Nike, Inc. *

Nike was founded in 1964 by Philip H. Knight as “BRS (Blue Ribbon Sports),” and later changed to “Nike” in 1972. Phil Knight remains Nike’s Owner, Chairman, and CEO today. Nike, based in Beaverton, Oregon, has more than 22,000 employees and over 800 contracted suppliers in about 52 countries throughout the world, employing more than 550,000 workers on any given day creating sports and fitness footwear, apparel, equipment and accessories for worldwide distribution (over 400 of these suppliers are located in Asia). ¹ Approximately 175 million pairs of shoes are manufactured each year for Nike, contributing in part to Nike’s annual revenue for 2001, which totaled almost $10 billion. ² Nike’s Code of Conduct, first sent out to manufacturers in 1992 and the second to be developed in the entire industry, ³ binds all Nike contract manufacturers and requires that all “manufacturing partners must post this Code in all major workspaces, translated into the language of the worker, and must endeavor to train workers on their rights and obligations as defined by this Code and applicable labor laws” ⁴ (Exhibit 6.2.1). In its code, Nike sets a standard for its partnerships by seeking contractors who are committed to best practices and continuous improvement in the following areas:

Management practices that respect the rights of all employees, including the right to free association and collective bargaining

Minimizing our impact on the environment

Providing a safe and healthy work place

Promoting the health and well-being of all employees.

Exhibit 6.2.1 Nike Inc. Code of Conduct Nike Inc was founded on a handshake

Implicit in that act was the determination that we would build our business with all of our partners based on trust, teamwork, honesty and mutual respect. We expect all of our business partners to operate on the same principles.

At the core of the NIKE corporate ethic is the belief that we are a company comprised of many different kinds of people, appreciating individual diversity, and dedicated to equal opportunity for each individual.

NIKE designs, manufactures, and markets products for sports and fitness consumers. At every step in that process, we are driven to do not only what is required by law, but what is expected of a leader. We expect our business partners to do the same. NIKE partners with contractors who share our commitment to best practices and continuous improvement in:

Management practices that respect the rights of all employees, including the right to free association and collective bargaining

Minimizing our impact on the environment

Providing a safe and healthy work place

Promoting the health and well-being of all employees

Contractors must recognize the dignity of each employee, and the right to a work place free of harassment, abuse or corporal punishment. Decisions on hiring, salary, benefits, advancement, termination or retirement must be based solely on the employee’s ability to do the job. There shall be no discrimination based on race, creed, gender, marital or maternity status, religious or political beliefs, age or sexual orientation.

Wherever NIKE operates around the globe we are guided by this Code of Conduct and we bind our contractors to these principles. Contractors must post this Code in all major workspaces, translated into the language of the employee, and must train employees on their rights and obligations as defined by this Code and applicable local laws.

While these principles establish the spirit of our partnerships, we also bind our partners to specific standards of conduct. The core standards are set forth below.

Forced Labor

The contractor does not use forced labor in any form – prison, indentured, bonded or otherwise.

Child Labor

The contractor does not employ any person below the age of 18 to produce footwear. The contractor does not employ any person below the age of 16 to produce apparel, accessories or equipment. If at the time Nike production begins, the contractor employs people of the legal working age who are at least 15, that employment may continue, but the contractor will not hire any person going forward who is younger than the Nike or legal age limit, whichever is higher. To further ensure these age standards are complied with, the contractor does not use any form of homework for Nike production.

Compensation

The contractor provides each employee at least the minimum wage, or the prevailing industry wage, whichever is higher; provides each employee a clear, written accounting for every pay period; and does not deduct from employee pay for disciplinary infractions.

Benefits

The contractor provides each employee all legally mandated benefits.

Hours of Work/Overtime

The contractor complies with legally mandated work hours; uses overtime only when each employee is fully compensated according to local law; informs each employee at the time of hiring if mandatory overtime is a condition of employment; and on a regularly scheduled basis provides one day off in seven, and requires no more than 60 hours of work per week on a regularly scheduled basis, or complies with local limits if they are lower.

Environment, Safety and Health (ES&H)

From suppliers to factories to distributors and to retailers, Nike considers every member of our supply chain as partners in our business.

Documentation and Inspection

The contractor maintains on file all documentation needed to demonstrate compliance with this Code of Conduct and required laws; agrees to make these documents available for Nike or its designated monitor; and agrees to submit to inspections with or without prior notice.

Source: https://www.nike.com/nikebiz/nikebiz/jhtml?page=25&cat=compliance&subcat=code" xmlns:xlink="https://www.w3.org/1999/xlink">https://www.nike.com/nikebiz/nikebiz/jhtml?page=25&cat=compliance&subcat=code (as updated by Paula Valero, Director, Compliance Systems and Services, Nike Inc.) Reprinted with permission of Nike, Inc.