.

Nike, Inc.is an American multinational corporation that is engaged in the design, development,
manufacturing and worldwide marketing and sales of footwear, apparel, equipment, accessories
and services. The company is headquartered near Beaverton, Oregon, in the Portland
metropolitan area. It is one of the world's largest suppliers of athletic and apparel[5] and a major
manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year
2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. In
2014 the brand alone was valued at $19 billion, making it the most valuable brand among sports
businesses.[6]
The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bower
man and Phil Knight,[1] and officially became Nike, Inc. on May 30, 1971. The company takes its
name from Nike, the Greek goddess of victory. Nike markets its products under its own brand, as
well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max,
Composite, Nike Skateboarding, and subsidiaries including Brand Jordan, Hurley
International and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between
1995 and 2008, and previously owned Cole Haan and Umbro.[7] In addition to manufacturing
sportswear and equipment, the company operates retail stores under the Niketown name. Nike
sponsors many high-profile athletes and sports teams around the world, with the highly
recognized trademarks of "Just Do It" and the Swoosh logo.

Type

Public

Traded as

NYSE: NKE
Dow Jones Industrial Average Component
S&P 500 Component

Industry

Apparel, accessories

Founded

January 25, 1964; 52 years ago

(as Blue Ribbon Sports)[1]
1971 (as Nike, Inc.)

Founder

Bill Bowerman
Phil Knight

Headquarters

Washington County, Oregon, United States

(Near Beaverton, Oregon)

Area served

Worldwide

Key people

Phil Knight
(Chairman Emeritus)

Mark Parker
(Chairman, President & CEO)

Products

Athletic footwear and apparel,sport

equipments and other athletic and recreational
products

Revenue

Operating

US$30.601 billion (2015)[2]

US$4.175 billion (2015)[2]

income

Net income

Total assets

Total equity

Number of

US$3.273 billion (2015)[2]

US$21.600 billion (2015)[2]

US$12.707 billion (2015)[2]

62,600 (2015)[2]

employees

Slogan

Just Do It

Website

www.nike.com

Origins and history

Old logo of Nike, Inc., still used on some retro products with red boxes

A Nike Factory Store

Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of Oregon track
athlete Phil Knight and his coach Bill Bowerman in January 1964. The company initially operated as a
distributor for Japanese shoe maker Onitsuka Tiger (now ASICS), making most sales at track meets out of
Knight's automobile.[8]
According to Otis Davis, a student athlete whom Bowerman coached at the University of Oregon, who later
went on to win two gold medals at the 1960 Summer Olympics, Bowerman made the first pair of Nike
shoes for him, contradicting a claim that they were made for Phil Knight. Says Davis, "I told Tom Brokaw
that I was the first. I don't care what all the billionaires say. Bill Bowerman made the first pair of shoes for
me. People don't believe me. In fact, I didn't like the way they felt on my feet. There was no support and
they were too tight. But I saw Bowerman make them from the waffle iron, and they were mine."[9]
In 1964, in its first year in business, BRS sold 1,300 pairs of Japanese running shoes grossing $8,000. By
1965 the fledgling company had acquired a full-time employee, and sales had reached $20,000. In 1966,
BRS opened its first retail store, located at 3107 Pico Boulevard in Santa Monica, California next to a
beauty salon, so its employees no longer needed to sell inventory from the back of their cars. In 1967, due
to rapidly increasing sales, BRS expanded retail and distribution operations on the East Coast, in
Wellesley, Massachusetts.[10]
By 1971, the relationship between BRS and Onitsuka Tiger was nearing an end. BRS prepared to launch
its own line of footwear, which would bear the Swoosh newly designed by Carolyn Davidson.[11] The Swoosh
was first used by Nike on June 18, 1971, and was registered with the U.S. Patent and Trademark Office on
January 22, 1974.[12]
In 1976, the company hired John Brown and Partners, based in Seattle, as its first advertising agency. The
following year, the agency created the first "brand ad" for Nike, called "There is no finish line", in which no

