Fast Company reports that in , labour rights watchdog Worker Rights Consortium snuck into the Hansae, Vietnam factory. According to NBC News , Nike revealed in a corporate responsibility report the names and locations of its over factories way back in None of these change or erase rumours of unjust treatment of workers abroad, though. However, if the allegations are true, the company may find itself in hot water again for returning to its old ways. Perhaps it is time for a major overhaul in the way the fashion industry produces its goods.
Subscriber Account active since. The recent factory collapse in Bangladesh was a reminder that even though Nike managed to turn around its image, large parts of the industry still haven't changed much at all. Nike was an early target for the very reason it's been so successful.
Its business model was based on outsourcing its manufacturing , using the money it saved on aggressive marketing campaigns. Nike has managed to turn its image around. Nike hasn't been completely successful in bringing factories into line, but there's no denying that the company has executed one of the greatest image turnarounds in recent decades. The conditions alleged at the Hansae factory were revealed in a WRC report pdf published in December. Instead, these were not uncovered until the WRC launched its investigation in October of According to Scott Nova, executive director of the WRC, Nike abruptly ceased cooperating with the organization in late , around when the investigation of Hansae began.
We hope Nike will return to compliance. Nike, however, contends that its stance toward the WRC has not changed. It never regarded the WRC as an approved monitor of its factories, and never gave it access to any itself. In a statement, Nike added that it remains committed to independent monitoring.
Nike, it claims, reduced its order volumes after the WRC, putting workers out of jobs. Nike confirms that it reduced order volumes at Hansae. But it has also worked steadily to help correct the violations found at the factory, according to a report pdf by the Fair Labor Association. But this did not lead to massive improvement.
Ten years later, reputable newspapers like the Guardian were still reporting on how Nike had failed to make significant changes. They designed a code of conduct to ensure factory safety and better wages. But just one year later, Ballinger published another article in Harper magazine.
It detailed how a Nike subcontractor paid workers in Indonesia less than 14 cents an hour in unsafe conditions.
The issue received a lot of mainstream media attention on the issue and this continued for the next few years. In they created a department to improve the lives and working conditions of factory workers. This was a response to public pressure to improve, and the demand for ethically sourced clothing.
From , people became increasingly outraged at how Nike were ignoring complaints and continuing to increase their franchise. Nike could not ignore public demands for them to improve their working conditions. As the reported abuses increased in frequency and severity, Nike recruited a diplomat and ex-activist, Andrew Young.
He had the job of examining their labour practices abroad and reporting back.
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