Does Nike still use forced labor?
The report stated: "The brand can show no evidence of a Living Wage being paid to any workers". Moreover, in 2020, the Washington Post reported that Nike purchases from a factory that relies on forced labor from Uyghurs.
Nike. Throughout the years, Nike is one of those companies that has been linked over and over in various ways to child labor and unsafe conditions in their factories. As recently as 2020, investigations showed that Nike (along with Apple) was linked to forced labor from the Uyghur people in China.
Nike sweatshops
Nike had been accused of using sweatshops to produce its sneakers and activewear since the 1970s, but it was only in 1991 when activist Jeff Ballinger published a report detailing the low wages and poor working conditions in Nike's Indonesian factories that the sportswear brand came under fire.
Workers at nine of Nike's contract factories in Indonesia have witnessed verbal and physical abuse by supervisors against co-workers, and female employees being coerced into sex, according to a report released today by a nonprofit group.
Nike has admitted it cannot guarantee that its products will not be made using child labour in a report designed to address the accusations that have plagued the company.
In all, ASPI's research has identified 83 foreign and Chinese companies directly or indirectly benefiting from the use of Uyghur workers outside Xinjiang through potentially abusive labour transfer programs as recently as 2019: Abercrombie & Fitch, Acer, Adidas, Alstom, Amazon, Apple, ASUS, BAIC Motor, BMW, Bombardier, ...
Environment. Nike received Ethical Consumer's worst rating for its cotton sourcing policy, because it lacks a clear approach to use of pesticides and herbicides. Cotton accounts for 12.34% of all insecticide sales and 3.94% of herbicide sales, even though cotton covers only 2.78% of global arable land.
Nike also raised the minimum wage it paid workers, improved oversight of labor practices, and made sure factories had clean air. These admissions and changes helped public sentiment toward Nike turn more positive, Sehdev said.
The company said the child workers are now no longer being used, or are no longer underage.
On the plus side, Nike has committed to not knowingly using Uzbek cotton—where forced labour and child labour has been rife—after being called out for it in early 2020. The brand also now ensures payment of a living wage in a small proportion of its supply chain.
How does Nike treat their customers?
If they run fast and with comfort, customers will associate happier sentiments with the brand. Similarly, aesthetically pleasing products inspire positive emotions in customers. By producing trainers which look as good as they feel, Nike instils confidence in its customers.
4 The co-founder of Nike, Phil Knight, and his son Travis Knight, along with the holding companies and trusts they control, own more than 97% of outstanding Class A shares. 5 This allows the Knight family to exercise effective control of Nike even though it is a publicly traded business.
Adidas. Adidas creates shoes, clothing, and accessories. Adidas is the second-largest sportswear manufacturer in the world after Nike. Adidas has been using sweatshop workers and child labor to make its products cheaply and grow into a multinational corporation.
Almost all Nike shoes are manufactured outside of the United States. The leading manufacturer of Nike shoes is China and Vietnam each accounting for 36% of the total manufactured world wide. Indonesia accounts for 22% and Thailand for 6% of the Nike shoes that are being produced world wide.
Domestic work. Construction, mining, quarrying and brick kilns. Manufacturing, processing and packaging. Prostitution and sexual exploitation.
In the first three quarters of 2020, Nike spent $920,000 on in-house lobbying of Congress and other federal agencies. Disclosures do not break down expenditures by topic, but show Nike lobbied on matters including physical education grants, taxes and climate change, as well as the Uyghur Forced Labor Prevention Act.
In manufacturing: bricks, garments, carpets, and footwear. In mined/quarried goods: gold, diamonds and coal.
The company said the child workers are now no longer being used, or are no longer underage.
adidas strictly prohibits the use of any form of forced labor or the trafficking in persons across all of our company operations and in our global supply chain.
Environment. Nike received Ethical Consumer's worst rating for its cotton sourcing policy, because it lacks a clear approach to use of pesticides and herbicides. Cotton accounts for 12.34% of all insecticide sales and 3.94% of herbicide sales, even though cotton covers only 2.78% of global arable land.
Does H&M use child labor?
H&M and Gap industries are both terrible companies because they both uses child labor.
Chinese law prohibits the use of child of labor under age 16 but stipulates that children may be employed under special circ*mstances, such as in sports or in the arts, or if their “occupational training” and “educational labor” does not adversely affect their personal health and safety.
While Nike looks for new materials, Adidas focuses on its designs. In terms of popularity, Nike is the winner of the Nike vs Adidas brand battle. However, Adidas is the winner when it comes to the cool factor. In the end, it all depends on people's preference as both brands have great features to offer.
Nike has a higher global revenue than its main competitors, Adidas and Puma, put together. North America is a key market for Nike, as close to half of its global revenue is generated there each year.
