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Ethical Problem: Forced Labor in Nike's Supply Chain - Coggle Diagram

- - - - Nike's major revenue regions are Asia Pacific and Latin America, where labour laws and regulatory frameworks range greatly and make it difficult to uphold uniform ethical standards across the supply chain.
    - - In 2023, Nike reported revenues of $18.4 billion for the fiscal year, with the Greater China region contributing significantly to this figure. Nike, Inc. (2023, June 29). NIKE, Inc. Reports fiscal 2023 fourth quarter and full year results.
    - - Nike's major markets, each with unique cultural norms and legal systems, significantly impact its reputation and business operations due to the ethical issues surrounding forced labor.
    - - Nike's attitude to forced labour is impacted by the North American market, which is driven by consumer activism and the regulatory environment. This might lead to more scrutiny from NGOs, the media, and government agencies.
  - - - Nike wants to demonstrate its dedication to sustainability and build its reputation as an ethical brand by reducing carbon emissions in its supply chain by 30% by 2030.
    - - In the late 1990s, Nike faced criticism for poor labor conditions and low wages in supplier factories, affecting its reputation and tarnishing its ethical brand image.
  - - - By producing an unchangeable record of transactions, guaranteeing accuracy and authenticity, boosting traceability, and giving customers trust in their purchases, blockchain technology improves supply chain transparency.
    - - Companies may disclose information about their supply chain procedures, ethical sourcing, and sustainability activities on digital platforms, demonstrating their dedication to and openness.
  - - - Campaigns, demonstrations, and public awareness are tools used by advocacy groups like the Worker Rights Consortium (WRC) to influence businesses and society while advancing moral behaviour all the way up the supply chain.
    - - A good example of how social influence shapes customer views is Nike's "Just Do It" ad, which features athlete Colin Kaepernick and emphasises social justice causes and ethical brand backing.
  - - - Nike's participation in the Sustainable garment Coalition (SAC) displays its dedication to the garment industry's adherence to human rights, labour regulations, ethical labour practises, and environmental responsibility.
    - - In order to ensure compliance with the legal minimum age, reasonable working hours, and fair compensation, Nike's Supplier Code of Conduct establishes criteria for suppliers in the areas of labour practises, working conditions, remuneration, and ethical standards.
    - - As a Fair Labour Association member, Nike carries out independent supply chain audits to guarantee that labour laws are followed and that employees are treated fairly.
  - - - Given that they may affect trade policy and supply chain operations, bilateral connections are crucial, as seen by Nike's substantial manufacturing base in China and its reliance on Vietnam and Indonesia.
    - - Nike diversifies its worldwide operations in response to the trade issues between the USA and China, addressing possible tariffs and supply chain disruptions.
- - - - Through reports, films, and interactive platforms, Nike should openly express its dedication to sustainable development, fair labour practises, and ethical sourcing. By doing so, it will ensure consistency in its messaging and share both its accomplishments and failures in resolving ethical issues.
    - - By supporting sustainability and climate action and involving customers via narrative, interactive experiences, and collaborations, Nike's "Move to Zero" campaign successfully allays ethical concerns.
  - - - By prioritising adherence to labour regulations, offering frequent training, establishing third-party audits, and forming supplier alliances, Nike can assure ethical labour practises.
    - - To advance moral behaviour, increase responsibility, and improve transparency in its ethical activities, Nike should work with trade groups like the Fair Labour Association
  - - - Ethical Sourcing Campaigns
        
        Nike's "Making" app encourages ethical sourcing by being transparent about the components and production procedures used in their goods and emphasising the effects those products have on society and the environment.
    - - Nike and the Fair Labour Association collaborate to ensure ethical working conditions in the factories that make up its supply chain.
  - - - Nike intends to leverage blockchain technology to establish a transparent supply chain record that will guarantee that data on product origin, manufacture, and distribution is kept intact. At every point, working with technology partners improves transparency.
    - - By creating digital platforms for supply chain practises and sustainability and frequently updating these platforms with verifiable data, Nike can increase transparency and confidence.