Nike's Labor Practices

Vivek Gupta

"Nike is being hypocritical in its support of children's programs in public schoolswhile exploiting child labor in its shoe factories." - TheCanadianCatholicOrganization for Development ndPeace. a "I think that's alwaysbeentrue, that basicallywehavenot had a problem with child lobO/:It has beensomewhatof a problemin the apparelindustry,but it hasn't beenaproblem at Nikefactories." - Philip Knight, CEO,Nike.

The casedescribesthe maltreatment of employees and sweatshop conditions in Nike's Asian factories. In many Asian countries, Nike violated loeallobor laws. According to the VietnamLabor Watch,Nikedid not pay the minimum wages,did not provide proper working conditions, and did not take adequatehealth and safet)' measures.In addition. Nike turned a blind eyeto child labor and sexualharassment in its factories. Though the company has taken some measuresto improve the situation, it hasfailed to improve the working conditions and put an end to the ill treatment of its employees.
All rigilts reserved. For accessillg 1IIIdproClirillg copies of tiris case, log all to www.eccli.cl"Iillfield.ac./Ik.

70

Bllsiness~ Ethics and Corporate

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Breach of Code of Conduct

On October 17, 1996, CBS News! ran a 48 hour program covering the inhumane treatment of workers by their supervisors, the payment of wages below the legal minimum wage, and the sexual abuse of several women workers at Nike's shoe manufacturing plants in Vietnam. Workers had been physically assaulted on the job. Temporary workers were paid, on an average, 20 cents per hour while team leaders were paid $42 per month2 ; regular workers were paid even less. The CBS news program aired interviews with team leaders and even showed a copy of a labor contract to substantiate its claims. On March 14, 1997, Reuters reported that 56 women were forced to run around one Nike factory. Twelve of them wenUnto shock, fainted and were taken to hospital.
As a result of these reports, groups and journalists a group of Vietnamese Americans contacted labor (VLW)
I

in Vietnam.

A group called Vietnam

Labor Watch

was organized to study the working conditions of workers at factories in Vietnam

and monitor Nike's labor practices on an ongoing basis. VLW visited Nike's factories in Vietnam representatives accused and met workers, shoe manufacturing executives, labor union that

and legal experts. numerous

By late 1997, VLW came out with a report labor laws. According In addition, in Nike's conditions,

Nike of violating health

to the report, Nike did did not that and blind eye to

not pay the minimum take adequate

wages, did not provide proper working and safety measures. between in its factories. the practices The report

Nike turned factories

child labor and sexual harassment there was a difference what Nike told American Analysts company Nike's including Reuters. consumers

also observed in Vietnam

about its labor practices.

said that in spite of its good image in the US, Nike was a v~ry different and other Asian countries3. The sweatshop4 newspapers conditions in by several leading and Journals AP, and

in Vietnam

Asian factories was confirmed

The New York Times, USA Today,

The Wall Street Journal,

One of the leading

news chaanPls

in the US. wage of $45 per month. including Indonesia, South Korea, China and Japan.

It was less than the Vietnamese Nike had operations

minimum

in several Asian countries

The term sweatshop refers to a workplace in which workers are exploited. They receive les~ than minimum wages, arc forced to labor in poor workiny, conditions, and are subject to arbitrary discipline and verbal and physical abuse.

Nike's Labor Practices

However, Nike had repeatedly claimed that it did not tolerate

71
worker

maltreatment in its Asian factories. The company had developed and published both a "Code of Conduct" and an agreement with its Asian subcontractors, setting out the compaflY's position on wages and working conditions. But analysts felt that in spite of some cosmetic measures, the company had not really shown any real interest in addressing the issue. Jim Cox, executive president of the New York based GCI groupS, said, "Nike has adopted a defensive attitude throughout. Recently, Nike seems to be grudgingly coming around to admitting something may be wrong but they missed an opportunity at the outset when they effectively said 'we're Nike and we're not doing anything wrong. We don't own these plants so they aren't our problem.'"

