Thursday, 26 February 2015

Scholars' Seminar 08.02.2015

On the 8th of this month I wrote and presented a seminar to a group of scholars on the topic of life extension.

To What Extent do the Moral and Medical Obstacles to Prolonging Life Outweigh the Possible Benefits of its Success?

Life extension science is the study of slowing down or reversing the processes of ageing to extend both the maximum and average lifespan. The prospect of overcoming human mortality has been an attractive thought to many for a very long time understandably, as the initial prospect of living a longer life would inevitably appear highly beneficial. Despite the overwhelming appeal that the idea brings, as scientists seem to begin to come close to solutions that hint at the possibility of life extension, questions must be asked of the moral viability of the prospect of its success. There are plenty of moral and medical obstacles that would need to be overcome before the research into life extension can be fully justified. In this essay I aim to explore in as much detail as possible these obstacles and weigh them up against the benefits that a success in developing a life extension solution could bring.
A study that ties in strongly with the study of life extension is gerontology. Gerontology is the study of changes people encounter at they grow up, and includes biogerontology, geroscience and the effects of an ageing population on society. Biomedical gerontology is a sub-discipline of biogerontoloy. Biomedical biogerontology is the study of the possibilities of postponing, or even preventing death in humans and animals. Many biogerontologists believe that the way to approach their goals is by curing ageing-associated diseases, as they believe that it is impossible postpone death and unwise to attempt to do this. From the point of view of these biogerontologists therefore, research into developing a product that extended one’s lifespan would be purely a waste of money, time and resources as it would meet no end. There are many theories among biologists as to what causes aging although it is widely accepted that it is due to the different parts of the body ceasing to operate correctly. These theories include wear and tear, which is the belief that body parts are worn out from continuous use and the entering to the body of chemicals and viruses, to the point at which they eventually lose their capabilities to repair themselves (for example cells stop regenerating). An alternative theory is a genetic theory that there are genes responsible for programmed cell death (apoptosis), although this theory is more applicable to the explanation of cell death than organism death. General imbalance in general is the theory that as time passes; the body’s systems (for example the immune system) gradually decline until they cease to function at all. Alternatively, some theories exist that involve the accumulation of elements in the body causing the body’s decline. These elements either come from the environment or as products of cell metabolism. Although each of these biogerontological theories look to be developing in a promising manner, it would cost a lot of money to research into reversing any of these processes.Furthermore, these are simply theories and would have to be tested on humans before any conclusions and decisions could be made as to the possibilities of reversing processes and extending life.
So far, successful experiments scientists have performed whilst attempting to develop a life extension solution involve techniques that include caloric reduction, antioxidants and HGH (human growth hormone). With the use of these three techniques, the lifespans of test rodents have been extended by forty percent. These scientists are confident that when put into practice on humans, the same method could increase their lifespan by almost thirty years. In terms of the medical obstacles of life prolonging therefore, they do not seem to restrict the possibilities of developing a life prolonging medicine. The free radical theory of ageing – first proposed by Rebeca Gerschman and later partially proven by Denham Harman (he showed that the reactions caused by the molecules contribute to the degradation of biological systems) - suggests that over a long period of time, cells in the human body are damaged by reactive oxygen species (ROS). These are highly reactive molecules that are produced in small numbers in processes such as cellular respiration.  These molecules damage cellular components such as fat and proteins. However, this is still a theory as there has been no proof, so far, whether aging or the free radicals take their toll on the body first, and the only way it can be proven one way or the other, is if a medicine is developed that stabilizes these free radicals, as then scientists can assess whether this postpones aging.  Another method that has proven itself to extend the life of rodents amongst other organisms is a technique called caloric restriction. This method – which involves reducing calorie intake and therefore decreasing amounts of corticosterone, which regulates metabolism – has been proven to cause a delay in aging in eighty to ninety percent of rodents tested. These experiments have been extended to be performed on rhesus monkeys, generating similar results. The theory that antioxidants will extend a lifespan has only conclusively been proved by tests on transgenic flies. Antioxidants reduce damage caused by reactive oxygen metabolites, which damage cell membranes and DNA and interfere with the exchange of genetic information. When tested on transgenic flies, the removal of these metabolites by the addition of anti-oxadive compounds caused an average increase in their lifespan of over thirty percent. Human growth hormone (HGH) is often injected into those afraid of the side effects of growing older. Natural production of the hormone decreases so significantly that at the age of 30, people generally have 20% the HGH that they would have had as a child. The extra injection of the hormone’s effects have not been scientifically proven, but it is reported to have reduced symptoms of aging among patients. It has, however, been demonstrated to simulate incredible results, such as an increase in muscle tissue, increase in the immune system’s strength and the regrowth of internal organs, by Jerry Emanuelson and studies such as the Kabi International Metabolic Study.There is no evidence that these results come with long term harmful effects. As far as the medical research into life extension has gone so far, the results have proven to be promising. However these experiments described have cost a great deal of money and have only been conducted on animals such as rodents and monkeys, and in order to create a viable product, human testing would be necessary. Before this takes place, a lot more research would have to be done to ensure the safety of the victim of testing and until this has taken place, there can be no guarantees that human life extension is possible.
