NIKE Factory Inspection

一、Introduction to Nike

Nike, headquartered in Beaverton, Oregon, USA, is a world-renowned manufacturer of sports goods. The company produces a wide range of sports goods, including clothing, footwear, sports equipment, and so on. In the fiscal year 2002, the company's operating revenue reached a record high of 4.98 billion US dollars, an increase of 2% compared to the fiscal year 2001.

Nike has proven its founder Bill with its impressive performance? Bowerman once said, 'As long as you have a body, you are an athlete.'. And as long as there are athletes in the world, Nike will continue to grow and grow

'Sports' is Nike's language

In 1962, a graduate of the University of Oregon, Bill? Bowerman and alumni Philip? Knight co founded a company called 'Blue Ribbon Sports', specializing in sports goods. In 1972, Blue Ribbon Company was renamed Nike Company, and from then on, it began to create its own legend.

Company founder Bill? Since graduating from the University of Oregon in 1947, Bowerman has been staying as an athletics coach and has trained the legendary figure in world athletics history - Steve Prefontaine. Bill? When Balman was young, his family was poor, and his bumpy experiences cultivated his iron will. And Philip, the current chairman and CEO? Knight, as one of the two main founders of the company, also contributed significantly to Nike's development.

In 1959, Knight graduated from the University of Oregon with a Bachelor's degree in Business Administration. A year later, he entered the prestigious Stanford University to pursue a Master's degree in Business Administration. Strict management education has equipped him with the qualities to become an excellent manager. In the following years, the two alumni will work hand in hand and help each other in the same boat, leading the company to continuously develop and grow. Today, Nike's production and operation activities are spread across six continents worldwide, with a total of 22000 employees and nearly 1 million suppliers, shippers, retailers, and other service personnel working with the company.

Nike has always regarded motivating every athlete around the world and offering the best products as an honorable task. Nike's language is the language of movement. Thirty years have passed, and the company has always been committed to creating opportunities for everyone to showcase themselves. Nike fully understands that only by utilizing advanced technology can we produce the best products. So Nike has always invested a lot of manpower and material resources in the development and development of new products. Nike's pioneering air cushion technology has brought a revolution to the sports industry. Sports shoes made using this technology can effectively protect athletes' ankles and prevent them from twisting during intense exercise. Sports shoes that use air cushion technology became very popular as soon as they were launched. Both ordinary consumers and professional athletes love it.

In 2001, Nike launched a new shockproof technology called Shox after developing air cushion technology. Sports shoes produced using this technology are also popular, and sales are steadily increasing. In addition to sports shoes, Nike's clothing is also full of innovative works. For example, high-performance textiles manufactured using FIT technology can effectively assist athletes in training and competition under any meteorological conditions. Other sports products manufactured by Nike, such as watches, glasses, and so on, are all crystallization of high-tech.

二、Nike C-TPAT Checklist

A. Background information

1. Company name and address?

2. Please specify the type of company (supplier, processor, warehouse operator, other warehousing business operator, carrier, etc.).

3. Is the company a member of the following programs or organizations: Commercial Counter Terrorism Alliance (C-TPAT), Container Preservation Movement (CSI), Carrier Action (CSI), Supercarrier Action (SCIP), Anti Commercial Smuggling Alliance (BASC), or other programs assisted by US Customs.

B. Security of storage locations (to be answered by each warehouse manager of the supplier)

1. Is there any alarm facility in the storage area. If so, please explain.

2. What is the operating time of the warehouse?

3. Are security guards employed and their duty hours?

4. Is there a designated storage location for the goods?

5. Are the goods placed outdoors?

6. Please describe the situation around the protective fence and indicate if it is complete?

7. Are all doors and windows locked? Please explain separately.

8. Are all gates and fences locked? Please explain.

9. Is the entrance and exit gate under the supervision of security or management personnel? Explain the monitoring situation.

10. Explain the lighting conditions inside and outside the warehouse.

C. Control of entry and exit of the factory (suppliers, goods storage facilities)

1. Is there any monitoring of visitor access? Explain the method of monitoring.

2. Is there a visitor access audit system? For example: Visitor ID card.

3. Have you saved visitor information?

4. Are visitors inspected during entry and exit?

5. Is there a procedure to handle the incoming and outgoing cargo trucks? Please explain.

6. Where is the driver waiting and is this location an isolated area?

7. Are private vehicles allowed to park near loading and unloading locations or warehouses?

8. Is there a parking space available for employees?

9. Do contractors and suppliers also follow the monitoring procedures for general visitors during their visits, including being familiar with each other?

