Nike's Labor Practices

In 1958, Phil Knight, a keen athlete and an undergraduate at the University of Oregon, and his track coach Bill Bowerman realized the need for a good American running shoe. The track shoes produced by Adidas and Puma were made of leather, had little cushioning, and used steel spikes for traction.

Knight felt there was scope for improvement in these shoes. After graduating, Knight enrolled in the School of Business at Stanford University. At Stanford, Knight analyzed the shoe manufacturing industry and arrived at the conclusion that with cheap Japanese labor, an American manufacturer could sell track shoes that rivaled Adidas in quality, at significantly lower prices.

The company decided to specialize in designing and selling high-performance shoes made in Japan. In 1971, the duo developed a distinctive trademark and a new brand name. They named the brand Nike, after the Greek winged Goddess of Victory. A local Portland student, Carolyn Davidson, who was paid $35 for the design, created Nike's "Swoosh" symbol. The new Nike shoes were launched at the 1972 Olympic trials held in Eugene, Oregon. Knight and Bowerman quickly cashed in on the publicity by advertising that Nikes were worn by "four of the top seven finishers." During the first half of the 1970s, Nike's sales grew from $10 million to $270 million. The growth was facilitated by the creation of the waffle sole and the cushioning system (patented by Nike), known as Nike Air...