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the external and internal communication, edit the document using Track
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To: Nike Employees
Date: March 26, 2019
Priority: High
Subject: Poor working conditions identified at Pou Chen Group factory in Sukabumi, Taiwan
Through our established 100% third party working conditions overseas auditing firm,
unacceptable working conditions were identified that are not in compliance with our internal
policies and code of conduct. The Pou Chen Group factory was found to have extremely poor
treatment of workers to include inhumane working conditions. Roughly 10,000 primarily female
employees have been forced to work 10 or more-hour days making only 50 cents per hour which
is prohibited by our company as it is less than the required living wage for that region.
Additionally, workers were found to be subject to physical and verbal abuse enduring long
punishments forcing workers to stand in the hot sun for failing to meet production standards.
Per Our Corporate Code of Conduct
We embrace accountability and leadership in advocating for the protection and respect of
workers worldwide, because it is the right thing to do, and because it makes our business more
resilient and more innovative.
We want to be clear, we specifically and directly forbid these unfair and inhumane working
conditions in any factories contracted to make Nike products, and we regularly monitor contract
factories to remain vigilant. We do not make exceptions to this for new suppliers entering our
source base nor for any other types of suppliers.
We are committed to responsible employment practices for our own employees, and we expect
the same of our suppliers. We also believe that the protection of life and health in the workplace
is a fundamental right.
Our immediate response is to enforce a probationary period to allow the company 30 days to
become compliant with our corporate requirements. The terms of this period are as follows.
Require an onsite Nike compliance manager to ensure improvement in working conditions as we
are aware that suspending our active business with the Pou Chen Group will drastically impact
the livelihood of the workers. Require monthly inspections of working conditions for one year to
ensure compliance structure is in place to guarantee the safety of factory workers.
The Pou Chen Group has 30 days to meet all regulatory compliance standards or Nike will
terminate any further business relationship with this supplier.
Respectfully,
Mark Parker, CEO Nike Inc.
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