Thursday, December 5, 2013

Nike: Still Doing It?


Recently, we discussed companies, such as Nike, that manufacture clothing in factories where the conditions are rife for employee abuse.  One of the comments made was that we as consumers feel powerless.  What difference does it make to a conglomerate like Nike if one person or group boycotts their products?  I did a little browsing into Nike and have discovered that not only has Nike has made an effort to clean up its image, but  we as consumers can also influence retail companies.

On average, Americans buy 64 garments per year, and the majority of these are made overseas .1 Research has shown that consumers actually want to purchase clothing that was produced ethically: 94% of respondents in one survey indicated that how workers are treated in factories is important to them.1   So, the intent to purchase ethically made items is there, and we would like to ensure that those who make these items are being treated fairly. The problem is that even though the consumer intent is there and supported by corporations, there is not much we can do without governmental help.  Earlier in 2013, six major apparel companies (including Nike) requested that the Peruvian government strengthen its labor laws-which are less strict than the standards the companies even impose-but the Peruvian government has not taken any action.  So, while these companies have in fact taken action to try to ensure that overseas employees are treated fairly, unless the governments enforce stricter standards, not much can be done.  It should be explained that corporations contract factories to produce their products; these contractors are not actually part of the corporations, so while Nike can (and does) try to enforce standards as much as it wants, whether or not the contractors actually follow them is up to the individual contractor.   To give Nike credit, it has gone from denying abuse of employees to actively attempting to ensure fair treatment.  In 1991, there was an uproar when it was revealed that Nike cut costs by manufacturing in less than ideal conditions in Indonesia and spent the savings on aggressive marketing companies.2  After the consumer backlash (which will be discussed in a bit), Nike now continues to post its commitments, standards, and data (including the location of each factory utilized) publicly.  While abuses of their workers are still undoubtedly occurring daily, they have come far from where they used to be.

As previously mentioned, we (even as graduate students) can have an impact on these companies!  We have a unique environment on a college campus that we can leverage.  Student groups exist and have previously been able to pressure universities to force suppliers to change their ways. The best example is from 2009, when Russell Athletic rehired 1,200 workers they had fired for unionizing after students campaigned to suspend Russell’s contracts.2  Again in 2011, Penn State threatened to terminate its licensing agreement with Adidas for not paying severance pay to 2,600 workers after the factory unexpectedly closed.1  Being students on a campus gives us a better platform to organize and more leverage.  If you consider Purdue’s contract with Nike, just imagine what would happen if we got enough people to boycott?  This might be an idealistic dream, but I just want to point out that we have more power than we think!

1 comment:

  1. I would argue that we (as knowledgeable students) don't have much power to change the market and reliance on international factory use. In order to terminate a multimillion dollar contract with Nike, essentially our entire 60,000 student campus would need to no longer purchase not only Nike products, but competitor products made overseas for an extended amount of time. Companies purchase products from Nike and other large companies, so the boycott is really economically hurting the small retailers around our campus instead of Nike. In a larger context, American's demand cheap products. We are much more likely to purchase the $10 "Made in Bangladesh" shirt instead of the $50 "Made in America" shirt. Many American's also are never exposed to or aware of the dangerous work environments and conditions many factory workers are in on a daily basis. Ignorance is bliss and the issues of a far-off land with a vastly different culture is not of concern for the majority of Americans.

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