NIKE, Inc. Public Policy Position Highlights

Supply Chain

Freedom of Association. We are updating Nike's Code and Code Leadership Standards to make clearer the responsibility of contracted factories to respect their employees' right to freedom of association and collective bargaining to the extent permitted by local law. This includes the right to form and join trade unions and other worker organizations of their own choosing without harassment, intimidation, interference or retaliation. Where national law restricts freedom of association, the contracted factories are required to facilitate alternate means to individually and collectively engage with their employees and for employees to express their grievances and protect their rights regarding working conditions and terms of employment.

The updated requirements will also address the obligation to comply with any local laws providing special protection to employees or worker representatives engaged in union activities, a prohibition on disciplining employees having engaged in legal strikes, the duty to bargain in good faith and honoring the terms of any negotiated collective bargaining agreement.

Responsible Transitions. We are updating Nike's Code Leadership Standards to include worker protections in the event of factory closure or retrenchment. These steps include standards for factories that include, at a minimum, notice, consultation, severance and collective bargaining.

Contracted manufacturers are also required to make payment to workers of retirement or severance funds, in compliance with local law. This requirement includes contracted manufacturers facilitating payments of social security provisions to which the employee may be entitled, such as unemployment insurance, and accurate record keeping on payment into and maintenance of funds to ensure workers are protected.

In addition, contracted manufacturers are encouraged to go beyond what is required by law or collective bargaining to provide outplacement or retraining assistance, additional financial support, medical benefits and assistance in obtaining government benefits. The contractor is encouraged to provide these either directly or in coordination with governments, NGOs or third parties.

Developing/Enabling Competitive Supply Chains. NIKE, Inc. recognizes the need for a well-coordinated and efficient supply chain for its business and the industry. Because the supply chain spans multiple jurisdictions from raw materials to production to shipping to retail and, ultimately, to consumers, a consistent and mature public policy position is needed.

We support policies that deliver efficient, cost-effective delivery of NIKE, Inc. products in a responsible manner. Our efforts concentrate on ensuring efficient transport, security and safety of NIKE, Inc. products throughout the supply chain. In addition, we advocate for policies that help to ensure that NIKE, Inc.'s supply chain - from factory to consumer - operates in a manner that considers both people and the environment at each step of the way. We work with a number of bodies to advocate for these policies. These include national governments, industry associations and NGOs.

Infrastructure in Vietnam. Nike has played a leadership role, along with other businesses and multilateral development organizations, in supporting infrastructure development in Vietnam. Nike created and led a public-private partnership that offered an Infrastructure Exchange Program for Vietnamese government officials. The first component of the program involved having key Vietnamese government officials visit a Nike footwear factory in Vietnam and subsequently physically follow the movement of finished products from the factory to the port. The group traveled to southern China, an area well known for its development of physical infrastructure. They also visited Singapore to see world-class port facilities and operations and learn about infrastructure planning and financing. Each component included presentations and dialogue with experts in various fields.

We believe improved infrastructure, specifically roads and ports, will lead to additional investment and job creation in Vietnam, thereby improving economic opportunities and the standard of living.

Improved roads and related infrastructure lead to more efficient transport of goods, contribute to a decrease in traffic congestion, and reduce emissions and related pollution. These improvements benefit businesses, including Nike, that contribute to job creation and economic development. This model of cooperation is an example of how the private sector can work with other key stakeholders on important development issues and opportunities.