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Nike is a multinational corporation headquartered in Beaverton, Oregon, and is a leading athletic footwear and apparel company

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CEO: John Donahoe.

Headquarters: Beaverton, Oregon, USA.

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1. Employees: workforce globally.

2. Customers: Athletes and sports enthusiasts worldwide.

3. Suppliers: Companies and factories in various countries producing Nike products.

4. Local communities: The communities in which Nike operates and sources materials.

5. NGOs and advocacy groups: Human rights and labor organizations like the Clean Clothes Campaign.

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Nike has a comprehensive
CSR statement available on its website, outlining its commitment to sustainability, labor practices, diversity and inclusion, and environmental responsibility. They also publish annual sustainability reports.

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We’re committed to a better tomorrow for all athletes. Move to Zero is our journey toward zero carbon and waste to help protect the future of sport.

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1. Customers: Nike's sustainable product lines like "Nike Grind" which uses recycled materials.

2. Employees: Fair labor practices, diversity and inclusion initiatives, and employee wellness programs.

3. Suppliers: Implementation of their Manufacturing Index to ensure ethical and environmentally responsible supplier practices.

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In the 1990s, Nike faced allegations of sweatshop labor in some of its overseas factories, leading to protests and negative publicity

Concerns regarding the environmental impact of its production and the disposal of old products in landfill

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After the protests in 1992, the company took more concrete action by setting up a department to improve factory conditions. However, this didn't do much to resolve the problem. Disputes continued. Many Nike sweatshops still operated.

In 1997-1998, Nike faced more public backlash, causing the sportswear brand to lay off many workers.

How did Nike recover?

A major shift happened when CEO Phil Knight delivered a speech in May 1998. He admitted the existence of unfair labour practices in Nike's production facilities and promised to improve the situation by raising the minimum wage, and ensuring all factories had clean air.

While the sweatshop issue is far from over, critics and activists have praised Nike. At least the company does not turn a blind eye to the problem anymore. Nike's efforts finally paid off as it slowly won back public trust and once again dominated the market.

It is important to note that these actions have had minimal effect on workers' conditions working for Nike. In the 2019 report by Tailored Wages, Nike cannot prove that minimum living wage is being paid to any workers.6

Protection of workers' human rights

Nike's sweatshops undoubtedly violated human rights. Workers survive on a low minimum wage and are forced to work in an unsafe environment for long periods of time. However, since the Nike Sweatshop Scandal, many non-profit organisations have been set up to protect the rights of garment workers.

One example is Team Sweat,

USAS is another US-based group formed by students to challenge oppressive practices. The organisation has started many projects to protect workers' rights, one of which is the Sweat-Free Campus Campaign. The campaign required all brands that make university names or logos. This was a major success, gathering enormous public support and causing Nike financial loss. To recover, the company had no choice but to improve the factory conditions and labour rights.

Nike's Corporate Social Responsibility

Since 2005, the company has been producing corporate social responsibility reports as part of its commitment to transparency.

Nike's CSR reports revealed the brand's continuous efforts to improve labour working conditions.

For example, FY20 Nike Impact Report, Nike made crucial points on how it protects workers' human rights. The solutions include:

Forbid underage employment and forced labour

Allow freedom of association (Forming of workers' union)

Prevent discrimination of all kind

Provide workers with fair compensation

Eliminate excessive overtime

In addition to labour rights, Nike aims to make a positive difference in the world through a wide range of sustainable practices:

Source materials for apparel and footwear from sustainable sources

Reduce carbon footprint and reach 100% renewable energy

Increase recycling and cut down on overall waste

Adopt new technology to decrease water use in the supply chain

Slowly, the company is distancing itself from the 'labour abuse' image and making a positive impact on the world. It aims to become both a profitable and an ethical company.

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Nike Sweatshop Scandal: ✓ Meaning ✓ Timeline ✓ Outcomes ✓ Effects ✓Year ✓ Causes | StudySmarter Original