10. Do contractors and suppliers need to present their ID cards and company proof when visiting, even if they are familiar with each other?

D. Program Control

Receiving, storing, and shipping containers

1. Is the container weighed, labeled, and counted upon receipt?

2. Will the received program be inspected by a separate party?

3. What documents are required when receiving export containers?

4. Have you checked the weight, description, and quantity of the goods to ensure they match the shipping documents?

5. Are personal photos of the shipper or deliverer registered and confirmed before receiving their goods?

6. How are the goods stored? What measures have been taken to prevent damage?

7. Are import and export goods stored separately?

8. Is there a container positioning system? If so, please explain.

9. Are there signs for import, export, and specific container storage areas?

10. Is there a fence separating goods for immediate, export, and domestic sales?

11. Are dangerous containers labeled?

12. Are hazardous containers stored separately?

13. How often does a shortage or backlog of goods occur?

14. Are the goods weighed and counted before shipment?

15. Is piece counting and weighing accounted for by an independent party?

16. Is there a lead seal on the incoming container?

17. Are there any lead seals on the containers that leave the factory?

18. Did you check the lead seal during loading and unloading?

19. Is there a lead seal control record program in place? If so, please explain.

20. How to store a full container?

21. How to store empty containers?

22. Is the full or empty container at the exit weighed according to the receipt?

23. Are there frequent incidents of receiving emergency shipping?

24. Please explain how to monitor the loading process to prevent containers not listed in the warehouse receipt from being loaded on board?

Is there an inspection conducted when picking up empty containers at the container yard?

26. Have empty containers been inspected before shipment?

27. Have empty containers been inspected before unloading?

28. Are there security personnel monitoring the entry and exit of goods?

E. Transport loading/unloading (cargo carrier)

1. Is there lighting in the transportation area?

2. Is the container transported directly from the warehouse to the transport vehicle?

3. Are the containers in the receiving area quarantined?

4. Is the area near the transportation area kept organized?

F. Employee review (all service personnel should answer)

1. How many employees are there?

2. Have you conducted a background check on employees over the past 5 years?

3. Do new employees need to fill out detailed application forms?

4. Do prospective employees need to undergo interviews?

5. Have the application form and interview materials or information been confirmed?

6. Have the following procedures been carried out: police investigation/home visit/credit inquiry/drug testing?

7. Are there any fingerprints and photos registered during the application process for new employees?

G. Confirmation from employees (all service personnel need to answer)

1. Do you want to provide an ID card?

2. Is there a sign in the restricted area?

3. Are unauthorized personnel prohibited from entering restricted areas?

4. Have they been questioned? If so, who is it?

5. Do they have accompanying personnel, and if so, who are they?

6. Is the photo of the shipper/consignee registered and saved?

7. Who will control these confirmation procedures?

8. Do you have a visitor ID?

H. Employee training (all service personnel need to answer)

1. Is there a safety awareness program in place? If so, please provide a copy of the program.

2. Is the storage location a restricted area?

3. Is there an internal audit of security procedures? If so, how often?

4. Is this review pre notified or random?

5. Are there any retained records for this type of audit? If so, please provide the latest record.

6. Are there records of past safety issues kept?

7. How many recorded security violations have occurred in the past three years?

8. How many times were there last year?

9. Is there an incentive mechanism for active employees to participate in activities that provide safety?

3、 Nike sets corporate goals to achieve ambitious corporate responsibility goals

Nike, Inc. today released its Corporate Responsibility Reports for fiscal years 2005 and 2006, along with a series of corporate goals for 2011, further integrating corporate responsibility goals into its long-term development and innovation strategy.

These goals set benchmarks for improving labor conditions in foundries, becoming a 'climate neutral' enterprise, promoting sustainable product design and innovation, and unleashing the potential of young people by providing them with more exercise benefits. Nike President and CEO Mark Parker stated, 'We view corporate responsibility as a catalyst for development and innovation. Corporate responsibility is an essential part of our overall strategy of leveraging our brand strengths, employee energy and passion, and enterprise economies of scale to achieve significant transformation.' Nike's corporate responsibility goals include: - By 2011, Improve labor conditions by reducing excessive overtime in Nike branded factories. Excessive overtime violates current labor laws and regulations, which is one of the most serious problems faced by Nike and the industry. Nike's focus will continue to be on improving the conditions of approximately 800000 contract workers who produce Nike products-- By 2011, all Nike brand factories, retail stores, and business departments were made climate neutral. Through the World Wildlife Fund's Climate Savers program, Nike has exceeded its goal of reducing carbon dioxide emissions in the past two years. During the 14 year development period of the Nike Air shock absorption system, Nike also reduced the content of fluoride gas in all its brand products.