Despite the promise that the medical side to life extension shows, we must consider more than just whether it is possible to extend life. The effects of such a result on our society must be considered. A longer living population would have many negative economic impacts on a society. Firstly, the dependency ratio would be increased: assuming that the life extension solution did not cure the incapability that grows with old age (for example reduced mobility) that justifies retirement, the retirement age would have to remain roughly the same. Therefore there would be more people claiming pension benefits for the amount of people working and paying income taxes. Inevitably, this would lead to taxes rising, a scenario that does not seem appealing. With more government money going into pension funds, there would be far less left for capital investment, therefore increasing the likelihood of a fall of the rate of economic growth. Secondly, with a greater number of elderly people, health care would become more expensive for the government. This could, again, lead to a rise in taxes. With taxes inevitably increasing, work incentive would be considerably lower and investment would become increasingly attractive, resulting in a decrease of growth and productivity. A society with a higher percentage of elderly people would also see many changes of goods and services provided, as services such as retirement homes would be far more in demand. Assuming however that the life extension solution did cure the incapability that come with old age, a longer lifespan would result in people working for a longer period of their life; it is inevitable that retirement ages would be pushed back in order not to have to increase taxes for the rest of the population to accommodate for the needs of the elderly. Many social institutions would also be hugely affected if the humans in charge had a longer lifespan, for example federal judges, who are appointed for life. This would then increase competition for jobs, as there would be so few vacancies with people carrying on their jobs for so long. However, those in favour of research into life extension could argue that people working for longer would increase economic productivity in that the skilled workers would be applying their skills for longer and the less skilled would have more time to develop their talents to perfection, or in fact, to change careers, a life choice that might not seem so risky if life was longer. However Daniel Callahan argues against this point, claiming that "If you have people staying in their jobs for 100 years, that is going to make it really tough for young people to move in and get ahead, if people like the idea of delayed gratification, this is going to be a wonderful chance to experience it." Delayed gratification is the ability to exert patience in waiting for a reward, generally in the hope of a larger reward later. Further to Callahan’s argument, with which I agree, is that institutions are likely to stagnate when they are dominated by the same few executives and managers for too long, as they would not receive “a constant infusion of youthful talent and ideas”.
I believe that the length of life as it is means that lifelong commitments are feasible and often attractive prospects. The obvious example is marriage: if a couple is old, and the participants do not feel that love each other, but can endure each other’s company, then they are often willing to stay together for the rest of their lives (perhaps for the sake of a family). However, if their lifespan was doubled for example, then it is very likely that the couple would act in a different way. For one thing, if they would have remained a couple for the sake of children, a longer lifespan would mean that the period in which they had full responsibility for their children would be a smaller portion of their life, and therefore marriage may turn into a commitment whilst children are growing up, at the end of which a couple may part more easily. A psychologist named Richard Kalish explored the social effects of life extension and came to the conclusion that as life span increases, marriage will be seen less as a lifelong union and more as a long-term commitment, and therefore he predicted there would be an increase in short marriages and therefore divorce. Chris Hackler works at the University of Arkansas as head of the Division of Medical Humanities. He predicts that as a result in the increase of short marriages, “half-siblings will become more common”. He also points out that “if couples continue the current trend of having children beginning in their 20s and 30s, then eight or even ten generations might be alive simultaneously”. Interaction between siblings would change massively, assuming that the life extension would also increase a woman’s period of fertility, as this would likely result in much larger age gaps between children. Hackler phrases this as "if we were 100 years younger than our parents or 60 years apart from our siblings, that would certainly create a different set of social relationships". I agree with Hackler’s point of view and this leads me to believe that the moral obstacles would outweigh the possibility of life extension success.
