How Nike Solved Its Sweatshop Problem Max Nisen May 9, 2013, 10:00 PM Reuters It wasn't that long ago that Nike was being shamed in public for its labor practices to the point where it badly tarnished the company's image and hurt sales. The recent was a reminder that even though Nike managed to turn around its image, large parts of the industry still haven't changed much at all. Nike was an early target for the very reason it's been so successful. Its business model was , using the money it saved on aggressive marketing campaigns. Nike has managed to turn its image around. Nike hasn't been completely successful in bringing factories into line, but there's no denying that the company has executed one of the greatest image turnarounds in recent decades. Here's the timeline of how Nike became a global symbol of abusive labor practices, then managed to turn things around: After prices rose and labor organized in Korea and Taiwan, Nike contractors to move to Indonesia, China, and Vietnam. 1991: Problems when activist Jeff Ballinger publishes a report documenting low wages and poor working conditions in Indonesia. Nike first formally responds to complaints with a factory . 1992: Ballinger publishes an exposé of Nike. highlights an Indonesian worker who worked for a Nike subcontractor for 14 cents an hour, less than Indonesia's minimum wage, and documented other abuses. 1992-1993: at the Barcelona Olympics in 1992, ' 1993 interview of Nike factory workers, and Ballinger's NGO "Press For Change" provokes a wave of mainstream media attention. 1996: Kathy Lee Gifford's clothing line is shown to be made by . Her teary apology and activism makes it a national issue.
How Nike Solved Its Sweatshop Problem Max Nisen May 9, 2013, 10:00 PM Reuters It wasn't that long ago that Nike was being shamed in public for its labor practices to the point where it badly tarnished the company's image and hurt sales. The recent was a reminder that even though Nike managed to turn around its image, large parts of the industry still haven't changed much at all. Nike was an early target for the very reason it's been so successful. Its business model was , using the money it saved on aggressive marketing campaigns. Nike has managed to turn its image around. Nike hasn't been completely successful in bringing factories into line, but there's no denying that the company has executed one of the greatest image turnarounds in recent decades. Here's the timeline of how Nike became a global symbol of abusive labor practices, then managed to turn things around: After prices rose and labor organized in Korea and Taiwan, Nike contractors to move to Indonesia, China, and Vietnam. 1991: Problems when activist Jeff Ballinger publishes a report documenting low wages and poor working conditions in Indonesia. Nike first formally responds to complaints with a factory . 1992: Ballinger publishes an exposé of Nike. highlights an Indonesian worker who worked for a Nike subcontractor for 14 cents an hour, less than Indonesia's minimum wage, and documented other abuses. 1992-1993: at the Barcelona Olympics in 1992, ' 1993 interview of Nike factory workers, and Ballinger's NGO "Press For Change" provokes a wave of mainstream media attention. 1996: Kathy Lee Gifford's clothing line is shown to be made by . Her teary apology and activism makes it a national issue.
How%20Nike%20Solved%20Its%20Sweatshop%20Problem.docx