News Editor: Said El Mansour Cherkaoui
On Tuesday 10, 2024, Nike shareholders voted against a proposal to consider joining binding agreements with supply chain workers to better address human rights issues in high-risk countries at its annual meeting. The proposal was presented by an investor group led by Domini Impact Equity Fund, consolidated by more than 60 investors to sign a letter last year urging Nike to pay $2.2 million in allegedly unpaid wages to some 4,000 garment workers in Cambodia and Thailand.
A similar petition, led by investor Tulipshare, was put forward for a second year in a row urging the company to assess the effectiveness of its supply chain management, including looking into forced labor and wage theft-related concerns.
Shareholders also voted against the proposal on Tuesday. Last year, the same was rejected by nearly 80% of the investors who had voted.
Nike’s board had recommended that shareholders vote against both the proposals. The company said it has established robust controls to identify and address labor issues throughout its supply chain. … Read more
Nike shareholders recently rejected two proposals to improve workers’ rights in high-risk countries. The first proposal sought to push Nike into binding agreements with supply chain workers to address human rights issues. The second proposal, called for Nike to assess the effectiveness of its supply chain management regarding forced labor and wage theft concerns.
Despite support from some shareholders, including Norway’s wealth fund, both proposals were rejected, aligning with Nike’s board’s recommendations.
But don’t worry, the shareholders did approve executive compensation, with CEO John Donahoe receiving $29.2 million for 2024.
In light of this news, I find Nike’s latest sustainability report and the statements in it particularly ironic, especially the ones about being a value-driven company that puts people first. They just put some people first.
By Julia Vol – Photo source: Nike social responsibility report 2023.
‘Nike Uncool’ The Man Who Made Nike Uncool : The Donahoe Dip Nike lost its swagger : Does the store carry any Nikes? “Not at the moment,”
Nike products accounted for roughly 75% of Foot Locker’s total purchases. That dropped to 70% in 2021, then below 60% in 2022. Foot Locker sales slumped as the pullback accelerated, so Johnson filled the void with New Balances, Pumas, Reeboks and Timberlands. Heck, why not more Crocs? “Ultimately, our team is working hard to make sure that we grow all brands, right?”
easier to jump to a competitor—Adidas, Hoka, Mizuno, On and Under Armour had all opened hubs in Portland to attract talent, either from Nike or fresh out of the specialized sports product programs at the University of Oregon. Nike was losing some of its top footwear designers.
“Panda Dunks” one attendee on a video later posted on TikTok, summarizing the collective sentiment “They are now becoming overrated, and we need to cancel them” “NO Limited Exclusive” Donahoe flooded the market with sneakers shoppers couldn’t get enough of. Nike released more Dunks, Air Force 1s and Air Jordan 1s—models all developed around 40 years ago—in hundreds of colors, with new drops almost daily
Mark Parker Nike produced some of its biggest advances, including the Flyknit manufacturing technology and HyperAdapt 1.0 self-lacing shoes : CEO John Donahoe led a corporate culling on a global scale, ending relationships with more than half of his retail partners, terminating hundreds of agreements and downsizing sales teams in markets around the world.
As Nike directed customers to its own stores and websites, it halted the flow of sneakers to retailers including Amazon, Zappos, Dillard’s and Urban Outfitters, and even curtailed goods at its closest partner in the US, Foot Locker : pace of product development slowed as Donahoe took fewer risks on performance-oriented shoe lines across sports. By mid-2023, it was becoming apparent that Dunks and the other reliable lifestyle winners were losing their allure, and Nike had nothing to replace them
“I have fired so many people in my career. And when I say fired, remember, I grew up at Bain. For every 10 people we hired, we managed half out within two years. We managed 75% out within five. …
So I learned there, and you can’t be afraid of that conversation” He explained how he’d role-play with the head of human resources and make sure the person being fired didn’t get to discuss it with him
“I’m going to let you process the grief and emotion with someone else, not with me, because I can’t afford the emotional energy—the emotional drain” Among those laid off were more than 30 software engineering directors and managers from the global tech division
Scott Sutherland
CEO of shoe company gets paid $29 MILLION dollars to create shoes fewer people are interested in wearing, while the company continues to get to socialize its environmental and social impact to the rest of us.
So much of this boils down to 5th grade issues. Many of us are not having children because it simply costs too much and our climate is being so destabilized by those who are just lining their pockets for their own short-term gain, that the prospect seems too risky.
All of this is tied to the resentment on the political right and left. We need an economy that’s fair. With basic legal guardrails we can get there. It doesn’t have to be this way, we can have nice things.
h/t to Ken Pucker for sharing.
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