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Nike Stakeholders & Corporate Social Responsibility
Nike Inc. maintains corporate social responsibility (CSR) programs to address the interests of its major stakeholder groups. According to Archie Carroll, stakeholders are individuals or groups that have a stake in what the business does. The company influences them, and they influence the company in return. The brand image and sales performance of Nike sports shoes, apparel, and equipment are subject to the effects of stakeholders’ interests and corresponding actions. Nike addresses these stakeholders’ interests through a number of corporate social responsibility programs. However, charitable programs are the main arm of the sporting goods company’s corporate social responsibility strategy.
Stakeholders’ interests are satisfied through Nike’s corporate social responsibility (CSR) programs. The corresponding CSR policy and strategy are based on Nike’s consideration for communities and customers, whose interests influence the company’s design and production of its athletic footwear, equipment, and apparel. Considering that members of these stakeholder groups represent the sporting goods market, the satisfaction of corporate citizenship goals relates to the effectiveness of the brand and other competitive advantages described in the SWOT analysis of Nike . For example, a sustainable or green brand image can increase the company’s effectiveness in attracting environment-focused customers.
Nike’s Stakeholder Groups & CSR Initiatives
As a global business, Nike Inc. has a wide variety of stakeholders influencing the sales of its sports shoes and other products. However, the company’s corporate social responsibility programs target only a number of major stakeholder groups. Nike has the following stakeholders, arranged according to the company’s prioritization:
- Customers (top priority)
- Interest Groups
Customers . Nike’s corporate social responsibility strategy gives top priority to customers as a stakeholder group. Customers are significant because they affect sales revenues in the footwear, apparel, and equipment market. In the case of Nike Inc., these stakeholders’ interests include high-quality products and reasonable prices. The company addresses these interests through R&D investments. For example, Nike continues to provide products with high quality and advanced technology. Many of the corporate citizenship efforts for this stakeholder group are communicated through Nike’s marketing mix (4Ps) . For example, the public relations component of promotion activities highlights the company’s CSR programs, sustainability status, and business ethics, to maintain a positive brand image. The corporate social responsibility strategies of competitors, like Adidas and Puma, affect how customers respond as they compare the corporate citizenship statuses of firms in the sporting goods market. Considering high profitability and growing sales revenues, Nike’s corporate social responsibility programs effectively satisfy the interests of customers as a top-priority stakeholder group.
Communities . This stakeholder group influences Nike’s corporate social responsibility standing and brand strength. Customers tend to buy more of a product that has a positive impact on communities. The interests of these stakeholders include support for the development of communities. Nike Inc. addresses these interests through charitable programs and grants, which serve as the company’s primary means of supporting community development initiatives. For example, the company has community development programs in developing countries, focusing on supporting the empowerment of girls. The company also has a variety of “Community Impact” corporate social responsibility programs, such as the Active Schools & Youth Sports program, which donates funds and sports shoes, apparel, and equipment to promote physical activity among students. These Community Impact programs align with Nike’s mission statement and vision statement , in terms of considering everyone an athlete. The sportswear company allocates a percentage of its pre-tax income to support these community development initiatives.
Employees . Nike Inc. recognizes the significance of employees as a stakeholder group that influences organizational effectiveness. For instance, employees’ performance directly translates to business performance. The interests of these stakeholders include fair compensation, career development opportunities, and a sense of purpose. Nike addresses these interests through corporate social responsibility policies and programs that focus on internal leadership development, talent management through coaching and mentoring, and team building. Also, Nike’s company culture (organizational culture) promotes an inclusive work environment that boosts employees’ morale and facilitates the satisfaction of their concerns regarding corporate social responsibility and business ethics in the workplace. These CSR efforts maximize human resource support for Nike’s ability to produce more popular and advanced athletic footwear, apparel, and equipment.
Governments . As part of its corporate social responsibility strategy, Nike Inc. identifies governments as a stakeholder group. These stakeholders are important because they affect how Nike operates, in terms of its permits, limits, and legal actions. Governments are interested in legal and regulatory compliance, as well as business contributions to tax revenues and community development. Understandably, the community development interest is addressed through Nike’s corporate social responsibility programs for community development. In addressing the other interests of this stakeholder group of governments, Nike Inc. maintains policies and standards to ensure compliance in all its business areas. Thus, the firm’s corporate social responsibility strategy satisfies the interests of governments as stakeholders.
Interest Groups . Nike’s corporate social responsibility policies also address the concerns of some interest groups. These stakeholders affect Nike in terms of potential government intervention and in terms of consumer perception regarding the company and its sporting goods. The interests of these stakeholders are varied, including fair labor practices, business sustainability, and environmental conservation. These interests reflect sociocultural and ecological trends, such as the ones identified in the PESTLE/PESTEL analysis of Nike . These trends show that communities tend to favor sustainable businesses and companies that have satisfactory corporate citizenship programs. Nike Inc. addresses these interests through charitable giving, sponsorships, and funding for some social programs. The company also has corporate social responsibility policies for improving labor management and environmental impact. These considerations indicate that Nike Inc. satisfies the concerns of interest groups.