Nike product was shown. By 1980, Nike had attained a 50% market share in the U.S. athletic shoe market,
and the company went public in December of that year.[13]
Together, Nike and Wieden+Kennedy have created many print and television advertisements, and
Wieden+Kennedy remains Nike's primary ad agency. It was agency co-founder Dan Wieden who coined
the now-famous slogan "Just Do It" for a 1988 Nike ad campaign, which was chosen by Advertising Age as
one of the top five ad slogans of the 20th century and enshrined in the Smithsonian Institution.[14]Walt
Stack was featured in Nike's first "Just Do It" advertisement, which debuted on July 1, 1988. [15] Wieden
credits the inspiration for the slogan to "Let's do it", the last words spoken by Gary Gilmore before he was
executed.[16]
Throughout the 1980s, Nike expanded its product line to encompass many sports and regions throughout
the world.[17] In 1990, Nike moved into its eight-building World Headquarters campus in Beaverton, Oregon.
[18]

Phil Knight announced in mid-2015 that he is planning to step down as chairman of Nike in 2016. [19]

Acquisitions
Nike has acquired several apparel and footwear companies over the course of its history, some of which
have since been sold. Its first acquisition was the upscale footwear company Cole Haan in 1988,[20] followed
by the purchase of Bauer Hockey in 1994. In 2002, Nike bought surf apparel company Hurley
International from founder Bob Hurley.[21] In 2003, Nike paid US$309 million to acquire Converse, makers of
the Chuck Taylor All-Stars line of sneakers.[22] The company acquired Starter in 2004[23] and Umbro, known
as the manufacturers of the England national football team's kit, in 2008.[24]
In order to refocus on its core business lines, Nike began divesting of some of its subsidiaries in the 2000s.
[25]

It sold Starter in 2007[23] and Bauer Hockey in 2008.[26] The company sold Umbro in 2012

Haan in 2013.

[28]

[27]

and Cole

As of 2013, Nike owns two key subsidiaries: Converse Inc. and Hurley International.[29][30]

Finance
Nike Inc. will buy back $8 billion of Nike's class B stock in 4 years after the current $5 billion buyback
program is completed in second quarter of fiscal 2013. Up to September 2012, Nike Inc. has bought back
$10 billion of stock.[31]
Nike was made a member of the Dow Jones Industrial Average in 2013, when it replaced Alcoa.[32]
On December 19, 2013, Nike Inc.'s quarterly profit rose due to a 13 percent increase in global orders for
merchandise since April of that year. Future orders of shoes or clothes for delivery between December and
April, rose to $10.4 billion. Nike shares (NKE) rose 0.6 percent to $78.75 in extended trading. [33]
In November 2015, Nike announced it would initiate a $12 billion share buyback, as well as a two-for-one
stock split, with shares to begin trading at the decreased price on December 24. [34] The split will be the
seventh in company history.

On April 26, 2016, it was announced that Nike would release the Nike Air Force 180 "Olympic" associated
with the dream team of 1992.[35] It will drop on July 7 at select Nike Sportswear retailers. [35]

Products

A Nike brand athletic shoe

A pair of Nike Air Jordan I basketball shoes

Sports equipment
Nike produces a wide range of sports equipment. Their first products were track running shoes. They
currently also make shoes, jerseys, shorts, cleats,[36] baselayers, etc. for a wide range of sports, including
track and field, baseball, ice hockey, tennis, association football (soccer), lacrosse, basketball,
and cricket. Nike Air Max is a line of shoes first released by Nike, Inc. in 1987. Additional product lines were
introduced later, such as Air Huarache, which debuted in 1992. The most recent additions to their line are
the Nike 6.0, Nike NYX, andNike SB shoes, designed for skateboarding. Nike has recently introduced
cricket shoes called Air Zoom Yorker, designed to be 30% lighter than their competitors'. [37] In 2008, Nike
introduced the Air Jordan XX3, a high-performance basketball shoe designed with the environment in mind.
Nike sells an assortment of products, including shoes and apparel for sports activities like association
football,[38] basketball, running,combat sports, tennis, American football, athletics, golf, and cross training for
men, women, and children. Nike also sells shoes for outdoor activities such as tennis, golf, skateboarding,
association football, baseball, American football, cycling, volleyball, wrestling, cheerleading, aquatic
activities, auto racing, and other athletic and recreational uses. Nike recently teamed up with Apple Inc. to
produce the Nike+product that monitors a runner's performance via a radio device in the shoe that links to
the iPod nano. While the product generates useful statistics, it has been criticized by researchers who were
able to identify users' RFID devices from 60 feet (18 m) away using small, concealable
intelligence motes in a wireless sensor network.[39][40]

