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Nike's Strategy on Human Rights Claims

Nike had spent decades improving its supply chain reputation and upholding human rights. However, in 2019 it was accused of potentially having supply chain ties to human rights violations against Uyghurs in China. This presented an ethical dilemma for Nike's Chief Sustainability Officer on how to respond while balancing relationships, revenue, and accountability. The solution was to immediately state support for ethics and human rights, audit its supply chain in the region, and express willingness for third-party audits to verify no forced labor while maintaining brand loyalty.

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Nikhil Shinde
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277 views7 pages

Nike's Strategy on Human Rights Claims

Nike had spent decades improving its supply chain reputation and upholding human rights. However, in 2019 it was accused of potentially having supply chain ties to human rights violations against Uyghurs in China. This presented an ethical dilemma for Nike's Chief Sustainability Officer on how to respond while balancing relationships, revenue, and accountability. The solution was to immediately state support for ethics and human rights, audit its supply chain in the region, and express willingness for third-party audits to verify no forced labor while maintaining brand loyalty.

Uploaded by

Nikhil Shinde
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Nike's Response to Human GROUP -1

Rights Abuse Claims


Sutrave Kumar Datta – MBA21180
Priti Tirkey – MBA20049
Introduction

• 1992- Nike's Code of conduct


• 1996- Nike represented in Apparel Industry Partnership
• 1996- News came of poor working conditions in factories in which
Nike's products were manufactured
• 1998- Nike pledges to end child labor and apply U.S rules abroad
and also founded Fair Labours association 
• 2005- Discloses its factory names and location
• 2018- Further discloses its material supplier location and names
Summary

In 2019, Nike and other brands were accused by the media, human rights advocates
and organizations, member of the US government of the potentially having supply
chain ties to human rights violations of the Uyghur people in Xinjiang, China.

Nike had spent decades investing in improving its supply chain reputation, building
trusted partner relationships with suppliers, and taking bold steps to publicly act as
a leader in corporate responsibility. But now the company was again being forced to
respond to an accusation of failing to uphold human rights due to alleged forced
labor.
Ethical Dilemma

• Nike's Chief Sustainability Officer Seth Miller has to develop a strategy to respond to
this accusation

• He also has to choose between verifying or rejecting those claims

• Verifying the claims is a complicated process due to many layers in chain and China's
censorship

• If Nike decides to stop sourcing from Xinjiang, it can negatively impact Nike's relations
with long time suppliers and China and affect revenue streams for a long time.

• Doing so also would not guarantee that exploitation stops, and It can also increase if
no one is there to hold the suppliers accountable
Solution

• The procedural ethical aspect has to be followed to ensure human


rights according to the internationally accepted human rights codes.

• Profit vs Ethical Capitalism, Capitalism is not an ethical, so Ethical


Capitalism is not some idealistic dream; it is a powerful engine that
drives long-term value creation. 

• Issue immediate statement to convey its stand that it upholds


humanitarian values and supports ethical business practices and
internationally accepted labor standards and sticks to code of conduct
in carrying out its operations. 
• Conduct through audit of its supply chain and human resources to
ascertain if there is any accidental association involving forced labour
and subcontracting for getting raw materials from the province where
alleged human rights abuses have been reported.

• Express and convey readiness for third party audit for operations in the
contested region.

• Express and convey solidarity with the general population for their brand
loyalty and premise to meet expectations with responsible
manufacturing and social responsibility. 
THANK YOU

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