Before 2011, the design of all Nike brand shoes (with an annual production of over 225 million pairs) reached the benchmark goal of reducing waste in product design and packaging, reducing the use of volatile organic compounds, and using more environmentally friendly materials. The plan is to achieve benchmark targets for all Nike brand clothing by 2015 and for all devices by 2020. Nike is designing sustainable innovative solutions for its products, which the company expects to create value throughout its entire supply chain and provide support for achieving its goals-- Invest in community programs that utilize the energy of exercise to unleash the potential of young people and improve their lives. In the past two years, Nike has invested $100 million in community sports programs. Nike plans to invest at least $315 million by 2011. In addition to setting business goals, Nike continues to be committed to making the supply chain transparent by continuously updating the public information of over 700 foundries producing Nike products worldwide. In 2005, Nike became the first company in the industry to publicly disclose its manufacturer information to encourage industry transparency and cooperation. Nike has also made its debut in the http://www.nikeresponsibility.com Announce the audit methods of its contracted factories on the website. These methods help the company further disclose how it evaluates and supervises the foundry to meet company standards, and help provide more relevant professional knowledge. Nike's Corporate Responsibility Report has been released online, providing more details on these and other business goals. The report also provides a comprehensive review of the company's corporate responsibility work for the fiscal years 2005 and 2006, as well as some forward-looking strategies. This is the company's third public corporate responsibility report. The fiscal reporting period from 2005 to 2006 includes a critical period during which Nike made significant progress in developing, defining, and approaching corporate responsibility goals. Nike, headquartered near Beaverton, Oregon, is a global leader in the design, promotion, and sales of high-quality sports shoes, sportswear, sports equipment, and accessories for various sports and fitness activities. Nike's wholly-owned subsidiaries include Converse Inc., which designs, promotes, and sells sports shoes, sportswear, and accessories, Nike Bauer Hockey Inc., a leading hockey equipment design and sales company, Cole Haan, a leading design and sales company for high-end footwear, handbags, accessories, and outerwear, as well as extreme sports and youth fashion footwear Hurley International LLC for clothing and accessories, and Exeter Brands Group LLC for designing and selling sneakers and sportswear for value retail channels.

4、 Nike Co action Contract Regulations

Labor contract

1.1 Applicable objects of labor contracts:

（1） As long as a labor relationship is formed between enterprises, individual economic organizations, and workers, that is, the workers have in fact become their members and provide them with paid labor.

（2） Organs, public institutions, and associations that implement a labor contract system, as well as those that are required to implement a labor contract system according to regulations.

Personnel of public institutions that implement enterprise management.

Other workers who establish labor relations with government agencies, public institutions, and associations through labor contracts.

（3） Civil servants and staff members of public institutions and social organizations who are compared to civil servants, rural laborers (excluding township enterprise employees and farmers who work or do business in cities), active military personnel, and family nannies are not applicable.

1.2 Chinese regulations:

Article 16 of the Labor Law stipulates that a labor contract is an agreement between a worker and an employer to establish a labor relationship and clarify the rights and obligations of both parties.

The factory should sign a labor contract with each worker and provide them with a copy of the contract.

Ensure that workers understand the terms of the labor contract.

The labor contract should be authenticated by the local labor department. (Currently, only Shanghai, Guangzhou, Shenzhen, and Zhuhai are exceptions).

1.3 Establishment of effective time of labor contract:

-Generally, it should be calculated from the date when both parties in the labor relationship sign the labor contract.

-If the effective date of the contract is clearly specified in the labor contract, it shall be calculated from the effective date of the contract.

1.4 Deadline for expiration of labor contract:

-The deadline for the last day of the labor contract shall be 24 hours from the last day of the labor contract period.

-If the deadline exceeds 24 hours due to work tasks, the time for completing the work task shall prevail

1.5 Specific standards for various probationary periods:

Labor Contract Period Probation Period (days)

≥ 6 months ≤ 15

＞ 6 months ≤ 1 year ≤ 30

＞ 1 year ＜ 2 years ≤ 60

Employees who have not changed their positions can only have one trial.

