Nike Brings Corporate Social Responsibility Report To China's Supply Chain

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

Nike, headquartered in Oregon, is highly dependent on China in terms of 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 Nike's long-term purchase of garments and accessories.

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

Nike's corporate social responsibility (CSR) report notes that 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 three factories that employed illegal child labor.

In addition, the CSR self-test program showed that 167 employees were using fake certificates. The age of their employment was lower than that of the minimum age (18 years) stipulated by Nike, but at the age of 18 or above 18.

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

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

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

All shoe factories in Nike have reviewed and improved their audited standards for hire workers.

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

More than 70% of 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.