Ch. 3 - Ethics & Social Responsibility

Throughout the world, we often hear about how many companies from the United States outsource their products or service because of cheaper wages and higher profit. Now in the business sense that is phenomenal, but we must be realists and realize that we are actually doing more harm than good by incorporating these very cheap wages.

For example, Nike is getting knocked hard recently for its exploitative labor practices around the world. Especially in Indonesia. There has been controversy about their low monthly wages. They receive about 120 dollars a month! Jim Keady, a fellow blogger, traveled over to Indonesia and questioned how much they would need to live with any sense of dignity and they need 333 dollars! "Nike has published that the labor costs on an average pair of sneakers is about $2.50. If that labor cost tripled because of the raise that workers asked for, and if that extra cost were passed on to consumers of Nike sneakers, it would mean that our $100 pair of Nike's would cost $105. Yeah, $5 extra bucks to lift hundreds of thousands of people out of poverty in the industrial slums of Indonesia."




Thanks to Jim Keady, Founding Director, Educating for Justice for presenting this problem to the world. 
http://www.huffingtonpost.com/jim-keady/a-call-to-arms-how-we-mus_b_709984.html