Nike Worker Conditions Report 2023
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Questions and Answers

What was the primary pledge made by Phil Knight regarding Nike factories?

  • Nike would cease all production in overseas factories.
  • All workers would receive a significant pay raise.
  • All products would be manufactured in the United States.
  • Conditions in Nike factories would be improved. (correct)
  • What was one of the conditions promised by Nike to improve the air quality in its factories?

  • All factories would meet US air quality standards. (correct)
  • All factories would meet EU air quality standards.
  • Factories would hire independent auditors for air quality.
  • Air quality improvements would be monitored quarterly.
  • According to the Global Exchange report, what has been the main impact of the pledged improvements?

  • They have increased the workforce in Nike factories.
  • They have benefited a significant majority of workers.
  • They have fully addressed the workers' concerns.
  • They have had little benefit to the majority of Nike workers. (correct)
  • What is one specific issue faced by Nike workers as mentioned in the report?

    <p>Workers encounter violent intimidation.</p> Signup and view all the answers

    What age limit was proposed to be raised for workers in Nike shoe factories?

    <p>18 years</p> Signup and view all the answers

    What aspect of worker education did Nike aim to expand?

    <p>Free secondary-school equivalent courses.</p> Signup and view all the answers

    What was highlighted as a major issue preventing workers from participating in education programs?

    <p>Wages are too low to afford leaving overtime.</p> Signup and view all the answers

    Which country was reported to have workers exposed to toxic fumes in Vietnamese factories?

    <p>Vietnam</p> Signup and view all the answers

    What has been the general public perception of Nike's treatment of workers over the last three years?

    <p>It has been viewed as a public relations inconvenience.</p> Signup and view all the answers

    How many hours per week are some Nike employees reportedly coerced into working?

    <p>70 hours</p> Signup and view all the answers

    What has been the impact of negative publicity on Nike's sales?

    <p>Sales have plummeted.</p> Signup and view all the answers

    What did Nike's February report reveal about employment practices in their Indonesian factories?

    <p>Sexual favors were exchanged for jobs.</p> Signup and view all the answers

    What recommendation did Jason Mark make to improve the situation for Nike workers?

    <p>Pay a living wage to workers.</p> Signup and view all the answers

    What was a significant reason cited for Nike's stock value decline?

    <p>Increased competition from Reebok.</p> Signup and view all the answers

    What was a notable consequence of the anti-Nike movement?

    <p>A decline in sales of Nike products.</p> Signup and view all the answers

    What aspect of worker compensation did Nike claim made it challenging to pay a living wage?

    <p>The differing economic standards across countries.</p> Signup and view all the answers

    Study Notes

    Nike Worker Conditions Report

    • Nike, despite a 2020 pledge, still faces worker exploitation concerns, according to a Global Exchange report.
    • The report, "Still Waiting For Nike To Do It," documents ongoing issues such as low wages, excessive hours, harassment, and intimidation.
    • Nike workers frequently work more than 70 hours per week and earn sub-living wages, hindering workers' ability to support families.
    • The report criticizes Nike's response to the sweatshop issue, calling it a public relations concern rather than a human rights matter.
    • The report claims that Nike's worker education programs have not been effective, as wages are too low to allow workers to utilize the courses offered.
    • Worker education programs expanded but wages are still too low, despite a pledge to overhaul working conditions three years before.
    • Nike Chairman Phil Knight previously pledged six key improvements, include raising the minimum working age, expanding worker education programs, and involving NGOs in factory monitoring.

    Historical Context and Issues

    • Nike's history includes a 1996 incident where a photograph of child labor emerged, causing a public relations crisis.
    • In the late 1990s, Nike factories faced allegations of dangerous working conditions, including exposure to toxic fumes exceeding Vietnamese legal limits (177 times).
    • Nike's attempts at improving conditions have fallen short of promised improvements.
    • Nike's 2020 report confirmed instances of worker abuse during recruitment in Indonesian factories.
    • The report highlighted verbal and sexual abuse of workers.
    • The company's poor treatment of workers has affected profitability. Company sales have declined despite increased turnover.

    Executive Statements and Criticisms

    • Phil Knight, Nike's chairman, claims the company has made significant strides in worker treatment, although this is disputed by the new report.
    • Leila Salazar, Global Exchange's corporate accountability director, criticizes Nike's approach to worker issues, deeming it insufficient.
    • Jason Mark, from Global Exchange, points out that paying a 'living wage' is crucial to worker well-being, suggesting Nike's approach of country-specific wage structures is a way to avoid fulfilling obligations.

    Financial Implications

    • Nike's 2000 revenues saw a 2.5% increase, though sales dropped by nearly 8% in 1999.
    • Nike's stock has depreciated by 15%, contrasting with rival Reebok's share price increase, correlating with ongoing public criticism.

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    Description

    Explore the key findings of the 2023 report on Nike's worker conditions, highlighting ongoing exploitation despite previous pledges. This quiz delves into issues like low wages, excessive hours, and the effectiveness of worker education programs. Discover the challenges faced by workers and the criticisms directed at Nike's corporate responses.

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