www.nike.

com

TO: Matt Geschke, Sr. Director Social and Community Impact

FROM: Celine Karch, Outreach Executive Assistant
DATE: March 5, 2024
SUBJECT: Potential Partnership Between Nike and Lululemon

At our recent meeting, we discussed a potential partnership with Lululemon that would introduce
a new clothing line. The thinking was that this partnership would be a good addition to our
branding since Lululemon is currently a very liked athletic clothing brand. Though this is true,
Lululemon’s poor ethics could negatively influence Nike’s image in the long run. Their poor
ethics can be exhibited through the following reasons.

POOR TREATMENT OF FACTORY EMPLOYEES

Lululemon has not been cautious about what’s going on in their international factories
whatsoever. In the article “Workers Making £88 Lululemon Leggings Claim They are
Beaten” by Sarah Marsh and Redwan Ahmed, it discusses the violent treatment the Bangladeshi
factory workers get: “Factory workers who break any rules or leave earlier than expected are
verbally abused by management and hit. Some said they had been made to work despite
ill-health.” This shines light on the verbal and physical abuse factory workers have to go through
on a daily basis. Their human rights are being violated and Lululemon has not made any changes
to these conditions. Marsh and Ahmed go on to say how workers have outrageously low wages
and can barely make ends meet: “Some labourers are paid 9,100 taka a month (£85) – less than
the price of one pair of their leggings, which sell for as much as £138.50. The sum is well below
the 16,000 taka unions have been demanding and falls far short of living wage estimates.”
Lululemon does not even take care of its workers financially. They are being underpaid and can
barely live with the wages they are receiving. Receiving a monthly wage less than the cost of one
pair of leggings is nothing compared to the amount of clothing they produce in one day. Marsh
and Ahmed also bring up how workers are stuck between being physically drained and
struggling to leave work: “They are forced to work overtime to hit targets, saying they
sometimes felt immense pressure not to leave their work stations.” This goes to show that
Lululemon takes advantage of their workers. Factory workers cannot simply leave their job as
they need the money to take care of their families. However, they are being forced to work
overtime; this treatment is simply cruel. Therefore, we should not partner with them.
NOT ENVIRONMENTALLY FRIENDLY
In the article “Hundreds of Yoga Teachers Call Out Lululemon Over Coal-Powered Factories” by
Graham Readfearn, he discusses how Lululemon is not as environmentally friendly as they claim
to be in their branding: “But now a climate change campaign is targeting lululemon, saying its
reliance on coal-powered factories in Asia is inconsistent with its public branding… Almost half
of the energy which powers lululemon factories comes from coal.” Lululemon is the type of
company to completely disregard the damage they are doing to the environment and covering it
up with their advertising. They have a lack of honesty and transparency with the public which
isn’t usually appreciated. Over the years, the public have been becoming more aware and
cautious of taking care of the environment and Lululemon would not be a good fit for a
partnership with us simply for this reason.

LACK OF DIVERSITY AND INCLUSION

Lululemon has allowed their African American employees to experience many counts of racial
discrimination. In the article, “At Lululemon, Being Black Is ‘Off-Brand” by Sheena
Butler-Young, it discusses issues Black sales associates had with two White customers and their
management: “... a couple of employees at Lululemon’s Hyde Park location in Chicago were
chatting when two women walked in. Oh, this is off-brand,” one of the women said to the other
after being greeted by the store’s staff, the employees recalled. Both customers were white; all of
the store’s sales associates were Black… According to the store’s general manager, Michael
“Muffy” Collins, Lululemon’s corporate leadership, too, resisted the idea of a team of Black
associates staffing its location on Chicago’s South Side.” It is appalling that African Americans
still have to experience discrimination in the workplace today. Lululemon has not built a diverse
environment and is continuing to allow this to happen, by simply disregarding the accounts being
made and is refusing to diversify their stores. Butler-Young also discusses the many accounts of
discrimination being made: “At least six of the store’s 16 former employees have since filed
complaints alleging racial discrimination with the Equal Employment Opportunity Commission,
a US regulatory agency that investigates workplace discrimination, BoF has learned.” The fact
that the discrimination towards Black people within Lululemon repeatedly continues, means
Lululemon has completely disregarded these events. Thus, they are not fit for a partnership with
Nike.

Lululemon is not fit to collaborate with Nike. Our ethics do not align in any area whatsoever. If
we decide to associate ourselves with such a company, we may be seen as a brand that condones
these types of ethics, which could hurt our image. Let me know what you think about moving
forward with this potential partnership. Our team will need to decide in a couple of weeks so we
can give Lululemon a clear answer.
 Works Cited

Ahmed, Redwan. Marsh, Sarah. “Workers Making £88 Lululemon Leggings Claim They are

Beaten”. theguardian.com. 14 Oct. 2019.

https://www.theguardian.com/global-development/2019/oct/14/workers-making-lululemo

n-leggings-claim-they-are-beaten

Butler-Young, Sheena. “At Lululemon, Being Black Is ‘Off-Brand’”. businessoffashion.com.

20 Nov. 2023.

https://www.businessoffashion.com/articles/workplace-talent/lululemon-diversity-and-inc

lusion-2023/

Readfearn, Graham. “Hundreds of Yoga Teachers Call Out Lululemon Over Coal-Powered

Factories”. theguardian.com. 14 Sept. 2022.

https://www.theguardian.com/environment/2022/sep/14/hundreds-of-yoga-teachers-call-o

ut-lululemon-over-coal-powered-factories