Implicit in that act was the determination that we would build our business with all of our partners based on trust, teamwork, honesty and mutual respect. We expect all of our business partners to operate on the same principles.
At the core of the NIKE corporate ethic is the belief that we are a company comprised of many different kinds of people, appreciating individual diversity, and dedicated to equal opportunity for each individual.
NIKE designs, manufactures and markets products for sports and fitness consumers. At every step in that process, we are driven to do not only what is required by law, but what is expected of a leader. We expect our business partners to do the same. NIKE partners with contractors who share our commitment to best practices and continuous improvement in:
Management practices that respect the rights of all employees, including the right to free association and collective bargaining
Minimizing our impact on the environment
Providing a safe and healthy work place
Promoting the health and well-being of all employees
Contractors must recognize the dignity of each employee, and the right to a workplace free of harassment, abuse or corporal punishment. Decisions on hiring, salary, benefits, advancement, termination or retirement must be based solely on the employee’s ability to do the job. There shall be no discrimination based on race, creed, gender, marital or maternity status, religious or political beliefs, age or sexual orientation.
Wherever NIKE operates around the globe we are guided by this Code of Conduct and we bind our contractors to these principles. Contractors must post this Code in all major workspaces, translated into the language of the employee, and must train employees on their rights and obligations as defined by this Code and applicable local laws.
While these principles establish the spirit of our partnerships, we also bind our partners to specific standards of conduct. The core standards are set forth below.
Forced Labor. The contractor does not use forced labor in any form -- prison, indentured, bonded or otherwise.
Child Labor. The contractor does not employ any person below the age of 18 to produce footwear. The contractor does not employ any person below the age of 16 to produce apparel, accessories or equipment. If at the time Nike production begins, the contractor employs people of the legal working age who are at least 15, that employment may continue, but the contractor will not hire any person going forward who is younger than the Nike or legal age limit, whichever is higher. To further ensure these age standards are complied with, the contractor does not use any form of homework for Nike production.
Compensation. The contractor provides each employee at least the minimum wage, or the prevailing industry wage, whichever is higher; provides each employee a clear, written accounting for every pay period; and does not deduct from employee pay for disciplinary infractions.
Benefits. The contractor provides each employee all legally mandated benefits.
Hours of Work/Overtime. The contractor complies with legally mandated work hours; uses overtime only when each employee is fully compensated according to local law; and informs each employee at the time of hiring if mandatory overtime is a condition of employment. On a regularly scheduled basis, the contractor provides one day off in seven, and requires no more than 60 hours of work per week, or complies with local limits if they are lower.
Environment, Safety and Health (ES&H). The contractor has written environmental, safety and health policies and standards, and implements a system to minimize negative impacts on the environment, reduce work-related injury and illness, and promote the general health of employees.
Documentation and Inspection. The contractor maintains on file all documentation needed to demonstrate compliance with this Code of Conduct and required laws; agrees to make these documents available for Nike or its designated monitor; and agrees to submit to inspections with or without prior notice.
FINES & DEPOSITS
Every worker should be fully compensated for all time worked. That earned income cannot be reduced due to performance or disciplinary shortcomings. Performance or behavior issues must be dealt with by standard management tools including counseling, warnings and/or ongoing training.
This policy does not prevent factory management from restricting or eliminating bonuses or other additional income opportunities based on performance issues. Employees found responsible for loss or damage of property may also be held financially responsible.
Deposits can not and should not be required as a condition of employment. Deposits are defined as any form of cash or other security owned by the worker and held by the employer as a bond against loss or damage of equipment; as a bond against the first month's pay; or as surety against damage to living spaces and furnishings.
1. REGNANCY AND MATERNITY LEAVE
One of the governing principles of the Nike Code of Conduct is that of equal opportunity for each individual. In that spirit, Nike condemns management practices that discriminate against job seekers on the basis of gender, race, creed, political or religious beliefs, sexual orientation, or marital or maternity status.
It may be appropriate, for reasons of the health and well-being of the mother and unborn child, for factories managers to protect pregnant women from certain forms of work, and to restrict work to hours that are safe and healthy.
But no company should promote, encourage or allow hiring policies that discriminate against pregnant women.
