Earnings Management Abuse

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Recently, we reviewed an article from the American Accounting Association, titled, "The Numbers Game". The article, discussed the recent trend of companies becoming more concerned with meeting or exceeding their earnings estimates and less concerned with truth and reality. Mr. Levitt began by addressing the problem of 'earnings management', where the financial statements of a corporation are manipulated to meet the predicted earnings expectations for that period. The pressure in recent years to meet these expectations has grown tremendously with adverse affects in the public's perception of the company's who do not meet them. This obsession has caused and is currently is causing some companies to take more risks when reporting their financial results. Creative accounting has taken on new meaning in recent years. The principles of accounting were developed to be flexible in order to meet the ever changing needs and expectations of the business world. This flexibility ensures adaptation as circumstances change, but this flexibility means the financial players must hold themselves and each other to the highest standards of objectivity, integrity and judgment (Levitt). The accounting professional is very concerned about this trend because it will lead to an erosion of the confidence in the financial reports of companies.

Financial reports play a vital role in our economy, as noted in the article; the American economy is the envy of the world. Our efficiency, liquidity and resiliency stand second to none (Levitt). Various groups rely on the significance and importance of the financial information that is contained in the statements. The investing public expects the information to be timely and accurate. If companies do not provide reliable data then the relationship between the investors and the company begins deteriorating. This in turn will cause great disruption in the investment community and investors will not continue to invest their funds with these companies.

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An Essay on an Essay: Don't Call Me That Word

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The author's purpose in this essay is to inform us of what it is like being a black person living in Canada, and also how the N- word is used regularly in common speech. The author achieves his purpose by using rhetorical devices such as giving examples from his personal experiences.

The author uses specific rhetorical devices in this essay including anecdotes, rhetorical questions, using many examples and situations he has come across in his life. The first device Hill uses is an anecdote about how his father laid down three rules that would help him through his life. The 1st was to study, the nd, was that if he didn't achieve complete success at school or work than it was considered a failure, and the rd "was if anybody called you "nigger" I was to beat the hell out of him." This is a very strong opening. It struck me as soon as I read it and I felt there was a little bit of hate in the author.

The first of many examples from the essay is one referring to the history of black people and what they have overcome. Hill says that over the 400 hundred years of black history his race have beaten numerous challenges, such as "the chains of slave vessels" and even "our own murderous infighting." The purpose of this is to show that they have overcome all these things but they still cannot strip themselves from word. Hill's examples are strong and make good points. His second shows the way various people use the N-word. Hill says that they've "hit the pinnacle of absurdity when white teenagers sling their arms around black friends and say Whassup my nigger?" He said that they do this because white people want a piece of the word. Hill gives us a different example of how people use the word, not only referring to black people. He stated that the Irish have been referred to as "the niggers of Europe." He tells us this to show us that the word is known on a universal basis and that everyone everywhere knows it. Lawrence Hill then goes on to give examples on how the word is used in hip hop lyrics. This is an important area because the younger generations can relate to the songs they've heard with the N-word in it. He states that the Canadian hip hop artist Choclair changed the word "nigger" in his songs to "nigga." Even though he changed it to "nigga" it still sounds a lot like the other and because of that the youth will still use the word. The last of Hills examples is that some people think the n-Word is making a comeback and that it is kosher to use it in normal conversation. Hill gives two good reasons why this statement fails. The first being that racists and racism still exists, and the second being that making this word appropriate to say would reflect a new trend.

Hill used three different anecdotes as a part of his rhetorical devices. Hill tells us about when he visited a drop-in centre where he met a white youth complaining that kids were calling him a "wigger" this is a insulting name for white people trying to be black. Hill didn't understand this because he didn't know why they would try to be black. His last anecdote occurs in the last paragraph of the essay. It is about a black female friend of his who wanted to read Harvard professor, Randall Kennedy's book "Nigger The Strange Career of a Troublesome Word. She told him that she couldn't bring herself to read the book on the subway because she didn't want to be seen with the N-Word so close to her face. This was a good choice for the end of his essay, it hits you. Hill started out his essay with an anecdote about his father and ends with an anecdote about his friend. Hill is relating his essay to a very personal part of him. He uses the anecdotes to try and relate his personal situations and feelings to that of the reader. It is true that you will understand a writer more if you can relate to them someway, and telling a story was Hills way.

