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Multinational Corporations

othing line was made by sweatshop workers in Honduras. Her Husband Frank Gifford, was seen handing out cash to workers in New York City’s garment district. The handouts were meant to show Gifford’s concern and compassion for textile workers around the world. Gifford was given a promise by Wal-Mart that they would hire human rights monitors at the factories in Honduras. Did conditions get better? According to the National Labor Committee, Wal-Marts Solution was to close the factory in Honduras and move it to Nicaragua. A investigative report by the Cleveland Free Times discovered that Wal-Mart, J.C. Penney and Kmart operating in Nicaragua, were paying workers a base wage of 15 cents an hour, compared to the rate of 31 cents an hour the workers received in the plant in Honduras. It was also documented that workers were exposed to toxic chemicals (bleaches, solvents, and dyes). This scandal led the media to investigate other celebrities who endorse product lines for companies who mistreat their overseas labor force. Michael Jordan’s ties to Nike and allegations of human rights abuses by Nike subcontractors in Indonesia, China and Vietnam is another case in point. Workers in these countries make only China $1.75, Vietnam $1.60 and Indonesia $2.46 per day. Numerous human rights abuses have also been reported at these locations. The average Nike pair of shoes costs $63. It would take a Vietnamese worker 40 days to make enough money to buy the shoes. This assumes they don’t have to spend their money on anything else. Michael Jordan receives $20 million dollars a year to endorse Nike wear. Monica Seles and Tiger Woods receive over $40 million combined. Nike’s marketing and promotion budget for 1997 was $978 million dollars. When a pair of Nike’s is made, only one or two dollars is set aside to pay for labor expenses. Because Nike spends so little on labor, it takes in huge profits. Another case illustrating e...

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