In 2004, Nike launched the SPARQ Training Program/Division.[citation needed] Some of Nike's newest shoes
contain Flywire and Lunarlite Foam to reduce weight.[41] The Air Zoom Vomero running shoe, introduced in
2006 and currently in its 11th generation, featured a combination of groundbreaking innovations including a
full length air cushioned sole,[42] an external heel counter, a crashpad in the heel for shock absorption, and
Fit Frame technology for a stable fit.[43]
The 2010 Nike Pro Combat jersey collection were worn by teams from the following universities: Miami,
Alabama, Boise State University, Florida, Ohio State, Oregon State University, Texas Christian University,
Virginia Tech, West Virginia, and Pittsburgh. Teams will wear these jerseys in key matchups as well as any
time the athletic department deems it necessary.[44]

Street fashions
The Nike brand, with its distinct V shaped logo, quickly became regarded as a status symbol [45] in
modern urban fashion and hip-hop fashion[46] due to its association with success in sport.[47] Beginning in the
1980s, various items of Nike clothing became staples of mainstream American youth fashion, especially
tracksuits, shell suits, baseball caps,Air Jordans, and Air Max running shoes[48] with thick, air cushioned
rubber soles and contrasting blue, yellow, green, white, or red trim. [49] Limited edition sneakers and
prototypes with a regional early release were known as Quickstrikes,[50] and became highly desirable
items[51] for teenage members of the sneakerhead subculture.[52]
By the 1990s and 2000s, American and European teenagers[53] associated with the preppy[54] or popular
clique[55] began combining these sneakers,[56] leggings, sweatpants,crop tops,[57] and tracksuits with
regular casual chic[58] street clothes[59] such as jeans, skirts, leg warmers, slouch socks, and bomber jackets.
Particularly popular[60] were the unisex spandex Nike Tempo compression shorts[61] worn for cycling and
running, which had a mesh lining, waterproofing, and, later in the 2000s, a zip pocket for a Walkman orMP3
player.[62]
From the late 2000s into the 2010s, Nike Elite basketball socks began to be worn as everyday clothes by
fans of hip-hop and young children.[63] Originally plain white or black, these socks had special shock
absorbing cushioning in the sole[64] plus a moisture wicking upper weave.[65] Later, Nike Elite socks became
available in bright colors inspired by throwback basketball uniforms,[66] often with contrasting bold abstract
designs, images of celebrities,[67] and freehand digital print[68] to capitalise upon the emerging nostalgia
for1990s fashion.
In 2015, a new self lacing shoe was introduced that will officially release in 2016. Called the Nike Mag, it
had a preliminary limited release in 2015, only available by auction with all proceeds going to the Michael J.
Fox Foundation.

Headquarters
Nike's world headquarters are surrounded by the city of Beaverton, but are
within unincorporated Washington County. The city attempted to forcibly annex Nike's headquarters, which
led to a lawsuit by Nike, and lobbying by the company that ultimately ended in Oregon Senate Bill 887 of
2005. Under that bill's terms, Beaverton is specifically barred from forcibly annexing the land that Nike

and Columbia Sportswear occupy in Washington County for 35 years, while Electro Scientific
Industries and Tektronix receive the same protection for 30 years.[70] Nike is planning to build a 3.2 million
square foot expansion to its World Headquarters in Beaverton. [71] The design will target LEED Platinum
certification and will be highlighted by natural daylight, and a grey water treatment center.[71]

Controversy

Nike office in North America.

Nike has contracted with more than 700 shops around the world and has offices located in 45 countries
outside the United States.[72] Most of the factories are located in Asia, including Indonesia, China, Taiwan,
India,[73] Thailand, Vietnam, Pakistan, Philippines, and Malaysia.[74]Nike is hesitant to disclose information
about the contract companies it works with. However, due to harsh criticism from some organizations
like CorpWatch, Nike has disclosed information about its contract factories in its Corporate Governance
Report.

