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Phil Knight  JUST DOING IT?
CEO Phil Knight answers questions on
Nike's new labor initiatives.

May 22, 1998

[Editor's Note: Mr. Knight did not respond to the questions forwarded to him. Instead, a Nike spokesperson responded to the questions posted below.]


Questions asked
in this forum:

Will Nike agree to the use of a 3rd party auditor?
What is Nike's position on uninionization in their Asian factories?
How do we know the incidents in the factories are not an uncommon practice of there culture?
Do any other shoe manufacturers do it differently?
Why are you defensive when you are supplying jobs to people?
Are you providing a livable wage?
Don't you think it's a little hypocritical to be making these changes now?
How does your product get marked up so high?
Do Nike critics have another agenda?

NewsHour Backgrounders
May 13, 1998:
Nike's CEO Phil Knight discusses his company's efforts to improve factories in Asia.

February 3, 1998:
Exploring the impact of Asia's economic crisis on the U.S.

April 14, 1997:
President Clinton announces efforts to eliminate sweatshops worldwide.

July 16, 1996:
A discussion on sweatshops, both here and abroad.

Browse the NewsHour's coverage of business and economy and Asia.
Outside Links
Nike's page on labor practices.
The National Labor Committee, an advocacy group for worker rights.
Nike Swoosh Nike, the footwear and sport accessory giant, has come under fire from Congress and labor activists in recent years for allegedly exploiting workers in their Asian factories. Accusations have included the use of child labor, low wages and other near-sweatshop conditions.

Saying he wanted to address the "the cloud that has been over Nike's head over the last couple years," CEO Phil Knight announced the company would implement a series of reforms to improve the working conditions for 530,000 employees in Southeast Asian factories. These include:

  • Increasing the minimum age of footwear factory workers to 18, and the minimum age for all other light-manufacturing workers (apparel, accessories, equipment) to 16;
  • Adopting U.S. Occupational Safety and Health Administration (OSHA) indoor air quality standards for all footwear factories;
  • Expanding education programs, including middle and high school equivalency courses, for workers;
  • Expanding independent monitoring programs to include non-governmental organizations (NGOs) and making summaries of the findings public.

As Mr. Knight explained on the NewsHour, "We have always tried to do the right thing... But it is true, I think, that the criticism probably sped up some of our efforts."

Although the moves do address many of the concerns raised by critics, activists have met the announcement with a mixture of support and skepticism. Most critics say that Nike's reforms will improve working conditions for employees, but question whether the move will provide employees with what they call a "livable wage."

Asked if he thought the announcement would satisfy his company's critics, Knight told reporters, "Not in the near term. I think it's a 10-year process" of proving themselves.

What do you think of Nike's efforts to reform their factories? Do they go far enough?

Questions asked in this forum:
Will Nike agree to the use of a 3rd party auditor?
What is Nike's position on uninionization in their Asian factories?
How do we know the incidents in the factories are not an uncommon practice of there culture?
Do any other shoe manufacturers do it differently?
Why are you defensive when you are supplying jobs to people?
Are you providing a livable wage?
Don't you think it's a little hypocritical to be making these changes now?
How does your product get marked up so high?
Do Nike critics have another agenda?


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