Praxis pushes for supply chain workers' protections

Investors urge Nike to adopt stronger labor protections

Equity investing |
Nike shoes in store

Nike store
Praxis participated in an investor letter urging Nike to take stronger action on human rights risks in its supply chain. The letter follows a shareholder proposal on worker-driven social responsibility that was presented during Nike’s 2024 annual meeting.

As one of the world’s largest apparel companies, Nike oversees a vast global supply chain with over 1 million workers in 500 factories across 37 countries. Many of these facilities operate in regions with persistent labor rights concerns, including Cambodia, Thailand, and Vietnam. Systemic issues like wage theft, poor working conditions, and inadequate oversight continue to threaten worker well-being.

Investors argue that Nike’s existing programs to prevent and address labor abuses would be significantly strengthened through direct engagement with workers and other stakeholders. Advantages could include better program model designs and oversight. Binding agreements are an example of successful models elsewhere in the apparel industry, enabling brands and suppliers to work together through effective and accountable structures to safeguard worker rights and enhance brand integrity for the company.

The investor letter outlines key expectations for Nike, including:

  • Strengthening human rights due diligence practices.
  • Implementing binding agreements with workers to safeguard labor rights, particularly in high-risk environments.
  • Addressing worker concerns regarding wage theft and fair compensation.

Investors hope that by advocating for these measures it will initiate a constructive dialogue with Nike that results in meaningful protections for workers throughout its supply chain. Nike is held in the Praxis Value Index Fund.


About the Author


Chris Meyer, Stewardship Investing Research and Advocacy Manager | Praxis Mutual Funds
Chris Meyer
Stewardship Investing Research and Advocacy Manager

Chris joined Praxis Investment ManagementTM in 2006. He leads the company’s work in corporate engagement and supports its investment screening and proxy voting functions. He has led shareholder dialogues on many pertinent issues such as climate change, toxic chemicals, child slave labor, and predatory credit card practices with multinational companies. Connect with Chris on LinkedIn.


Shareholder advocacy in action

At Praxis, our investments generate a competitive financial return and deliver a clean and direct benefit to people and our planet. We believe it is our responsibility to encourage companies toward responsible business behavior.

 

Disclosure

As of Feb. 28, 2025, the Praxis Value Index Fund has invested 0.38% of its assets in Nike. Fund holdings are subject to change. To obtain holdings as of the most recent quarter, visit praxisinvests.com. 

You should consider the fund’s investment objectives, risks, sales charges and expenses carefully before you invest. The fund’s prospectus and summary prospectus contain this and other information. Please read them carefully before you invest.

Investment products are not FDIC insured, may lose value, and have no bank guarantee. Praxis Mutual Funds are advised by Praxis Investment Management, Inc. and distributed through Foreside Financial Services, LLC.