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Hill asks one specific rhetorical question in his essay. He began by saying that if a young black man was to use this word around his mother he would be slapped across the face at once. Hill goes on to say that black people use the N-word because it hurts so much and that using it is saying that "we don't run from it, we roll it into our art." His question comes in asking does that take the sting out of the word? As you read the pace of the reader picks up as Hill gives us a quick answer to the question "NO." Then he asks another question and three quick proofs are given to answer that question.

Hill uses so many different rhetorical devices to help prove his purpose of informing because he can't have just one example of a situation. He needs to be able to show you his point on all levels. He gives strong examples and anecdotes, relating them to you and your feelings. Hill makes his purpose stand out that you have to know something about the topic before you can complete your opinion.

The tone of the essay tends to change as you read along. Hill starts it off with a really strong story about a lesson he had to learn. This sets the tome as sort of angry or aggressive. Hill then changes to an informative tone. This is when he gives facts and states his thesis. The tone jumps back and forth from these two completely different types. Hill can be sarcastic too when he is angry. He makes it seem like irony when the young white boy is called a wigger when he's trying to act black, but its okay for him to call his black friends nigger. The tones appropriateness to the essay's purpose is good. The tone is informative when it has to be and it is aggressive when Hill is making a point.

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Styles and Forces of Influence

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Decision-making often comes from people's experience, thinking, and preferences. Sometimes a decision can make perfect sense in theory, but it may not work in a real life situation. To make a good decision requires critical thinking skills. How the management of a company makes decisions has a big impact on the outcome. Recently, the management of our company made a decision to restructure a division and this has raised some issues in our workplace.

The division is developing flight-scheduling software for airlines. In order to develop a quality product, it has to go through a cycle, which includes developing, unit testing, integration, system and production testing. Each team has to contribute diligently and work as a team in order to produce a quality product. Most importantly, we need effective management. I have been working for the company for six years. During this period, there has been great teamwork. Management managed projects and project team leads; who had a lot of management experience and technical skills. As a result, a quality product was always delivered ahead of schedule. Recently, management restructured the division, which caused the employees to face an enormous challenge.

Due to fact that the client requested delivery of their products in lesser time and for lesser money, management has come up with several different ideas in order to satisfy the client's request. One of the ideas is to divide the workload by salary level. This means that higher salaried employees become project leads and lower salaried employees engage in more regular work.

When this decision was made and put into practice, several issues came up. For example, some higher salaried employees are good at the jobs they are doing, but they may not possess effective managerial skills. Therefore, as they attempt to manage a project; they assign tasks without considering their co-worker's abilities. Also, they do not communicate well with team members, or they just want everything done in their way. If someone who lacks managerial skills manages a project, the team members will experience confusion and frustration. Most importantly, the product will not be delivered to the customer on time. Consequently, the customer is dissatisfied.

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Whether or not a company is successful, its management really has a lot to do with it. A good decision will produce a good outcome. Therefore, leaders who make important decisions must have critical thinking skills. Before a decision is made, they must first analyze the project with a number of questions in mind. What are the pros and cons? Who are suitable for the assignments and how much work can they handle realistically? What are the possible solutions/resolutions to the problem conflicts or issue? They also need to evaluate questions such as what is good or bad? What is applicable or not applicable? What are the advantages or disadvantages? What should or should not happen? These questions are a good beginning to critical thinking. Once these questions have been evaluated, the better decisions can be made.

There are two ways in which this problem can be framed. The first, is the on the side of management. The management feels that the employees in the organization should fulfill the roles that they have been assigned. This opinion implies that all employees are equal and can be readily moved from one assignment to another. This makes the organization very fluid and resilient to change. A single employee is not so important to the organization that he/she cannot be lost.

The second way to frame this problem is on the side of a majority of the employees. This is that the management should not have reassigned the roles of the employees. This suggests that the structure of the company should be returned to it's previous state because the new organization will not succeed. Most of the employees feel that they were happy and successful in the positions they were previously. Perhaps the only reason they remain at the company is because they enjoy their job and the tasks they have been assigned. If the employees feel that they are less successful in their new roles, this will lead to a decrease in morale.

