The New Business Model Commerce Essay


The new business model made a lot businessman earned the countless profit, but those business activities also cause many social issue. Like environment pollution made by overdevelop at jungle area, air pollution by open burning, and water pollution by factory wastage flow into drainage system. Human abuse to use computer and internet advance running online gambling, prostitution or cheating. Technology advance will affect the unemployed rate, because those handmade product take over by machine and that machine just need few person to control it only.

Due Diligence is a process when a party going to invest or buy over another company or business, but we can't just go in and give the money and sign the agreement. We need to investigate all the detail about the company and all that to make sure the company is running the operation with ethics and follow the national law. The checklist included financial information about the annual and quarterly financial information for the past few years, financial projects, and capital structure. The Description of all the company products to make sure there a no issue to effect human health and safety. Another is customer information, get the feedback and use the information legally. Competitor information to get know description of the competitive landscape within each market segment including. Marketing, Sales, and Distribution for understand what the strategy and implementation used, major customers, principal avenues for generating new business, sales force productivity model, and ability to implement marketing plan with current and projected budgets. Research and Development to determine those products was register by the company and not copy from other. Management and personnel to make sure the organization was in the healthy culture and right way.

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Supply chain responsibilities also playing very important role in business. With a good and right supply chain responsibilities will make the company business growth, because of build the company reputation, customer and public trust on the product produce by company, sometime customer willing to pay more for the company also don't like to purchase the product which is produce by the unethical company. The cons a company running without supply chain responsibilities it will cause the produce boycott by the public and some more it make company close down. For example, Mitsubishi develop the salt production plant at Mexico and it will affect the gray whale then a lot of NGO and public start boycott they product. After that Mitsubishi have no choice, they decline the project. This shown the power of public is very strong and effect.

Human Rights is a guideline to protect human and worker; people have a right to be treated with dignity. Human Rights are have to all human beings, no matter who are they with the different nationality, sex, language, place of residence, national or ethnic origin, or religion. Everyone born to the world there are have authority to enjoy human rights without discrimination. From the source of internet, the International Labour Organization Declaration on Fundamental Principles and Rights at Work commits all its member States to four categories of principles and rights: freedom of association and the right to collective bargaining; the elimination of compulsory labour; the abolition of child labour; and the elimination of discrimination in respect of employment and occupation.

Most of the time, company will said they will protect the human rights, but how many company can really to that? To get the midpoint of the company maximum profit and human rights is very difficult, normally company will looking on the profit first then only come to the human rights issue.

The critical issue included in human rights that were hiring child labour to working, poor working condition, health and safety issue in workplace or job, forced labour, low wages and benefits provide, and long working hours. Those issue was happening everyday around the world, because of the lack of nation law protection, local government corruption, economic recession and etc.

Child Labour was occur in a lot of sweatshop in poor countries. The reason they employ child labour it because of low wager giving, all the time follow the instruction giving and doesn't have ability to cause violence cases. From the due diligence and supply chain responsibility issue, Nike Inc. never concern the problem cause by the supplier and pull the responsibility away to the factory.

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NIKE Inc. was a the biggest and top selling sports brand in the world. Product they are selling including, footwear, apparel, equipment, accessories, sportswear, and etc. Nike markets its their product under their own brand name, but they also got subsidiaries company such as Cole Haan, Hurley International, Umbro and Converse. On the year 2004, net profit of Nike up to $ 12.3 billion and it makes Nike become strongest sportswear company in the world and far away to competitor. In year 1988, Nike come out the slogan "Just do it", this slogan makes they award the top five best slogan in 20th century. The interested strategic they using is outsourcing the production and supply chain to other company, it reduce a lot of human resource costing. Those product was targeting supply from the low income area of the world, those counties such as, China, Korea, Thailand, Vietnam, Indonesia, Pakistan, Philippines, Taiwan, and Malaysia.

The very important thing is on this strategic is Nike can try to avoid those responsibility for the factory conditions like labour, workplace, safety and health issue. All the responsibility was take by the supplier or contractor but not Nike.

Form the internet and media report, we can hear a lot complaint about the Nike factory worker raise up the issue regarding the wage violation than any other shoe company, convicted of physically abusing workers, and police investigation of sexual abuse on workplace, and all above was reported in New York Times.

Child labour has been hiring in those sweatshop supplier of Nike and it been report on media. At Pakistan culture which is high population with low employment makes where earning of one person need to feed ten mouth with the low income cases. This culture makes child labour happening everywhere just because they want to get the wages to buy food and survive. The Nike sweatshop has been hiring child labour at Pakistan to produce the soccer balls and other sport equipment. Child labour age range at Pakistan in between 5 years old to 15 years old. How can we imaging that, when a child was 5 years old and force to work in poor working condition but no studying at school or enjoy their childhood, it quite ridiculous and unfortunately.

The Nike product selling price in market is quite high and expensive, but indisputable is their product quality. Try to think about it when every time we purchase a sportswear or sport equipment for your children using is done by a child and the age range between 5 to 15 years old, really a good on it? The child labour issue not only happen at Pakistan, and also appear on Bangladesh and Indonesia.

At Indonesia Nike sweatshop, the labour complaint about the company giving very poor and low quality dormitory for worker. With this small room sharing with few person, a small window with the poor ventilation environment, no furniture such as chair or bed provide, sleeping with a very thin mat, the corridor and street outside of room a lot of sand and mud, rubbish everywhere with no person to clean. Most worst that was a bathroom draining system problem, all the water and excreta was stack at a drain outside of the bathroom, the smell go over whole places. At the night time, we can see the rat and cockroach go around the area and sometime cockroach walk pass by your body. This cases was report to media and the video was posted at

The way for those Indonesia worker to get extra pay from the company, that is doing overtime on the factory. Some of the employee work over 24 hour, to earn just a bit extra pay. The employee with family or kid, even two days never back home to see they children. Problem is the money they earn, just enough for them daily use and have not enough money to afford their children education fee.

The behind of the product it was a plastic can't be reuse, rubber, cloth, or paper. The sweatshop in Indonesia throw at a big open air court and wait until it having certain amount then start to burn at village place it was kid playing area. When they are burning those end result resource, there still got kid playing around and they never advise the kid far away for there. The toxic spread to whole village, few children was infection the lung cancer. The sweatshop at Indonesia was over make harm to mother nature, children, and human.

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Educating for Justice (NGO), carry out this issue to public. Nike Inc. such as huge sportswear business in world, how can they having this problem on human rights. As a hat of the campaign NGO what we can do it was, try to carry out all the issue to public and media for concern about this cases. And stop purchase the product they produce, having a anti-Nike campaign to get public know about the human rights very important than making profit. Besides that, we also can complaint to the local government about the case, if the local government didn't take any action on that, then we can go to United Nations Children's Fund (UNICEF), or International Labour Organization (ILO). Humans have a rights to know everything, when problem came out, the only ways to do is facing the problem and solve it. We believe that even they increase the salary of the low pay worker, won't affect their profit also. Giving a good workplace condition not a difficult problem, some more with a nice places will increase the productivity as well. Nike should develop a department or agency to supervisor those factory operation, giving advice, and take action to the factory who has not following the human rights law.

From the company CEO view, we don't have right and authorize to comment those factory. We just giving the design to them and asking them to produce. After they finish the goods then we buy back the finishing goods to sold into the market. We doing the design and markets business, production and supply chain it was another company problem. If those factory having the human rights issue, please just go to them and not blaming Nike doing the unethical business. We can't really control or comment the factory doing with human rights, because it own by another party, we just a partnership with them to come out the goods.