Sweatshops
Nike has been criticized for contracting with factories (known as Nike sweatshops) in countries such
as China, Vietnam, Indonesia andMexico. Vietnam Labor Watch, an activist group, has documented that
factories contracted by Nike have violated minimum wage and overtime laws in Vietnam as late as 1996,
although Nike claims that this practice has been stopped.[75] The company has been subject to much critical
coverage of the often poor working conditions and exploitation of cheap overseas labor employed in
the free trade zoneswhere their goods are typically manufactured. Sources for this criticism include Naomi
Klein's book No Logo and Michael Mooredocumentaries.
Campaigns have been taken up by many colleges and universities, especially anti-globalisation groups, as
well as several anti-sweatshopgroups such as the United Students Against Sweatshops.[76]

As of July 2011, Nike stated that two-thirds of its factories producing Converse products still do not meet
the company's standards for worker treatment. A July 2011 Associated Press article stated that employees
at the company's plants in Indonesia reported constant abuse from supervisors. [77]

Child labor allegations

During the 1990s, Nike faced criticism for the use of child labor in Cambodia and Pakistan in factories it
contracted to manufacture soccer balls. Although Nike took action to curb or at least reduce the practice,
they continue to contract their production to companies that operate in areas where inadequate regulation
and monitoring make it hard to ensure that child labor is not being used. [78]
In 2001, a BBC documentary uncovered occurrences of child labor and poor working conditions in a
Cambodian factory used by Nike.[79] The documentary focused on six girls, who all worked seven days a
week, often 16 hours a day.

Strike in China factory

In April 2014, one of the biggest strikes in mainland China took place at the Yue Yuen Industrial
Holdings Dongguan shoe factory, producing amongst others for Nike. Yue Yuen did underpay an employee
by 250 yuan (40.82 US Dollars) per month. The average salary at Yue Yuen is 3000 yuan per month. The
factory employs 70,000 people. This practice was in place for nearly 20 years. [80][81][82]

Justin Gatlin sponsorship

In March 2015, Nike drew criticism after announcing a new sponsorship deal with American sprinter Justin
Gatlin who had served two bans for doping. Nike had previously dropped Gatlin after his second failed drug
test and resulting long term ban. Critics said that Nike was sending out a bad message by endorsing an
athlete who has never been repentant for his actions and still causes widespread discontent within the
sport. English sprinter Marlon Devonish described the deal as "a kick in the teeth to the 99% of guys who
are clean".[83][84][85][86]

Environmental record
According to the New England-based environmental organization Clean Air-Cool Planet, Nike ranks among
the top three companies (out of 56) in a survey of climate-friendly companies. [87] Nike has also been praised
for its Nike Grind program (which closes the product lifecycle) by groups like Climate Counts.[88] One
campaign that Nike began for Earth Day 2008 was a commercial that featured basketball star Steve
Nash wearing Nike's Trash Talk Shoe, which had been constructed in February 2008 from pieces of leather
and synthetic leather waste from factory floors. The Trash Talk Shoe also featured a sole composed of
ground-up rubber from a shoe recycling program. Nike claims this is the first performance basketball shoe
that has been created from manufacturing waste, but it only produced 5,000 pairs for sale. [89]
Another project Nike has begun is called Nike's Reuse-A-Shoe program. This program, started in 1993, is
Nike's longest-running program that benefits both the environment and the community by collecting old

athletic shoes of any type in order to process and recycle them. The material that is produced is then used
to help create sports surfaces such as basketball courts, running tracks, and playgrounds. [90]
A project through the University of North Carolina at Chapel Hill found workers were exposed to
toxic isocyanates and other chemicals in footwear factories in Thailand. In addition to inhalation, dermal
exposure was the biggest problem found. This could result in allergic reactions including asthmatic
reactions.[91][92]

Marketing strategy
Nike promotes its products by sponsorship agreements with celebrity athletes, professional teams and
college athletic teams.