Background Note
In 1958, Phil Knight, a keen athlete and an undergraduate at the University of Oregon, and his track coach Bill Bowerman realized the need for a good American running shoe. The track shoes produced by Adidas and Puma were made of leather, had little cushioning, and used steel spikes for traction. Knight felt there was scope for improvement in these shoes. After graduating, Knight enrolled in the School of Business at Stanford University. At Stanford, Knight analyzed the shoe manufacturing industry and arrived at the conclusion that with cheap Japanese labor, an American manufacturer could sell track shoes that rivaled Adidas in quality, at significantly lower prices. In 1964, Knight and Bowerman decided to form their own athletic shoe company and called it the Blue Ribbon Sports (BRS)Company. Bmverman's job was to test the shoes, offer design ideas, and persuade coaches he knew to endorse the shoes. The company decided to specialize in designing and selling high-performance shoes made in Japan. In 1971, the duo developed a distinctive trademark and a new brand name. They named the brand Nike, after the Greek winged Goddess of Victory. A local Portland student, Carolyn Davidson, who was paid $35 for the design, created Nike's "Swoosh" symbol. The new Nike shoes ,"vere launched at the 1972 Olympic trials held in Eugene, Oregon. Knight and Bowerman quickly cashed in on the publicity by advertising that Nikes were worn by "four of the top seven finishers."
Established in 1984, GCI is olle of the largest global public relations firms in the world.

72

Business

Ethics and Corporate

Covernance

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During the first half of the 1970s, Nike's sales grew from $10 mn to $270 mn. The growth was facilitated by the creation of the waffle sole and the cushiohing system (patented by Nike), known as Nike Air. In the 1970s, most Nike shoes were made in South Korea and Taiwan. When workers there gained the freedom to .~nd form unions, wages began to increase, so Nike started looking fbr other countries ~ where it could employ cheap labor. In the 1980s, Nike started its operations in Indonesia and China. In the early 1980s, Nike replaced Adidas as the leading athletic shoe company in the US. In the Forbes 1982 Annual Report on American Industry, Nike was listed as the most profitable organization in America (based on performance over the past five years). It was also during the 1980s that Nike became a publicly traded company, making Knight one of the richest men in the world. In the late 1980s, Nike launched several new brands: the Air Jordan (named after basketball superstar Michael Jordan of Chicago Bulls) in 1985; the Cross-Trainer in 1987; Air Pressure (Basketball shoes with inflatable soles) in 1989; and Aqua Sock (water shoes) in 1990. In 1991, Nike became the world's first sports goods company to surpass $3 bn in total sales. By 1994, international revenues had increased to more than $1 bn, making up 33 percent of Nike's total revenues. By th~ early 1990s, Nike had extended its operations to Vietnam. In a continuing effort to globalize its operations, Nike acquired its Chilean distributor, secured 100 percent ownership of Nib Japan and Nike Korea, and entered into a joint venture with Alpargatus CTE to establish a distribution network in Argentina. In 1993, the athletic shoe industry underwent a major structural change. An increasing number of consumers started purchasing casual shoes and moderately priced athletic shoes instead of branded athletic shoes. Knight responded to this change: "Although to some it may appear to be a simple industry, success within It is complicated by the huge human factor. The industry defies automation. It is not a single product model, nor a single manager, nor one ad, nor a single celebrity, even a single innovation that is the key to Nike. It is the people and their unique and creative way of working together, that has brought our shareholders earnings increases of over $140 mn during the last two years." In 1995, the company also received a license to place its logo on the National Football League (NFL) uniforms. In 1996, Nike focused on the soccer market with