Nike’s CSR Performance in Addressing Stakeholders’ Interests
Nike’s prioritization of customers reflects the importance of this stakeholder group. The satisfaction of customers directly affects revenues. The company’s corporate social responsibility strategy is also satisfactory in terms of giving second priority to communities, considering the variety of policies and programs to support these stakeholders. While it is understandable that employees determine organizational performance, Nike’s corporate social responsibility support for communities is congruent to its support for customers as a top-priority stakeholder group. Communities determine customers’ buying behaviors. Overall, Nike Inc. is effective in ensuring that its corporate social responsibility programs support the sporting goods business aims of optimizing sales revenues while contributing to societal improvement.
- Fatima, T., & Elbanna, S. (2023). Corporate social responsibility (CSR) implementation: A review and a research agenda towards an integrative framework. Journal of Business Ethics, 183 (1), 105-121.
- Nike, Inc. – Form 10-K .
- Nike, Inc. – Impact – Moving Forward .
- Nike, Inc. – Benefits – We Take Care of Our Team .
- Nike, Inc. – Giving Back to Our Communities .
- Park, J. G., Park, K., Noh, H., & Kim, Y. G. (2023). Characterization of CSR, ESG, and corporate citizenship through a text mining-based review of literature. Sustainability, 15 (5), 3892.
- U.S. Department of Commerce – International Trade Administration – Consumer Goods Industry .
- U.S. Department of Commerce – International Trade Administration – Textiles Industry .
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MOVE TO ZERO
MOVE TO ZERO IS NIKE’S JOURNEY TOWARD ZERO CARBON AND ZERO WASTE, HELPING TO PROTECT THE FUTURE OF SPORT.
OUR PATH TO ZERO
We all share the responsibility for our playground—Planet Earth. That’s why we’re reimagining things top to bottom through sustainability and circularity. We’re focusing on carbon, waste, water, and chemistry, aiming to hit targets by 2025. Check out our Impact Report to see our progress.
0.5M tons less of greenhouse gas emissions, through increasing our use of environmentally preferred materials to 50% of all key materials: polyester, cotton, leather and rubber.
100% waste diverted from landfill in our extended supply chain with at least 80% of waste recycled back into Nike products and other goods.
25% reduction of fresh water usage per kilogram in textile dyeing and finishing.
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BLOOM OVER DOOM
Nike has pushed the boundaries of sustainable innovation for decades. But what got us here won’t get us where we need to go. We’re evolving the playbook, transforming science fiction to science fact, at Nike’s scale. We’re not there yet, but we know where we’re going—moving to zero and then beyond. We think of it as “Bloom Over Doom”—tenacious optimism, audacious innovation and collective action so we all, and this beautiful blue ball, thrive.
MATERIALS WITH LESS IMPACT
By reusing existing plastics, yarns and textiles, and inventing entirely new materials, we’re making big strides forward on our journey to zero carbon and zero waste.
Protecting the future of sports means rethinking how we bring products into the world, make them last and giving them new life. Learn about the services we offer, the steps we’re taking, and how you can move to zero with us.
MAKE YOUR GEAR LAST
Explore our Product Care guide for easy maintenance and care recommendations to get the most out of your favorites.
Recycling + Donation
Help reduce waste by donating or recycling worn athletic shoes and apparel.
We source a mix of eligible returns and open box footwear to create an opportunity to purchase gently used shoes at a lower price.
We collect local vintage and dead stock product, using its materials to create newly designed and manufactured pieces.
TAKING ACTION, TOGETHER
Did you know? The “Sunburst” symbol was created in the 1970s as a circular option where asymmetry of the Swoosh logo didn’t work. Since then, in the same nature of our circular design philosophy, we’ve repurposed the logo. Today, when you see this logo, you see one small step in our journey to Move to Zero.
Get the latest Nike Sustainability news and discover new ways we can help protect the future of sport together.
Our Latest Stories
Nike Forward: A Little Care Goes a Long Way
Nike Forward is a special material that appreciates special care. Wash Nike Forward garments on cold before laying them flat to dry. Take care of any piling with an electric fabric shaver.
Move to Zero
Meet Nike Forward
The inaugural collection is made with an average of 75% less carbon compared to our traditional knit fleece. We call it Forward because that’s where we’re going.
Maximum Mileage: 12 Easy Ways to Extend the Life of Your Running Shoes
Runners share tips on getting started with simple, daily gear care. The best part? These hacks can help you reduce waste and be a more mindful runner.
How to Clean Your Running Shoes — and Tread More Lightly on the Planet
Want your running shoes to last longer? Simply cleaning them can go a long way. Watch as Nike apparel designer Raj Mistry shows how small, everyday actions can have a big impact.
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More about Nike's Vision
Circular design guide.
Did you know? The “Sunburst” symbol was created in the 1970s as a circular option where asymmetry of the Swoosh logo didn’t work. Since then, in the same nature of our circular design philosophy, we’ve repurposed the logo. Today, when you see this logo, you see one small step in our journey to Move to Zero. Get the latest Nike Sustainability news and discover new ways we can help protect the future of sport together.