The labor contract may stipulate a probationary period of no more than 6 months.

1.6 Termination of an open-ended labor contract:

-Termination through consultation (Article 24 of the Labor Law stipulates that if the parties to the labor contract reach a consensus through consultation, the labor contract may be terminated).

-Statutory termination and/or agreed termination (Articles 25 and 32 of the Labor Law).

1.7 The situation where workers should bear compensation liability to the employer:

If an employee terminates the labor contract in violation of regulations or the provisions of the labor contract, causing losses to the employer, the employee shall compensate the employer for the following losses: (1) the expenses paid by the employer for recruiting and hiring the employee; （2） The training fees paid by the employer shall be handled according to the agreement if otherwise agreed by both parties; （3） Direct economic losses caused to production, operation, and work; （4） Other compensation fees stipulated in the labor contract.

If a worker violates the confidentiality provisions stipulated in the labor contract and causes economic losses to the employer, compensation fees shall be paid to the employer in accordance with Article 20 of the Anti Unfair Competition Law.

1.8 After the expiration of the labor contract, if the termination or renewal procedures are not completed and a factual labor relationship is formed, the handling method is as follows:

-Deemed as continuing labor contract relationship

-Employers should promptly negotiate with workers to determine a new contract term and handle renewal procedures

-The renewed labor contract shall take effect from the date of signature. If the employee has worked continuously for the same employer for at least 10 years and requests to sign an open-ended labor contract, the employer shall sign an open-ended labor contract.

1.9 Conditions and conditions for the unit not to terminate the expired labor contract

-If the employee is identified as a 5-10 level employee due to work-related disability and their labor contract expires, and if the employee requests to resign, the employer shall pay a one-time work-related injury and resignation fee (50, 40, 25, 15, 8, and 4 months respectively), except for the average social salary of the previous year, the employer shall not terminate the contract.

-The medical period of the worker has not expired.

-Female employees in the 'third phase'.

1.10 The conditions under which a worker can terminate a labor contract with the employer:

-The termination of a labor contract by a worker can be divided into two situations: termination at any time and termination with prior notice to the employer.

-One is that in the case of Article 32 of the Labor Law, the labor contract can be terminated at any time. The second is that the worker shall notify the employer in writing 30 days in advance that they should handle it. If a worker violates the requirement of notifying the employer in writing 30 days in advance and requests the termination of the labor contract, the employer may not handle it.

1.11 Conditions under which a worker cannot terminate a labor contract with the employer:

-During the period when economic losses caused to the employer have not been fully resolved or other issues are under review, the labor contract shall not be terminated on the grounds of giving the employer 30 days' prior written notice.

1.12 Treatment methods for employees suffering from mental illness during contract performance:

-According to regulations, medical treatment period shall be granted, and sick leave wages and disease relief fees shall be paid during the medical treatment period. If the employee is unable to engage in their original work after the medical treatment period expires, the labor contract may be terminated and medical subsidies shall be issued.

1.13 Methods for handling the labor contracts of medical expired employees who have taken extended sick leave:

-Those who are able to perform their original job can continue to fulfill their labor contract.

-Those who are unable to engage in their original work or work arranged separately by the unit should undergo a labor capacity appraisal. Those identified as Level 1-4 shall withdraw from their employment position, terminate their employment relationship, and complete the procedures for retirement and resignation due to illness or non work-related injuries; For those with grades 5-10, the contract can be terminated and economic compensation and medical subsidies can be paid according to regulations.

1.14 Treatment methods and legal provisions for employees who suffer work-related injuries and whose medical treatment period has not yet ended after the contract expires:

-The term of the labor contract should be extended until the end of medical treatment before the enterprise can terminate the labor contract with the employee.

1.15 The situation and handling principles of employees requesting economic compensation for not signing a contract due to enterprise reasons:

-After the formation of a factual labor relationship between the enterprise and the employee, the enterprise intentionally delays the signing of a labor contract and terminates the labor relationship with the employee. If the employee requests economic compensation, the arbitration committee shall accept the application and handle it according to the economic compensation methods for violating and terminating the labor contract and the provisions of the labor contract.

-If a worker reports to a labor supervision institution, the labor supervision institution shall investigate and punish them in accordance with the administrative penalty measures.

