Nike initially responded to public criticism by denying that abuses existed and claiming no control over the conditions inside the factories. It also denounced the human rights groups that brought the allegations to the attention of the public. The company argued that since it does not own any of the factories producing its products, Nike could not influence working conditions or pay.

In 1997 The New York Times publicized a leaked internal audit from one of Nike's Vietnam contact plants study documenting unsafe conditions at the plant despite the company's assertions that all of its plants were in compliance with its code of conduct. The plant exposed workers to carcinogens that far exceeded local legal standards. 77 percent of employees were said to suffer from respiratory problems caused by poor ventilation of toxic solvents used in shoe production.

A major breakthrough occurred in 1998 when Nike CEO Philip Knight announced a plan to eliminate underage workers at its contract plants and to require overseas manufacturers to meet U.S. health and safety standards. Nike committed to expanding its monitoring programs to include non-governmental organizations, foundations and educational institutions and making summaries of the findings public; increasing the minimum age of footwear factory workers to 18, and the minimum age for all other light-manufacturing workers (apparel, accessories, equipment) to 16; and to adopting U.S. Occupational Safety and Health Administration (OSHA) indoor air quality standards for all footwear factories.

Nike also pledged to expand education programs, including middle and high school equivalency courses, for workers in all Nike footwear factories; increase support of its micro-enterprise loan program to 1,000 families each in Vietnam, Indonesia, Pakistan and Thailand; and to provide funding of university research and open forums to explore issues related to global manufacturing and responsible business practices such as independent monitoring and air quality standards.

Back