Nike’s CSR Challenge | Case Study
by Bishal · Published November 24, 2015 · Updated December 11, 2015
One of the popular known brands Nike, who manufacture sports and clothing, has more than 50,000 workers produces shoes through subcontractors. Most of their factories are located in Asian countries because of large non-employed population and low cost workers.
In 2005 Nike started disclosing their CSR activities after a couple of years of silence due to legal concerns. After several audits Nike reported that a large percentage of their overseas factories have their employees working in terrible environments for low pay and in unsanitary health conditions. This is the first time that a major corporation has revealed such problems to the public so honestly. Nike is now taking a new strategy and approach in an attempt to correct these problems. They are attempting to take responsibility to effect positive systematic changes in working conditions with several branches of their industry. Nike plans to reshape the way customers, supplies, investors, and regulators see the company. They are changing it from a closed system and making the company more open so that suppliers and customers can relate to Nike. One of Nike’s problems is changing the way its leadership and management style that is “leaders beyond borders” meaning leaders reach out to more than just their professional role and engage people on shared goals. Nike needs to reach out to wider issues of trade flows, governance, and media otherwise all their changes may not make a difference as they optimistically hope. Case Questions:
- Discuss the challenges regarding corporate social responsibility that companies in the apparel industry face in their supply chains around the world.
- The apparel industry is possibly for the most part at risk to issues of social responsibility. The industry is still somewhat labor intensive and operates in a low wage environment. For example, in developing countries, apparel and sports manufacturers lack trained personal, information on CSR implementation and benefits and insufficient infrastructures for initiating CSR, but 25% to 50% of the factories in the South Asian region restrict access to toilets and drinking water during the working day. The industry has a lot of contract manufacturing in which a foreign firm is contracted to do all the production for the firm owning the brand.
Extra working hours are also required to meet demands, which result in overtime and poor working conditions in developing countries, but the same percentage of factories in Asia denies workers at least one day off in seven. More than 60 hours per week and 25% of workers punished for refusing overtime work. All of this can lead to the problems we can see in this case.
- Discuss the meaning and implications of the statement by a Nike representative that “consumers are not rewarding us for investments in improved social performance in supply chains.”
– This statement suggests that those companies who invest their sources on “above-standard compliance” will be outperformed by those companied who are less concerned about compliance. Therefore, companies who concerns about compliance have to either reduce their profit margin or lose in market share if they charge extra for improved social performance. Nevertheless, it is not a good excuse for not doing the right thing. Although competitors may be engaging in unethical practices, and consumers may not care about the working conditions of foreign employees, it is still not a justification situation to engage in socially irresponsible actions. In the case of Nike, the company is not competing with the low end of the market, and one would assume that the premium pricing of the brand could allow for improvements in wages and working conditions. It should be pointed out that consumer perceptions and concerns can change and a firm can find it dealing with a successful PR campaign directed toward its practices. Consumer “rewarding” can change and make such companies vulnerable due to their foreign employment practices.
- What does it mean to have an industry open-systems approach to social responsibility? What parties are involved? Who are stakeholders?
- Open-system approach refers to the organization views its actions in terms of the effect it has on larger social system that’s not only concerning with internal part of companies such as employees, manager, material, equipment and production, and labors, but also all elements, which includes environment-such as competitor, suppliers, distributors and governmental regulator, as well as citizenship and its internal elements. Basically everyone is involved in this case, ranging from government, to company and even customers/buyers. Stakeholders are person with an interest or concern in business. In addition to being socially responsive to internal stakeholders such as domestic employees, the organization also views its impact on suppliers, investors, regulators and communities, regardless of their location.
- What is meant by “Leadership beyond borders”?
– Leadership beyond borders means that leadership moves beyond borders or barriers created by others. For example, leaders in the apparel industry would attempt to extend their influence beyond the company borders in order to deal with the CSR issues. Real life example could be Gandhi, who has given hopes, whose life and personality was enhanced in the process. This kind of leader is only little in existence. Transcendent leadership offers us a metaphor to help Nike move more closely to a world where human talents and energies will be maximized for the betterment of al – personally, organizationally, and globally (Gardiner, 2006).
- Is it possible to have “a compatibility of profits with people and planet”? Whose responsibility is it to achieve that state?
– Yes, it is possible to have “a compatibility of profits with people and planet”, but this is an idea of socialism and in some point it does not work. It’s everyone responsibility to care for each other and everything. It is a based of culture on corporation not competition with not just humans, but also everything that lives on the planet including other animals and resources. This is a social ideal ecosystem. Some people work hard toward the needs of others and the planet, while others will exploit. So it must be mixed with areas of competition in order to maintain a balance of cooperation with competition.
- Research Nike’s CSR actions since the time frame and why it has earned the reputation as one of the world’s foremost organizations in sustainability.
