Nike receives a small dip in their gross revenue. In the 1990s, Nike spends more than $100 Million in advertising alone (Acaria). In the late 1990's, the popularity of what the industry calls "brown shoes" took off; these shoes took away twenty percent of athletic shoes sales and Nike's profits dropped 69% in the one quarter (Jenkins 1). Nike saw a few drops in revenue but overcame them and now this controversy has caused a drop itself.
The controversy about the conditions and wages in the Nike factories has several different parts and findings. There have been allegations that "Nike...has been dogged for most of the decade by well-documented charges that its closely controlled contractors pay sub minimum wages, prefer countries with regimes that suppress labor organizing, expose workers to hazardous conditions, demand long working hours and even physically abuse employees at Nike's Southeast Asian factories"(Moberg). To break these allegations down some more, it has been alleged that 13-15 year old children have been working for up to 17 hours a day making the equivalent of $0.15 an hour. There were also allegations that there was physical and verbal abuse in the workplace. "More than 2,000 workers (57% of respo
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