Source : Procurement Leaders
Nike has told its manufacturers in the Far East that they will have to improve labour and sustainability standards or risk losing its business.
The move comes after technology giant Apple opened up its supplier factories to inspection by the Fair Labor Association (FLA) after a number of suicides and injuries amongst staff.
More than 90% of Nike’s trainers are made in Vietnam, China and Indonesia and the shoemaker is encouraging its supplier to improve worker benefits and introducing a safety grading system called ’The Manufacturing Index’.
The index looks will look at the total performance of a factory as well as how that factory approaches sustainability.
Hannah Jones, vice president of sustainable business and innovation at Nike, told Bloomberg that “We will be moving away from companies that are not committed to putting workers and sustainability at the heart of their growth agendas.”
“There are new rules of engagement,” she said.