Nike's Labor Practices

73

a series of high dollar advertisements. The firm also vied with Adidas and Reebok for the consumer's attention at the 1996 Summer Olympics in Atlanta. In late 1997, VLW came out with a report charging Nike for operating sweatshops in Vietnam. The report said that Nike's subcontractors6 violated many important Vietnamese labor regulations. When this report was released, human rights organizations in the US were up in arms against Nike. Nike, however, denied all these charges. In April 1998, Nike faced a lawsuit on charges of lying about 'sweatshop' conditions in its Asian factories. The suit, filed in San Francisco Superior Court, accUsed Nike of violating California's consumer laws by willfully misleading the public about working conditions for its Vietnamese, Chinese and Indonesian workers. The suit stated that Asian 'sweatshop' workers were regularly subjected to physical punishment and sexual abuse. It mentioned that Nike factory workers were often forced to work overtime, sometimes without pay, and wen: often unable to earn a 'living wage,' despite working 14 hours a day. In some cases, the suit said, young women were exposed to dangerous chemical solvents like toluene and acetone, highly toxic substances that could cause serious health problems and even lead to birth defects. According to the suit, Nike's Asian factories had allegedly abused workers physically. The suit cited a number of alleged incidents: workers forced to run around factory prelI'Jses as punishment; workers forced to kneel in front of their supervisors; and workers beaten with shoe soles for using the wrong color in shoe production. The suit demanded that Nike return any profits made in violation of California's unfair business practice laws and undertake a "corrective" advertising campaign to explain how its shoes were produced. According to Patrick Coughlin, one of the lawyers fighting the case againsi: Nike, "Nike is either going to disclose how they have these people work or change their conditions."

I
,

The VLW Report

According to surveys and interviews carried out by VLW', workers in Nike's factories in Vietnam were exploited in many ways. Nike's Code of Conduct (see
In most Asian countries, Nike used subcontractors for manufacturing shoes and sports goods. Subcontractors were essentialiy middlemen who contracted workers on a daily wage basis. Nike paid a negotiated amount 'to the subcontractors according to the size of contract. VLW conducted surveys and interviewed 35 Nike shoe factory workers.

, ',1

Business

Ethics and Corpor-ale- Governance

- VoU

Exhibit I) was being violated consistently by its contractors. Though Nike claimed that it was trying to monitor and enforce its Code, it did not have an effective system in place for monitoring and enforcement. There were not enough Nike supervisors in all of Nike's factories in Vietnam to ensure that its contractors were complying with the Code of Conduct on a day-to-day, shift-to-shift basis. Nike's contractors' violated labor laws concerning overtime wages, night shift wages, and sunday wages. Many workers received below minimum wage during the first three mo~ths of employment. Forced and excessive overtime to meet high quotas was the norm at Nike factories in Vietnam. The subcontractors asked many workers to work over the legal maximum of 200 hours of overtime per year. In 1997, several workers were forced to work such long hours that they reached the yearly limit for overtime in only first two months. In Ji sharp contrast to Nike's Code of Conduct, which assured payment of minimum wages, employees in Vietnam were not paid even living wages. The daily wage was approximately $1.60 while the cost of three simple meals was $~O per~ay. The employees had to make a choice between eating a balanced meal or paying rent for the single rooms that most of them lived in. Over 9tFperceni of r.Jike's workers in Vietnam were women, and most of them were betweei1 the ages of 15 and 28. These women were abused physically, verbaHy and sexually by the factory mai1agers. In one particular case, 56 female workers at a Nike factory were forced to run around the factory's premises because they weren't wearing regulation shoes. Twelve of them went into shock and fainted and had to be taken to the hospital. In another case, a woman manager hit 14 workers with a shoe upper. Reacting to these incidents, Knight said: "I'll point out that there's something like 530,000 workers in Nike shoe factories in Southeast Asia with literally tillions of incidents a day and when you fi.nd two of them that basically embarrass you, it: doesn't really characterize what goes on in those factories." Several factory rules violated human dignity. Workers were not allowed to go to the toilet more than once during an 8-hour shift and were not allowed to drink water more than twice per shift. Nike factories in Vietnam ignored many health and safety standards. Several workers fainted from exhaustion, heat and poor nutrition during their shifts. The medical facilities at the factories were inadequate. There were two nurses for

Nike's Labor Practices

75

approximately 6000 employees and only one doctor who worked for two hours a day, even though the factory operated 20 hours per day.

