Nike'S Way Out Of Sweatshop

We are no stranger to the four words "sweatshops".

The company was once beset by sweatshops.

In order to reduce production costs, Nike moved most of its production lines to developing countries with relatively low labor force. These developing countries frequently caused news of maltreatment workers due to imperfect laws and regulations, and the brand image was seriously frustrated: a number of mainstream media published reports on sweatshops. After a joint appeal by a large number of American College protests and labor rights activists, Nike's sales in the second quarter of 1998 dropped by 51%.

In order to solve the brand image and customer trust crisis brought about by sweatshop image, Nike has gradually standardized overseas factory labor management since 1991, improving workers' minimum wage level, strengthening labor supervision and ensuring clean air in factories.

In 1991, Nike issued the first Code (of Conduct) in order to regulate its employment behavior in more than 40 countries in the world.

In 1996, Nike set up the the Department of Corporate Responsibility in order to improve the living standard of its employees.

In 1997, Nike commissioned Andrew Young, a civil rights leader, to review Nike's code of conduct.

The review report is generally positive, but many people still doubt Nike.

In 1998, Maria Eitel, who served in Microsoft, served as vice minister of Nike's corporate responsibility department. She led a team of 50 employees to study environmental protection, community development and labor relations.

In 1999, Nike established the the Global Alliance of Workers and Communities to help workers and service providers in developing countries to enhance their work experience and job opportunities.

Its partners include Gap, the world bank, Pennsylvania State University and the Macarthur foundation.

In 2001, Nike released its first corporate responsibility report (Corporate Responsibility Report), which elaborated on the progress and problems faced by the company in terms of sustainable development, public policy and design innovation.

In 2002, Nike launched the management review project to explore and record the management measures and working environment of contract manufacturers.

Between 2002 and 2004, about 600 factories were examined.

In 2004, Maria Eitel founded the Nike foundation to reduce global poverty.

In 2005, Nike issued a 108 page report, which, in addition to publishing the list of all contract producers around the world, described the working environment, salary and misuse of the factories.

In 2010, Nike released a global manufacturer's map on its official website. The public can click on the map on the website to learn all the factories and staff information of Nike.

After more than 20 years of unremitting efforts, Nike has largely escaped the shadow of sweatshops and become the most popular sports brand.

Nike's Nike and Jordan occupy 62% of the American sports shoes brand.

Share, this astonishing figure is even more than four times the share of its rival Adidas, Skech (Skechers) and Arthur (Asics).

Nike ranked thirteenth in the list of the most admired companies published in a magazine in 2015, ranking the highest among apparel companies.

But for Nike, the criticism of sweatshops still exists.

One year after Nike released the global map of manufacturers, a media

Nike's subsidiary CONVERSE's Indonesian factory is suspected of abusing and abusing its employees.

In an internal report from Nike, about 2/3 of the 168 manufacturers of CONVERSE shoes in the world were unable to meet the code of conduct for Nike contract manufacturers, and 12 of them had extremely serious problems, including illegal long hours of work and rejecting Nike inspectors into factories.

Even so, it is undeniable that Nike's actions have been recognized by consumers.

"Nike acknowledges that it is not perfect and has shortcomings.

This makes consumers more trustworthy.

Jeetendr Sehdev, a Nike brand expert and professor at University of Southern California, said in an interview with Business Insider.

Not only that, Nike's strong product innovation capability makes it face Under Armour, New Balance, and Armour.

And yoga brand Lulu lemon (Lululemon) and other brands appear to be very competitive.

"Nike continues to develop new products to keep the brand alive and let consumers enjoy their appetite, so consumers of all ages wear Nike."

Sehdev said.

However, the continuous warming of jogging, the attention of the millennial generation to sports and fitness and the strong demand of consumers for comfortable and casual clothes are all good news for Nike's sports shoes industry.