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Provoking Why Private Compliance Does Not Improve Labor Standards Presentation

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Running head: PROVOKING WHY PRIVATE COMPLIANCE DOES NOT IMPROVE LABOR STANDARDS 1

Provoking why Private Compliance does not Improve Labor Standards
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PROVOKING WHY PRIVATE COMPLIANCE DOES NOT IMPROVE LABOR STANDARDS

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Provoking why Private Compliance does not Improve Labor Standards
There are notions of whether private compliance optimizes labor standards. To determine
the potentiality of private compliance, it would be integral to identify the role played by the
private compliance programs in improving the standards of labor. Complaints from employees in
an organization suggest that private compliance is reluctant to advance the labor standards.
Complaints from the employees can be grounded from poor working conditions, being subjected
to long for long hours, yet they are presented with low pay (Distelhorst, Hainmueller, & Locke,
2016). On the contrary, organizations being marked with employees who contend the working
conditions suggest that private compliance has been meaningful in advancing the labor
standards. The reading presents a case of Nike Company and the state of the labor standards.
That said, this paper presents if private compliance has been impactful in advancing the labor
standards.
Nike and the Athletic Footwear Industry Overview
Over the past twenty years, the athletic footwear industry has grown significantly and it
can be necessary to attest this by focusing on 1985 where the US alone used $5 billion to acquire
250 million pairs of footwear. While the industry is marked with various sports models alongside
price, it is marked with two giant companies that account for 60% of the athletic footwear market
across the world. these companies are Nike and Adidas. In 1980, Nike became the giant
company in the industry even after Adidas merged with Reebok. To be specific, after the
merging of these two companies, Nike was still the dominating company with over 36% of the
athletic footwear market across the world. this suggests that the Nike Company management has
been working towards ensuring the companies becomes more productive to eventually, ensure
that it dominates in the market. While the move was fruitful, it is advisable to focus on the labor

PROVOKING WHY PRIVATE COMPLIANCE DOES NOT IMPROVE LABOR STANDARDS

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standards to find out if the employees were treated necessarily, as they contribute to the success
of the company.
Determining if Private Compliance advance Labor Standards
Various companies have acknowledged the need to integrate private compliance in an
attempt to advance their labors standards. After going through the reading, it became clear to me
that Nike is a perfect example of the companies that are compelled to engage in private
compliance to ensure that its labor standards are advanced. Labor standards in a company can be
evaluated by looking at the code of conduct of that company and after that, compare those
standards to the international labor standards. The international labor standards entail the
conventions based on the international bodies that seek to protect the rights of the basic worker,
advance the job security of the worker, along with improving the terms of employment
internationally (Distelhorst, Hainmueller, & Locke, 2016). These standards are often propelled to
establishing an international minimum level of the defense from inhuman labor conducts through
adopting along with implementing the aforementioned measures.
With the focus on Nike, it would be appropriate to comment that private compliance has
failed to improve the labor standards and this can be reflected by looking at the working
conditions of the Nike employees. Nevertheless, the company only managed to build long-term
relationships with its suppliers. Nike suppliers tend to be its partners and the company managed
to develop long-term relations with various large Taiwanese and Korean companies that
happened to be its suppliers. Focusing back on the international labor standards, protecting the
needs of the employees through ensuring that the employee secures a long-term contract in his or
her company has been ascertained (Knudsen, 2016). Similarly, Nike attempted to engage as well
as implement this standard by developing a lifelong relationship with its suppliers to ensure that

PROVOKING WHY PRIVATE COMPLIANCE DOES NOT IMPROVE LABOR STANDARDS

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the employees in their supplier companies have been attached to continue wo...

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