How Nike Solved Its Sweatshop Problem (2024)

FAQs

How Nike Solved Its Sweatshop Problem? ›

Nike raised the minimum age of its workers and increased monitoring of overseas factories. 1999 - Nike launches the Fair Labor Association, a not-for-profit group that combines company and human rights representatives to establish a code of conduct and monitor labour conditions.

From 1999 to 2005, Nike performed factory audits and took many measures to improve labour practices. Since 2005, the company also published annual reports to be transparent about its labour working conditions. Nike continues to reinforce its ethical image through Corporate Social Responsibility strategies.

Beginning in 2002, Nike began auditing its factories for occupational health and safety. The backlash and its public relations impact forced the company to change methods, improve conditions, and implement social responsibility reports in 2005. Nike has since began initiatives to improve their factory conditions.

By actively working towards resolving the issues that led to the crisis, Nike showcased their commitment to change and rebuilding consumer trust. Nike's willingness to take responsibility for their mistakes was a significant factor in their recovery.

In March 2020, a damning report from the Australian Strategic Policy Institute revealed that the Chinese government was forcing hundreds of young Uyghur women to produce Nike shoes in the Taekwang factory in Laixi City. Nike says the factory has stopped using forced labor.

Questions regarding supply chain ethics have plagued Nike since the early '90s. Concerning Nike's connection to forced labor, child labor, and sweatshops, problems arose when the company advised contractors to move to Indonesia, China, and Vietnam after a price jump in Korea and Taiwan, per a 2013 Insider piece.

They compare the work at Nike with the way they lived before, or the way their parents or neighbours still work. And the facts are revealing. The average pay at a Nike factory close to Ho Chi Minh is $54 a month, almost three times the minimum wage for a state-owned enterprise.

Nike's promotion strategy is focused on creating strong, emotional connections with their customers through advertising, sponsorships, and events. They use a variety of marketing channels, such as television, social media, and influencer marketing, to reach their target audience and build brand awareness.

All Nike shoe factories would meet US air quality standards. The minimum age would be raised to 18 for workers in Nike shoe factories and 16 those in for clothing factories. Nike would include non-governmental organisations in factory monitoring, and the company would make inspection results public.

Nike was initially slow to respond in the '90s—but under increasing pressure, it eventually made some changes by improving its monitoring efforts, raising the minimum age of workers, and increasing factory audits. Since then, the brand has earned plaudits for many of its efforts.

What is being done to end sweatshops? ›

DEPARTMENT OF STATE ANTI-SWEATSHOP INITIATIVE.

The Department of State will provide $3.9 million in grants to support private sector efforts to eliminate abusive working conditions and protect the health, safety, and rights of workers overseas.

International Labor Rights Forum

The ILRF is a U.S. based organization that advocates for just and humane treatment of workers worldwide. Projects include ending child labor, protecting the rights for working women, ending sweatshop conditions, and protecting works' ability to organize.

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.

One of the key factors that made “Just Do It” so successful was its simplicity. The slogan was short, catchy, and easy to remember, making it perfect for print and TV advertising. But beyond that, it tapped into something deeper in the psyche of consumers.

We support individuals of all abilities.

At Nike, our mission statement includes the phrase, “If you have a body, you are an athlete.” In FY22, we recognized—and donated a total of $625,000 to—to 13 nonprofits that educate people about disabilities and celebrate the contributions of those with different ability levels.

Nike raised the minimum age of its workers and increased monitoring of overseas factories. 1999 - Nike launches the Fair Labor Association, a not-for-profit group that combines company and human rights representatives to establish a code of conduct and monitor labour conditions.

Nike specifically and directly forbids the use of child labor in facilities contracted to make Nike products. The Nike Code of Conduct requires that workers must be at least 16 years of age, or past the national legal age of compulsory schooling and minimum working age, whichever is higher.

By disclosing its supply chain, Nike believes it can be more successful at monitoring and making changes once issues have been uncovered not only in its own factories, but also on an industry-wide basis. The company hopes that by disclosing its own supply chain, it can encourage other companies to do the same.

Another aspect that sets Nike apart is its strategic partnerships and collaborations. By teaming up with athletes, celebrities, and influential figures in the sports industry, Nike has been able to leverage their star power and credibility to further enhance its brand image.