We investigate the company's ethics. The major challenge is to ensure that the labor law is being properly and appropriately implemented. Nike and other brands which have contracts with the firm have conducted audits over many years, but working conditions in the factory have failed to improve. Nike employees continue to face poverty, harassment, dismissal and violent intimidation despite its pledge three years ago to improve conditions for the 500,000-strong global workforce. We’re talking to Nike. Nike – Ethical Issues and Dilemmas … Nike and other brands which have contracts with the firm have conducted audits over many years, but working conditions in the factory have failed to improve. Nike’s adoption of the Freedom of Association Protocol in Indonesia in 2011 is a promising step forward. At present there are around 146 factories in China employing 189,000 workers. Nike has an entire site dedicated to its social impact with stories, stats, and pictures of happy people working in its factories. Nike Makes Improvements. In the same year, it also published its first version of a CSR report — detailing pay scales and working conditions in its factories and admitting continued problems. Oxfam is encouraging Nike to improve its labour rights practices. March 12, 2021. This is not the first time that Nike has come under fire for its labor practices in the country. His report was more favourable to Nike than many had expected, and so they published it quickly. Several of the workers mentioned that they did not realise that they would be forced to work overtime when they were hired. 11 #ChooseToChallenge videos to motivate and inspire you Nike Sweatshops: Poor Conditions Of Work 2.2 Child Labour Issue. While Nike’s program trained senior management from apparel suppliers on lean processes in waves starting in 2009, the company simultaneously performed audits of the working conditions in its supplier factories. 1991: Problems start in 1991 when activist Jeff Ballinger publishes a report documenting low wages and poor working conditions in Indonesia. "We see issues of working conditions on a less egregious nature across the board." There was a court case on Nike discrimination issue in 2003 in Chicago. Nike has done bang-up job of reversing that image. The executives at Nike have been accused of many ethical dilemmas. Is Nike ethical? For example, poor working conditions in factories that produce Nike products has been one big issue plaguing the company for years. In 2005, Nike was the first company in its industry to demonstrate transparency, when it published a complete list of its contract factories. All of these protests took place in spite of the fact that these sorts of worker strikes are illegal in these countries. In fact, in 2015 alone there were 26 separate corporate social responsibility (CSR) audits of the 12 factories in the Korean-run complex with 8,000 Vietnamese workers. Labour Conditions We rated Converse’s labour conditions ‘It’s A Start’ as well. All the while the workers who make their product receive poverty wages and endure harsh working conditions. In the 2017 Guardian report, it’s said that in Cambodian factories that supply items to brands like Nike, there were complaints of temperatures rising to 37 degrees celsius. LAIXI, China — The workers in standard-issue blue jackets stitch and glue and press together about 8 million pairs of Nikes each year at Qingdao Taekwang Shoes Co., a Nike … Nike Brand President Trevor Edwards and VP Jayme Martin resigned on Thursday -- the same day that Nike … The segment revealed that factory workers… Business of Fashion and Morgan Stanley have both hailed the company for its sustainability efforts. Nike, which came under heavy criticism a decade ago for its use of foreign sweatshops and child labor, has taken steps since then to improve conditions at its 1,000 overseas factories. If they refuse they can be fined $1.20 - $3.61(10-30Rmb) or docked the entire day's pay. Another ethical major issue is child labour. On Monday night, she related the story of her and her coworkers’ struggles working in a factory called Eagle Speed, where she produced apparel for Nike. Instead, the work was sub-contracted round local villages, and children were drawn into the production process. Nike was labelled as forced children as slavery in... 2.3 Discrimination Issue. The workers work 11 hours a day, in violation of both Chinese labour law and the Nike Code of Conduct.1 In addition to this arduous schedule, all must work overtime. Nike has been working in China for over 30 years when they started to sub-contract production to overseas factories. How successful was that campaign and what of Nike's ethical record in other areas such as the environment? In 1995 Nike said it thought it had tied up with responsible factories in Sialkot, in Pakistan, that would manufacture well-made footballs and provide good conditions for workers. Nike outsources their labor to countries that are in need of economic growth. That factory paid workers $1 million in total unpaid overtime only after coming under pressure. Nike Sweatshops: Behind the Swoosh is the ultimate video for exploring the sweatshop issue. Undermining Nike's boast that it maintains model working conditions at its factories throughout the world, a prominent accounting firm has found many unsafe conditions at one of the shoe manufacturer's plants in Vietnam. Two Nike executives have resigned in the midst of complaints about the work environment. In October 1996, CBS’ 48 Hours news program aired an investigative report on the conditions of Nike factories in Vietnam. The next year, 3,000 Nike workers in China protested dangerous working conditions and low wages. Two years ago, Nike stopped allowing independent inspectors to monitor working conditions at Nike factories, saying that it would instead carry out these checks on its own. As pressure from the public and human rights groups began to mount, Nike made efforts to improve working conditions for its contracted workers. Over the past year more than 500 workers in four factories supplying to Nike, Puma, Asics and VF Corporation were hospitalised. Nike could not ignore public demands for them to improve their working conditions. While Nike publicly says that the conditions that these workers are working in are constantly regulated, they are usually only monitored a few times a year. The most serious episode, recorded over … In … Blog. What Are The Working Conditions In Nike Factories Like? CBS interviewed a worker who worked six days a week and earned US$42 a month – the equivalent of about 20 cents an hour. 1991: Problems start in 1991 when activist Jeff Ballinger publishes a report documenting low wages and poor working conditions in Indonesia. Tips to elevate your hybrid or virtual sales strategy; March 12, 2021. In 1996, TV broadcaster CBS investigated working conditions in Nike factories in Vietnam. Critics of Colin Kaepernick's endorsement deal with Nike shared viral claims about the pay and conditions of the company's factory workers. In 2001, Nike argued that they have little to do with the working conditions in these factories because they’re subcontracted. It was the focus of widespread protests for its use of child labor and factories with poor working conditions. As the reported abuses increased in frequency and severity, Nike recruited a diplomat and ex-activist, Andrew Young. While some of its supply chain is certified by FLA Workplace Code of Conduct , including all of the final stage of production, the fine print says members “shall pay at least minimum wage or the appropriate prevailing wage” to their workers. Vietnam - Working conditions Vietnam has in place an extremely progressive national labor law which is designed to regulate working conditions. After a concerted campaign about working conditions, Nike was said to have turned over a new leaf. A 1997 study by the Transnational Resource and Action Center looked into working conditions at the Tae Kwang Vina factory in Vietnam, which employed 9,200 workers. In one case, the company was accused of abusive and unsafe working conditions in a factory in Hansa, Vietnam. They are able to obtain the labor at a cheap, and some may say, unfair rate. Noi Supalai has faced years of harsh and abusive working conditions as a garment worker in her home country of Thailand. Do Nike Factory Workers in Vietnam Earn 20 Cents Per Hour? The accusations sparked protests in Boston, Washington D.C., Bangalore, and San Pedro Sula in Honduras. He had the job of examining their labour practices abroad and reporting back. A Nike shoe factory in Serang, Indonesia, failed to pay its workers for 600,000 hours of overtime work over two years, according to The Guardian.