NIKE’S LABOUR PRACTICES

Submitted To
Ms. Kazi Sharmin Pamela
Assistant Professor (Marketing)
Open School
Bangladesh Open University
Gazipur, Bangladesh
Submitted By
Name ID Batch
MD SARWAR HOSSAIN RIPON 2193021008 50th

Date:7th August 20
OVERVIEW OF NIKE’S SWEATSHOPS
 INTRODUCTION OF NIKE

 NIKE is an American multinational corporation

 Engaged in the Design, Development, Manufacturing and
Worldwide Marketing and Sales of:
 Footwear
 Apparel
 Equipment
 Accessories and Services
 Established in 1972 in Beaverton, Oregon, US
 Founder-Phil Knight and Bill Bowerman
 CEO & PRESIDENT - John Donahoe
 NIKE means wing goddess of victory
 INTRODUCTION OF NIKE
 NIKE’S SWOOSH
represents motion and speed
 The phrase was actually
inspired by the final words of
a criminal in 1976 
 Vision- “To bring inspiration
and innovation to every
athlete in the world”
 Mission- “Innovate for a
better world” 
 FINANCIAL CONDITION OF NIKE

 Manufactures products from 600 factories by

subcontracting
 About 550,000 employees work under NIKE
subcontracting
 The annual revenue of NIKE is US $10 Billion

 NIKE sells their products in 140 countries

Year Revenue Net income

in mil. USD in mil. USD
2005 13,740 1,212
2006 14,955 1,392
2007 16,326 1,492
NIKE SPORTS GOODS
 PROBLEM IDENTIFICATION

 Most of the factories known as NIKE sweatshops

 Factories are located in Asia, including China, Vietnam,
Taiwan, India, Indonesia
 Maximum factories violate minimum wage
 Also have broken overtime wage law
 Example-a Vietnamese women who worked with toxic
materials get paid for only 20 cents per hour
 PROBLEM IDENTIFICATION
 NIKE faced criticism for  Workers do not get any
the use of child labor in protective equipments and
Vietnam and Pakistan health supports
 Thousands of young women  About 77 % workers
and men, under 25 ages in suffered from respiratory
NIKE subcontract factories problem
 Workers are facing skin and
breathing problems
 PROBLEM IDENTIFICATION
 For only $10 per week, the workers work six days a week
 Working environment is excessive heat, foul sound and air
 Some workers are exposed with carcinogens that exceeded
local legal standards 177 times
 NIKE’S authority do not concern about subcontract factories
labor law
 Authority do not make any audit report about compliance of
factories environment and workers wages
 It is unethical to use sweatshop to make accessible western
fashion accessories
 NIKE’S income of the business is still heavily dependent
upon its share of the footwear market
 ANALYSIS OF ALTERNATIVES
 After many allegations, NIKE took number of needed steps
 Should Establish a code of conduct

 Helps to independent annual auditors for all subcontractors

 Code of conduct required that all employees must be at least

18 years of age
 According OSHA, the factories do not get permission for use
of exceed limit of toxic materials
 NIKE has appointed 90 compliance officers in 21 countries

 Helps to monitoring NIKE’s code of conduct

 The suppliers are bound to follow the code of conduct;

otherwise their contracts with NIKE can be terminated
 ANALYSIS OF ALTERNATIVES
 Able to depth auditing for health issues
 Keeps support to environmental, management and safety
issues
 Able to make ethical requirement of the law

 NIKE has been somehow rectify it’s tarnished image into

affirmative position
 RECOMMENDED SOLUTIONS
 NIKE can establish region based monitoring center for
compliance in factories
 NIKE can build a model manufacturing factory for it’s
subcontractors
 The subcontractors can follow that model factory

 Use eco-friendly materials, inventories and recycling items for

new products
 Should set individuals compliance code for different factories
in different countries
 The code can be made with the help of domestic industrial and
labor laws
 Should design and produce products for lower income family.
 RECOMMENDED SOLUTIONS
 We would tell the people at NIKE Inc. to continue doing what
they are doing as far as coming up with new designs, quality
sports apparel and footwear, getting the right players to
endorse them, making good compliance for subcontractors and
run the same marketing campaign until it has run its course,
then switch it up
 We predict that NIKE will maintain impressive numbers in
sales, quarterly growth, and net income through these rough
economic times, and will do even better as the economy
slowly recovers.
 IMPLEMENTATIONS AND RESULTS
 NIKE has no factories; rather it uses subcontract factories to
get the work done which makes it quite a lean organization
 NIKE uses lunar lite foam and fly wire materials

 Make the shoes lighter and more controllable.

 NIKE has a healthy aversion towards its competitors

 NIKE is a fashion brand which creates opportunities

 NIKE gives a lot of effort on its corporate marketing mainly

through the promotion of corporate brand and sponsorship
agreements
 NIKE tries to promote a whole philosophy to its employees,
which is based in team working and creative way of thinking
 SPONSORESHIP
 NIKE sponsors top athletes in many sports to use their
products and promote and advertise their technology
 NIKE has been the sponsor for many top ranked tennis
players as like Roger Federer, Rafael Nadal, Serena Williams
 NIKE has sponsored Tiger Woods for much of his career

 NIKE has been the official kit sponsor for the Indian cricket
team since 2005
 From CNN report, NIKE spent $11.5 billion, nearly a third
of its sales, on marketing and endorsement contracts
 CONCLUSION
 NIKE has been accused of using sweatshops since the early
1970s
 Beginning in 2002, NIKE began auditing its factories for
occupational health and safety
 Approximately 75 to 80% of workers are women and a majority
of those are in early twenties
 NIKE spends around $10 million a year to follow the code; for
fire safety, air quality, wage, and overtime limits
 NIKE created a non-governmental organization called the
Global Alliance for Workers and Communities
 Between 2002 and 2004, NIKE audited it’s factories
approximately 600 times
 At present NIKE is one of the most popular sports brand in the
world for it’s design and technology
 REFERENCES
 https://en.wikipedia.org/wiki/Nike_sweatshops
 https://en.wikipedia.org/wiki/Nike,_Inc.#Controversy

 https://www.nike.com/

 https://classroom.google.com/u/1/c/MTAyMjk1NjI1NDIx/a/
MTA3MTgwNzQ3OTI3/details
 https://www.youtube.com/watch?v=w5L6IXz3w3M

 https://www.nike.com/help/a/supply-chain