Nike uncovers Asian abuses

Distribution Network
Content
Nike has found abusive treatment in more than a quarter of the South Asia plants producing its branded goods.

Between a quarter and a half of the factories in the region restrict access to toilets and drinking water and deny workers at least one day off in seven. In more than half of the South Asia factories employees work more than 60 hours a week and in about a quarter of them employees refusing overtime are punished. In a quarter of the factories wages were found to be below the legal minimum.

The information appears in the company's second corporate responsibility report, which lists all factories making Nike-branded products. Hannah Jones, Nike's corporate responsibility vice-president, said: 'Although we cannot say with certainty what greater levels of factory disclosure will unleash, we know the current system of addressing factory compliance has to be fundamentally transformed to create sustainable change.'

To review its report Nike formed a committee comprising representatives of trade unions, non-governmental organizations, academia, investors and business groups. The committee welcomed the report as a means of stimulating 'discussion on how to tackle these challenges'.

The company has committed itself to bring about change in its industry and to use sport as a means of effecting social change. It aims to make sport and physical activity a fundamental right for young people. Nike has already formed a task force to investigate its whole business cycle and to find opportunities to improve compliance with its own code of conduct. The report emphasizes that Nike has reduced the amount of volatile organic compounds, which are used in footwear manufacture, from an average of 340 grams per pair of shoes in 1995 to 16 grams today. Comment on the report is welcomed at www.nikeresponsibility.com