1. Nike: From Sweatshops to Leadership in Employment Practices
– MGMT 452
Alper Şahan
Bahar Ege
Setenay Atacan
Şemsa Haczeyni
Zeynep Yenibayrak

2. Nike Founded in 1964 by Paul Knight “Blue Ribbon Sports”
Focus on athletic shoes
The Nike brand was publicized in 1984
One of the largest manufacturers of athletic goods

3. The Scandal
Factories located in Korea and Taiwan were replaced with new locations, Indonesia, Vietnam and China.
In 1990s, Nike were criticised about slave wages, forced overtime, arbitrary abuse and indiscriminate hiring.
Indonesia: Non-govermental organization’s report
Vietnam: Ernst&Young’s Report
Public protests
University boycotts

4. Negative Publicty Accusations Indonesia,Vietnam Reports
Phil Knight Conflict on full and none responsibility.
Andrew Young Report
Marc Kasky Lawsuit
The Court against Nike

5. Negative Publicty Andrew Young: Nike was doing a good job.
1998: Marc Kasky---- a lawsuit against Nike.
Other Allegations—claimed that Nike consciously misleading the public when it claimed that workers in its factories were being paid in accordance with minimum wage laws, that they were being paid substantially more than minimum wage and they received free meals and health services.
The Court against Nike--- Nike agreed to settle with Kasky.

6. Negative Publicty 1990’s Having criticism
Accusations: health and safety conditions, extremely low wages and indiscriminate hiring and firing practices.
Indonesia: several cases of human rights abuses (Roberta Baskin’s CBS report and the article from The New York Times— Bob Herbert )
1996 Phil Knight claimed full responsibility for working conditions.
1998 Phil Knight denied Nike had a sweatshop problem but claimed that the problems had to do with public relations rather than actual factory conditions.

7. The Response Ignorance Public Relations
CEO of Nike, Knight denied sweatshop problems
The problems had to do with public relations rather than actual factory conditions.
Public Relations
Workplace code of conduct
Wage Policy
Nike Spokesperson: Michael Jordan
University Relations

8. Intent of the Tactics
Want to prevent the protests against them such as boycotts
Believed that they can change the bad reputation on themselves by taking responsibility
Want to gain support of university students again because they had a deals for athletic goods which were cancelled after the bad reputation of Nike
Desire to increase its sales
Have better relations with public

9. Nike Social Responsibility
Dual goal of retaining cost effectiveness while honoring the cost of labor and human rights issues
Three types monitoring
SHAPE inspection
M- Audit
Fair Labor Associations
Factories open to research groups: MIT
Commitment to environment
Rewarding systems
Transparency
New Production Methods
Equal Value

10. Nike Social Responsibility
Nike has improved quite a lot concerning SR
Rather than denying everything, they chose to follow a proactive strategy.
Negative publicity is bad and requires lots of money to get it right
Follow a social responsibility plan
Take the lead in you industry and make your competitors follow you.
An example to be taught at schools.

11. Improvements Training Workshops Enlargement of rewarding systyem
Socializing policies
Stratgic Planing about crisis
GAP Analysis for Philantrophy
Impact Analysis in the society

12. Result in... New CEO Bill Perez
“100 Best Corporate Citizens” Business Ethics
“100 Best Companies to Work For” Fortune
“Corporate Equality Index” Human Rights Campaign Foundation

13. QUESTIONS