The first solution uses creative and persuasive types of critical thinking. The management team is trying creative ways of reorganizing the company to try and save the end customer money and to drive the cost of business down. This is why management is where it is. It is up to these people who have been hired as leaders to lead the people. Perhaps they know that this solution will work because it has worked in other companies. Perhaps they are just "trying something new". Whatever the case, they have been assigned as leaders, and the employees should follow suit.

The second solution uses logical and persuasive types of thinking. The employee group feels that the management team is acting irrational and has no basis for the decisions that are made. They have created a mass feeling of doubt in management among the entire organization. They believe that their argument is based on years of their own experience and the feelings of comfort they have in their current positions.

One of the things that can influence greatly the way this problem is framed is experience or age. The employees who have been at the company the longest seem to be the most afraid of change. They have been performing their roles for so long, and the thought of having to adapt to something new scares them. The newer, younger employees would like opportunity in the company to expand their roles, always taking advantage of ways to increase their responsibility. The younger employees seem to be more accepting and resilient of change. Economic status also plays a factor in the framing of this problem. If an employee has a lower economic status, they are less willing to take the risk of losing their job. These employees will do "whatever management asks them to" so that they are seen as loyal, hardworking employees. This comes from a fear of not being able to find another job if the situation is required. Education also plays a role in this for similar reasons. The lower educated employees will not risk as much either, because they may feel that finding another job comparable to their current one would be near impossible.

Before a decision is made, management should go through critical thinking and questions evaluation processes. If these processes are carried out effectively, a better decision will be made. This could include interviews with employees, surveys, evaluation of other companies making similar moves. Before the management made the decision to restructure the division, they should have also gone through these processes. For example, does the higher salaried employee have the necessary skills to be a team lead? Or, are they willing to be a team lead? On the other hand, the lower salaried employees are overloaded with too many assignments! Therefore, it is very important for management to have critical thinking skills. If the employees were brought into a meeting structured as a discussion, they will feel that they are part of the solution, and some of the concerns could be addressed. I think that whatever the solution is, it should be agreed upon by most of the company. This allows the company to move forward together and give more a more cohesive message to their customers. The employees will be happier in this kind of environment and this will, in the end, benefit the customer. After all, that's who the change is being made for.

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What is SWOT?

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Weaknesses are usually just the opposite of strengths. While it is tempting to be charitable or full of worship when analysing a firm, it is essential to get a realistic sense of where their problems lie.

Almost all the companies in the world have their own weaknesses, even the Wal-Mart has some weaknesses too. Although in the earlier, we have comment that Wal-Mart have lot of strengthens by compare with others companies in the world, but it still can't went until the perfect. Since they have the lowest prices in the America, wherever they open up a new store, other stores sales are declining. For information, Wal-Mart has come into small towns and put up a huge retail store and they end up killing all the small town businesses because they are so successful and selling with the cheapest price that small business cant afford to be. There have been many small towns that have turned down the building when the coming of Wal-Mart because they know what it will happen to the business in the small town. Especially small retailers are experiencing huge declines and met the financial problems. Because of this, they are getting bad reactions from some groups. This situation is obstructing the companys future growth.

Community relations problems are bound to exist with a corporation the size of Wal-Mart. Likewise, when a corporation is as successful, many a naysayer will challenge and scrutinize the company. Complaints mainly arise from community groups accusing Wal-Mart of destroying the local retail environment in the downtowns of small towns. Those put out of business by the giant retailer are among its most ferocious critics. The company is accused of monopolistic behavior. It wages aggressive price wars, and uses its power to bully its suppliers (Quinn 8-115)

Another weakness of the company is about ethical behaviour. Some consumer groups believe that the company has some unacceptable actions to lower the prices. This situation is harming the companys name and image. Some of Wal-Mart products brought controversy when an NBC program discovered false labeling in clothing made in abroad marked under "Made in U.S.A".

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Extensive labour relations problems are common at Wal-Mart. These are detailed within other sections of this report. Generally, the company is opposed to unionise labour (Fact Sheet, 001). Wage issues, shift scheduling, and workplace rights abuses are cited by labour groups. This seems to go against its founding principles of respect for employees. The company is also in frequent legal trouble with regulators and union groups in the courts (Quinn 8-115).