To protect women's rights, and ensure pregnant women specifically are able to contribute to their families by earning a living under the proper conditions of employment, Nike's policy and requirement for all contractors shall be:
Pregnant Workers
The factory shall not discriminate against pregnant workers. The factory must also comply with the local labor regulations regarding maternity leave. These might include but are not lim¬ited to: all mandated days of leave before and after delivery, and all compensation, and provisions for return to the job. Factories are also required to provide adequate care for pregnant workers, including but not lim¬ited to all provisions mandated by law, and/or recommended by a licensed physician, such as light duty, temporary job rotation, exposure to potential work place hazards and limited hours of work.
2. PERSONAL PROTECTIVE EQUIPMENT
Contractor shall have a simple clear, written and mandatory PPE policy. This policy will include:
All PPE will be provided free of charge and where applicable, maintained or updated according to manufacturer's specifications.
Any worker required to use PPE will be given appropriate initial and ongoing training.
All training will be documented and a signed acknowledgment by the employee receiving PPE will be maintained in his or her employment file.
A provision that proper PPE use in designated areas is a condition of employment. Non-compliance with PPE policy should be followed up with written warning and additional training. Persistent non-com¬pliance may result in termination of employment.
Requirements that supervisors and managers comply with and enforce the mandatory PPE policy.
Areas where PPE use is mandatory will be clearly demarcated by both signage and demarcation lines.
PPE is a shared responsibility. PPE that must be replaced due to loss or damage caused by negligence will be the responsibility of the worker. The contractor agrees to provide replacement PPE to the worker at cost. Contractor further agrees to provide proper PPE storage where appropriate.
3. ANNUAL LEAVE
In order to maintain a work/family balance, contractors are required to provide annual leave as a part of an employee's compensation and benefits package. Employees should be encouraged to take annual leave and not to accept the practice of additional work for additional bonus pay.
Employees should be allowed to take leave at their chosen time provided adequate notice is given to man¬agement. Management should not discourage employees from taking leave for consecutive days.
4. PAY MANAGEMENT
Time Keeping. In order to ensure clarity and consistency, the contractor is required to use mechanical time-keeping clocks to track each worker's hours of work. The time-keeping system should be used for recording both start and stop times. The use of one time card is preferred. This practice ensures that no mistake in hours accounting, and consequently wage calculation, occurs.
Pay Documentation. At the time of receiving his or her wages, every employee must receive a personal printed copy of a clear, understandable payment record in the local language. Such records will ensure that there are no misunderstandings between management and workers regarding compensation and all rele¬vant calculations. This practice protects the rights of both the factory and the worker, and should be accom¬panied by worker training, so that each employee fully understands the payment format. The record should include at least the following:
all regular hours worked;
all overtime hours worked;
all compensation rates for hours of work;
totals for regular and overtime compensation;
all additional compensation such as individual/team bonuses;
all additional cash benefits such as transportation or food allowances;
all deductions for insurance and/or other legally mandated deductions.
5. TRAINING WAGES, PIECE RATES & OVERTIME PAY
Training wages
Newly-hired workers in training must be compensated at or above the country/region minimum wage level, regardless of local allowances for training wages.
Piece rate / Quota compensation
Workers be compensated no less than the country / regional minimum wages, regardless of quota or piece rate agreements.
Workers must be fully compensated at or above the legal requirements for overtime regardless of piece rate or quota targets.
If a quota or piece rate system is in practice, targets must be established with documented input from worker representatives, including worker union representatives if applicable.
Where required by law the unit price during the overtime period must follow the OT rate estab¬lished by local law.
Basic wage structure
Each contract factory must consider the following when establishing a wage and salary structure.
job performance
type of work
years of service
6. NEW FACTORIES AND LABOR PRACTICE AUDITS
Before Nike manufacturing management approves any new factory for production, or places the initial product order, that factory must agreed to, pay for and undergo an independent 3rd party Labor Practices Assessment Audit, as well as a Nike SHAPE inspection.
The findings of both inspections must indicate that the factory is in substantial compliance with the Nike Code of Conduct.
If the factory is judged not to be in substantial compliance, it must make necessary corrections and submit to a re-audit, which it must pay for, and/or re-inspection.