Another social issue in regard to an aging population, which is what one would be considering in trying to find a life extension technology, is attitudes between the young and old. In the opinion of Leon Kass, who headed a paper for the U.S. President’s Council of Bioethics, quality of life would suffer in an aging population if we are too focused on extending life and not on improving life itself. Kass claims that “the nation might commit less of its intellectual energy and social resources to the cause of initiating the young, and more to the cause of accommodating the old… a world that truly belonged to the living would be very different, and perhaps a much diminished world, focused too narrowly on maintaining life and not sufficiently broadly on building the good life." This leads me to believe that the social impacts associated with life extension are too negative to consider research in the area.
Another moral dilemma that I feel adds significantly to the reasons against extending human lifespan is distribution of the life prolonging solution. The wealthiest section of our community is bound to have priority as the solution is likely to be expensive, if not unaffordable for the majority of the world’s population. My survey tells me that out of the 34 people questioned, only one person (2.94%) would be willing to spend all of their money on medicine to prolong their life. However the medicine would be likely to be so expensive that 10% of earnings (which is what the most amount of people opted for as the percentage they would be willing to pay) towards the medicine would simply not suffice. Considering that most of the people I asked would be willing to pay no more than 40% of their money towards a medication, the medication would likely be restricted to those for whom 40% of their earnings was equal to or greater than the cost of the medication. However, those in favour of research into life extension may argue that only those willing to pay all of their money would deserve the medication, as these are the people who truly want it. Therefore they would argue that those who cannot afford the medication because its cost is not equal to or less than 40% of their income are irrelevant, as they do not want the medication strongly enough. However, I would argue that even some people who want the medication badly enough to give all their money towards it may still be unable to purchase it, and this is where the dilemma lies: the less fortunate of society, no matter how strong their desire is for the medication, would not be able to take it unless a scheme was set up to provide these people with the means to do so. However, in my opinion sorting between those who deserve the medication free of charge and those who do not would be completely unfeasible. For these reasons I believe that the moral obstacles to prolonging life outweigh the possible benefits of its success.
From a medical point of view, research on life extension technologies is viable, and is likely to lead to results. Experiments have been conducted on animals; these experiments have been predicted to prove results on humans too, however this is yet to be confirmed by success on humans. There is still a possibility that it is not possible to extend the lifespan of a human being, in which case any research conducted would be a complete waste of time, money and resources. Furthermore, after delving into the possible ramifications for society if a life extending medicine was developed, I must conclude that a longer lifespan is not worth the negative changes it would cause. For example, our society would be completely reshaped and many problems would have to be overcome. These problems include a change in the dependency ratio of our society, which would cause more pressure to be put on the government and inevitably lead to a tax raise, which would not be appreciated by the general public. Another problem would be that lifelong commitments are likely to become long term commitments, and with commitments such as marriage, this could pose a serious problem to what we see today as family life. With such an age difference that would be created if humans lived for longer, there would be bigger social divides in our community and a huge change in interactions between groups of this community. A final issue with a life extension solution would be its distribution, as it is very unlikely that a fair way could be found in which to distribute such a valuable product. Furthermore, I have been led to believe that whether this research should be done should be discussed as soon as possible, as once a life extending technology is developed, there will be no controlling of any damage it may cause. As Daniel Callahan puts it: "if this could ever happen, then we'd better ask what kind of society we want to get… We had better not go anywhere near it until we have figured those problems out." If people do not discuss the issues associated with life extension technologies now, research inevitably will be done, due to the immense natural desire of humans for a longer life, not to mention the fact that it seems to be a possible goal, and therefore scientists will want to achieve it.I have no doubt that a hugely expanded life span would have many effects on individuals and society and I believe that the medical and moral obstacles outweigh the possible benefits of the success of life extension to the extent that the research shouldn't take place.


Transnational Corporation Further Research

To what extent should transnational corporations outsource the manufacture of products at the risk of exploiting people of developing countries?