– When Nike adopted open-system approach, they had believed that the future of the company will be dependent on every element – internal and external. They believe that good society will bring good profitability and thus it would contribute to sustainability, Nike managed to create a green life cycle, were Nike has managed to eliminate waste in production and harmful substances, and ensure that all their products are recyclable and re-usable. Despite Nike’s efforts to take the lead in the apparel industry to form a Global Alliance to improve labor conditions, not only in its own factories and sub-contractors, but also among its competitors on the footwear and other apparel industries, incidents such as:
- Collapse in April 2013 of Rana building in Bangladesh, which housed a number of garment units, who were sub contractors to leading MNCs (Multinational corporations) collapsed, killing over a 1,000 people – mostly women and injuring seriously a few hundreds, keep happening.
- Early this year (2014) in the state of Tamilnadu in India, 7 workers died when they were cleaning a tank in a textile dyeing unit, KPR textiles, Perundurai, Erode district. They were exposed to toxic gases from chemicals used in dyeing.
Nike also took the lead in forming the Fair Labor Association (FLA). The awareness and the initiative taken by Nike has been acknowledged and appreciated by all the stakeholders in the industry, including customers. The operation council of the Global Alliance after detailed audit, has commended Nike for the processes introduced, not only in its own operations and among its subcontractors, but also in the rest of the industry.
References: Adidas Group. Sustainability History. Retrieved from: http://www.adidas-group.com/en/sustainability/managing-sustainability/sustainability-history/ International Institute for Sustainable Development (2013). Nike. From: http://www.iisd.org/business/viewcasestudy.aspx?id=81 Megha, G. (2012). Corporate Social Responsibility in the Global Apparel Industry: An Exploration of Indian Manufacturers’ Perceptions. Recovered from: http://libres.uncg.edu/ir/uncg/f/Gupta_uncg_0154D_11000.pdf The Bangladesh Factory Collapse: Why CSR is more important than ever http://www.theguardian.com/sustainable-business/blog/bangladesh-factory-collapse-csr-important CM condoles death of 7 workers in textile dyeing unit. From: http://www.business-standard.com/article/pti-stories/cm-condoles-death-of-7-workers-in-textile-dyeing-unit-114031900421_1.html Trapped in Textile. Retrieved from: http://newjurist.com/trapped-in-textile.html
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Case study: How Nike solved its sweatshop problem
With this article, we present actions Nike has taken through the years to solve its sweatshop problem, using information published in its GRI Standards-based CSR/ ESG/ Sustainability reports.
See what action Nike has taken through the years to solve its sweatshop problem
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Nike is continuously tackling its most important environmental, economic and social impacts with the use of the GRI Standards for CSR/ ESG/ sustainability reporting: an all-round, complete, structured, and methodical approach used by 80% of the world’s 250 largest companies.
- Promoting worker-management dialogue: Nike took action to facilitate worker-management dialogue in contract factories through permanent ESH (Environment, Safety and Health ) committees, training both workers and management to engage in constructive dialogue.
- Directly intervening to protect workers’ rights: When workers’ rights are not adequately protected by others and Nike believes it can influence the outcome, it may directly intervene, often seeking advice from external stakeholders with expertise on a topic.
- Supporting transparency: Nike became the first company in its industry to publish online the names and addresses of all contract factories manufacturing Nike-brand products, constantly updating this list.
- Monitoring Nike and contract factories: In addition to regular management audits in factories, Nike carries out deeper studies called Management Audit Verifications (MAV), which are both an audit and verification in one tool. The MAV tool is focused on four core areas: hours of work, wages and benefits, labour relations and grievance systems.
- Compliance with legally-mandated work hours
- Use of overtime only when employees are fully compensated according to local law
- Informing employees at hiring if compulsory overtime is a condition of employment
- Regularly providing one full day off in every seven and requiring no more than 60 hours of work per week
- Setting industry-leading compliance standards: Contract factories in Nike’s supply chain are subject to strict compliance requirements, starting with risk analysis of the host country and Nike’s Code of Conduct. Additionally, Nike’s internal team of more than 150 trained experts monitors, amends and provides improvement tools to the factories. Nike regularly audits contract factories, with assessments taking the form of audit visits, both announced and unannounced, by internal and external parties, and works with accredited third parties, such as the Fair Labor Association (FLA), to carry out independent monitoring.
- Helping contract factories protect workers’ health and safety: Nike helps its contract factories put in place comprehensive HSE (Health, Safety and Environment) management systems which focus on the prevention, identification and elimination of hazards and risks to workers, expecting its contract factories to perform better than industry averages in injuries and lost-time accidents.
- Forbidding the use of child labour: Nike specifically and directly forbids the use of child labour in facilities contracted to manufacture its products. Nike’s Code of Conduct requires that workers must be at least 16 years old or past the national legal age of compulsory schooling and minimum working age, whichever is higher. In addition, Nike’s Code Leadership Standards include specific requirements on how suppliers should verify workers’ age prior to starting employment and actions a facility must take if a supplier violates Nike’s standards.
- Promoting workers’ freedom of association: Nike’s Code Leadership Standards contain detailed requirements on how suppliers must respect workers’ rights to freely associate, including prohibitions on interference with workers seeking to organise or carry out union activities.