Advertising
In 1982, Nike aired its first national television ads, created by newly formed ad
agency Wieden+Kennedy (W+K), during the broadcast of the New York Marathon. The Cannes Advertising
Festival has named Nike its Advertiser of the Year in 1994 and 2003, making it the first company to receive
that honor twice.[93]
Nike also has earned the Emmy Award for best commercial twice since the award was first created in the
1990s. The first was for "The Morning After," a satirical look at what a runner might face on the morning of
January 1, 2000 if every dire prediction about the Y2K problem came to fruition.[94] The second was for a
2002 spot called "Move," which featured a series of famous and everyday athletes in a variety of athletic
pursuits.[95]
Beatles song
Nike was criticized for its use of the Beatles song "Revolution" in a 1987 commercial against the wishes
of Apple Records, the Beatles' recording company. Nike paid US$250,000 to Capitol Records Inc., which
held the North American licensing rights to the recordings, for the right to use the Beatles' rendition for a
year.
Apple sued Nike Inc., Capitol Records Inc., EMI Records Inc. and Wieden+Kennedy for $15 million.
[96]

Capitol-EMI countered by saying the lawsuit was "groundless" because Capitol had licensed the use of

"Revolution" with the "active support and encouragement of Yoko Ono, a shareholder and director of
Apple."
Nike discontinued airing ads featuring "Revolution" in March 1988. Yoko Ono later gave permission to Nike
to use John Lennon's "Instant Karma" in another advertisement.
New media marketing
Nike was an early adopter of internet marketing, email management technologies, and
using broadcast and narrowcast communication technologies to create multimedia marketing campaigns.

Minor Threat advertisement

In late June 2005, Nike received criticism from Ian MacKaye, owner of Dischord Records, guitarist/vocalist
for Fugazi and The Evens, and front man of the defunct punk bandMinor Threat, for appropriating imagery
and text from Minor Threat's 1981 self-titled album's cover art in a flyer promoting Nike Skateboarding's
2005 East Coast demo tour.
On June 27, Nike Skateboarding's website issued an apology to Dischord, Minor Threat, and fans of both
and announced that they have tried to remove and dispose of all flyers. They stated that the people who
designed it were skateboarders and Minor Threat fans themselves who created the advertisement out of
respect and appreciation for the band. [97] The dispute was eventually settled out of court between Nike and
Minor Threat.

Niketown at Oxford Circus, London

Nike 6.0
As part of the 6.0 campaign, Nike introduced a new line of T-shirts that include phrases such as "Dope",
"Get High" and "Ride Pipe" sports lingo that is also a double entendre for drug use. Boston
Mayor Thomas Menino expressed his objection to the shirts after seeing them in a window display at the
city's Niketown and asked the store to remove the display. "What we don't need is a major corporation like
Nike, which tries to appeal to the younger generation, out there giving credence to the drug issue," Menino
told The Boston Herald. A company official stated the shirts were meant to pay homage to extreme sports,
and that Nike does not condone the illegal use of drugs.[98] Nike was forced to replace the shirt line.[99]

NBA uniform and apparel deal

In June 2015, Nike signed an 8-year deal with the NBA to become the official apparel supplier for the
league, beginning with the 201718 season. The brand takes over for Adidas, who provided the uniforms
and apparel for the league since 2006. Unlike previous deals, Nike's logo will appear on NBA game jerseys
a first for the league.[100]

