Topic > Zara Fashion Case Study - 2240

Nike ranked first for many key attributes, such as innovation, people management, social responsibility, global competitiveness, and quality of products and services (Fortune, 2015). Nike's financiers suffered from the scandal as it was brought to court in the United States. In 1991, Life magazine published an article on child labor in Pakistan, where Nike was the number one company concerned. They allegedly employed children as young as nine to produce footballs and sports shoes, and had to work for grueling hours in inhumane conditions. Child labor in Pakistan is a very important issue, it has been shown several times by international media, but governments have done nothing about it (TED, 1999). According to Unicef, in 2011 it was estimated that more than thirteen million children were working in Pakistan, of which 73% were boys and 27% were girls (Unicef, 2011). They work in different sectors such as agriculture and manufacturing (Appendix 3). Following the allegations, Nike felt a public relations impact in the short term, but in the long term the company's growth and sales were not affected. Only their image has suffered, but the image that customers have now has