Read the excerpt from the article The Truth Behind The Alleged Nike Sweatshops

Where Are Nikes Made? Nike products are made in 41 countries worldwide, including Argentina, Bangladesh, Cambodia. China, Ecuador, India, Malaysia, Thailand, USA, and Vietnam. Some factories only supply apparel, while others focus on footwear or equipment. Does Nike Use Sweatshops? Nike came under fire in the 90s when reports surfaced that the company had several sweatshops around the world. According to Business Insider, Indonesian sweatshop workers made as little as US$0.14 an hour. And thats just the tip of the iceberg. Nike refused to confirm the allegations for years, but public protests and boycotts proved to have an impact on the companys sales. Soon enough, public trust in the brand began to dissipate as well. Eventually, Nikes co-founder, Phil Knight, took a stand against unjust employment practices in 1998. Since then, Nike has made every effort to fight workers abuse in their factories and it worked. Two decades later Nike has become the leading sportswear brand worldwide. However, only two years ago, several incidents in Asian factories harkened back to those days in the 90s. In 2017, The Guardian reported that in Cambodia, more than 500 workers in four factories supplying to Nike, Puma, Asics and VF Corporation were hospitalised, and over 350 workers collapsed in a span of three days. Whether these factories can really be considered evidence of Nikes sweatshops is still hotly debated. In 2001, Nike argued that they have little to do with the working conditions in these factories because theyre subcontracted.

a. Assuming that the allegations of sweatshops were true, write a memorandum (less than 200 words) to the CEO of Nike outlining the possible ethical issues in the relationship between Nike and its subcontractors with an objective to question his/her approach to ethical management.