Nike Q & A ▲ M ountain Equipment Co-op introduced Nike ACG products into our footwear lineup in 2004. We’ve developed this fact sheet for two reasons: so members are aware that Nike ACG makes performance outdoor footwear Q Why is MEC carrying Nike ACG footwear? Workplace Monitoring A An ever-growing number of members have asked MEC for trail running and approach shoes with a more technical focus than our current offering. Nike ACG footwear will provide MEC members with performance outdoor products from a leading manufacturer. After a thorough assessment, we have concluded that Nike meets MEC’s supplier sourcing requirements. Nike’s labour and environmental practices conform to the standards we have set for all our suppliers. • • Q Why Nike? Did MEC research other vendors? A MEC conducted a thorough review of possible suppliers. We concluded that Nike ACG makes some of the best-designed and most functional footwear for MEC’s core activities. Other leading brands of trail running and approach shoes do not have the wilderness-oriented focus of Nike ACG footwear. • Q How many footwear models were introduced? and to inform members that A Ten models from the Nike ACG line will be available from MEC in 2004. • Nike produces footwear in ways Q Will doing business with Nike compromise MEC’s efforts to be socially and environmentally responsible? • confident that Nike is committed to making ongoing progress with their environmental practices and workplace monitoring. A MEC’s track record and performance in the areas of community involvement, ethical sourcing, and sustainable business operations reflect the depth of our commitment to sustainability. The decision to carry Nike ACG footwear was made only after a thorough screening of Nike through MEC’s Sourcing Policy and Supplier Code of Conduct. We are confident that Nike is committed to continual improvements in the area of corporate responsibility. We will continue to monitor Nike’s sourcing and business practices and treat them with the same diligence and rigour as we do our other vendors. Q What evidence supports the claim that Nike is committed to greater environmental and social responsibility? A Here are some examples of Nike initiatives and programs: Photo: Rich Wheater Printed in Canada on 100% post-consumer recycled paper Each year, Nike monitors the working conditions of more than 500,000 workers in more than 700 factories. Nike has over 80 compliance workers in 4 regions. Their compliance team communicates in over 30 languages. Nike is a member of the Fair Labor Association and is subject to its factory compliance program. Nike has a track record of both internal and external monitoring. It is committed to remediating identified issues that don’t meet their standards and to report publicly, where possible, on their findings. Environmental Responsibility that meets many members’ needs, that align with MEC values. We’re Fact Sheet • • Since 1993, Nike has reclaimed more than 13 million pairs of athletic shoes–both its own and competing brands–through the Reuse-A-Shoe program. The used shoes are ground up to make surfaces for athletic playing fields, as well as outsoles and midsoles for new shoes. In certain models, Nike has reformulated the shoe rubber to eliminate toxins found in ordinary rubber. These ‘green rubber’ shoes are exclusive to Nike. Nike has instituted waste reduction programs to reduce the amount of waste they generate and to recycle as much as possible. Wherever technically possible, Nike directs its suppliers to use solvent-free adhesives in its shoes. Nike has virtually eliminated the use of polyvinyl chloride (PVC) in its shoes. Community Involvement • • Nike donates three percent of pre-tax profits to charity and community groups in the form of cash, product, and in-kind. The industry standard is one percent. In the US, Nike donates $10 to non-profit organizations for every hour of time an employee spends doing volunteer work. They also match employee donations to non-profit organizations up to $5,000 per employee, per year. ▲ Fact Sheet Q What does Nike’s Code of Conduct encompass? Are children working in their contract factories? Q Are Nike’s advertising and promotional campaigns that feature elite athletes at odds with MEC’s focus on amateur outdoor enthusiasts? A Nike’s Code of Conduct sets a minimum age standard of 18 for footwear, which is higher than the International Labour Organization’s standard of age 15. Nike uses this standard to perform its sourcing audits, and any contract factory found to be employing a person under 18 years of age must: a) remove the child from the workplace, b) continue to pay his or her wage, c) place the child in an accredited local school and pay all fees to keep them there, and d) rehire them when they reach minimum age. A MEC’s co-operative business model is fundamentally different from the ‘for profit’ model of most outdoor retailers and manufacturers. Nike’s elite athlete ads are one example of this difference at play in the marketplace. We share many MEC members’ discomfort with these ads, and similar ads of other suppliers. Brand-level concerns, however, do not detract from the quality and functionality of Nike ACG products nor the progress that Nike has made in its sourcing and environmental practices. Q Hasn’t Nike been found by a US court to have lied about their factory conditions? Q Where can I get additional information? Where can I direct my questions, feedback, and/or concerns? A No. The California Supreme Court ruling, which overturned two lower court rulings, never addressed the truth or falsity of any of Nike’s statements. At issue in the Kasky vs. Nike case was a letter to the editor written by a Nike spokesperson to the New York Times that defended Nike’s sourcing practices. Nike was seeking that the same First Amendment protection afforded to individuals also be afforded to corporate statements–i.e., Nike sought First Amendment protection to state its opinion. A An MEC Sourcing Policy fact sheet is available from our stores. For more in-depth information, including the full texts of our Sourcing Policy and our Supplier Code of Conduct, please visit www.mec.ca/sourcing. You can also email MEC’s Social and Environmental Responsibility Manager at sourcing@mec.ca. Reprint # P0730204E In June 2003, Nike reached an out-of-court settlement with the plaintiff that will see Nike pay $1.5 million to the Fair Labor Association, a US workplace monitoring organization. The settlement ended the Kasky vs. Nike case. Information from third parties is also available: Fair Labor Association: www.fairlabor.org The Global Alliance for Workers and Communities: www.theglobalalliance.org Photo: Rich Wheater For more information, visit www.mec.ca/sourcing