Ch. 3 - Ethics & Social Responsibility

 Nike not to long ago ran into an issue where their code of ethics was challenged. They were being shamed in the public in 1991, when they took their business to places such as Indonesia, China and Vietnam after labor prices rose in Korea and Taiwan. That's when the problems started and an activist by the name of Jeff Balling published a report indicating the poor working conditions and low wages being offered to Nike employees in Indonesia. Nike could've ran from these issues and tried to cover them up. However instead they took on the problem head on and went above and beyond to bring awareness to this issue. Although it took them a few years to really establish change, they voices were heard and something was done. In 1998, after college students had began protesting Nike, the CEO Phil Knight made a speech stating “The Nike product has become synonymous with slave wages, forced overtime, and arbitrary abuse,” Knight said. “I truly believe the American consumer doesn’t want to buy products made under abusive conditions. At this speech they also announced that Nike would increase the minimum age of their workers, they would increase the monitoring of their employees; and they will adapt to the U.S OSHA clean air standards in all of their factories.

In 1999, Nike begins to create the Fair Labor Association. Which is a non profit group that combined companies, and human rights and labor representatives to establish independent monitoring and a code of conduct, including a minimum age and a 60-hour work week, and pushes other brands to join according to this article in business insider. (Business Insider Article). Since they took this initiative, they've also done things such as, publish a detailed 108 report which revealed to the public the conditions, and wages in their factories. 

 Community Investment Breakdown

In 2005, Nike was also the first company in its industry to publish a complete list made available to the public with all of the factories in which they did business with. To this day Nike presently continues to post its information online, it can be located on Nike's corporate social responsibility reports. Also listed on their site, are the different strategies they have in place to reduce waste, support communities, empower their workers, cut energy, etc. They've taken emphasis not only to developing amazing products like the Jordans sneaker, but in addition have put value and focus on their employees, the environment, and the communities. 

Nike's Overal Waste FootPrint