Nike's labour pains
The Oregon based organisation operates in 120 countries and has over 20,000 employees. Sales figures revealed growth in each of its product segments in all four global markets which topped 9 billion dollars. Although Nike topped the sporting apparel market they soon met a serious decline in reputation and sales due to the third party production facilities they used.
The use of child labour In manufacturing was occurring in their third party manufacturing facilities in pakistan which ultimately led to global outrage. Nike usually place their manufacturing facilities in developing countries to promote economic growth and opportunities for the local populaces. This went pear shaped when the local run facility employed child workers and payed them minimum wage.
With the sheer size and scale of Nike’s operations the method of self-regulation would not be effective and consistent enough to be implemented as was the previous method of regulation. We formally recommended Nike take on the CERES principles which were adopted by the organisation in light of the recent allegations.
CERES executive director Robert Kinloch Massie described the move as 'a tremendous opportunity for environmental and social advocacy organizations to positively engage with one of the highest-profile companies in the world on the issue of global responsibility. Nike admitted that it had not been as vigilant as it could have been in the past when it came to monitoring working conditions, but says this is changing thanks to the help of Atlas and the CERES initiative we as a socially responsible organisation have undertaken. (Onlycrisis.com, 2014)
Nike's sustainable projects as a result of our consultancy include
-A continued effort to eliminate PVC in its products.
-The 'Reuse a Shoe' programme which, since its inception, has enabled some 13 million pairs of athletic shoes to be recycled;
-Reducing emissions at factories worldwide and encouraging the adoption of environmental management systems in each plant;
A major challenge that still faces Nike is the monitoring of labour conditions in the factories operated by its many overseas suppliers. The company has been commended for its openness in admitting to unacceptable practices by the general public and business analytics alike. Nikes final challenge is now to eliminate them.
Nike CEO Mark Parker spoke out on the issues stating ‘thanks to the work and co-operation of Atlas, the initiatives we have adopted to stem child labour and reduce our carbon footprint have been made significantly easier due to the steps we as an organisation have taken to improve our business practices”.(Onlycrisis.com, 2014)
