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Sophia Sajul | Bea Mijares | Nicky Murillo | Ces Antonio JP Flores | Shauneil Omillo

Ethics presentation about nike

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Child Labor in Nike

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Page 1: Ethics presentation about nike

Sophia Sajul | Bea Mijares | Nicky Murillo | Ces AntonioJP Flores | Shauneil Omillo

Page 2: Ethics presentation about nike

Nike was founded in 1964 as Blue Ribbon Sports and initially operated as a distributor for the Japanese shoemaker Onitsuka Tiger (now known as Asics). It officially became Nike Inc. in 1971

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The Nike swoosh was designed by Portland State University student Carolyn Davidson, for just $35 (just over $200 in today's currency). At a later stage she was given stock that is now worth more than $640,000.

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“The multi-billion dollar sportswear company Nike admitted yesterday that it "blew it" by employing children in Third World countries but added that ending the practice might be difficult.”

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“"By far our worst experience and biggest mistake was in Pakistan, where we blew it," the report said. In 1995 Nike said it thought it had tied up with responsible factories in Sialkot, in Pakistan, that would manufacture well-made footballs and provide good conditions for workers. Instead, the work was sub-contracted round local villages, and children were drawn into the production process. Now, it insisted, any factory found to be employing a child must take that worker out of the factory, pay him or her a wage, provide education and re-hire them only when they were old enough.”

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After prices rose and labor organized in Korea and Taiwan, Nike begins to urge contractors to move to Indonesia, China, and Vietnam. 

•1991: Problems start in 1991 when activist Jeff Ballinger publishes a report documenting low wages and poor working conditions in Indonesia.

Nike first formally responds to complaints with a factory code of conduct. 

1992: Ballinger publishes an exposé of Nike. His Harper's article highlights an Indonesian worker who worked for a Nike subcontractor for 14 cents an hour, less than Indonesia's minimum wage, and documented other abuses. •1992-1993: Protests at the Barcelona Olympics in 1992, CBS' 1993 interview of Nike factory workers, and Ballinger's NGO "Press For Change" provokes a wave of mainstream media attention. 

TIMELINE

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TIMELINE1996: Kathy Lee Gifford's clothing line is shown to be made by children in poor labor conditions. Her teary apology and activism makes it a national issue. 

1996: Nike establishes a department tasked with working to improve the lives of factory laborers. 

1997: Efforts at promotion become occasions for public outrage. The company expands its "Niketown" retail stores, only to see increasing protests. Sports media begin challenging spokespeople like Michael Jordan. 

Abuses continue to emerge, like a report that alleging that a Vietnamese sub-contractor ran women outside until they collapsed for failing to wear regulation shoes.

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TIMELINENike tasks diplomat and activist Andrew Young with examining its labor practices abroad. His report is criticized for being soft on Nike. Critics object to the fact that he didn't address low wages, used Nike interpreters to translate, and was accompanied by Nike officials on factory visits. Since Young's report was largely favorable, Nike is quick to publicize it, which increases backlash. 

1997: College students around the country began protesting the company.  

1998: Nike faces weak demand and unrelenting criticism. It has to lay off workers, and begins to realize it needs to change. 

The real shift begins with a May 1998 speech by then-CEO Phil Knight. “The Nike product has become synonymous with slave wages, forced overtime, and arbitrary abuse,” Knight said. “I truly believe the American consumer doesn’t want to buy products made under abusive conditions.”

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TIMELINEAt that speech, he announces Nike will raise the minimum age of workers; significantly increase monitoring; and will adapt U.S. OSHA clean air standards in all factories.

1999: Nike begins creating the Fair Labor Association, a non-profit group that combines companies, and human rights and labor representatives to establish independent monitoring and a code of conduct, including a minimum age and a 60-hour work week, and pushes other brands to join.

2002-2004: The company performs some 600 factory audits between 2002 and 2004, including repeat visits to problematic factories. 

2004: Human rights activists acknowledge that increased monitoring efforts at least deal with some of the worst problems, like locked factory doors and unsafe chemicals, but issues still remain.

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TIMELINE2005: Nike becomes the first in its industry to publish a complete list of the factories it contracts with.

2005: Nike publishes a detailed 108-page report revealing conditions and pay in its factories and acknowledging widespread issues, particularly in its south Asian factories. 

2005-Present: The company continues to post its commitments, standards, and audit data as part of its corporate social responsibility reports. 

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Sources:

http://www.businessinsider.com/history-of-nike-facts-about-its-50th-anniversary-2014-11

http://www.commondreams.org/headlines01/1020-01.htm

http://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5