Founded in 1906, Mizuno is Japan's biggest manufacturer of sporting goods. Though less well known than other companies featured in this report, Mizuno nonetheless ranks 12th in terms of its global market-share for sports-shoes, and 19th for athletic apparel. The company is renowned for the innovative 'wave' technology used in its running shoes. In recent years it has experienced a slump in profits, recording a net loss of US$ 43, 931 in 2003.

To improve its financial position, Mizuno is actively pursuing a vigorous advertising strategy, at the same time as stripping out costs in production. The company's 2003 fact-book states: 'The production process of each product will be thoroughly reviewed so as to achieve lower costs and strengthen our cost competitiveness'. As part of this strategy, Mizuno is continuing to shift production out of wholly owned Japanese facilities to outsourced factories in Asia. Mizuno prides itself on its close affiliation with the Olympics movement. It has been an official supplier to various Olympic Games since 1972 and is currently the official supplier of uniforms for the International Olympics Committee. It sponsors the Dutch, US, Chinese, and Japanese National Volleyball Olympics Teams. Mizuno's strong commitment to environmental protection is championed by its CEO, Masato Mizuno, who is also the President of the World Federation of Sporting Goods Industry.

Its 'CREW 21' environmental programme is integral to its management strategy. Unfortunately, its commitments on labour standards fall far behind its record on environmental protection. We have been unable to trace information on the existence of any ethical policies with regard to improving working conditions in its supply-chain. At one Chinese factory producing for Mizuno, workers reported the following conditions:

1. Workers do three hours of overtime per day throughout the year, and up to eight hours during the peak season, with no days off.

2. Production-line workers are paid on piece-rates. Management varies the amount paid, to induce workers to produce more when needed.

3. Basic wages are not protected during the low season.

4. Between US$ 2.40 and U$ 3.60 are deducted from salaries as a 'material replenishment fee'.

5. There is no workers' organisation in the factory.

6. As Mizuno moves from wholly owned Japanese production sites to outsourced factories in other countries, the company needs to take immediate steps to improve its practices to ensure decent labour standards.