How Nike conducts stakeholder engagement
Nike benefits from constructive guidance from a number of external stakeholders, including civil society organisations, industry, government, investors, consumers and others. To identify and better understand emerging sustainability issues Nike works with Ceres (a sustainability nonprofit organisation), convening an external stakeholder panel and carrying out multiple dialogues that guide the development of its approach to reporting and communication.
How Nike solved its sweatshop problem
It was only 20 years ago that Nike was facing child labour and sweatshop allegations, with consumers protesting outside Niketown stores. All this is hard to believe, given the steady stream of corporate social responsibility (CSR) accolades in the last 10 years.
In 1998, then-CEO Phil Knight promised change. The company struggled to put new policies in place and enforce them. In 2005, Nike published its first version of a CSR/ ESG/ Sustainability report – in which it detailed pay scales and working conditions in its factories and admitted continued problems – and took the dramatic step of publicly disclosing the names and addresses of contract factories producing Nike products – the first company in its industry to do so.
More recently, Nike made this information available on an Interactive Global Manufacturing Map ; there, you can click on a factory to see its name, number of workers, percentage of female and migrant workers and what’s made there. A major change from the days when Nike faced accusations of labour rights in its supply chain, it takes transparency to a whole new level.
Nike recognised its issues, demonstrated transparency and worked toward change – and, today, it is counted among CSR/ ESG/ Sustainability leaders.
Which Sustainable Development Goals (SDGs) have been addressed?
The SDGs addressed in this case are:
- Sustainable Development Goal (SDG) 3 : Ensure healthy lives and promote wellbeing for all at all ages
- Business theme: Occupational health and safety
- Sustainable Development Goal (SDG) 5 : Achieve gender equality and empower all women and girls
- Business theme: Workplace violence and harassment
- Sustainable Development Goal (SDG) 8 : Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
- Business theme: Occupational health and safety, Freedom of association and collective bargaining, Abolition of child labor, Elimination of forced or compulsory labor, Labor practices in the supply chain
- Sustainable Development Goal (SDG) 16 : Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
- Business theme: Abolition of child labor, Labor practices in the supply chain
78% of the world’s 250 largest companies report in accordance with the GRI Standards
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Case study - Social responsibility strategy for Nike, Inc. limited
For writing help, reach me on: [email protected]
The company that I am going to develop a social responsibility strategy is the Nike Company that was formed in 1962by Bill Bowerman and Phil Knight as a result of collaboration of the two to come up with the most sufficient athletic shoes after the dominance of German and cheap Japanese athletic shoes in the American market (Almaney, 2000). The company has gained increased sales since it was formed and thus making it a global giant in the manufacturing and sale of sports equipment utilities. The company has faced a number of challenges in its daily administration in the market as a result of stiff competition, imitation, environmental pollution and lack of raw materials.
Ivona Mikulandra Volic
The real success of Indian democracy is being attributed to its social responsiveness towards all of its citizens. Nevertheless, in the endeavour of sustaining a true and vibrant democracy, the country strives very hard to extent the facilities and benefits to all strata of the society due to its constrained resources. Therefore, the Government of India needs a helping hand from corporate sector to ensure better standard of living of its people. In this regard, the corporate India is expected to play a constructive role by undertaking activities which may ultimately lead to social rejuvenation, development and empowerment of unprivileged people. If this happens, India is very proud to be one of the countries in the world to attain real inclusive growth. Hence, it is felt that Corporate Social Responsibility (CSR) activities of companies are really a key to unlock both economic and social disparities, which in turn, benefits the person in the last mile. Moreover, the Companies Act, 2013 has directed corporate India to work towards a growth based socio-economic-environment development model. The present book is an attempt to provide the emerging trends and best practices in CSR implementation, models of partnership, managerial and organizational challenges and issues in monitoring and evaluation of projects related to CSR in the public and private sector. I thank all paper contributors for their continued support, encouragement, inspiration to complete this task. Without their help it will be difficult task for me to complete this volume. Dr. M. Vasan
ABSTRACT Social responsibility is an idea that has been of concern to mankind for many years. Over the last two decades, however, it has become of increasing concern to the business world. This has resulted in growing interaction between governments, businesses and society as a whole. In the past, businesses primarily concerned themselves with the economic results of their decisions. “Today, however, businesses must also reflect on the legal, ethical, moral and social consequences of their decisions”. This paper will discuss the concept of corporate social responsibility. It will give the definition of the phrase, and identify some of the global factors that necessitate corporate social responsibility. It will discuss the importance of corporations setting up corporate social responsibility projects, and the impact these have on society. Social corporate responsibility and the maintenance of high ethical standards is not an option but an obligation for all businesses.
This report is an effort to present a clear picture of Corporate Social Responsibility strategies and solutions to a myriad of problems related to CSR. The report starts with an introduction to the topic coined by a highly researched literature review and is galloping onto CSR problems in the chosen company i.e. NIKE. The company is also introduced with latest statistics and current mission and vision to get a clear perspective of the company profile. The problems are discussed at length followed by a plethora of solution steps taken by Nike to solve or at least present a solution to the problems. The next portion is of recommendations to NIKE as to what it can or should do to be a champion of corporate social responsibility.
