Nike is facing a new wave of anti-sweatshop protests - Business & Human Rights Resource Centre (2024)

...In the 1990s, [Nike] was plagued by reports that it used sweatshops and child labor.Now, Nike’s sweatshop problem is threatening a comeback. On July 29, students and activists around the world participated in aday of protestagainst Nike, organized by United Students Against Sweatshops (USAS). The demonstrations, in cities such as Boston, Washington D.C., Bangalore, and San Pedro Sula in Honduras, represented an escalation of allegations against Nike that have been slowly bubbling up.Among them are claims that workers at a Nike contract factory in Hansae, Vietnam, suffered wage theft and verbal abuse, and labored for hours in temperatures well over the legal limit of 90 degrees, to the point that they would collapse at their sewing machines. Nike is also accused of cutting jobs at the Hansae factory and pulling production from a factory in Honduras with a strong union presence...

The company has also allegedly denied the independent monitoring group Worker Rights Consortium (WRC) access to inspect its contract factories... The WRC issue could become a serious one for Nike. ... Georgetown, Northeastern, Rutgers, and University of Washington—all among the WRC’s 190 university affiliates—have already cut ties with Nike or said they will allow their contracts to expire due to the company’s stance on factory inspections...

USAS also demands that Nike return to its full production levels at Hansae... Nike confirms that it reduced order volumes at Hansae. But it has also worked steadily to help correct the violations found at the factory, .... [and] says it only left the factory because Gildan, the Canadian apparel manufacturer that recently purchased American Apparel, forced it to...

USAS is not convinced. “Nike has the ability to pressure Gildan to address this, and so far they have not,”...

Nike is facing a new wave of anti-sweatshop protests - Business & Human Rights Resource Centre (2024)

FAQs

How did Nike respond to the accusations of sweatshops? ›

Beginning in 2002, Nike began auditing its factories for occupational health and safety. The backlash and its public relations impact forced the company to change methods, improve conditions, and implement social responsibility reports in 2005. Nike has since began initiatives to improve their factory conditions.

What is Nike's solution to sweatshops? ›

Nike raised the minimum age of its workers and increased monitoring of overseas factories. 1999 - Nike launches the Fair Labor Association, a not-for-profit group that combines company and human rights representatives to establish a code of conduct and monitor labour conditions.

What was the motivation behind the protests against Nike? ›

In the 1990s, [Nike] was plagued by reports that it used sweatshops and child labor. Now, Nike's sweatshop problem is threatening a comeback. On July 29, students and activists around the world participated in a day of protest against Nike, organized by United Students Against Sweatshops (USAS).

What is the Nike human rights scandal? ›

In the 1990s, the Portland-based sportswear giant was plagued with damning reports that its global supply chain was being supported by child labor in places like Cambodia and Pakistan, with minors stitching soccer balls and other products as many as seven days a week for up to 16 hours a day.

Could Nike have handled the negative publicity over sweatshops better? ›

Answer and Explanation: Yes, Nike would have managed to handle unfavorable publicity differently through the sweatshops by employing its separate departments to handle this negative advertising.

Where did Nike go wrong ethically? ›

Nike also received the worst rating for their cotton sourcing policy from the Ethical Consumer, due to the fact that it has a very muddy approach to using pesticides and herbicides. They also use dangerous chemicals to preserve their leather longer. There have also been false advertisem*nts within the Nike company.

What is Nike doing to improve the environment? ›

Nike has also committed to using 100% sustainable cotton, leather alternatives, and other such low-impact materials by 2025. Considering the size of Nike, the introduction of small changes like recycled materials can help in making a significant impact.

When did Nike get in trouble for sweatshops? ›

Nike had been accused of using sweatshops to produce its sneakers and activewear since the 1970s, but it was only in 1991 when activist Jeff Ballinger published a report detailing the low wages and poor working conditions in Nike's Indonesian factories that the sportswear brand came under fire.

What was the biggest issue with Nike? ›

Our research highlights allegations of forced labour in the Nike supply chain, gender discrimination towards female athletes and parents, and failure to ensure all employees receive a living wage.

What are the Nike workers violations? ›

The group said in a fact sheet that workers in Nike's supply chain “experienced layoffs and terminations, arbitrary pay cuts, unpaid wages for hours worked, and gender discrimination at an unprecedented scale” and alleged that the company contributed to negative conditions for garment workers without remedying them.

What is Nike trying to achieve? ›

Our mission is: To bring inspiration and innovation to every athlete* in the world. *If you have a body, you are an athlete.

What are three major ethical issues Nike faced as a company? ›

Nike Ethical Issues
  • Child Labour. Although Child Labour laws are in place in countries NIKE still choses to overlook this and children as young as 12 years of age are made to work in the factories for long hours. ...
  • Expensive Endorsem*nts. ...
  • Low wages. ...
  • Expensive Products. ...
  • Fainting in Cambodia factories.
Dec 9, 2020

What issue did Nike have with labor activists? ›

Nike claimed misleading statements were noncommercial speech

In the 1990s, numerous critics accused Nike of unfair labor practices and unsafe working conditions. Nike responded to these allegations with a public relations and advertising campaign.

