Nike’s code of conduct makes the following commitment on wages but it does not go so far as to commit to a living wage:
‘Contractor’s employees are timely paid at least the minimum wage required by country law and provided legally mandated benefits, including holidays and leaves, and statutory severance when employment ends. There are no disciplinary deductions from pay.'
However, Nike’s Code Leadership Standards require suppliers to be putting in place programmes to move towards living wages. Paragraph 10 of the ‘Compensation is Timely Paid’ section sets out the following requirement and lists a number of steps that suppliers can take towards meeting it:
‘Contractor commits to developing and implementing a process that incrementally moves employee compensation (wages and benefits) over time toward meeting employees’ basic needs including some discretionary income.’
Nike’s list of contract factories can be found on the company’s website.
P.52 of Nike Inc.’s Sustainable Business Report FY14-15 states:
‘Every contract factory in our supply chain is subject to a rigorous set of compliance requirements. This starts with risk analysis of the host country and our Code of Conduct, supported by our internal team of over 150 trained experts who monitor, remediate and provide improvement tools to the factories. We regularly audit contract factories, which are monitored on a schedule based on their performance. These assessments take the form of audit visits, both announced and unannounced, by internal and external parties, who measure against the NIKE Code of Conduct using our Code Leadership Standards.’
Nike’s Code Leadership Standards state:
‘Submission to verification and monitoring includes… Facilitating unrestricted access to contractor’s employees for purposes of confidential verification interviews. Contractors shall not ‘coach’ employees with respect to potential auditor questions or interfere with or retaliate against employees in connection with audits’ (Paragraph 4.b., Implementation Section).
P.63 of Nike Inc.’s Sustainable Business Report FY14-15 contains a summary of Nike’s most recent audit results.
Nike’s latest CSR report, Sustainable Business Report FY14-15 does not make any mention of any worker hotline or complaint mechanism.
P.52 of Nike Inc.’s Sustainable Business Report FY14-15 states that the company regularly audits ‘contract factories’ but does not make any mention of audits further down the supply chain.
Nike Inc. does not currently report any information about a programme to take back old clothing but the company does have a extensive recycling scheme for used shoes. More information can be found on the Nike Grind website.
P.25 of Nike Inc.’s Sustainable Business Report FY14-15 reports:
‘More than 26% of cotton used was more sustainable (organic, Better Cotton Initiative-certified or recycled) in FY15.’
P.18 of the same report notes that the company also has a target to ‘source 100% of our cotton more sustainably (certified organic, licensed to the Better Cotton Standard System for recycled cotton) across NIKE, Inc. by the end of calendar year 2020’
P.25 of Nike Inc.’s Sustainable Business Report FY14-15 reports that the company has the following targets by 2020:
‘100% compliance with NIKE restricted substance list (RSL); 100% compliance with the ZDHC [Zero Discharge of Hazardous Chemicals] manufacturing restricted substances list (MRSL); Achieve better chemical input management through scaling more sustainable chemistries; Lead industry change through collective action; Return 100% of wastewater cleaner than required by local law and embed continuous improvement planning into textile dyeing and finishing processes’.