Nike Inc.
NYSE : NKE
2016 Apparel & Footwear
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Company Ranking
10 out of20 Companies
Company Score
SUMMARY
Nike shows slightly above-average disclosure compared to its peers. Its score of 49/100 is driven by its disclosure in the areas of commitment, monitoring, traceability, and purchasing practices. Notably, Nike discloses a map of its first-tier suppliers which includes the percentage of migrants workers and has set sourcing targets for cotton and other key materials. To improve its performance, Nike is encouraged to implement internal as well as supplier training on forced labor, strengthen its recruitment practices, and put in place a remedy process for supply chain workers.
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SCORE HISTORY
THEME & indicator score
The benchmark methodology has seven themes, selected to capture the key areas where companies need to take action to eradicate forced labour from their supply chains. The themes are comprised of a total of 12 key indicators. For each indicator, a company can score a total of 100 points.
Commitment and Governance
The company's top-level commitments on forced labor, supply chain standards, management processes, training programs and stakeholder engagement.
| Awareness and Commitment | 100 / 100 |
| Supply Chain Standards | 60 / 100 |
| Management and Accountability | 50 / 100 |
| Training | 25 / 100 |
| Stakeholder Engagement | 50 / 100 |
Traceability and Risk Assessment
The extent to which the company traces its supply chain and conducts forced labor risk assessments, and discloses information about these processes.
| Traceability and Supply Chain Transparency | / 100 |
| Transparency | / 100 |
Purchasing Practices
The company's awareness and action on purchasing practices that can exacerbate forced labor risks, and its process for selecting suppliers, integrating standards into contracts and cascading them down the supply chain.
| Purchasing Practices | 25 / 100 |
| Supplier Selection | 100 / 100 |
| Integration into Supplier Contracts | 50 / 100 |
| Cascading Standards Through the Supply Chain | 100 / 100 |
Recruitment
| Recruitment Approach | 50 / 100 |
| Recruitment Fees | 50 / 100 |
| Recruitment Audits | 0 / 100 |
Worker Voice
The extent to which the company proactively communicates with workers through the supply chain, enables freedom of association and ensures access to effective and trusted grievance mechanisms.
| Communication of Policies | 25 / 100 |
| Worker Voice | 50 / 100 |
| Worker Empowerment | 50 / 100 |
| Grievance Mechanism | 40 / 100 |
Monitoring
The company's process for auditing (including whether it includes non-scheduled visits, document review, worker interviews) and disclosure about the audit process and findings.
| Auditing Process | 50 / 100 |
| Auditing Disclosure | 60 / 100 |
Remedy
The extent to which the company has corrective action plans for non-compliant factories, as well as processes for remedying workers who are victims of forced labor, and reports on remedies provided.
| Corrective Action Plans | 75 / 100 |
| Remedy Programs | 0 / 100 |