We all remember a time when Nike was under hot heat for poor factories’ working conditions and therefore saw the demand for products decrease. When activist Jeff Ballinger published a report highlighting “an Indonesian worker who worked…for 14 cents an hour, less than Indonesia’s minimum wage”, protests arose. In response, Nike established a team tasked with “working to improve the lives of factory labourers”. When this act failed to calm the rise of global protests against the company, Nike realized that it needed to turn around. CEO Phil Knight stated that “the Nike product has become synonymous with slave wages, forced overtime, and arbitrary abuse…I truly believe the American consumer doesn’t want to buy products made under abusive conditions.” This was a turning point for the company – the minimum age of workers was raised, monitoring was increased, and clean air standards were established in all factories. In 2005, the company released a detailed 108-page report revealing the conditions and pay in the company’s workplace and stating widespread issues. Today, Nike continues to share its commitments, standards, and audit information to the general public. Although still a work in process, it is evident that Nike has managed to prove to the public eye that through business ethics, it is on its way better factory working conditions and improving the company image.
Article: http://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5
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