Nike's ReactIon
Nike constantly denied that it used unfair labor practices. The company sent representatives to college campuses in the US in an attempt to convince students that Nike's treatment of foreign labor was fair. In addition, Nike targeted journalists in countries in which they had factories to report their side of the story. Vada Manager, Nike's senior spokesperson, explained the rationale for this move, "Unlike tpe US-based reporters, who are writing about factories they have never visited, journalists working in those countries understand the local conditions." Nike offered a 12-minute online video tour of its contracted shoe facilities in Vietnam. It also produced video films of its factories in Indonesia, Thailand, China and Vietnam. Manager said: "We're a very open company and don't have anything to hide." Reacting to Nike's image building exercises, Jason Mark, a spokesman for the San Francisco-based Global Exchange, a labor-rights group said, "It's easy for a factory to be set up that mayor may not be a model and publicize it as some great thing. It seems more like a publicity stunt than a genuine effort to make systematic changes across the board." Ultimately, because of pressure from labor activists and human rights organizations, Nike severed ties with four factories in Indonesia for failing to meet company requirements for wages and working conditions. It also created a labor relations department, hired an accounting firm Ernst and Young to monitor its facto;:ies, and contracted former UN Ambassador Andrew Young to review
I

I I
I 0

Improving TheTh~1 Working Conditions

The minimum age would be raised to 18 for Nike shoe factories and 16 for clothing factories.

AllNikeshoefactorieswouldmeetthe USOccupational ealthand Safety H Administration indoor air quality standards.

I
j

Nike would include non-governmental organizations in factory monitoring, and the company would make inspection results public. courses available.
0

SOl/ree: unuw.globalexchallge.org.

Nikewouldexpandits workeredlJcationpmg"m. m.ki". r,,,, h;.h-'~'ool ,qu;",',"",

76

Business Ethics and Corporate Governance

- VoLl

implementation of Nike's Code of Conduct. In May 1998, Knight promised to take four steps to improve working conditions at Nike's factories (refer Table I).

Three Years Later

In May 2001, a reportS prepared by a labor rights group claimed that even after three years, Nike had not delivered on its promises. The report said that Nike used to warn its factory managers about inspections by its own inspectors in advance, allowing them to minimize toxic fumes by the time they arrived. Workers claimed that managers took such opportunities to mask working conditions.

Moreover, according to the report, Nike workers were still paid wages that were below the legal minimum. Leila Salazar, Global Exchange's corporate accountability director said, "Nike workers in sweatshops abroad still work for wages they and their children can't live on, are forced to work long overtime hours, and face harassment, violent intimidation and firing when they organize to defend their rights or tell journalists about labor abuses in their factories. Over the last three years, Nike has treated the sweatshop issue as a public relations inconvenience rather than a serious human rights issue." However, Knight denied the charges. He said that Nike had done more than any other corporation in fhe shoe-andclothing industry to ensure that workers are treated fairly.

A. 115-pag~

report

by San Francisco-based

Global

Exchange,

a labor right.s group.

Nike's Labor Practices Exhibit I Nike's Code of Conduct

77

I
,
I

At the core of the Nike corporate ethic is the belief that we are a company comprised of many different kinds of people, appreciating individual diversity, and dedicated to equal opportunity for each individual. Specifically, Nike seek partners that share our commitment to the promotion of best practices and continuous improvement in:

. . . .

Occupational safety and health, compensation, hours of work and benefits standards. Minimizing our impact on the environment. Management practices that recognize the dignity of the individual, the rights of free association and collective bargaining, and the right to a workplace free of harassment, abuse or physical punishment. The principle that decisions on hiring, salary, benefits, advancement, termination or retirement are based solely on the ability of an individual to do the job. There shall be no discrimination based on race, creed, gender, and marital or maternity status, religious or political beliefs, age or sexual orien tation.