Weaknesses

Dependence on suppliers

Size - perhaps too big in many markets

Store layout is crowded - lack of aisle space

Size of store means that it is difficult to quickly find an

item.

Weaknesses

· Wal-Mart is facing stiff competition from old and new rivals like Meijers.

Other public relations problems vary from zoning violation complaints, to itemized complaints from competitors of Wal-Mart using its power unfairly. Censorship, for example, came up as an issue. Wal-Mart publicly believes in Family Friendly products, therefore if a movie or CD contains mature content the company will not carry the product for sale. This has caused much criticism from various groups.

In all, the company strategy is that of growth, expansion, and diversification by finding new areas to expand into within retail and the service industry. It is the number one retailer in the US and in the World as a result. The competition is scared of them. Its customers know its brand, and will shop there because of the price, selection, and size.

In the finances of the Wal-Mart store, cost of sales increased 14% from 15 to 16 due to lower mark-up prices, consistent with Wal-Marts commitment of providing low prices. Although Wal-Marts financial ratios are healthier than those of the industry as a whole, an eleven-year comparison shows a marked decline in the companys profit margins, liquidity and returns on investments. Long-term debt increased from $1.7 billion in 1 to almost $8 billion in 16. Since Sam Waltons demise in 1, stock prices dropped from a high of $4 per share to a low of $1.1 in 16.

In the manufacturing and service, Wal-Marts image as a clean, comfortable, mom-and-pop type of operation has changed drastically since Sam Walton passed away. Every negative connotation that K-Mart has acquired over the years has been applied to Wal-Marts discount stores. The stores are unclean, the shelves are unkempt, and the stock is dusty. Even SAMs Clubs lack the luster that its major competitor, PriceCostco, has. Wal-Mart associates are not nearly as knowledgeable and helpful as the company claims them to be. The company has been concentrating on expanding its Supercenter division at the expense of losing many of its discount stores. Supercenters are Wal-Mart discount stores with large grocery stores attached, all within one massive structure. The food industry has lower profit margins and is much more competitive. In addition, many traditional Wal-Mart stores are shut down when Supercenters are built in neighbouring areas, thereby limiting reliable revenue receipts. About half of the closed stores are leased out, but the remaining stores are simply abandoned. International locations are costlier to operate and generate fewer revenues, yet the company continues its plans for further expansion overseas. Total square footage for all domestic locations increased 5,804,80 from 15 to 16; however, sales per square foot decreased from $6.10 in 15 to $5.1 square feet in 16.

Wal-Mart is, without question, a fabulously run company. It has, however, but one selling proposition price. While thats a pretty good one, the company isnt infallible. Same-store sales have been inching down, to the low single-digits. Costco Wholesale, among others, has effectively competed on price, while offering higher-quality goods.

Wal-Marts store locations arent always the most convenient. The stores can be dark, hard to navigate and not pristine. The lines are long. The apparel is far from hip.

Something a company does poorly, or a characteristic that puts it at a disadvantage. For example, one of Wal-Marts weaknesses could be its inflexibility to respond to changes in the marketplace at the local level.

Human resource

Weaknesses

Employees of Wal-Mart are the largest group of workers without

health care in the United States.

Wal-Mart suffers from high employee turnover.

"The Wal-Mart threat causes some companies to close their doors for fear they can't compete, and that's a defeatist attitude. The critical thing is to have the will to win."

Unified members are facing the prospect of competing against Wal-Mart supercenters for the first time following Wal-Mart's announcement a couple of months ago that it plans to open 40 supercenters in California over the next four to six years - a prospect reflected in opening remarks by Chuck Pilliter, Unified's president and chief operating officer, who said Zaucha's

Some of WalMart's weaknesses lie in their recent entrance into the Asian markets. Since their European competitors have already made their foothold there, WalMart is at a slight disadvantage at gaining customers there. Also the value chain system applied to the American markets needs to be altered for their Asian markets because the tastes of the Asian consumers vary greatly from their American counterparts. WalMart is also reaching the saturation point in the American markets. Their long time presence has lead to use every trick in the book to gain customer satisfaction the old school way, but now with the use of IT they can further increase their customer market by analyzing the market trends of their various locations. Their new IT will give them further insight on what the customers really want and they will be able to focus and selling and advertising the demanded products at the lowest market prices to beat out their competitors. According to the competitive forces model, analyzing WalMart's stance in the Asian markets reveals that the threat of new entrants into the industry is quite possible, since they are trying to sell foreign products to consumers who would prefer the local products. The threat of competitors is quite strong as they have to compete with the European stores who have established themselves there well before WalMart's arrival. However, the new IT will give them the ability to determine which products are in most demand in which locations and then switch the order levels with suppliers accordingly, thus avoiding any losses and in fact guaranteeing a profit.