Nurul Fadly Habidin
The automotive industry is an important industry in manufacturing sector. This study shows a model to conduct an empirical study in Malaysian automotive industry in order to improve CSR performance. The aim of this study is to review structural analysis of ISO 26000 efforts and CSR performance in Malaysian automotive industry. This study is to review ISO 26000 standards effort (recognising social responsibility and stakeholder identification and engagement). The CSR performance in this study is focused on two main performance; environmental performance and social performance. This study also proposed structural relationship model between ISO 26000 efforts and CSR performance in Malaysian automotive industry. Based on the proposed research model, research hypotheses are being developed. This paper culminates with suggested future research work.
Strategy is about the most crucial and key issues for the future of organizations. Strategy is also important to explore several strategic options, investigating each one carefully before making strategic choices. The study incorporates a rigorous and systematic effort to uncover the strategies and its impact on the company's performance by analysing case studies, articles and the annual report of Nike Inc. and Adidas Inc. The study attempts to find out the relevance of the strategies adopted by these companies, which are globally successful athletic apparel companies in the context of Bahrain. The findings of the study highlight Nike's strategies which focus on innovation and emphasis on its research and development department, provision of premium pricing for its customers, broad differentiation strategy, market Segmentation Strategy and Closed-Loop strategy. The Adidas strategies focus on the broad differentiation, innovation, trying to produce new products, services and processes in order to cope up with the competition. It embraces a multi-brand strategy, emphasis on expanding activities in the emerging markets, continuously improving infrastructure, processes and systems, foster a culture of challenging convention and embracing change, foster a corporate culture of performance, passion, integrity and diversity. These strategies coupled with its resources and unique capabilities form the basis of sustainable competitive advantage for both the companies. INTRODUCTION: The strategy is a path towards achieving the optimum goals of individuals, groups and organizations. In addition, it leads to a best use of companies' available resources and it also guides the company to stay in a business successfully and continuous improvements for its processes. The definition of strategy could be differ from one author to another, but the most common definition is that the strategy is long term plans and approaches towards the intended visions and objectives. It is a general framework that specified the organizations' plans, policies and approaches to meets its objectives, goals and end results. The way an organization used to shape its strategies could be differentiate from other organizations in order to make its products unique and remarkable. Globally, companies formulate their strategies based on their visions and reaching the satisfaction of customer's needs, requirements and expectations. Subsequently, they use those strategies as a baseline to compare their actual performance with planned ones, to evaluate the end results and ensuring the continuing organizational excellence. There are many kinds of strategies that are pursued by the companies; Such as cost leadership, differentiation and the focus strategies (Porter, 1985), services strategies, growth strategies. Based on the goals, the companies form those strategies and they rank them upon the priorities. It is more than important for any organization to put strategies and not any strategies; the correct strategies which are formulated after a long time of studying and after numerous number of brainstorming among the top management members. Therefore, those strategies then to be implemented by converting the organization's plans and policies into real actions through the best use of available resources such as: human resources, budgets and technological advance; in order to enhance the organization's performance, productivity and sustainability.
Dan Oncica-Sanislav , Dan Candea
This book explores a new way of looking at business sustainability. Why some companies show more interest in sustainability while others exhibit limited solicitude for social and environmental issues? What type of organization would naturally and inextricably include societal concerns in its actions? Our research starts out from the hypothesis that a learning organization holds a better promise for sustainability than other kinds of organization. The research was conducted using the case study method and the pattern matching technique. Our findings support the research hypothesis.
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Peter D Burrows
The initial B-cell repertoire is generated by combinatorial immunoglobulin V(D)J gene segment rearrangements that occur in a preferential sequence. Because cellular proliferation occurs during the course of these rearrangement events, it has been proposed that intraclonal diversification occurs during this phase of B-cell development. An opportunity to examine this hypothesis directly was provided by the identification of a human acute lymphoblastic leukemic cell line that undergoes spontaneous differentiation from pro-B cell to the pre-B and B-cell stages with concomitant changes in the gene expression profile that normally occur during B-cell differentiation. After confirming the clonality of the progressively differentiating cells, an analysis of immunoglobulin genes and transcripts indicated that pro-B cell members marked by the same DJ rearrangement generated daughter B cells with multiple VH and VL gene segment rearrangements. These findings validate the principle of intraclon...
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Corporate Social Responsibility: Case Study of Nike, Inc.
Essay, 2013, 5 pages, grade: a, michael watford (author).
