Its membership includes 179 colleges/universities, prominent human rights organizations, consumer groups and participating companies. The FLA also issues an annual report on its monitoring results of each participating member company, including Nike, with the company’s plan for remediation of non-compliant conditions. The first annual FLA report was issued in June 2003 and may be found at. During the next three years, the FLA will maintain sole discretion to direct expenditures of the settlement dollars. It is anticipated that most of the proceeds will be disbursed to programs that build local capacity for independent monitoring and remediation of compliance issues based on the core labor standards of the U.N.’s International Labour Organization (ILO) based in Geneva, Switzerland.
„This contribution will be beneficial towards our core mission of improving workers‘ lives by increasing our monitoring, remediation and training capabilities,“ said Auret van Heerden, the FLA’s Executive Director. „The proceeds of the settlement will also be a long-term plus for corporate accountability and improved consumer information.“ The balance of the $1.5 million contribution will be used to fund worker development programs that are focused on education, investment in worker training and skills development, and entrepreneurial activity within factory communities where workers and their families live. „We have learned a great deal in the five years since this case was first filed about the challenges we and others face in addressing issues in manufacturing environments.
Our approach to addressing these issues, our business and stakeholder engagement are continually evolving,“ said Maria Eitel, Vice President and Senior Advisor, Corporate Responsibility at Nike. „Nike’s integration of corporate responsibility into the framework of its business is integral to who we are as a company.“ Jim Carter, Nike’s Vice President and General Counsel, indicated that although an amicable settlement was reached in this case, the company has heard from many other corporations, media organizations and non-government organizations, who remain concerned about the impact of the California Supreme Court ruling on transparency — specifically companies who wish to report publicly on their progress in the areas of corporate responsibility.