I
I

Wherever Nike operates around the globe, ~e are guided by this Code of

Conduct. We bind our manufacturing partners to these principles. Our

manufacturing partners must post this Code in all major workspaces, translated' into the language of the worker, and must endeavor to train workers on their rights and obligations as defined by this Code and applicable labor laws. While these prillciples establish the spirit of our partnerships, we also bind these pi\ftners to specific standards of conduct. These standards are set forth below:
5

. .
'----

Forced Lauor: The manufacturer does not use forced labor in any form prison, indentured, bonded or otherwise.

Child Labor: The manufa.cturer does not employ any person below the age or 18 to produce footwear. The manufacturer does not employ any person below the age of 16 to produce apparel, accessories or equipment. Where local standards are higher, no persall under the legal minimum age will be employed. Compensation: The manufacturer provides each employee at least the minimum wage, or the prevailing industry wage, whichever is higher; provides each employee a clear, written accounling for every pay period; and does not deduct from worker pay for disciplinary infractions, in

COllld.. J

78
~

Business Ethics and Cor}2.Qrate~Governance- VoLl

Coutd..

accordance with the Nike Manufacturing financial penalties.

Leadership

Standard

on

,~

Benefits: The manufacturer provides each employee all legally mandated benefits. Benefits vary by country, but may include meals or meal subsidies; transportation or transportation subsidies; other cash allowances; health care; child care; emergency, pregnancy or sick leave; vacation, religious, bereavement or holiday leave; and contributions for social security and other insurance, including life, health and worker's compensation. Hours of Work/Overtime: The manufacturer complies with legally mandated work hours; uses overtime only when each employee is fully compensated according to local law; informs each employee at the time of hiring if mandatory overtime is a condition of employment; and, on a regularly scheduled basis, provides one day off in seven, and requires no more than 60 hours of work per week. Management of Environment, Safety and Health (MESH): The manufacturer has written health and safety guidelines, including those applying to employee residential facilities, where applicable; has a factory safelY committee; complies with Nike's environmental, safety and health standards; limits organic vapor concentrations at or below the Permissible Exposure Limits mandated by the US Occupational Safety and Health Administration (OSHA); provides Personal Protective Equipment (PPE) free of charge, and mandates its use; and complies with all applicable local environmental, safety and health regulations.
Documentation and Inspectipn: The manufacturer maintains on file all documentation needed to demonstrate compliance with this Code of Conduct; agrees to make these documents available for Nike or its designated auditor to inspect upon request; and agrees to submit to labor , practices audits or inspections with or without prior notice.

Source:www.1!ike.col1l.

Nike's Labar Practices Exhibit II Nike's Track Record (1988-2000)

Year
1988

79

Details Newspaper of Indonesian trade union publishes investigative report exposing poor working conditions at a South Korea-based shoe company producing for Nike. Articles appear in Indonesian newspapers, protesting low wages paid by Nike contractors, Tae Hwa and Pratama Aqadi (Wage at the time, 86 cents a day most shoe factories paying illegal "training wage.")

1989

1991

Strikes at Hardaya Aneka and Pratama Abadi factories in Indonesia.Indonesian daily Media Indonesia runs three-day report on abuses at shoe factories. Headline second day - "World Shoe Giants Rape Worker Rights." Thames TV (UK), The Economist and Knight Ridder report on poor working conditions at Nike contractors in Indonesia.

1992

-- Phil
1993 1994

The Oregonian prints lengthy article on Nike's Indonesian operations Knight (Nike CEO) writes angry denunciation. Nike formulates "Code of Conduct and Memorandum of Understanding" for Indonesian contractors.

