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NIKAPP1~.txt , a Nikeworkers.com file created on Friday, June 19, 1998 5:38:13 PM;

Modified Saturday, February 14, 1998 2:12:30 PM

Copied and saved by Boje as NIKapparelpartner

In August of 1996, when President Clinton asked leaders of the apparel industry, labor unions and human rights groups to work together to address working conditions in apparel factories, NIKE was one of the first companies to agree to participate.

NIKE decided to participate because we believed it was the first and only credible attempt to address the hard questions surrounding these difficult issues in a meaningful

way. Today, we still believe that that coalition, now called the Apparel Industry Partnership, provides the way forward.

In April 1997, the Apparel Industry Partnership (AIP) completed the first part of its work by developing a model workplace Code of Conduct based on International

Labor Organization (ILO) standards. The Code is a set of broad principles that participating companies agree to abide by and likewise ensure their contracting factories agree to abide by as well. The standards include prohibitions against child, forced and bonded labor, caps on weekly and hourly work, provisions for freedom of association, fair wages and collective bargaining, and a variety of other standards. In spring of 1998, NIKE changed its Code of Conduct to incorporate the standards developed in the AIP.

All participating industry members likewise agreed to incorporate both an internal(company specific) as well as external (independent organization) monitoring system to ensure compliance with the Code. The agreement provides specific principles for each monitoring system to ensure the Code is being enforced. NIKE has begun to incorporate many of the principles in its internal and external monitoring practices.

In the second phase of its work, presently ongoing, the AIP is working toward the development of an Association which will facilitate the operation of the Code and monitoring principles. The issues the AIP members have been discussing include developing criteria for companies to join the AIP, developing standards and procedures for the qualification of external monitors and identifying ways to inform consumers about the AIP. It is expected the AIP will finish its work in early 1998.

Some have criticized the work of the AIP. Some companies believe the Code provisions and monitoring principles are too stringent and expensive to implement. Some human rights and labor organization believe the Code doesn't go far enough protecting workers. Despite the criticisms, NIKE remains committed to the work of

AIP because it is a start -- the first start by any industry to tackle these issues head

on. We must not let perfect be the enemy of good -- particularly on something as important as this.

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