A transnational corporation is a corporation that is registered and operates in more than one country at a time, with headquarters in one country and subsidiaries in other countries. These corporations draw criticisms as many critics are under the impression that they “exhibit no loyalty to the countries in which they are incorporated but act solely in their own best interests”. According to the World Investment Report, there are currently approximately 40,000 transnational corporations around the world. These companies have around 250,000 affiliates in foreign countries. Among the countries with the greatest number of TNC bases are Germany, Japan, Sweden, United States of America and Great Britain. Transnational corporations are becoming increasingly wealthy and powerful; they control two thirds of world trade in goods and services. The global outsourcing market was at $72 billion US dollars in 2002 and was predicted to reach $100 bn by 2005. The WIR states that "four out of five dollars received for goods and services sold abroad by United States firms are actually earned from goods and services produced by their foreign affiliates or sold to them”. The United Nations Conference on Trade and Development estimated that worldwide TNCs’ profits in 1994 amounted to $175 billion US dollars, most of which was reinvested and the rest distributed amongst shareholders.In this rapidly expanding area, exploitation is an increasingly common phenomenon, with an increasing number of transnational corporations outsourcing to less economically developed countries, and using a cheaper workforce to generate greater profits in their business.This exploitation most readily comes in the form of financial abuse, inhumane working conditions and overexertion. Another potential change that transnational corporations can cause for developing countries is one of class composition in their societies. Before the factories are brought in these countries are often dependent on agriculture and natural resources; these countries then become more industrialised, creating a growing working class, a small business sector and a capitalist class. With this inevitably trade unions and working class political organisations are formed, which often brings about industrial struggles, which can cause problems for governments. This outsourcing also leads to deindustrialisation of advanced industrialised economies, leading to unemployment in the company’s parent country and therefore often bad feeling towards the company. Companies have been encourages to do this by lifted tariffs and other protection, all of which were criticised in May of 1996, when 3,000 representatives from 188 countries met in South Africa for the UNCTAD- IX conference to discuss the implications of globalisation. An African NGO Declaration for the conference stated that “the current system of globalisation and liberalisation has had devastating effects upon African economies. Our countries have been pushed backwards into increasing debt, deindustrialisation, agricultural decline, environmental degradation, poverty and deepening inequality… We oppose a system which places growth above all other goals, including human well-being and which undermines national economic development and social security. This global system has resulted in an ever greater concentration of power and control over resources into the hands of a relatively few transnational corporations and financial institutions" Martin Khor, director of Third World Network added that "it is the poor countries that are usually left behind because the free trade regime that is supervised by the WTO (World Trade Organisation) is a system that rewards those who are already strong and punishes those that are weak…They talk of a level playing field, which means that everybody is to follow the same rules, but when the original situation between two parties is unequal and you apply the same rules to them, what you have is the intensification of the inequalities". The vice-president of the International Youth and Student Movement of the United Nations, RudoMungwashu said that "the neo-liberal economic paradigm makes our governments unresponsive to our basic economic and social needs, forces open our economies to the advantage of external traders and investors, and makes African countries ever more dependent upon the richer industrialised countries and their transnational corporations".
Beginning with that of information technology, global outsourcing has been going on for a long time. Primarily, the main objective of outsourcing was making operations within a company more efficient. However, from around the late 1990s companies began to experiment with Business Process Outsourcing, which meant they would outsource manufacture and in some cases design of their products so that they are free to concentrate on branding and advertising. When outsourcing was still a novelty, it was viewed as “little more than a ho-hum tactic aimed at reducing costs”, however it is now seen as a strategic management tool. Today, outsourcing can be split into two categories: “tactical” and “strategic” outsourcing; the former being in response to a practical problem, and the latter being more in alignment with a company’s long-term aims. “Tactical” outsourcing is often done purely in order to reduce costs. For example, transnational corporations may choose to outsource information technology infrastructure to save operational costs. The goals of “strategic” outsourcing are often more dramatic, but take longer to achieve; these often involve shifting the focal point of the organisation to activities that have a larger impact on its success. One of the earliest recognisable forms of outsourcing that transnational corporations put into action was Coca-Cola’s outsource of bottle manufacture. Companies such as Coca-Cola have moved manufacture of their products to newly industrialised countries (NIC) for many reasons. The main reasons are based around the company’s workforce. In a hugely expanding company, like Coca-Cola by the beginning of the 20th Century, thousands of employees are required to produce the necessary products. With headquarters in a more economically developed country such as the United States of America (TNCs based in the USA are responsible for the largest share of foreign direct investments, which amounts to $610 billion US dollars, making the USA the biggest imperial investor), there are factors that would hugely limit the profit made by companies such as Coca-Cola were they to manufacture their products in the same country.These factors include government legislation, as minimum wage is much lower in NICs than in the USA, therefore in the USA more money would be paid to the workforce, the cost of manufacture would increase, and overall profits would be drastically reduced. Yield is also increased to greater extent on day to day basesin NICs, as working hours tend to be more relaxed than in the USA. Money is also saved by companies when outsourcing in regard to working conditions, for example generally less money would be spent on trying to abide by health and safety regulations in NICs. Furthermore, as well as having a cheaper workforce in NICs, TNCs often find their workforce to be more consistent, as in many cases there is stricter prohibition of strikes. Lastly, there are great incentives to many TNCs towards NICs due to their offers of tax reduction. For example, many NICs offer tax free zones to areas in which TNCs manufacture in their country, so with less tax the company gains yet more profit. With so many advantages to moving manufacture to NICs, it is no wonder that companies such as Coca-Cola choose to do this, leaving them free to focus on core strategic business objectives, such as branding and growing market share.
