Monday, July 30, 2007

Labour standards and ethical supply chains: Nike leads the way in redefining the balanced scorecard


Nike recently committed to an ambitious goal of eliminating excessive overtime for workers in their supply chain by 2011. The commitment, a centrepiece of their latest groundbreaking corporate responsibility report for FY2005-2006, is a reminder for sceptics that the oft-targeted shoe retailer frequently leads the way in innovative solutions to labour rights challenges.

Still perceived by some consumers as a sweatshop brand, Nike broke ranks with peers by making public its list of factories in 2005. Now the company aims to achieve reductions in overtime work, not by arm-twisting their suppliers, but by altering their own internal buying practices.

In a comprehensive review of their compliance program and the industry as a whole, Nike identified buyers as one of three culprits that drive non-compliant practices, in addition to factory management and national and international socio-political-economic conditions.

See full Article.