CBS-TV (US) broadcasts highly critical report on the labor practices followed by Nike's contractors' in Indonesia. Extensive report on Nike's Sweatshops in Indonesia in The Rolling Stone.Nike hires accounting firm, Ernst and Young, to do "social audits" at Indonesia-based contract factories.5trikes at Pou Chen, Pratama Abadi, Nagasakiti Paramshoes and Tae Hwa factories in Indonesia. Major investigative reports in Boston Globe, Los Angeles Times, and Chicago. Tribune expose poor working conditions at Nike's Indonesia factories. Manager at Pratama Abadi factory making Nike shoes lines up and. slaps 15 women from the quality control section. The US A1Dsponsored research finds that more than 500 workers at a Nikeproducing factory in Majalaya, W Java, report problems such as forced overtime and illegal wage deductions. Washington-based Multinational Monitor nominates Nike for the annual "Ten Worst" list.
New research by Press for Change in Indonesia uncovers widespread violations of Nike's own "Code of Conduct." Fair labor advocates submit an "anti-sweat" resolution at a Nike shareholders' meeting. White House forms" Apparel Industry Partnership" to deal with Could..
,

"

11995 '.

1996

80
COli/d..

BusinefS Ethics~nd Corporate Governance

- VoU

1997

sweatshop issues. Canadians and French send hundreds of thousands of protest post cards to Nike. Nike sends five-page letter to universities across North America to "explain" child labor conb'oversy. Several Nike shoe contractors in Indonesia apply for exemptions from paying new.minimum wage in Indonesia. Increase is from $2.25 to $2.46 a day. Strikes by thousands of Nike workers in Vietnam. Nike 0 hires former UN Ambassador Andrew Young to tour Asian factories. Young uses Nike translators and his report is viewed by fair labor advocates as shallow and unhelpfu1.Massive protests and three-day strike at Garuda Indawa factory in Indonesia. Asian economic crisis and crash of Indonesian currency brings Nike contractors' per-day labor cost down from $2.50 a day to $0.70 per worker. Campaign for Labor Rights organizes worldwide day of protest concerning Nike's labor practices. Actions in 50 cities. Berkeley-based Transnational Resource Action Center releases report documenting severe health problems at Nike's shoe factory in Vietnam. Student protests against Nike's li...ks with universities erupt at University of Illinois, Penn State, University of North Carolina, Colorado, Florida State, Michigan and others. Phil Knight vows to eliminate hazardous chemicals from shoe production. UHions leave White House panel on sweatshops due to irreconcilable differences on monitoring and reporting compliance. Nike announLes pay increase (25 percent) for Indonesian shoe workers, but adjusting for high infiation, worker wages are still 30 percent hehind mid-1997 figure. Julia, a worker at Nike-producing "Formosa" factory in EI Salvador, is beaten and fired for taking a day off to care for her sick child. Joseph Ha, a top advisor to KlIight, sends letter to highest-ranking labor official in Vietnam portraying "anti-sweat" activists as enemies of the state with a "political" agenda. Government survey of 175 businesses in Vietnam shows that shoe factories have largest wage/ salary disparities (line workers compared to management). Under pressure horn students, Nike agree,; to disdose factor; locations where university-licensed apparel is being produced. Vietnam survey shoW's that worst manufacturing pay rates are in footwear sector. Vietnam's largest food-poisoning incident of tne year occurred in Nike's factory. Indonesian official links bribe taking by police and military to low wages paid to factory workers. University of Oregon joins the Worker Rights Consortium, a sweatshop-monitoring group started by labor and student activists.

11998
I

I
11999

2000

Source: 1!Jww.cleallclot1zes.org.

