Nike
NYS : NKE
2020-2021 Apparel & Footwear
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Company Ranking
6 out of37 Companies
Company Score
SUMMARY
Nike Inc. (Nike), the largest sportswear brand in the world, ranks 6th out of 37 companies, disclosing more information on its forced labor policies and practices than its peers across all themes. Compared to 2018, Nike improved its rank by three places. It began disclosing its training of its second-tier suppliers, membership in the Leadership Group for Responsible Recruitment and the Responsible Labor Initiative Steering Committee, engaging with additional stakeholders on forced labor, and improving its migrant worker policies and practices (including remediation of recruitment fees). Nike states that it confirmed that its suppliers are not using yarn from Xinjiang and that it is “conducting ongoing diligence with our suppliers in China to identify and assess potential forced labor risks related to employment of Uyghur.” However, it does not disclose details on the steps it has taken to address the risks of alleged Uyghur forced labor across its supply chain tiers. KnowTheChain identified one additional allegation of forced labor in Nike’s supply chains. Transparentem reports that Nike worked with one of the two suppliers to ensure that fees were repaid to workers, on the basis that the second supplier was an unauthorized sub-licensee. Nike does not disclose engagement with the affected rightsholders nor whether remedy was satisfactory to the victims. Nike has an opportunity to improve on the themes of Purchasing Practices, Worker Voice, and Remedy.
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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
Commitment | 100 / 100 |
Supplier Code of Conduct | 100 / 100 |
Management and Accountability | 75 / 100 |
Training | 75 / 100 |
Stakeholder Engagement | 75 / 100 |
Traceability and Risk Assessment
Traceability and Supply Chain Transparency | 75 / 100 |
Risk Assessment | 50 / 100 |
Purchasing Practices
Purchasing Practices | 50 / 100 |
Supplier Selection | 50 / 100 |
Integration into Supplier Contracts | 45 / 100 |
Recruitment
Recruitment Approach | 60 / 100 |
Recruitment Fees | 100 / 100 |
Monitoring and Responsible Recruitment | 75 / 100 |
Rights of Workers in Vulnerable Conditions | 45 / 100 |
Worker Voice
Freedom of Association | 25 / 100 |
Worker Engagement | 50 / 100 |
Grievance Mechanism | 40 / 100 |
Monitoring
Monitoring Process | 90 / 100 |
Monitoring Disclosure | 50 / 100 |
Remedy
Corrective Action Plans | 100 / 100 |
Remedy Programs | 15.63 / 100 |