Nike’s Labor Rights Violations: A Case Study in Corporate Accountability
Oversight Area: Labor Rights
Legitimacy Score: 45/100
Executive Summary
This report documents the findings and impact of oversight activities in Labor Rights, treating watchdog functions as essential civic infrastructure rather than sensational exposés.
Key Findings
Nike has faced multiple allegations of labor rights violations across its global supply chain. In 2016, the Worker Rights Consortium (WRC) reported severe abuses at Hansae Vietnam, a factory producing Nike-branded goods. These included extensive wage theft, illegal recruitment fees, verbal and physical abuse, forced overtime, and hazardous working conditions leading to worker faintings due to excessive heat. (workersrights.org) In Cambodia, the Violet Apparel factory, a supplier to Nike, closed abruptly in 2020 without paying severance to 1,280 workers, totaling approximately $1.4 million owed. Nike initially denied any connection to the factory, despite evidence of its involvement. (hrw.org) In Thailand, the Hong Seng Knitting factory coerced 3,300 workers into forfeiting legally mandated wages during the COVID-19 pandemic. A migrant worker who led resistance was falsely charged and forced to flee the country. Nike’s response was criticized for lacking sufficient remediation. (dignityandrights.org) Additionally, in 2026, the U.S. Equal Employment Opportunity Commission (EEOC) filed an enforcement action against Nike, alleging systemic race discrimination against white employees through its Diversity, Equity, and Inclusion (DEI) programs. (eeoc.gov)
Institutional Failure to Self-Correct
Nike’s failure to self-correct is evident in its initial denials and inadequate responses to these violations. In the Hansae Vietnam case, Nike acknowledged the violations but did not require meaningful remediation, such as back pay for wage theft. In Cambodia, Nike denied any connection to the Violet Apparel factory, despite evidence of its involvement, and failed to compensate workers. In Thailand, Nike’s response to the Hong Seng Knitting case was criticized for lacking sufficient remediation. The EEOC’s enforcement action in 2026 highlights ongoing issues within Nike’s DEI programs, indicating systemic problems in addressing labor rights concerns.
Outcome & Impact
The outcomes of these cases have varied. In the Hansae Vietnam case, Nike acknowledged the violations but did not require meaningful remediation, such as back pay for wage theft. In Cambodia, the Violet Apparel factory workers have been fighting for compensation for over five years, with Nike failing to acknowledge their appeal. (cleanclothes.org) In Thailand, after five years of campaigning, Nike agreed to collaborate with stakeholders to resolve the Hong Seng Knitting case, though some labor campaigners have called the plan deficient. (yahoo.com) The EEOC’s enforcement action in 2026 is ongoing, with Nike expressing surprise at the escalation and stating it is cooperating with the investigation. (eeoc.gov)
Legitimacy Assessment
With a legitimacy score of 45/100, this oversight represents contested but necessary accountability mechanisms.
Conclusion
Watchdog accountability functions as civic infrastructure, not scandal. This report demonstrates how oversight mechanisms continue to evolve in response to institutional resistance.
Generated by JM Global Consortium’s Accountability Division
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