Nike (NYSE:NKE) shareholders have reportedly voted against a proposal urging the company to implement worker-driven social responsibility principles and to support binding agreements to address and remediate human rights issues in high-risk countries.
The proposal would have also addressed $2.2M in unpaid wages and benefits allegedly still owed to garment workers at Nike (NKE) suppliers in Cambodia and Thailand.
The proposal was initiated by an investor group led by Domini Impact Equity Fund, which urged Nike (NKE) to assess the effectiveness of its supply chain management infrastructure in ensuring alignment with the company’s equity goals and human rights commitments.
Nike (NKE) recommended that shareholders vote against the proposal because the company has established “robust controls to identify, assess, and remediate human rights and labor issues throughout its operations and supply chains,” and finds the proposal unnecessary.
“The Company advocates for better practices and greater transparency throughout our global supply chain, which is why we share how we manage social issues and impacts with our stakeholders,” Nike (NKE) said in its opposition statement within the company’s Annual Report.
Nike (NKE) shares closed Tuesday’s session down 1.7% and in the red for a sixth consecutive day.
