S. Court Systems don't happen again (Lewis, 2005). In January, 1997 an unannounced audit by Ernst & Young uncovered violations of worker safety throughout a Vietnamese contract manufacturing plant where children were also found working well over the hours they were allowed to under international law (Lewis, 2005). The workers had no idea they were working for world-known Nike at the time. Not a single worker had been shown a code of safety conduct, been to a safety briefing, or had their injuries reported. If injured they were sent home, and also they were penalized for taking time off for weddings and funerals; it was actually glorified slavery (Lewis, 2005). Today with the rapid growth the social media these practices would have been even more detrimental to the Nike brand and sales overall (Bernoff, Li, 2008).

Conclusion

Nike's blurring of their compliance from a marketing standpoint and the stated compliance through CSR-based mandates nearly cost them hundreds of millions in lost revenues and...

it's a cautionary tale for not turning ones' corporate back on suppliers and contract manufacturers who are not complying with CSR initiatives (Nike Investor Relations, 2012).
References

Bernoff, J., & Li, C. (2008). Harnessing the power of the oh-so-social web. MIT Sloan Management Review, 49(3), 36-42.

Boje, D.M., & Khan, F.R. (2009). Story-branding by empire entrepreneurs: Nike, child labour, and Pakistan's soccer ball industry. Journal of Small Business and Entrepreneurship, 22(1), 9-24,85.

Doorey, D.. (2011). The Transparent Supply Chain: from Resistance to Implementation at Nike and Levi-Strauss. Journal of Business Ethics, 103(4), 587-603.

Lewis, L.W. (2005). The pragmatic and ethical barriers to corporate social responsibility disclosure: The Nike case. Journal of Business Ethics, 60(4), 359-376.

Nike Investor Relations (2012). Investor Relations. Retrieved February 27, 2012-2011, from Nike Investor Relations and…