Abstract or Introduction
Nike Inc. was founded in 1964 by Bill and Phil as Blue Ribbon Sports. It is headquartered in Oregon, United States and operates on a global scale. The company is traded on NYSE and operates in apparel industry. Its segment markets include athletic footwear and apparel, sports equipment’s, and recreational products. With control of over 60% of the business Nike has become a pop culture and at the same time involved in corporate social responsibilities. Increase in market resulted to be marked as the advertisement of the year in 2003 while in 2004 its annual revenues exceeded $ 13 billion. Nike’s acquisitions include Starter and Umbro (NIKE, INC., 2013). Its subsidiaries include Hurley International and Converse Inc. with over 44,000 employees it made a revenue of US$ 24.128 billion and a net income of US$ 2.223 billion in the fiscal year 2012. In 2 fiscal year 2009 Nike reported a revenue of US$ 19.2 billion. Nike has offices are located over 45 countries. Nike sells products in over 180 countries. Nike Portfolio include top competitive brands which include: NIKE brand ( accessories, footwear, apparel, and equipment); Cole Haan (designs, distributes and markets handbags, luxury shoes, outwear and footwear); Converse ( athletic footwear, apparel and accessories); Hurley International LLC (action sports and youth lifestyle footwear, apparel and accessories); Umbro; Nike Golf; and Jordan brand providing similar products (Carbasho, 2010).
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Case Study | Inside Nike’s Radical Direct-to-Consumer Strategy
- Chantal Fernandez
In October 2020, in the middle of a global pandemic that had infected 188 countries, causing record sales damage across the retail sector, Nike’s share price hit an all-time high.
Like other retailers, Nike had been forced to close most of its network of more than 900 stores across the world, as had its key wholesale partners like Nordstrom and Foot Locker.
But the American sportswear giant’s performance during the pandemic, when its online sales spiked, signalled to many that Nike had the competency to prosper long term, in a future that will be increasingly defined by e-commerce and digital brand connections.
It was a validation of a strategy that Nike prioritised three years ago, dubbing it “Consumer Direct Offense,” but the seeds of the approach go back almost a decade.
Above all, Nike is a marketing company. It doesn’t just sell sneakers; it sells the brand aspiration that imbues those sneakers with meaning. But to achieve the reach required to scale its business, Nike’s distribution strategy had long-relied on third-party retailers to sell its products, even if the consumer experience offered by those partners diluted its brand.
But in a future increasingly defined by e-commerce, fast-moving trends and, above all, the rising power of branding to drive consumer preference when competitors are just a click away, Nike realised that in order to thrive, it needed to take control of its distribution to better manage its brand and deepen its connection with consumers.
It was definitely architecting a new retail, and a bold, retail vision for Nike.
Such an evolution is easier said than done, especially for a business as large as Nike in a category as competitive as sportswear. But by radically cutting back on its wholesale distribution and raising the bar for brand experience with the third-party partners that remained; expanding its focus on content, community and customisation to keep customers close; investing in its data analytics and logistics capabilities; and rethinking the role of the store as a brand stage, Nike drove a veritable direct-to-consumer revolution.
When the pandemic hit, these shifts went into overdrive.
“It was definitely architecting a new retail, and a bold, retail vision for Nike,” said Heidi O’Neill, Nike’s president of consumer and marketplace, and one of the most prominent executives leading the brand’s new strategy in recent years. “But it started with our consumer, and we knew that consumers wanted a more direct relationship with us today.”
In this case study, BoF breaks down Nike’s pioneering direct-to consumer strategy and how it has worked to the brand’s advantage, propelling its share price to new heights during the global crisis of 2020.
Click below to read the case study now.
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Nike Company’s Governance and Sustainability Case Study
Introduction, significance of corporate social responsibility, ethical standards, stakeholders, issues from nike’s critics, nike’s business model, works cited.
Corporate social responsibility (CSR) is an integral component of modern business practices. According to Thompson et al., CSR does not only benefit the public but also boosts organizational reputation (268). Business sustainability depends on the capacity of a company to institute and run effective CSR programs. Thompson et al. maintain that organizations require having rules and procedures, “which integrate social, environmental, ethical, human rights, and consumer concerns into business operations and core strategy” (269).
Nike is among the organizations that value CSR. The company uses CSR to maximize the creation of standard values for business, shareholders, owners, employees, and stakeholders. Moreover, participation in CSR helps Nike to improve the life of society. Nike has incorporated CSR into its governance and sustainability strategy. The move has contributed to improved competitiveness.
Nike’s commitment to CSR contributes to its competitive advantage in many ways. The company operates in an industry that requires a lot of water. Moreover, its production processes release a high volume of contaminated wastewater, which could have adverse effects on the environment. Nike acknowledged that it was difficult to continue to rely on production processes that consumed a lot of water. The resolve to establish production processes that could conserve water and reduce environmental pollution led to the company coming up with a closed-loop manufacturing system dubbed Considered Design. The system has numerous benefits for the company.
According to Paine et al., it has helped Nike to establish processes that are waste-efficient (8). Paine et al. hold, “With the Considered materials sustainability indexes, designers could quickly and easily evaluate the environmental impact of prospective designs” (8). The move has enabled the company to develop innovative shoe designs that are in high demand in the market. Indeed, Nike’s shoes are regarded as not only trendy but also of high quality.