Does Nike act ethically? ›

We adhere to safety, health, environmental protection and labeling requirements for products in compliance with all applicable laws. And we work with the factories that make Nike products to meet our standards for compliance, health, safety and quality.

Does Nike have a negative impact on the environment? ›

Their Environmental Impact

Most Nike products are either made out of cotton or polyester, both of which can be very polluting. Starting with cotton, the Ethical Consumer found that Nike has not set clear intentions with their approach to the pesticides and herbicides used to grow cotton crops.

What are Nike's negative economic impacts? ›

Nike underestimated the number of jobs that would be created as a result of a sweatshop exposing labor and mill conditions at a production facility in Asia. As society and customers demand more socially responsible business, this resulted in poor promotion and declining gross sales.

How did Nike handle negative publicity? ›

Initially, Nike was making mistakes in adopting a denial approach; Nike's initial reaction to this negative publicity was to ignore them. They reasoned that that they did not own the factories and were therefore not responsible for labor and human rights violations.

What are the negative impacts of Nike on society? ›

However, Nike has faced numerous violations over the years since they have factories worldwide. Overall, Nike shoes have a heavy impact on the environment, from leather, to carbon emission, and poor working conditions for factory workers.

How is Nike socially responsible? ›

Nike's Diversity and Inclusion Program. Nike's CSR and corporate governance programs center on providing a healthy and tolerant work environment for all employees. To that end, the company invests in promoting a work environment that celebrates diversity and inclusion.

What helped Nike become successful? ›

Nike's business strategy is straightforward: engage in brand creation through emotional marketing and sports star endorsem*nts, manufacture products with high-quality, market-leading technology, and acquire competitive sports brands. Nike's swoosh dominates the footwear industry.

What is Nike's idea of sustainable growth and corporate responsibility? ›

Nike is focusing corporate responsibility efforts in the areas in which they can have the greatest impact and create the most value: Through the materials they design into products, through the process of making those materials and products, and in the world of sport where products are used.

What impact does Nike have on the world? ›

Today Nike is the world's leading innovator in athletic footwear, apparel, equipment and accessories. Along the way, Nike helped the world's best athletes win races, games and championships.

Who is trying to stop sweatshops? ›

International Labor Rights Forum

The ILRF is a U.S. based organization that advocates for just and humane treatment of workers worldwide.

What is Nike's stance on labor and human rights? ›

In a fiscal 2022 statement on forced labor, Nike said it is growing its business "through long-term relationships with suppliers that are committed to our strict standards of sustainability and human rights, product excellence and compliance with local laws." Our Standards: The Thomson Reuters Trust Principles.

What are issues with sweatshops? ›

In the worst forms of sweatshops people are forced to work up to 72 hours straight, without sleep. Those complaining are beaten and abused. Cases of physical, sexual, and verbal abuse are common and well documented.

What unethical things did Nike do? ›

Once Japan got too expensive they looked for another place to put their factories. They then settled in Vietnam, China and Indonesia. Since Nike made these factories in these countries there have been allegations and proof of forced labor, child labor, widespread harassment, poor working conditions and abuse.

How did Nike respond to human rights abuse claims in China? ›

In response, Nike maintained its commitment to “ethical and responsible manufacturing” and claimed that it does not source from Xinjiang. But that statement led to a boycott in China.

Is Nike making an effort to improve working conditions? ›

Nike is now, “trying to persuade contract manufacturers that better labor practices and sustainability improves productivity with lower worker turnover and reduced costs” (Townsend, 2012). By 2020, Nike has the goal that all of their contracted factories will get an “A” or “B” rating.

What problems has Nike faced? ›

Nike and other retailers have been facing supply chain headwinds, such as increases in shipping times and costs, and Covid-related store closure disruptions.

Are Nike environmentally friendly? ›

Nike's use of more sustainable materials increased from 41% to 59% in 2020. Nike apparel labelled with 'sustainable materials' has at least 50% recycled content. Nike significantly reduces its emissions and impact by reusing, recycling, and repurposing existing materials.

What are 4 things that Nike will not tolerate from employees at the workplace? ›

Harassment – Zero Tolerance

NIKE is committed to maintaining a work environment free from unlawful discrimination, including harassment based on sex, sexual orientation, gender identity, gender expression, race, age, religion, disability, ethnic group or any other protected class status.

Does Nike care about their employees? ›

From health to financial well-being, we continually invest in our employees to help them achieve greatness — both at and outside of work. Our goal at NIKE is to enable and support our teammates to realize their full potential.

What do employees say about working at Nike? ›

NIKE has an overall rating of 4.2 out of 5, based on over 13,843 reviews left anonymously by employees. 81% of employees would recommend working at NIKE to a friend and 71% have a positive outlook for the business. This rating has been stable over the past 12 months.

