http://www.caa.org.au/campaigns/nike/young.html (accessed July 15, 2002); Campaign for Labor Rights, “The Andrew Young/Good Works Report on Nike,” Labor Alerts (June 28, 1997), http://www.hartford-hwp.com/archives/26/004.html (accessed July 15, 2002); Eric Lourmand, “Nike drops the Ball: The Andrew Young Report,” http://www-personal.umich.edu/~lormand/poli/nike/nike101-5.htm (accessed July 15, 2002).

  26. 26.

    Kahle, Lynn et al. 2000. Good morning, Vietnam: an ethical analysis of Nike activities in southeast Asia. Sport Marketing Quarterly 9(1):43–52.

  27. 27.

    Nike, Inc. “Corporate responsibility report, 2001.” p. 35.

  28. 28.

    Samantha Marchall, “Executive action: cultural sensitivity on the assembly line.”

  29. 29.

    Nisen, Max. How Nike solved its sweatshop problem. Business Insider. http://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5#ixzz2W0cbrPpT. Accessed June 12, 2013.

  30. 30.

    http://news.bbc.co.uk/2/hi/business/7324242.stm

  31. 31.

    http://www.teamsweat.org/2008/04/02/nike-ends-strike-in-vietnam/

  32. 32.

    http://www.nikeresponsibility.com/report/content/chapter/targets-and-performance#topic-performance-against-past-targets

  33. 33.

    http://www.nikeresponsibility.com/report/content/chapter/targets-and-performance#Community

  34. 34.

    Schell, O. 2011. How Wall-Mart is changing China and vice versa. Atlantic (December) :86.

  35. 35.

    Schell 2011, p. 84.

  36. 36.

    Ibid.

  37. 37.

    Ibid.

  38. 38.

    Gioia, Dennis. 1992. “Pinto fires and personal ethics” a script analysis of missed opportunities. Journal of Business Ethics 11:388.

  39. 39.

    Werhane, Patricia H. 1999. Moral imagination and management decision-making, 11. New York: Oxford University Press.

  40. 40.

    Lichtenstein, N. 2011. Wal-Mart’s long march to China: How a Mid-American retailer came to stake its future on the Chinese economy. In Wal-Mart in China, ed. Anita Chan, 13–14. Ithaca: ILR Press.

  41. 41.

    Lichtenstein 2011, pp. 13–14.

  42. 42.

    Lichtenstein 2011, p. 29.

  43. 43.

    Schell 2011; Davis, D. J. 2011. Corporate Cadres: Management and corporate culture in Wal-Mart China.” In ed. Chan, 97–129.

  44. 44.

    Hong, Xue. 2011. Outsourcing in China: Wal-Mart and Chinese Manufacturers. In ed. Chan, 41.

  45. 45.

    Lichtenstein 2011, pp. 30–31.

  46. 46.

    Xue 2001, p. 42.

  47. 47.

    Xue 2001, pp. 46–48.

  48. 48.

    J. Wohl, 2012 “After Bangladesh fire, Wal-Mart vows to address supply chain risks.” http://www.insurancejournal.com/news/national/2012/12/14/274050.htm

  49. 49.

    Schell 2011, p. 88.

  50. 50.

    Schell 2011, pp. 88–89.

  51. 51.

    Schell 2011, p. 89; L. Burkitt. 2012. “Wal-Mart faces new food-safety complaints in China.” http://online.wsj.com/article/SB10001424052702303410404577466.

  52. 52.

    Schell 2011, p. 90.

  53. 53.

    M. Lee. 2011. “Wall-Mart’s pork scandal highlights struggles in China.” http://www.reuters.com/assets/print?aid=USTRE79D1SO20111014

  54. 54.

    Schell 2011, p. 94.

  55. 55.

    Chan 2001, p. 46.

  56. 56.

    Davis 2011, p. 99.

  57. 57.

    Davis 2011, p. 115.

  58. 58.

    Ibid., p. 125.

  59. 59.

    Schell 2011, p. 98.

  60. 60.

    Waddell, S. 2011. Global action networks: Creating our future together. New York: Palgrave Macmillan; Waddock, S. 2006. Leading corporate citizens: vision, values, value-added. New York: McGraw Hill/Irwin.

  61. 61.

    Calton, J. M., and S. Payne. 2003. Coping with paradox: Multi-stakeholder learning dialogue as a pluralist sense making process. Business & Society 42:7–42.

  62. 62.

    Schell 2011, p. 86.

  63. 63.

    Gioia 1992, p. 182.

Author information

Authors and Affiliations

  1. School of Management and Business, St. Edward’s University, Austin, TX, USA

    Pauline J. Albert

  2. School of Business, De Paul University, Chicago, IL, USA

    Patricia Werhane & Tim Rolph

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  2. Patricia Werhane
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Editors and Affiliations

  1. School of Management and Business, St. Edward's University, Chicago, Illinois, USA

    Pauline J. Albert

  2. De Paul University School of Business, Chicago, Illinois, USA

    Patricia Werhane

  3. De Paul University School of Business, Chicago, Illinois, USA

    Tim Rolph

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Albert, P.J., Werhane, P., Rolph, T. (2014). Global Corporations and Supply Chain Management. In: Albert, P., Werhane, P., Rolph, T. (eds) Global Poverty Alleviation: A Case Book. The International Society of Business, Economics, and Ethics Book Series, vol 3. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-7479-7_8

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