22 April (Friday)

GROUP 5

In Jun Hwang - Introduction

Fariha Hasan - Analysis of Current Situation
James Hordern - Recommendations
Gregory Ibanez - Conclusion/Learning

Introduction
Inside look in Nike factories across the globe:
1.

124 plants in China contracted to make its products, 73 in Thailand, 35 in South Korea, 34 in
Vietnam and others in other countries (South America, Australia, Canada, Italy, Mexico, Turkey).

2. Between 25% and 50% of the factories in the region restrict access to toilets and drinking water
during the workday.
3. In more than half of Nike factories, employees worked more than 60 hours a week and were
punished when they refused to work overtime.

Problems
1. Low wages (around $0.50 per hour)
2. Bad working conditions
3. Environment
4. Overall improvement of factory conditions
5. Overtime Pay
6. Abusive treatment (physical and verbal)

Analysis of Current Situation:

Top FOUR challenges Nike is facing as of present in their outsourced locations (mainly in Asia):
1) Poor working conditions
2) Extremely low wages for workers
3) Verbal and Physical abuse at work
4) Environmental Destruction

High Profile Protests From Different Stakeholders:

People from different walks of life, globally, have taken stands against Nikes unscrupulous ways of
business. Some of them are as follows:

Thousands of Cambodian workers protested for higher pay in 2013

Community leaders in Portland, Oregon objected against violating Honduran law,etc. in 2010

Elite student organizations (such as United Students Against Sweatshops, and others from
Cornell, University of Wisconsin Madison, etc.) boycotts resulted in over $1 million loss in
revenue for Nike in 2011

What Nike Has Done And Not Done So Far:

Nike HAS:

Adopted the CERES principles back in 2000

10-point code of corporate environmental ideals encompassing energy conservation, informing the public, management
commitment, etc.

Joined Fair Labor Association (conducts independent audits)

Nike HAS NOT:

Specifically employed any human resource personnel in the monitoring of its labor conditions in the factories operated by many
of its outsourced suppliers

Taken substantial actions relating to issues such as 25% to 50% workers in Asian countries denied one day off out of seven days,
25% punished for not working overtime

Worked to resolve inhumane overseas employee problems as soon as possible in connection to restricted access to toilets,
drinking water during workdays, physical and verbal abuses at work

Where Does Nike Fall?

The Starting Line

At Nike, we believe that although there is no finish line, there
is a clear starting line - Nike Code of Conduct

The Top 3
1. Physical Conditions- Bathrooms and drinking water
2. Unfair/unlivable wages
3. Eliminate forced and excessive overtime

Reinforcement
1. Increase audit standards and frequency
2. Pressure governments and subcontractors to allow workers the
right to freely organize
3. Pay stubs
CODE OF CONDUCT

Conclusion/Learning Outcomes
Taken a Defensive stance in the face of protest
Very little has been accomplished

No clear and transparent goals toward betterment of factory

employees
Where is their clear starting line?

Restructure the auditing system

Increase frequency and severity

Organization of employees
Unionization

Holding up to their own standards

Discussion Session