What are Nike's goals for the future? ›

Nike is looking to improve its sustainability credentials by focusing on its materials. Noel Kinder, Nike's chief sustainability officer, said that 80% of the brand's carbon footprint comes from the sourcing of its materials and manufacturing.

How does Nike motivate their employees? ›

A leader in the athletic footwear, apparel and equipment markets, Nike is known for its “Just Do It” slogan. And that's the approach they encourage their employees to take, as well. They help employees get engaged with not only the company, but also with the community by offering excellent volunteering programs.

How does Nike treat their customers? ›

The report also mentioned, “Nike embodies a customer-centric approach by monitoring consumer preferences and shifting focus from the products to the overall brand and the individual consumer interaction.” NikeOpens a new window takes a quality-focused approach for its products as well as to build customer relationships ...

What has Nike done to improve sweatshops? ›

Nike raised the minimum age of its workers and increased monitoring of overseas factories. 1999 - Nike launches the Fair Labor Association, a not-for-profit group that combines company and human rights representatives to establish a code of conduct and monitor labour conditions.

How did Nike behave unethically? ›

How did Nike behave unethically? The public was astounded by the allegations of physical and verbal abuse taking place in Nike's sweatshops. It was found that up to 50% of the factories limited their employees' bathroom and water usage.

What are 5 example of business ethics issues? ›

Unethical accounting, harassment, health and safety, technology, privacy, social media, and discrimination are the five primary types of ethical issues in the workplace.

Why are people boycotting Nike? ›

People are calling for a boycott of Nike because of the brand's partnership with transgender activist Dylan Mulvaney. Among the loudest voices is former Olympic swimmer Sharron Davies. Davies, who won a silver medal at the 1980 Summer Olympics in Moscow, spoke with U.K. news channel GB News yesterday.

Does Nike support human rights? ›

We believe all workers have the right to freely associate and collectively bargain. Where freedom of association and collective bargaining are restricted under law, Nike requires suppliers to allow for parallel means for independent and free association and bargaining.

What are the ethical issues of sweatshops? ›

The ethicality of sweatshops can come into question when issues such as the right to basic wages, safe working conditions and cases of exploitation and harassment come to light.

What is the most ethical company? ›

PAWTUCKET, R.I --(BUSINESS WIRE)--Mar. 13, 2023-- Hasbro (NASDAQ: HAS), a global branded entertainment leader, today was recognized by Ethisphere , a global leader in defining and advancing the standards of ethical business practices, as one of the 2023 World's Most Ethical Companies.

How do Nike ensure quality? ›

To ensure its high-quality standards are met at every step of production, Nike maintains continual communication with its suppliers, providing support through tools and training to initiate suppliers in its “Lean Management” framework and Total Quality Management (TQM) approach.

How did Nike respond to child labor? ›

'' Nike said it would raise the minimum age for hiring new workers at shoe factories to 18 and the minimum for new workers at other plants to 16, in countries where it is common for 14-year-olds to hold such jobs. It will not require the dismissal of underage workers already in place.

How did Nike respond to child labour? ›

Nike and child labour had become indelibly linked in the public consciousness. Nike began to take the first steps. It released the names and locations of its factories. It changed elements of its shoe manufacture to reduce hazards to the workers who make them.

What has Nike done that is ethical? ›

Nike uses some more responsible materials, including organic and recycled cotton and polyester, and has water reduction initiatives in its supply chain. The brand has also set a deadline to eliminate hazardous chemicals by 2025 and the good news is that it is on track to meet its target.

Does Nike violate child labor laws? ›

Nike specifically and directly forbids the use of child labor in facilities contracted to make Nike products. The Nike Code of Conduct requires that workers must be at least 16 years of age, or past the national legal age of compulsory schooling and minimum working age, whichever is higher.

How does Nike motivate its employees? ›

A leader in the athletic footwear, apparel and equipment markets, Nike is known for its “Just Do It” slogan. And that's the approach they encourage their employees to take, as well. They help employees get engaged with not only the company, but also with the community by offering excellent volunteering programs.

Does Nike have a commitment to human rights and ethics? ›

Nike prohibits harassment and discrimination, and seeks to prevent it every way it can. Diversity and inclusion are our strengths. As we welcome one another's backgrounds and experiences we become stronger together. We know people work best in an environment free from harassment and discrimination.

What are some negative things about Nike? ›

Nike also received the worst rating for their cotton sourcing policy from the Ethical Consumer, due to the fact that it has a very muddy approach to using pesticides and herbicides. They also use dangerous chemicals to preserve their leather longer.

What are Nike's negative issues? ›

A long-running sexual harassment and gender discrimination lawsuit against Nike has produced more than 5,000 pages of records, including surveys of female employees that allege sexist attitudes and behavior at the sportwear giant alongside corporate bullying and fears of retaliation.

What are some negative impacts that Nike has on the environment? ›

Their Environmental Impact

Most Nike products are either made out of cotton or polyester, both of which can be very polluting. Starting with cotton, the Ethical Consumer found that Nike has not set clear intentions with their approach to the pesticides and herbicides used to grow cotton crops.

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