The employees' legal action does not involve NIKE, but is instead against the Indonesian Department of Manpower which authorized the dismissal of the employees. The case is on appeal. The Minister of Manpower found that the employees inflicted illegal and extensive damage to factory property. . Over the past 20 years NIKE has established long-term relationships with select subcontractors, and management believes that NIKE's high standards of business ethics and corporate responsibility have, and will continue to, influence that of our partners. But just like a competitive athlete, an industry leader never rests on its laurels.
Enforcement is a continuing process.
NIKE was recently invited by the Clinton Administration to join a coalition of select footwear and apparel manufacturers, retailers, labor representatives, and human rights groups to develop strategies to assure consumers that the products they purchase are produced under acceptable labor conditions. . NIKE is in the process of establishing a high-level corporate compliance position charged solely with monitoring adherence to NIKE's labor standards. . NIKE has extended formal invitations to the U.S. Secretary of State and the U.S. Ambassador to Indonesia to visit NIKE's contracted facilities, and has welcomed members of the press, and other agencies and organizations, including senior U.S. State Department officials. . NIKE has joined Business for Social Responsibility to learn how other industries have addressed monitoring and compliance issues. The Board of Directors believes that NIKE has addressed each of the Proposal's concerns.