Sponsorship

Nike sponsors Mario Gtze and many other players and clubs in football

Nike pays top athletes in many sports to use their products and promote and advertise their technology and
design.
Nike's first professional athlete endorser was Romanian tennis player Ilie Nstase. The first track endorser
was distance runner Steve Prefontaine. Prefontaine was the prized pupil of the company's co-founder, Bill
Bowerman, while he coached at the University of Oregon. Today, the Steve Prefontaine Building is named
in his honor at Nike's corporate headquarters.
Nike has also sponsored many other successful track and field athletes over the years, such as Carl
Lewis, Jackie Joyner-Kersee andSebastian Coe. The signing of basketball player Michael Jordan in 1984,
with his subsequent promotion of Nike over the course of his career, with Spike Lee as Mars Blackmon,
proved to be one of the biggest boosts to Nike's publicity and sales.
Nike has been the official kit sponsor for the Indian cricket team since 2005.[101][102]
Nike is a major sponsor of the athletic programs at Penn State University and named its first child care
facility after Joe Paterno when it opened in 1990 at the company's headquarters. Nike originally announced
it would not remove Paterno's name from the building in the wake of the Penn State sex abuse scandal.
After the Freeh Report was released on July 12, 2012, Nike CEO Mark Parker announced the name Joe
Paterno would be removed immediately from the child development center. A new name has yet to be
announced.[103][104]
Nike also sponsored association football players such as Ronaldinho, Ronaldo, Cristiano Ronaldo, Didier
Drogba, Neymar, Zlatan Ibrahimovi, Thierry Henry, Wayne Rooney, Francesco Totti, Andrs
Iniesta and Landon Donovan among others.[105]

In January 2013, Nike signed Rory McIlroy, the then No 1 golfer in the world to a 10-year sponsorship deal
worth $250 million. The deal includes using Nike's range of golf clubs, a move Nick Faldo previously
described as "dangerous" for McIlroy's game.[106]
On February 21, 2013, Nike announced it suspended its contract with South African athlete Oscar
Pistorius, due to his being charged withpremeditated murder.[107]
In August 2014, Nike announced that they will not renew their kit supply deal with Manchester United after
the 201415 season, citing rising costs.[108] Since the start of the 201516 season, Adidas has
manufactured Manchester United's kit as part of a world-record 10-year deal worth a minimum of 750
million.[109]

Current sponsorships
Main article: List of Nike sponsorships

Causes
In 2012, Nike is listed as a partner of the (RED) campaign, together with other brands such as Girl,
American Express and Converse. The campaign's mission is to prevent the transmission of the HIV virus
from mother to child by 2015 (the campaign's byline is "Fighting For An AIDS Free Generation")

SUPPLY CHAIN STATISTICS

To keep up with demand for its vast array of athletic apparel and
equipment, Nike, INC. currently employees over one million contract labor
workers in 785 contract-factories operating in 43 countries. It has one of
the large supply-chain infrastructures in the world, which allows the
company to deliver shoes made in Madagascar to a retail store in Toronto
in less than 24 hours. Cooperation between both corporate management
and contract-factory owners is critical to the success of both entities, they
are co-dependent upon one another.
Using sophisticated technology and a user-friendly Web

site, http://manufacturingmap.nikeinc.com/ Nike is able to provide data on

all of its prime suppliers. From the location of the contract-factory to the
type of products manufctured there, Nike does its best to create an ultratransparent environment. It goes on to list the number of total workers, the
amount of line workers, percentage of female workers, and the percentage
of migrant workers. After years on scrutiny for not tracking or providing
these data figures, Nike has made a 180-degree transformation in its
reporting structure. With a few keystrokes, and a few more clicks on the
mouse, the casual viewer or New York Times reporter is inundated with
information on how Nike carries out is supply chain operations.

SUPPLY CHAIN PARTNERSHIP STRATEGY

When a factory owner wants to become a Nike supplier, he or she can

visit https://www.nikeinclicensees.com/being-a-licensee/ to get an in-depth
understanding of how Nike does business with its suppliers. Expectations
are set, and the potential supplier can view Nike's "playbook" on how it
executes its supply chain operations. It is imperative that a mutual
understanding exists between Nike and its suppliers to ensure quality
throughout the supply chain.

As a result, Nike has created the following

standards for their supply chain:
LEAN - A behavior of
mproving efficiency and reducing waste
GREEN - Environmental

Sustainability (ES)
EQUITABLE - Wage
structures & incentives, services and support
EMPOWERED - Human
Resource Management (HRM), Health, Safety and
Environment (HSE) &
Energy
On its licensee page, Nike goes on to state "We ensure continuous
improvement of our own performance and expect lean manufacturing
performance and responsible leadership from our Licensee/Agents."
Here, Nike is reaffirming its committment to its customer base and stating
its expectations to its suppliers. For Nike to remain successful, meet
customer demand, and continue sustainable growth it must have
cooperation from its suppliers.
SUPPLY CHAIN PROGRAM FUNDAMENTALS