1.16 Analysis of Procedure Regulations for Economic Reduction of Personnel:

-Explain the situation to the trade union or all employees 30 days in advance and provide relevant information on production and operation status.

-Propose personnel reduction plans, such as a list, timeline, and economic compensation methods.

-Seek the opinions of the trade union or all employees and make modifications and improvements.

-Report the plan and employee opinions to the labor department.

-Publish the plan and handle the procedures.

1.17 Handling methods for discovering workers using fake identity documents:

-If a worker enters into a labor contract with an employer under the guise of another person, the subject shall be determined based on the actual labor relationship.

-If an employer uses a worker's fake ID card to insure for them and suffers social insurance losses, both the employer and the worker shall bear corresponding civil liability according to their respective faults.

1.18 What is the validity of the labor contract for child laborers who are identified as counterfeit ID cards

-If a minor under the age of 16 enters into a labor contract or forms a factual labor relationship with an employer under the guise of another person, the labor contract shall be invalid, but the employer shall still pay remuneration according to the contract.

-If the minor suffers injuries due to work, the employer shall bear the responsibility for personal injury compensation.

6、 Interview questionnaire for employees of sports powerhouse Nike

Name: Gender:

Date of entry: Date of birth:

1. Do you feel embarrassed when you have an interview with me at the factory? Yes No

If so, what are the corresponding arrangements for an interview with the employee (phone conversation/suitable place to leave the factory)

What is the phone number for EE if applicable?

2. If you have nothing to do in the department, what would you do?

3. Have they trained you for this job? Yes No

4. Do you receive salary during training? If so, how much is it?

5. During the training period, do all employees receive the same salary? Yes No

6. How old are they?

7. Did you absent from duty last month? How many days are there?

8. Can you receive any benefits if you have work breaks due to illness/injury at work? Yes No

If so, please provide detailed explanation:

9. When will the workers start?

10. When do you usually enter the workplace?

11. When will the work end?

12. What do you usually do when you go home?

13. How many times can you rest during working hours? How long is the rest time?

14. Do you have a time card for work records? Has anyone checked in to keep records/ When will I clock in?

15. Do you start working immediately after checking in? Yes No

16. Have you already suspended your work for that day when you checked in after work? Yes No

17. How many hours do you usually work per week?

18. Do you work overtime? How many times? How many hours?

19. Do you have an additional hourly salary? How is it calculated?

20. How long has your record of working overtime?

21. Why do you work so late? Determined by employees and decided by administrators

22. Which department has the longest working hours?

23. Who approves overtime/overtime work? (Are there specific overtime targets selected?)

24. What consequences will it bring to the work if I refuse to work overtime?

25. When you work overtime, will they provide you with meals? Will it or not

26. Will they provide transportation to take you home? Will it or not

If not, how do you go home? Will you stay overnight at the factory?

27. What day do you start work? Where is Monday, two, three, four, five, six?

28. How many days will you work at most?

29. How many hours do you work on rest days?

When have you been working on rest days recently/ How many hours have you worked?

31. What documents do you need to present to work here? Birth Certificate Guardian Certificate Work Permit Resident ID Card Social Security Card

32. What is the minimum age allowed for employees to work here?

33. Will employees who are parents also bring their children to work together? Do they hold any positions?

34. Do you need to undergo a physical examination, pregnancy test, or comprehensive test before employment? Yes No

35. Will they still test for AIDS or pregnancy for you now? Is someone checking for you.

Where to check? Who pays for the inspection fee?

36. What are the factory's regulations? (You can give an example to illustrate)

37. What are the consequences of violating regulations?

Will there be a fine? What is the amount?

38. Who is responsible for punishing employees?

39. If you are late for work, will your working hours be shortened or will you need to work overtime?

Do you need additional working hours to supplement your salary? How is it calculated?

41. If you damage a factory garment, how much do you need to compensate? How much is deducted from salary?

42. How long will it take for employees to stay for patching work?

43. How often do you have to take work home to do?

Where will sewing, cutting, and other work be carried out during busy days in the factory?

45. Which supplies within the factory will be deducted from your income?

46. What percentage of salary does the expense to be deducted account for?

47. Will they give you a refreshing fan?

48. How many times has this situation occurred?

49. How do you work? Walking, cycling, special vehicles, and transportation

50. Who will pay for your transportation? If you pay for it yourself, how much is the transportation fee?