Nike's Labor Practices Exhibit III Nike's Five Year Financial History
(in $ millions, except per share data, financial ratios and number of shareholders)

81

Year Ended May 31 Revenues GrosS Margin Gross Margin % Restructuring Charge, net Net Income Basic Earnings Per Common Share Common Share
I I

2001 9,488.8 3,703.9 39.0% 0.1 589.7 2.18 2.16 270.0

2000

1999

1998

1997

8,995.1 3,591.3 39.9% (2.5) 579.1 2.10 2.07 275.7 279.4 0.48 7599 64.125 26.563
254.3 1,446.0

8,776.9 3,283.4 37.4% 45.1 451.4 1.59 1.57 283.3 288.3 0.48 961.0 65.500 31.750
198.1 1,170.6

9,553.1 9,186.5 3,487.6 3,683.5 36.5% 40.1% 129.9 399.6 1.38 1.35 288.7 295.0 0.46 517.5 64.125 37.750
108.6. 1,396.6

795.8 2.76 2.68 288.4 297.0 0.38 323.1 76.375 47.875

Diluted Eaming< Pe' Average Common Shares Outstanding

ICash Dividends Common Share

273.3 Outstanding DilutedAverage Common Shares Declared Per 0.48 656.5 59.438

Cash How from Operations Price Range of Common Stock Low High

35.188
304.0

At May 31, Cash and Equivalents Inventories

WOi'king Capital 1,424.1

I I
445.4 1,338.6

1,R38.6 5,8196 435.9 0.3 3,494.5 41.100 11,039.5

1,456.4 5,856.9 470.3 0.3 3,136.0 42.875

1,818.0 5,247.7 386.1 0.3 3,334.6 60.938

1,828.8 379.4 0.3 3,261.6 46.000

1,964.0 296.0 0.3 3,155.9 57.500

Total Assets

5,397.4 5,361.2

Longterm Debt Redeemable Preferred Stock Shareholders' Equity Year-end Stock Price Market Capitalization

11,559.1

17,202.2 13,201.1 16,633.0 Contd...

..L.

82 COllld... Financial Ratios: Return on Equity Return on Assets Inventory Turns Current Ratio at May 31 Price/Earnings Ratio at May 31 (Diluted) Geographic Revenues: United States Europe Asia Pacific Americas (exclusive of United States) Total Revenues

Business Ethics and COlI 'orate Governance --

- VQ!J

17.8% 10.1% 4.0 2.0 19.0 5,144.2 2,584.8 1,110.0 649.8 9,488.8

17.9% 10.4% 4.1 1.7 20.7 5,017.4 2,350.9 955.1 671.7 8,995.1

13.7% 8.5% 4.3 2,3 38.8 5,042.6 2,255.8 844.5 634.0 8,776.9

12.5% 7.4% 4.4 2.1 34.1 5,460.0 2,096.1 1,253.9 743.1 9,553.1

28.5% 17.1% 4.8 2.1 21.5 5,538.2 1,789.8 1,241.9 616.6 9,186.5

Smre,

."ik""",

N,ike's J_,abor Practices'" Additional Readings and References: Takes Heat For Third-World

83

1.
2. 3.

Cobb Chris, "Nike

llJ7Vw.prsa.org.

Labor Practices",

Vietnam Labor Watch Report, 1997. Herbert Bob, "Shoe Brutality in Vietnam", The New York Times, March 08, 1997. Bourrie Mark, "Nike's Troubles Over Workers' Pay Reach Canada",

4.

lV7vw.olleworld.org, arch 1998. M

5. 6. 7. 8. 9.

"Nike sued for allegedly Seroices, April 1998.

lying to public

about sweatshops",

Monitor Wire

"Newsmaker: Phil Knight", llJ7ow.pbs.org, ay 13, 1998. M Richman Josh, "Is Nike Still Doing It?", lVlVw.~lobalexchallge.org,May 16, 2001. McCall William, "Nike not living up to 1998 promises", The Associated Press, May 16, 2001.

r
,

"Nike posts factory tour video on the web", The Associated Press, July 12, 2001. Klein Naomi, "Just doiI'g it lands Nike in ethical hot water", Torollto Star, February 24, 1997.

10.

Websites:
1. www.nike.com. www.c1eanc1oths.org. www.globalcxc]lange.org.

2.

3.