Kasky V Nike

In: Business and Management

Submitted By shameka11
Words 692
Pages 3
Summary
In 1988, an Indonesian union newspaper published a study of bad working conditions in a plant making Nike footwear. In 1994, an accounting firm, Ernst and Young, were hired to audit code compliance by making spot checks at Nike factories. In that audit was information concerning Nike factory conditions and how the workers were being mistreated. The audit claimed that Nike workers in Southeast Asia were exposed to toxic chemicals, subjected to physical, verbal, and sexual abuse, forced to work an illegal excess overtime at minimum wage, and suffered poor hygiene. Nike, trying to save their company spent many years claiming that these accusations were false. However, when people compared claims from Nike to the audit, they found some of the details to be inaccurate and/or misleading.
Marc Kasky, a California resident and activist, sued Nike for unfair and deceptive practices under California's Unfair Competition Law. Kasky alleged that Nike made "false statements and/or material omissions of fact" concerning the working conditions under which its products are manufactured. Nike filed a demurrer, contending that Kasky's suit was absolutely prohibited by the First Amendment. The California Supreme Court dismissed the case as “improvidently granted.” However, late in 2003 Kasky and Nike announced a settlement. In return for Kasky dropping the case, Nike agreed to give $1.5 million to an industry-friendly factory monitoring group.
Analysis
Kasky, in my opinion, was correct and had good intentions when he sued Nike. He wasn’t in it for the money, instead he believed in human rights and he advocated for change within Nike factories (in third world countries) where workers were being mistreated and abused by American corporations. I’m aware that Nike absolutely knew about the harsh conditions of their workers overseas but they neglected to admit that they…...

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