Even though it seems like Wal-Mart has a lot of strengths, they also have some weaknesses. The first weakness that they are just now facing is that they will not be able to continue to keep the level of grow that they have accomplished steady over the future years. Whenever a company grows so fast that they can build and run ,00 stores in years, people tend to wonder if that growth will be able to still happen. One of the reasons people think that is because Wal-Mart has always been good at succeeding in primarily small, rural communities-away from competitors. That is another weakness. Now where Wal-Mart is opening they are entrenched will competition such as Kmart and Target. Even if Wal-Mart was to try and move into the smaller rural communities, they are not wanted. Here is yet another weakness. Wal-Mart has even been banned in Bath, Maine; Simi Valley, California; and two towns in Pennsylvania. The state of Vermont has completely resisted all plans for a Wal-Mart to be brought into the state because of the fear that all of the local retailer will be forced to shut down. This is a weakness because it is never a good thing to be looked at as negative through the public eye. Word of mouth could possibly spread, and before you know it, three more states dont want to have a Wal-Mart anywhere near them.

The biggest weakness Wal-Mart has to deal with competitors. With K-Mart and the largely growing Target in the same market they are daily trying to improve themselves to stay at the top of the market. They have to find all the advantages they can to be the best company they can be. They must get feedback from their customers to all themselves to learn from what they are doing.

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Huckleberry Finn: Family Life

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Huckleberry Finn Family Life

The main character in this story is Huckleberry Finn, Finn is a young boy with many problems going on in life. Huck was in need of a father figure more then any thing else in life. He needed someone to talk to about anything. Hucks Pap was never there for him except maybe to give him a tanning. Hucks Pap thought that he was trying to out do him, because he went to school. Youve put on considerable many frills since I been away. Ill take you down a peg before I get done with you. You think youre bettern your father, now dont you, because he cant? Ill take it out of you. Who told you you might meddle with such hifalutn foolishness, hey?-who told you you could Pap scolded (p,6). Huck didnt like having to wear nice clothes, or even going to school, but the he had to go. Starchy clothes-very. You think youre a good deal of a big-bug, dont you Pap asked (p,6)?

Huck would try and be a rebel because he had no male to tell him right from wrong. If Huck needed help the only real person that he could talk to would be Tom Sawyer, a very good friend also a thief, a rebel, and he lived on his own. Tom was not that great of a role model, for a young boy like Huck. His father was always away, and never there for him, and when he was around he was always drunk. It is hard enough to talk to a drunk man let alone when you have a problem and need advice. The childhood of a young boy is very crucial in what he will be like in his own life.

Huckleberry Finn was written to show young males that there are ways of finding someone. Mark Twain has a very unique perspective on the whole subject. He found a way to find love in a place where the reader would never imagine.

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Hucks pap came and took him away from the widow and Huck thought that everything would be so much better, but no. The only good thing that came out of it was that he didnt have to go to school. His Pap locked him in the cabin whenever he went away, an if ever did anything wrong he would get a tanning (otherwise known as being spanked).

When a young boy is growing up being locked up all the time does not help a young boy to develop into a man. Young boys need a role model to look up to, and if the only role model around is a drunk then you will become a drunk. Huck would see his Pap so drunk and yell at him all the time.

Huck went to school just to spite the old man, but when his Pap found him, Huck sure did get a tanning. Huck would have to get money for his Pap just so that he wouldnt get a tanning. The influence of being abused and being around a drunk person is never the way to grow up. Huck couldnt take the abuse anymore, from being tanned, to being locked in a cabin for days. So he ran away, and planned to never return. Huck figured out a way to get away from his Pap, the widow and everyone else. Huck was gonna learn to raise himself and become his own role model.

