Although Nike’s corporate social responsibility is quite reasonable, it has recently been in response to emerging crises rather than for prevention Nike’s CSR policies are mainly breached by contracted industries where oversight is weak (Paul Snell, 2012). Most of Nike’s products are manufactured through autonomous contractors including in developing countries like Taiwan, Mexico and Korea where workers rights are disregarded and labor laws broken with impunity. Cases have been reported contracted manager threaten employees with discharge, with some going as far as physical assault if workers join labor unions (Nike Inc., 2012)
Nike has been under pressure from the recent trend of reduction of plastic use in order to preserve the environment. Nike manufactures most of its products using polyvinyl chloride (PVC) which is the third mostly used plastic; however it has been linked to health issues such as cancer. The clothing industry has been advised to use alternatives like natural cotton to preserve the environment and customers’ health; however Nike only uses a mere 3% of cotton in manufacturing. Nike is also a contributor to environmental degradation through pollution from its various factories all over the globe, mostly in developing countries where environmental laws are weak.
Nike’s limitations in its corporate social responsibility have been majorly in the workers working conditions and human rights violations, workers have been making serious accusations of workplace abuse and harassment. Physical abuse was reported by 3% of the employees, unwelcome sexual comments by about 8% while, postulation of sexual favors in exchange for hiring or promotion opportunities were also sighted. In Vietnam workers were given high quotas which forced them to work for long hours in factories where, they were paid very little guaranteeing stagnation in poverty. For example, in Indonesia workers were being given full-time wages of $2 everyday.
The working conditions at Nike are notoriously poor especially at its overseas suppliers and industries, where workers safety and wellbeing are continuously overlooked. Respiratory complications are a common occurrence due to exposure to harmful substances, the menace of factory accidents leading to death or amputations from things such as cutting machines is still found.
Adidas, a major competitor to Nike has strong relations with international labor groups which are able to detect and raise the alarm on any parties in its supply chain who violate labor laws and business ethics (Adidas Group, 2007), this characteristic can be emulated by Nike who, still has weak oversight over its supply chain. Adidas has even introduced a workers’ hotline for complaints and suggestions which reach their main office directly (Paul Snell, 2012), unlike Nike, whose issues and problems reach top management mostly after they have spilled to the media or citations in public reports.
References
Adidas Group, 2007. Corporate Responsibility Report 2007.Herzogenaurach, Germany.
Nike Inc., 2013. Sustainable Business at Nike Inc. Retrieved from: http://nikeinc.com/pages/responsibility
Paul S. 2012. ‘You Can’t Hide Factory Scandals’, Warns Adidas CSR Chief. Retrieved from: http://www.supplymanagement.com/news/2012/you-cant-hide-factory-scandals-warns-adidas- csr-chief
Chris J. 2013. CSR Policies and Practices at Nike. Retrieved from: http://expertresearchers.blogspot.com/2013/07/csr-policies-and-practices-at-nike.html
Potter E., Marika M. 2009. "Human Rights and Sustainability: A Corporate Perspective." Business and Human Rights Center.
Wettstein F., 2009. "Beyond Voluntariness, Beyond CSR: Making a Case for Human Rights and Justice." Business and Society Review. 125-52.
Zadek S. 2011 "The Path to Corporate Social Responsibility." Harvard Business Review (2004): 125-32.