Transnational corporations often have very negative impacts on countries in which they locate their factories. While companies appear to be investing in a country and making it wealthier by placing factories in it, the economic benefit to the host country is often minimal due to the fact that most profits will return to the parent country. Although locals are paid for their work in these factories, the wages will generally be as low as the company can feasibly make them, as their main aim is to maximise profit. Likewise the new technology that transnational corporations bring into developing countries may seem to be a huge advantage to them, but in reality the companies often withhold information about their technology with fear of competition; even when it is open with the resources it has, it is likely that people of the host country may not have the privilege of an education into such things and therefore their industry cannot benefit entirely from the technology. This lack of a good education that is common in many places where TNCs set up factories also limits the jobs that companies can offer to the local people, so people with the right set of skills are often brought into the country, leading to a reduction in the employment opportunities that are initially apparent when a factory is built. In fact, the locals can be left unemployed and still affected by the companies, for example small towns near factories are often heavily polluted, as not many precautions are taken as this would cost money and reduce profit. Small towns such as these can be benefitted, however, by new and further reaching transport links built by companies, however these are limited as the companies only tend to fund this development if it directly aids their routes and therefore will not necessarily prove useful to local people. Another limited yet undeniable advantage of transnational corporations outsourcing to NICs is that they often act as growth poles for similar countries. This can drastically increase the industrial sector of a country and lead to huge economic growth. A good example of a transnational corporation that has outsourced to developing countries at the risk of exploiting their people is Nike.
The brand that is known today as Nike Inc. was founded in 1964 as “Blue Ribbon Sports” by Bill Bowerman and Phil Knight. The company originated in Beaverton, Oregon and this is the location of its headquarters today. The company’s popularity was, and undoubtedly still is, driven by its marketing strategies. By the 1970s, athletes had already been signed to Nike, and following their success in the 1980 Olympic Games, not only was the company becoming well known among the public, but a snowball effect was created among athletes who were willing to advertise for Nike. Arguably the most notable marketing investment Nike made was in Michael Jordan, whose notoriety in basketball boosted their “Nike Air” products. Since then, such people as Tiger Woods, Lance Armstrong and the Brazilian national soccer team have signed with the brand. Nike became an international company in 1975 on opening an office in Taiwan. Today, Nike acquires its products from over 800 contract factories in over 50 different countries across the globe.
Since becoming a transnational corporation, Nike has been under scrutiny and has received huge amounts of criticism for not incorporating sufficient corporate social responsibility into its overall business strategy. This is due to the fact that Nike have not been as successful as many other American transnational corporations at minimising negative impacts associated with outsourcing manufacture of its products to external companies. Nike claims that it is difficult to control what is happening in individual factories, therefore exploitation of workers takes place at ease in a nation where unemployment is high and employees can easily be replaced. In fact, while high quotas are set for workers in factories, excessive overtime is required in the majority of cases, with an average Nike worker spending over 300 hours per year longer in the factories than Vietnam’s labour law allows. Investigations into the response of workers show that if the workers refuse to work overtime or complain, they are punished or given a warning, and on their third warning they are fired. This exploitation results in the majority of workers in factories being women under the age of 25. Reports have been made of physical abuse, sexual abuse, salary below minimum wage and a debilitating quota system in developing countries such as Vietnam involved in Nike’s production process.