Huck had a raft, supplies and his freedom. He felt as if his life could get a whole lot better if he got away from all the abuse. Huck traveled during the night and slept during the day. Thats how he found the runaway black man from Miss Watsons. Huck was resting during the day, and he found a camp fire that was freshly put out.

Then while Huck was trying to sleep he heard a noise and out popped Jim. Hello Jim, I said (p,55). Huck was so glad that Jim was now there with him.

Jim was a very good man that was just never understood, but Huck learned all about him on their voyages down the river. Huck and Jim were inseparable. They would talk about everything. The only thing that they really did that was a little bad was smoking tobacco. Jim understood why Huck ran away, because of his Pap always beating him. Jim knew what that was like, being a black person and all. This is the first time that Huck had ever had a male adult to talk to this way. With having a person of Jims intelligence Huck could learn a lot. Huck had someone to look up to, to learn from.

Jim and Huck got into some trouble when they thought that they were in Cairo and got separated. By this time Miss Watson had a two-hundred dollar reward out for him. Jim got captured and Huck was alone, again. Huck found out where Jim was and realized who lived there, and it was Tom Sawyers aunt. This was the best news that he heard because Tom was suppose to being coming out for a visit and so Huck became Tom, and Tom became Sid. Together Huck and Tom rescued Jim. Huck was so afraid that he was going to lose Jim, but when Huck was just a black man. Huck actually had an adult that liked him and wanted to help.

Huckleberry Finn is a classic story. It shows that Huck can find someone that he can depend on since his father never helped him. Jim became Hucks father in more then one way. Jim was a very good friend that Huck could talk to about anything. Jim cared so much about Huck, that when Jim was left behind he would miss him so. When Jim was being held captive Huck would do anything to get him freed. Jim and Huck had a very special bond. They could never be separated ever again.

Huck was in need of a father figure and Twain was the author who brought it all to together. Twain used characterization to bring the elements of the literature to life. From Jim being black, and Huck thinking that his father could ever be there for him. Twain gives Huck chances to have Tom Sawyer to be his father figure, but Huck chose Jim. Huck didnt seem to care that Jim was black he still cared about him still the same way as if he were white. Jim would look out for Huck, and Huck would look out for Jim. If Huck had not cared about Jim he would be back in slavery, and would never have found someone to be his father figure.

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William Golding

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After serving as a WWII fighter pilot, Golding returned home no longer disallusioned. He had seen with his own eyes what evil and horrors of man is capable of committing. In his novel Lord of the Flies he used this new insight to imply that man should no actually fear a beast that he can touch and

feel, but rather the evil that each man is capable of committing.

Golding uses many examples of man fearing not a beast but man himself. one is on page . It

gives good detail about everybody being scared and worried. Then it says,simon stirred in the

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darkness right after that Piggy says, You shut up, young Simon! Why couldnt you say there wasnt a

beast? Golding never comes straight out and says it, but he uses great expressions as to how Simon is

being mistaken for a beast.

After Simon was misken for the beast, Golding gives another example of fear of the unknown

beast. On page 5 it says, There was a speck above the island, a figure dropping swiftly beneath a

parachute, a figure that hung with dangling limbs. Sam and Eric was on duty to keep the fire going, Eric

noticed the dead pilot swaying with the wind. But it was dark and he couldnt make it out. He called

out Sam, Sam, until he finally answered. Sam and Eric saw the figure, but never got close enough to be

certain of the figure. Then again man is fearing man himself instead of a beast.

Golding implies that if Simon leaves to join the others, he will still find evil among the boys at the

beach. On page 10 it reads, Simon, walking in front of Ralph, felt a flicker of incredulity-a beast with

claws that scratched, that sat on a mountain-top, that left no tracks and yet was not fast enough to catch

samneric. The next sentence says that Simon pictures a human at once heroic and sick. I do not believe

that Simon actually fears a beast but a man.

In conclusion, I think Golding is trying to imply that every human sees only the bad and not the

good side of people. Although Golding had just got out of WWII, I believe he has a point about the

whole man vs. man idea.

