How Ethical is Nike?

By May 19, 2017Fashion

Though it seems in this day and age every man and his dog own a pair of Nikes, not so long ago the Nike image was synonymous with sweatshops and unethical manufacturing. So how does this brand rate today when it comes to its treatment of people, planet and animals?

In 1991, activist Jeff Ballinger published a report detailing the low wages and poor working conditions in Nike’s Indonesian factories. Soon after, the brand became the subject of an aggressive and sustained campaign by United Students Against Sweatshops. Nike was initially slow to respond – but under increasing pressure it eventually made some changes by improving its monitoring efforts, raising the minimum age of workers, and increasing factory audits.



The brand has since earned plaudits far and wide for its efforts. Just last year Business of Fashion reported that Nike has successfully transformed its tarnished image to become a “recognized sustainability leader,” with Morgan Stanley ranking Nike “the most sustainable apparel and footwear company in North America for environmental and social performance, including its labor record.”

But is this actually the case?

A step backwards

Though Nike has successfully improved its reputation and has become the top-selling activewear brand in the world, many of its practices are still problematic. Worse still, Nike has recently taken a big step backwards. In March, the International Labor Rights Forum reported that Nike has turned its back on its commitment to the Worker Rights Consortium (WRC), which effectively blocks labor rights experts from independently monitoring Nike’s supplier factories. Nike was given a score of 36 out of 100 in Fashion Revolution’s 2017 Fashion Transparency Index, indicating that the company does not make enough information public about its environmental and social practices.


So how does Nike rate on the Good On You app?


Environmental Impact: It’s a Start

Nike_4_(Nike_Insta)Though Nike has made a few positive changes to its environmental practices and is a member of the Sustainable Apparel Coalition, it still has a way to go before it can truly be called a ‘sustainable’ brand. Nike uses a few eco-friendly materials including organic and recycled cotton and polyester, minimises off-cuts in parts of its manufacturing process and has a waste and water reduction strategy in place in most of its supply chain. It has also made a public commitment to reduce its carbon emissions by over 50% by 2025.

However, Nike has not committed to eliminating hazardous chemicals from its supply chain, which is a big problem for workers who are exposed to them and even those who wear the products. Nike’s use of hazardous chemicals has also been criticised by Greenpeace, who have voiced concern regarding the pollution of waterways.


Labour Conditions: Not Good Enough

Nike_1_(from_Nike_Insta)Though Nike has focused on female empowerment and inclusiveness in their recent advertising campaigns, the women who work in Nike’s factories are seemingly left out of this picture. On a good note, the company is Fair Labor Association (FLA) Workplace Code of Conduct certified and received the top score in the 2017 Ethical Fashion Report for its Supplier Code of Conduct. It also traces most of its supply chain, publicly lists its suppliers, and audits some of its traced facilities. Despite this, Nike received a ‘C’ rating in the 2017 Ethical Fashion Report, showing no improvements over the 2016 ranking. Nike has minimal worker empowerment initiatives across its supply chain and received the bottom score in relation to implementing a living wage or improving wages across its supply chain.

The recent Foul Play report by the Clean Clothes Campaign and Collectif Ethique sur l’Etiquette just how far Nike has to go is on living wages. It highlights the difference between the ever increasing amount of money paid on sponsorships to sports stars and other marketing expenses compared to the reduction of the share of the final price of your sports gear paid to workers in the supply chain. The Report calls on both Nike and Adidas to commit to paying living wages across their supply chain by a specific date and other supporting action. Read more about living wages for garment workers here.


Animal Welfare: Not Good Enough

Nike does not use fur, angora or other exotic animal hair or skin in its products, which is definitely a step in the right direction. However, it does use leather, wool and down feather without specifying sources, which is problematic as the welfare of animals and workers is unknown and is not guaranteed.



Find out how your favourite brands rate by downloading the Good On You app.


The Verdict:

Not Good Enough GoY-Ratings_2


We rate Nike ‘Not Good Enough’ based on information from the 2017 Ethical Fashion Report and our own research. Though Nike has a few promising environmental measures in place, it’s clear that the company does not do as well as it should. It needs to make serious changes in most areas. With an annual revenue of over $30 billion, they can certainly afford it! We notice that arch-rival Adidas (rated ‘Good’ GoY-Ratings_4) has stepped up its game, improving its transparency and environmental practices.


Just (Don’t) Do It




Our Recommendations

Love Nike but hate their unethical practices? Look no further – we’ve compiled a list of our favourite ethical activewear brands that will give your Nikes a run for their money!


Threads 4 Thought GoY-Ratings_4

Threads_4_Thought_( Sports Bra and Kona Legging | Ships within the USA only

(Note: Australian eco-marketplace Thread Harvest stocks select items)

Threads 4 Thought is an American casual and activewear brand that cares about its workers and the environment. Made from recycled polyester-spandex, this sports bra and legging duo will have you working up a sweat in comfort and style.

Veja GoY-Ratings_4

Veja InstaV-10 Extra White Black Sneakers | Ships internationally from France

Made in Brazil from eco-tanned leather, recycled cotton and wild rubber, these sneakers from French brand Veja are great for any occasion. And if leather ain’t your thing, Veja have a vegan range too!

Ecoalf GoY-Ratings_4

Ecoalf_( Sneakers | Ships within Europe and to the USA

Spanish activewear label Ecoalf make high-quality, lightweight trainers from recycled PET bottles and renewable Sorona fibres. Similar in style to Free Runs, these sneakers have all the good qualities of Nikes and none of the bad!

Patagonia GoY-Ratings_4

Patagonia_(’s Nine Trails Shorts | Ships internationally from stores globally

With strong labour rights and environmental measures, Patagonia is the perfect brand for outdoor enthusiasts with a passion for sustainability. These versatile shorts are made from a recycled polyester-spandex blend and are water repellent and odor resistant.


Have a favourite ethical activewear brand? Let us know in the comments below!

Editor’s note: This article was first published in May 2017 and updated in June 2018.

Feature image via Nike Fitness Equipment Australia. Other images via Business Insider, Instagram (@nike, @veja, @ecoalf), Threads 4 Thought, Patagonia, Etiko.

Lara Robertson

Author Lara Robertson

Lara is a media student and writer at Good On You. She is a passionate vegan, bibliophile, fashionista and crazy cat lady, who hopes to spend her life writing about her passions and values.

More posts by Lara Robertson

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