Nike Report On Corporate Social Responsibility For China'S Supply Chain

Nike will release the latest report on China's supply chain on the eve of the upcoming Beijing Olympic Games. As a sporting goods leading brand, Nike will strengthen its supervision of contract factories accepting workers' fake certificates last year.

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Nike, headquartered in Oregon, is highly dependent on China for its production and sales. Now it has strengthened its commitment to the monitoring contract factory and implemented the new labor contract law of China.

However, when Nike checked the contract factory in the near future, some Chinese contract factories used fake documents.

In 2007, China produced 35% of Nike's footwear, and it was also the country that Nike purchased garments and accessories for a long time.

In addition, the sales of Nike products in the Chinese market amounted to US $1 billion, making it the second largest market outside the United States.

In the report on corporate social responsibility (CSR) issued by Nike, Nike has 180 contract factories employing 210 thousand laborers in China's supply chain.

In 2007, Nike did not make an unannounced visit to the 10 contract manufacturers in southern China. Although it did not find a case of hiring child labor, Nike had discovered that three factories had employed illegal child labor.

In addition, the CSR self-test program showed that 167 employees were using fake certificates. Their employment age was lower than that of the Nike minimum age (18 years) standard, but it is 18 years old or higher than 18 years old.

In addition, there are two cases where only 17 years old workers work in shoe factories, which are below the age of Nike and are assigned to offices in non production departments until they are 18 years old.

Nike said that there were about 1300 cases in which the age of workers was up to standard, but there were other errors in the data on their identity cards.

Although these cases are few, they remain a matter of concern.

Nike all footwear contract factories have reviewed and improved the audit standards for their hired labourers.

Nike estimates that 80% of its global supply chains are female workers, aged between 18 and 24.

More than 70% of the Nike contract factories in China are young women working from the countryside to the coastal areas.

The Chinese government adopted the "labor contract law" in 2007 to safeguard the rights and interests of workers.

In addition, Nike requires the rules and regulations of contract factories to respect the dignity of individual workers and provide a working environment free from harassment, abuse of corporal punishment and discrimination.

In 2007, 34 Chinese factories carried out the CSR self inspection process of Nike, including 2 factories in the first round of censorship, and 16 at the end of the year.

The most common reasons for failing to pass tests are overtime work, non compliance with wages, forged working conditions and environmental data, and safety and health problems.