While Nike may claim that they are concentrated on quality and productivity, the facts show that they predominately set up factories in developing countries for the cheap labour costs. For example, until the late 1980s Nike manufactured many of its trainers in South Korea. However at this time labour costs in South Korea rose, so Nike decided to move production to Indonesia where costs were lower. In the space of four years, the import figures of trainers from South Korea dropped from 58,896 to 10,970. A similar movement of production took place in the 1970s from Taiwan to China and Vietnam. Undoubtedly an additional attraction of Indonesia, China and Vietnam would have been the illegality of independent trade unions.
The fact that Nike outsources the manufacture of its products means that it is free to specialise in what it does best: brand development. Nike spends US$1 billion on marketing the brand each year, this is equal to ten per cent of the brand’s total revenue. This puts the company at an advantage to many competitors, but it the amount of money put into advertising means that it is lacked elsewhere. If Nike doubled the salaries of its 30,000 employees in Indonesia the annual payroll would be roughly equivalent to what Michael Jordan is paid in one year to advertise the product. This fact has brought in countless protests and some of Nike’s expensive slogans have paid a price. For example “Just do it.”, which was ridiculed by Oxfam Australia when making banners featuring the slogan “Just stop it. Whose sweat is in your shoes?” Oxfam Australia has been campaigning for Nike’s workers’ rights for thirteen years. They make an argument in accordance to the fact previously mentioned, but in regard to Tiger Woods’ pay. They argue that if Nike can afford to sponsor Tiger Woods for $100m, then they can afford to pay their shoe makers enough money to sustain themselves and their families. 
Part of the argument against Nike’s activities is the way in which other multinational corporations (MNC) have dealt with their workers in developing countries, putting into perspective the supposedly inacceptable treatment many of Nike’s indirect employees are subjected to. These are indirect employees due to the subcontractors that the company uses, who make it possible for responsibility of the manufacture of Nike’s shoes to be taken away from Nike – which leads to Nike’s claims that they are in the business of "marketing" shoes, not making them. However, Nike dictates the terms to the contractor: the design, the materials, the price it will pay, so Nike, the parent company, remains in control even though it doesn’t legally own any of its factories. This is an area in which many other TNCs such as Coca Cola come out stronger than Nike as they do not use subcontractors, and therefore has been proven not to exploit its workers as harshly as Nike. In Vietnam, Coca Cola workers are paid $80 a month andreceive fringe benefits such as English lessons and sales training. When compared to Nike’s 20 cents an hour or $1.60 per day, there is obvious justification to the criticism that Nike receives. To put these wages into perspective, workers in a Nike factory in Vietnam have claimed that the cost of three meals per day in the location of the factory is approximately $2. This results in workers not having enough money to feed themselves, let alone earning the means to support their families, and the intensity of their work throws into light to the injustice of their wages (manufacturing a pair of Nike shoes involves cutting, stitching, shaping and packing of up to 200 components). Ninety per cent of workers interviewed by Vietnam Labor Watch said they received extra help in terms of money, food or housing from their families to make ends meet. Furthermore, during the first three months of work in these factories, workers were paid $37 per month, with Vietnam’s minimum wage at $45 per month. Nike’s reasoning behind this figure is that Vietnamese law states that training wages may be below minimum wage. However, this “trial period” that is allowed for by Vietnamese law is limited at six days, not three months. In violating the provisions regarding minimum wage, provisions regarding labour contracts and provisions relating to the "trial period" Nike is supposedly in triple violation of Vietnam Law.
Nike has received a great deal of criticism from CBS News. In October of 1996, CBS News reported statements from two female workers at a Nike Plant in Vietnam, with lines such as “you have to meet the quota before you can go home”; “She hit all 15 team leaders in turn from the first one to the fifteenth”; “The physical pain didn't last long, but the pain I feel in my heart will never disappear.” The two women were later fired for talking to the press. Other workers reported that they are not allowed to go to the bathroom more than once per 8-hour shift and are not allowed water more than twice per shift; that it is a common occurrence for workers to faint from exhaustion, heat, fumes and poor nutrition during shifts; that there is frequent verbal, physical and sexual abuse and that corporal punishment is often used; and that health care is inadequate (for example at one factory of 6000 employees one doctor works for 2 hours a day while the factory is open for 20). CBS News claims that Nike is refusing to acknowledge that these unjust occurrences are taking place. While investigations showed that on one occasion 15 women were hit on the head by their supervisor, Nike’s president and CEO, Philip Knight said that the problems in Vietnam consisted solely of an incident in which one worker was hit on the arm by the supervisor. CBS News’ Roberta Baskin said, “it turns out Nike has a great deal to learn about what goes on inside these factories”. At Nike Vietnam’s headquarters, a CBS News reporter approached a Nike representative, who covered the camera and said “I have things to do”.
