By: Jowita Chomentowska

History    ü  Public industry that manufactures

and designs sportswear and equipment.

ü  Began as a distributor for a Japanese athletic shoe company.

ü  Found in January of 1964 & was known as Blue Ribbon Sports.

ü  A new type of shoe entitled “Nike”, was introduced in 1972.

ü  “Air” patent occurred in 1979, as a specific cushioning for the soles of the shoes.

ü  Later that year, went public on

NYSE.

ü  Nike Factory Stores have been operating since 1984.

 

History  

ü  Founders: William Bowerman & Philip Knight.

ü Headquarters: Oregon

ü  Products: Shoes, clothing, sports gear.

ü Nike: Greek Goddess of Victory.

History  •  1991: Problems start when activist Jeff Ballinger publishes a report

documenting low wages and poor working conditions in Indonesia. •  1996: Nike establishes a department tasked with working to improve the

lives of factory laborers. •  1998: Nike faces weak demand and unrelenting criticism. It has to lay off

workers, and they begin to realize that a change is needed. •  2005:  Nike  becomes  the  first  in  its  industry  to  publish  a  complete  list  of  the  

factories  it  contracts  with.    •  2005-­‐Present:  The  company  con<nues  to  post  its  commitments,  standards,  and  

audit  data  as  part  of  its  corporate  social  responsibility.  

Ethical  Stance  Ethical Issues ü  Sweatshops. ü Child labor. ü  Threatening working conditions ü  Low wages.

Nike  Cons  •  Sweatshops

ü  China ü  Vietnam ü  Indonesia ü  Mexico

•  Nike has violated the laws, since 1996, by providing lower wages and continues overtime.

•  Nike overlooked fair labour practices in order to become a low cost supplier.

•  Continued globalization in developed countries to create the highest profits.

Workers  cannot  go  to  the  restroom  more  than  once  per  8  hour  shiD  and  they  cannot  drink  water  more  than  twice  per  shiD.  

Top  Execu<ve  Salaries  

Athle<c  Endorsement  Deals  ü Maria Sharapova (tennis) – received $70 million from

Nike. ü  LeBron (basketball) – received $90 million from Nike. ü  Tiger Woods (golf) – received $100 million from Nike.

       Ac<on  Taken  Measures taken by Nike ü  Code  of  conduct  was  altered.    ü  They  decided  to  launch  a  massive  public  

rela<ons  campaign  to  fix  their  image.  ü  Audi<ng  tools  and  job  force.    ü  Improving  working  condi<ons  by  incorpora<ng  

a  social  responsibility  dept.  ü  Providing  dona<ons  to  various  sports  programs  

and  chari<es.      ü  Traveled to various universities to explain

their manufacturing policies.