On its program fundamentals

page, https://www.nikeinclicensees.com/being-a-licensee/programfundamentals/, Nike further outlines its supply chain expectations:
"You are an extension of the Nike, Inc. brands. We expect excellence
in conduct, leadership and absolute compliance from you and all
contractors, whether they are directly contracted or indirectly
contracted. All Licensee/Agents must comply with and have the
ability to communicate and educate Nike, Inc.'s Code of Conduct
(COC) and Code Leadership Standards (CLS) across its supply base."
NIKE CODE OF CONDUCT OVERVIEW
While Nike has been under intense scrutiny for poor working conditions and
low wage in its contract-factory partners, not all of the blame should have
been placed on Nike, as many of these factories made products other than
Nike apparel. However, due to its size and recongizance, Nike was

deemed as the key perpetrator. As a result, Nike's corporate management

has implemented standards to be upheld by any factory making Nike
products. The Code of Conduct (COC),
found athttps://www.nikeinclicensees.com/being-a-licensee/programfundamentals/, explains what can be found in the COC;
"The Code of Conduct (COC) outlines the minimum standards we
expect our factories to meet. We intend to work with factories who
understand that meeting these minimum standards is a critical
baseline from which manufacturing leadership, continuous
improvement and self-governance must evolve.
It is essential that our factories comply towards these standards as
they are an integral component to how we approach NIKE, Inc.
sourcing strategies, how we evaluate factory performance, and how
we determine with which factories Nike will continue to engage and
grow our business."
This Code applies to all employees in the contract factories, not just
the employees making Nike, Inc. products.

Nike moves faster to clean up its

supply chain
Sustainable Business

Monday, March 25, 2013 - 6:00am

Nike has joined an innovative partnership that can more quickly clean up its
supply chain by giving the company easy access to sustainable materials and
chemicals.
Through Switzerland-based Bluesign Technologies -- which has created a tool
for improving supply chains in the textile industry -- Nike's suppliers will have
access to online tools that help them find the most sustainable materials
available.
Nike is the world's largest sportswear brand and its supply chain spans 50
countries, 800 contract factories and hundreds of textile manufacturers that
supply them. And in 2011 Nike announced it would eliminate all releases of
hazardous chemicals across its global supply chain by 2020.
Using the "bluefinder" tool, a supplier can access pre-screened and more
sustainable textile preparations -- including dye systems, detergents and

other process chemicals used in the manufacturing process. It enables

suppliers to effectively manage restricted substances and provides the
opportunity to increase water and energy efficiency.
Another tool, "blueguide," gives Nike access to 30,000-plus materials that
have been produced using these sustainable chemicals.
Before this, Nike had to go through the iterative process of assessing
individual factories and suppliers, which obviously takes many years and lots
of investment and time.
Since 2001, when Nike introduced a Restricted Substances List, which bars
toxic materials from its products, it's been trying to push that through its
supply chain.
"Nike is committed to catalyzing a major change in the world of materials,
driving for the elimination of hazardous substances and innovating new,
sustainable materials," said Hannah Jones, vice president of sustainable
business and innovation for Nike, in a statement. "To shift to a palette of
entirely sustainable materials multiple stakeholders must work together to
innovate new chemistry, encourage the use and scale of better chemistry,
and eliminate harmful chemistry."
Based on Nike's analysis, the company has found that 60 percent of the
environmental impact from a pair of shoes comes from the materials used.
"Nike was persistent with us in working to find a scalable solution for a supply
chain as large as theirs," said Peter Waeber, CEO of Bluesign Technologies, in
a statement. "With the rollout of a positive list of textile chemicals for its
broad supplier base, Nike can support its supply chain to improve chemical
sourcing and deliver positive environmental and consumer safety benefits."
On top of recent development, Nike developed the Environmental Apparel
Design Tool to evaluate all of the waste, energy, toxics and water involved in
textile manufacturing. It was used as a basis for the Sustainable Apparel
Coalition's Higg Index, which helps clothing and shoe retailers assess the
environmental impact of brands they sell.