Nike acts amid CSR woes

According to sources, the company has issued an RFP to at least two agencies, addressing corporate social responsibility (CSR) across China, Malaysia, Thailand, Indonesia and Vietnam. The focus of the brief, unsurprisingly, is labour - with agencies being asked to monitor perceptions and respond to issues.

In recent months, these issues have intensified. Last week, the company issued a statement addressing claims of worker abuse at a supply chain factory in Malaysia, deeming the living conditions “unacceptable”, and confirming “serious breaches” of its code of conduct.

A China-specific investigation into its mainland supply chain earlier this year resulted in Nike revealing widespread labour abuses, including falsified documents, underage workers and unpaid wages. China is Nike’s largest single sourcing country.

A source involved in the review said that, while Nike had implemented comprehensive changes to its compliance and best practice policy in response to a torrent of NGO criticism in the 90s, the firm’s approach to communications and monitoring is less robust.

“It’s a big issue, but they are not putting any money behind [communications],” said the source. “An agency can make sure the brand is properly audited, knows the issues, knows the local government’s temperature and is monitoring NGOs. If a local government wants to go after somebody it will go after an easy international brand.”

It is believed that at least two agencies, Apco and Edelman, will contest the pitch. Nike global director of CSR communications Erin Dobson declined to comment.