The Impact of Nike Inc by Penelope Yin

Nike Inc. Timeline

py52755 — 2024-04-29 18:39:20 UTC

Founded in 1964, originally called Blue Ribbon Sports by Bill Bowerman and Phil Knight in Beaverton, Oregon.
In 1966, the two opened their first retail store and Nike track and field shoe in 1977. The shoes were a hit due to their light, comfortable, and stylish design.
In 1978, the company was split and renamed Nike Inc. after a lawsuit with Bill Bowerman and Phil Knight.
In 1980, the company went public with the ownership of Phil Knight.
In the late 1980s, Nike diversified their products from track and field shoes to all types of shoes. Also, Nike’s budget increased from $8 million to $48 million, allowing them to sponsor various celebrities and further advertise and promote their shoes.
In 2021, Nike sales increased by 20%, making them one of the most successful shoe companies of all time.

The Human Impact of Nike

py52755 — 2024-04-29 18:40:18 UTC

Nike, being one of the largest companies in the world, has a large human impact. 266 of Nike’s factories (23%) are in Asia where there is little to no child labor laws. Additionally, In 2003-2004, physical and verbal abuse cases were found in ¼ of Asian factories. This includes restricting access to breaks for various reasons, like water and toilet breaks. Also, employees work more than 60 hours and are denied days off in more than half of Nike’s factories. Nike shoes last 2 and a half years for the average customer, meaning new shoes are bought every couple years. Because of all this, these factories have poor pay, working hours, and safety for employees (650,000 employed worldwide). As shown, the human impact of Nike is very large.

The Environmental Impact of Nike

py52755 — 2024-04-29 18:40:53 UTC

Nike needs thousands of factories in order to create millions of shoes, meaning Nike also has a large, negative, environmental impact. Nike hopes to eliminate hazardous chemicals from their activewear by 2025, but they don’t say how they plan to do so. They already use organic and recycled cotton. Additionally, from 2015 to 2022, Nike emitted 83.7 million metric tons of greenhouse gas, peaking in 2020 with 11.8 million metric tons. Once again, they plan to reduce gases, but there is no evidence of that or of them taking action. On a good note, Nike recycles 72% of their waste and divert 94% from ending up in landfills. Nike, one of the largest sportswear companies in the world, has a bad environmental impact.

How Can We Solve This Issue?

py52755 — 2024-04-29 18:41:21 UTC

Unsurprisingly, Nike already has some solutions in place for all issues. Nike launched a “recycling and donation programme”, and by 2025, Nike has plans to have factories with 100% renewable energy. Also, they claim all labor issues are solved, but are currently eliminating excessive overtime in factories. What you as a person could do, is recycle or donate shoes after you’re done with them. Additionally, it always works to advocate for how workers are treated.

How I Will Change My Behavior

py52755 — 2024-04-29 18:42:00 UTC

I plan to change my behavior as a consumer. When I go out shopping for shoes, I will look for ones with recycled materials. Taking better care of them is also smart, so they last longer. Once I can’t use them anymore, I will recycle or donate them. I also will advocate for better labor laws involving factories in Asia. As a consumer, that is how I will change my behavior.