Lasting relationships with supplier factories: Response from Nike

Summary: Nike states that it follows guidance on responsible sourcing as a member of the MFA Forum. But the company needs a more systematic approach to building long-term relationships with all its supplier factories and should report on progress.

Nike states that is follows the guidance on responsible sourcing as a member of the MFA Forum. According to the company it has a divestment policy and it is unplanned closures that present the greatest problems. According to Nike, it currently deals with unplanned closures on a case-by-case basis, and tries to monitor indicators that could suggest a company is in financial difficulties, such as payment of wages.

Play Fair’s view:

While acknowledging that Nike suppliers need to remain competitive in the global market, Play Fair believes this should never be at the expense of decent working conditions. Where wages do increase, unions do form in a factory and more workers are employed on permanent contracts, Nike should incentivise such shifts by increasing orders, committing to long-term relationships, and ensuring systemically, that Nike supports these transitions and changes. Nike’s progress on building long-term relationships should be reported on publicly.