In 1998, Philip Knight promised to change Nike’s labour practices in Asia.Although Nike have made changes, its critics claim that the changes they have made only include such actions such as “staffing up its PR department to go on a charm-offensive to seduce the public, to create confusion among concerned people about the reality of Nike sweatshops and to sow doubts about anti-sweatshop activists” and “using the Fair Labor Association (FLA) as a quasi-stamp of approval for its labour policy even though in reality the FLA is still a non-functioning organization. The FLA has not even monitored a single factory yet, despite numerous press releases promising actions”. These critics argue that Nike is putting on a show of acting responsibly, whilst behind closed doors, they are “sabotaging any labour organisation that stands in its way”. Indeed Phil Knight has retracted his donation to the University of Oregon because the school joined the WRC, a labour group whose agenda competes with the FLA. Nike has also supposedly threatened to stop funding any other universities that join the WRC.
            Nike’s response to confrontation in regard to its supposedly unethically managed approach to being a transnational corporation is this: “Because we were among the first companies and industries to experience such scrutiny, we did not have the benefit of an established roadmap. Instead, we had to learn a great deal through taking action based on our best instincts, evaluating the results of those actions, and then modifying our course based on what we learned through those experiences.” Indeed, they claim to have modified their course to a certain extent, and figures they provide show that over the past three years, the number of audits showing serious, repeated violations has been at 4% or fewer, and that “the proportion of the most severe issues has decreased the number of factories with unknown conditions from 48% to 8%, as transparency has expanded”. After admitting that they had not been as vigilant as they could have been in the past in regard to monitoring working conditions, Nike launched their ‘Transparency 101’ program, which supposedly makes the public aware of the company’s every action. Nike also claims that they are making efforts to phase out PVC and other potentially harmful chemicals from their products. These changes are all in alignment with the CERES principles that Nike endorsed in November 2000 Dusty Kidd, Nike's vice president for corporate responsibility stated that “We hope that through this engagement with CERES, we can advance our work in environmental and social issues”. A review from the Far Eastern Economic Review noted that in the previous year, Nike had improved in almost every category of corporate and issue-specific leadership.
Transnational corporations have, to a large extent, monopolised certain branches of production across the globe. For example, the foreign affiliates of the 23 electronics TNCs made 80% of the total electronics sales in the world in 1995. Between the top 100 TNCs across the globe (according to value of foreign assets) were around $3.7 trillion US dollars’ worth of assets and one sixth of foreign direct investment across the globe.Most foreign direct investment (FDI) originates in more economically developed countries, such as the USA and UK, with 75% of foreign investment stocks in developed countries such as these. Naturally, developing countries such as China receive an increasingly large amount of FDI from these countries. China alone received $34 billion US dollars in 1994, with its 45000 foreign affiliates. However, as China received more investment, this gave the country the opportunity to make foreign investments itself, and by the end of the decade China itself had almost 1,000 transnational corporations and was investing around $2.4 billion US dollars into foreign countries every year. China is not alone in increasing its investments: the percentage of the flow of investments from developing countries rose from 5% to 15% from 1984 to 1994.The United Nations Conference on Trade and Development states that there are now many TNCs based in developing countries, including 10 in Brazil, 9 in South Korea and 7 in Taiwan.The huge amount of control transnational corporations are able to take over a country are demonstrated by the activities of BHP, an Australian TNC with nearly 50,000 employees in over 50 countries across the globe. Of its $18 billion sales revenue, a third came from foreign affiliates, such as those in Papua New Guinea. It was recently discovered that BHP had drafted legislation in Papua New Guinea that prevented the country’s landowners from suing the company for pollution and damage to the country’s gold mining operations, making the action of trying to obtain compensation a criminal act. A further agreement with the government of Papua New Guinea said that BHP would be able to veto over the legislation before it was passed. Another example of a hugely influential company is Shell.This is proven by the magnitude of its assets in comparison to national economies: Shell’s $100.8 billion US dollars of assets are over double New Zealand’s GDP, and triple Nigeria’s GDP.