In my ongoing mission to help you invest responsibly, I often talk about modern slavery and its presence in global supply chains.
As we've discussed, this complex issue requires investors like us to be vigilant and proactive. In this post, I want to share a case study from Alphinity's latest report, which highlights how a major company, Nike, is taking a leadership role in addressing modern slavery risks.
Nike: Setting the Standard for Ethical Sourcing
Nike, a global leader in sportswear and footwear, has long recognised the importance of ethical sourcing. Their commitment to tackling modern slavery in their supply chain is commendable, and they've implemented a multifaceted approach to drive positive change:
●Supply Chain Transparency: Nike understands that visibility is crucial for accountability. They've invested significantly in mapping out their Tier 1 and Tier 2 suppliers, providing greater transparency into their manufacturing processes and the origin of their materials.
●Collaboration & Partnerships: Nike recognises they can't tackle this issue alone. They actively collaborate with industry stakeholders, NGOs, and governments to develop and implement solutions, share best practices, and drive systemic change.
●Going Beyond Risk Assessment: While many companies focus solely on identifying and mitigating modern slavery risks, Nike goes a step further by setting social targets for their suppliers. They aim to improve the lives of workers by promoting:
○Safety: Ensuring safe working conditions and minimising workplace accidents.
○Gender Diversity: Promoting equal opportunities for women in the workplace.
○Employee Engagement: Creating a culture of respect and fostering positive working relationships.
●Wage Transparency: Nike is making strides in addressing the issue of fair wages by collecting and analysing wage data from its strategic suppliers, demonstrating their commitment to ensuring fair compensation.
Lessons Learned & The Path Forward
Nike's proactive approach offers valuable lessons for other businesses and investors:
Leadership Matters: Companies that prioritize ethical sourcing and actively combat modern slavery can inspire others to follow suit.
Transparency Builds Trust: Openly disclosing supply chain practices and progress on social targets demonstrates accountability to investors and consumers.
Collaboration is Key: Addressing complex challenges like modern slavery requires collaborative efforts and partnerships.
By supporting companies like Nike that prioritise ethical sourcing, we can help drive positive change in the world.
Written by AI (Test version of Google Notebook LM).
