Worth $424 billion and employing over 70,000 people throughout 190 countries, it is safe to say that Nike has an impact on the world. Nike has not had a good rep with the press and has had a very negative history of abusing worker rights. However, they do not own any of their factories. Rather, they outsource everything. This makes it very hard to to gather all the information and make sure all factories are complying to Nike’s code of conduct, especially because factories range over 43 countries. The factories themselves have over 1,000,000 workers that are also working to supply Nike with products but they are not technically “Nike employees’. So what efforts has Nike made to change their respectability and public view?

 First, Nike has recently taken new transparency efforts by releasing locations of all 666 factories, what each factory makes, and how many employees are working at each factory. Transparency helps us keep companies accountable and generally gives the impression that the company has less to hide.
Next, Nike has become committed to ‘sustainable innovation’ as they continue to grow. This has three components:
Environmental changes: Recycled materials are being used in 71%of Nike’s products and they desire to send ‘zero waste from contracted footwear manufacturing to landfills by 2020’ while also cutting down the number of factories. Since releasing their Carbon and Energy Program in 2008, Nike has cut down their energy use per product in half. They have began to focus on lower impact and higher volume materials that increase water and energy efficiency.
“IF ALL WE DO IS CREATE A SINGLE LINE OF GREEN PRODUCTS, WE WILL HAVE FAILED. SUSTAINABILITY MUST BE A DESIGN ETHOS ACROSS ALL OUR PRODUCTS.”
– Mark Parker, President and CEO, NIKE, Inc.

Transform Manufacturing: Nike has created a code of conduct that each contract factory must comply to. They believe that skilled, valued and engaged workers are key to growth and sustainability therefore, they have also begun to set up systems to get their workers connected to health care and education programs. Nike has started new technology efforts to transform the process of manufacturing and to also eliminate waste by having ‘one-piece shoes’. They also believe that by setting up more transparency the factories can coordinate to enforce the code of conduct and create a better working environment for the employees.

Unleash Human Potential: Nike also has the desire to inspire and innovate human potential so that all people can be active and engaged. They want this for their consumers so they start with their employees. By investing in their employees they can empower ambitious growth and create an agenda of innovation. Nike has a strong commitment to diversity, believing it is necessary for innovation. Therefore, they promote the culture of inclusion and diversity that seeks to empower everyone.

“AT NIKE, WE BELIEVE IT IS NOT ENOUGH TO ADAPT TO WHAT THE FUTURE MAY BRING – WE’RE CREATING THE FUTURE WE WANT TO SEE THROUGH SUSTAINABLE INNOVATION.”

– Mark Parker, President and CEO, NIKE, Inc.

Nike is good example of a company that has good intentions for the future and has made progress in the past couple of years. This being said Nike does have a long way to go and consumers need to continue to put a demand on them to do what they preach.

 

Written by Katelynn Behrens
Sources:
Advertisements