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NIKE

If you order your custom term paper from our custom writing service you will receive a perfectly written assignment on NIKE. What we need from you is to provide us with your detailed paper instructions for our experienced writers to follow all of your specific writing requirements. Specify your order details, state the exact number of pages required and our custom writing professionals will deliver the best quality NIKE paper right on time.

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The athletic apparel industry in which Nike is involved is a major money maker in the United States, but the fact that none of the factories are located in North America has brought some heat to the company. Nike controls more than 40 percent of the U.S. Market for sports related goods, but doesn't have a single sneaker factory in this country (Miller 1). Nike continues to make millions of dollars yet exploits workers overseas by paying them very little, while requiring long hours without overtime pay in factories that are not up to "American" standard. Nike subcontractors employ nearly 500,000 workers in plants in Indonesia, China and Vietnam (Saporito 1). The exploitation of workers in Third World counties, where the majority of Nike's labor is done sparks a controversial issue. People question why is it that Nike continues these practices. According to "Just do it, Nike," Nike seems especially fond of doing business in undemocratic countries like China and Indonesia, where the military can be relied upon to "crack heads" if workers get out of line (Miller ). The military monitoring has been a large controversy due to the fact that these are often Chinese working against other Chinese workers, or Vietnamese against their own people also. For Nike there are two benefits it it's a cheap way to monitor in an overseas factory and it creates a sheaper labor workforce. In turn making the labor cheaper for Nike. This makes it possible for Nike workers from the states to work on other things and only tour the factories when nessecary. While still assuming a stable workforce without good pay. The critics of Nikes labor practices have taken tours and witnessed the mistreatment firsthand. Time magazine reported saying," The plants were found to be modern and clean, well lighted and ventilated and paying a decent wage by local standardsalthough by no means are they trouble free. Make no mistake these are factories not amusement parks, and even in developing Asia, where jobs are scarce and getting scarcer, this is not the job of choice." (Saporito 1) The wages that the workers overseas are paid is nothing when compared to how much we pay for a pair of shoes or the profit that CEO Phil Knight is making off his sportswear giant he once operated out of the back of his car as a college student. "A big issue that surrounds sweatshops is wage. The minimum wage often does not reflect the cost of living." (Hepner Online) Is the wage fair? There are many people who feel the wage is fair and the cost of living is taken into account when the wage is looked at, but studies show otherwise in many factories. Just recently, CNN reported a raise to entry level workers in Indonesia, Nike officials said "the increase will raise the minimum monthly compensation packagewhich includes bonuses, housing, healthcare, transportation and meal allowances to approximately $7.14 a month."(Nike Establishes Labor" Online) To many people living in the U.S., that package may sound good however the compensation package doesn't do away with the long hours, the poor conditions or the low rate of pay. Many of these workers are young children working to help support their families. The benefits do not make up for the low pay rates that keep them in the work force. The pay is only enough to get by where these children want to be saving in order to leave the factories and return home. In "Taking a Look inside Nike's Factories", part of Bill Saporito's, "Can Nike Get Unstuck?" this is what was found. "Americans pay $100 for a pair of shoes that a worker gets less than $ a day to make. They pay Michael Jordan $40 million to endorse them. Can't they find more money to pay the workers? The short answer is no, because corporations pay the going rate for labor whereever they are." (Saporito 1) If this statement is true Nike pays the wage for the country the factory is in, then what is the controversy about? Much of it stems from the overtime that these workers are forced to work without over time compensation. Here in the United States there are regulations placed on businesses that require then to compensate their workers with a higher wage for over time hours. So since Nike is an U.S. based company should Nike have to pay overtime? The answer is no. Nike doesn't have to pay overtime like here in the U.S. so they don't. In Vietnam "Workers so want a reduction in overtime, the length of annual leave for the Indonesian workers making Nike shoes is more than 0 days though dozens of workers interviewed in November, said the actual amount is 10 days." (Ballinger ) There has been evidence of Nike breaking at least nine labor laws in China according to AMRC; a Hong Kong based human rights group that has been monitoring the abuse of human rights in China for the last 0 years. "Children as young as 1, were found employed in Nike factories, working from 144-1 overtime hours per month to make ends meet." (Designer 1) Ernest and Young, an accounting firm, hired by