Nike is facing pressure from activist shareholder platform Tulipshare to provide more transparency on working conditions in its supply chain.
In a shareholder proposal released Thursday, London-based Tulipshare requested a report from Nike on whether its policies effectively address its stated equity goals and human rights commitments.
The group, which owns 276 Nike shares and aims to help investors push for environmental and social commitments, asked Nike for information on the methodology and metrics used to track forced labor and wage theft risks.
Nike wants us to trust them – blindly
While Nike’s most recent impact report cites forced labor, supply chain transparency, and labor rights as priorities, Tulipshare asserts that Nike has not adequately disclosed how it assesses the risk of Uyghur forced labor within its supply chain.
International garment worker unions and labor rights groups have also filed a complaint against Nike with the US State Department, alleging that the company violated OECD Guidelines by failing to engage in discussions with unions representing Nike supply chain workers about the impact of layoffs and pay cuts during the COVID-19 pandemic.
Nike has previously denied sourcing products from China’s Uyghur region. The company’s fiscal 2022 statement on forced labor highlights its commitment to sustainability and human rights, product excellence, and compliance with local laws through long-term supplier relationships.
However, Nike has yet to provide a response to the allegations or the shareholder proposal.
Not the first and certainly not the last call on Nike
With the help of our community, Freedom United wrote to top Nike shareholders in 2021 ahead of an AGM to demand that they pass a resolution that would require Nike to do the absolute bare minimum of due diligence by conducting and publishing a human rights impact assessment of its entire production line. Over a quarter of Nike investors voted in favor of the proposal which is a feat in itself but not sufficient to require the assessment.
We welcome this initiative of Tulipshare and call on Nike to take immediate action to address these concerns and ensure that forced labor is not present in any aspect of its supply chain.
Keep the pressure on Nike and take action today.