Nike, to do research and the issue reported conditions in Vietnam "where young women toil sixty-five hour weeks for $10, in air so bad that 78 percent of the employees have respiratory problems." (Miller1) Factory workers endure abuse on the job lacking a voice or ablility to do anything about it. Since Nike contracts out for their factory managers, it has been hard for Nike to regulate what goes on when they are not on their tour or walk through. "A Korean supervisor in a Vietnam factory was found guilty of beating 15 Vietnamese about the head with a shoe "upper", and another Korean supervisor was charged with sexual molestation." (Saporito ) In this instance it was not an U.S. supervisor, nor was it a military officer but someone of a different nationality. The hard part is that there are no independent unions and meaningful corporate codes of conduct to discipline management. So workers must turn to the courts for help which is a long fought battle that no one wants to attempt. In one case that made it to, a Vietnamese court recently found a Korean supervisor guilty of beating workers and extradition may be sought for the accused sexual molester who fled. In Indonesia 4 discharged Nike workers are challenging the legality of their dismissal before the country's Supreme Court (Saporito ). These are major breakthroughs in the court systems to have someone tried and convicted in these distant countries whose courts are often corrupted. Factory conditions are consistently getting press here in the U.S., as many are angry with Nike for not providing for their overseas employees. The following account is of the conditions in a Chiniese factory Twelve hour shifts several days a week; wages as low as 16 cents and hour; 16 workers to a dorm room; pregnant women fired. Workers are not allowed to talk. There is constant pressure to produceworkers are yelled at. If you don't meet your high production quota you must stay until you do-without pay. The factory is noisy, filled with dust and fumes. Workers have fainted, overcome by the long hours and the glue fumes. One worker died; another lost an arm; other has had their fingers broken by the equipment. Most workers have never heard of the Nike code of conduct. There is no union and workers are afraid that if they complain, they will be fired. When a group of workers stopped working in March to protest had not been paid, they were fired. The supervisor warns workers in advance of any inspection, the factory is cleaned and if workers are interviewed it is in the presence of factory management. ("The Neediest and the Greediest" 4) This is only one description of the factory conditions and the requirements that are put on the workers of these factories, on contract with Nike. In order to deal with the criticism Nike gets about working conditions and pay, "Nike Inc recently established a new department with a mandate to continue to evolve it's monitoring of subcontracted manufacturing facilities and to continue to upgrade conditions for workers in subcontracted facilities around the world." ("Nike establishes" 1) This department will monitor, compensation issues, benefits, the work environments, recruiting and hiring policies, overtime policies, worker management, environmental issues and supervision of independent monitoring systems. All these are large steps by Nike to improve it's factories and to repair the relations with people here in the U.S. who are appalled by the reports of poor work environment workers are forced to endure. "The company has been tarred by an image as a sweatshop operator that exploits Asian workers who make shoes and apparel for Nike subcontractors. Nike's efforts to be a good corporate citizen, and they have been considerable, have yet to sway the public forum. Basically, our culture, and our style, is to be a rebel, and we sort of enjoy doing that," says Knight, who created a jock empire based on hero worship backed up with good product and great advertising. "Now that we reached a certain size there's a fine line between being rebel and being a bully, and yeah, we have to walk that line."" (Saporito 6) According to Knight he will continue to make the sport-wear giant successful any way he can. "The estimated net worth of co founder and current CEO Phil Knight is $5.4 billion, one of the wealthiest people in America." (Miller 1) The issue remains whether the sports wear giant, Nike, will continue to do work in other countries, where labor is cheap and regulations are few, and not monitored on a normal basis. Nike will continue to exploit workers in these countries as long as America continues to buy the products. Nike, who recently spent $78 million in one year on advertising worldwide, depends upon Americans and their children to purchase its sneakers. Yet it locates 150 factories and some 50,000 jobs in Asia. Knight recently made the absurd and arrogant statement that, "Americans don't want to make shoes."" (Sanders ) Is CEO Phil Knight right? Are American workers not willing to make the shoes that are so popular in stores and classrooms across the nation. If so, the exploitation will continue and Nike workers will remain underpaid and over worked in poor working conditions.

Please note that this sample paper on NIKE is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on NIKE, we are here to assist you. Your cheap custom college paper on NIKE will be written from scratch, so you do not have to worry about its originality.

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