In 2008, Nike initiated Project Rewire aimed at streamlining working conditions in contract factories. The factories housed workers in inadequate facilities and forced them to work for excessive hours under poor conditions. Nike sought to make sure that contract factories respected and observed the established sourcing and production standards. Project Rewire enabled Nike to restructure its operations.
The reorganization allowed the company to interact with customers, thus developing products that met their needs. According to Paine et al., dedication to CSR enables Nike to innovate quickly and anticipate and exploit future growth in new markets (8). Moreover, Project Rewire has allowed the company to cut down on operations costs by reducing workforce. Engagement in CSR has enabled Nike to consolidate its supply chain, boosting organizational efficiency.
The company has come up with what it terms as “category offense”, which has helped Nike to divide the target market based on sports categories. Today, Nike targets basketball players, athletes, and football players among others. The move has brought the company closer to the target customers and enhanced their relationships.
Numerous ethical standards form the foundation of Nike’s mission and drive the company’s CSR initiatives. They include the desire to innovate, evolve, eternalize the basics, and do the right thing. The company operates under the ideal that consumers take precedence in decision-making. Nike believes that everyone can be an athlete. It underscores the reason the firm manufactures varieties of sports products for different consumer groups.
Nike appreciates the significance of innovation in sustainability. The demand for organizations to be environmental-conscious has prompted Nike to engage in innovative programs aimed at enhancing profitability and global reputation. The aspiration for innovation forced Nike to restructure operations to establish what it refers to as “Sustainable Business and Innovation” (SB&I). The objective was to come up with novel capabilities that would enable the company to innovate and be environmentally-conscious. The ideal of “playing offense” is dear to Nike as it enables the corporation to remain competitive. According to Paine et al., the urge to “play offense” influences Nike’s CSR (9).
The company has established an SB&I lab that enables it to research on the contemporary technologies, which can augment sustainability. Moreover, the lab helps the company to search for potential alliances that can help to drive sustainability value. The overall goal is to come up with innovative procedures that can improve Nike’s competitive edge and promote environmental conservation.
Nike believes in doing the right thing no matter how difficult or expensive it might appear. The company regards itself as conscientious, espousing the stakeholders’ vision of CSR. Nike encourages employees to factor in sustainability in all innovation programs. It invites the management to consider all sustainability areas in decision-making. The move helps to make sure that the company does not engage in activities, which might inhibit sustainability. The company involves sustainability rating agencies, consumers, and other stakeholders in decision-making to ensure that it does the right thing.
Stakeholders refer to groups or individuals that are affected by an organization’s activities. Nike engages in CSR to address the needs of diverse stakeholders. The company is a multinational business with many stakeholders who have significant impacts on its performance. Nike’s CSR projects target mainly the major stakeholders. They include customers, employees, communities, interests groups, and governments.
The company relates to the stakeholders in different ways. They include transactional, developmental, and accountable interactions. Nike’s CSR gives employees high priority because they affect its revenues. Customers purchase the company’s products that range from apparel, shoes, to sports equipment. The relationship between Nike and its customers is transactional. The interaction entails mainly selling products to the customers. Nike invests in research and development to ensure that it supplies quality products to clients.
The relationship between Nike and communities is developmental. Customers prefer purchasing products and services that add value to the community. The primary concern of this cluster of stakeholders is support for development. Nike has a foundation that helps to meet the interests of communities. The Nike Foundation runs programs aimed at benefiting the underprivileged in society. The company has other CSR projects that promote healthy living.
For instance, it donates apparel, sports shoes, and equipment to schools to encourage students to engage in physical activities. The relationship between Nike and employees is developmental. The company appreciates the role of employees in organizational performance. Nike endeavors to meet the interests of employees, which include career growth, fair remuneration, and a sense of purpose. The company runs CSR projects that focus on talent management, employee development, and team building.
Nike recognizes governments as main stakeholders that influence its success. The relationship between the company and governments is accountable. The governments regulate Nike’s operations in different markets. The company is expected to comply with specific regulatory and legal guidelines. It is also supposed to abide by the established taxation policies. Various interests groups affect Nike’s operations. They include trade unions and environmentalists.
The relationship between Nike and these interest groups is accountable. Trade unions expect Nike to observe fair labor practices across all its subsidiaries. It underlines the reason the company is keen to contract factories that comply with labor laws. On the other hand, environmentalists expect Nike to manufacture and distribute its products in ways that do not pollute the environment. Nike’s sustainability strategy focuses on environmental conservation.
The calls for Nike to enhance working conditions in contract factories and guarantee sustainability are bound to result in numerous challenges. The company has embarked on an innovative program aimed at minimizing waste and warranting environmental conservation. Introduction of innovative procedures has helped the company to scale down its workforce. Nike is regarded as a major employer across the globe. Embracing innovation has affected the company’s reputation as a principal employer. Critics may view the move to scale down workforce as a ploy by the company to increase revenue.
Thus, in the future, Nike will be categorized among the “firing machines” like Netflix. Nike has done a lot to guarantee healthy working conditions in contract factories. The company has ceased dealing with contract factories that exploit workers. Even though the move has helped to boost organizational efficiency and reputation, Nike is likely to run short of raw materials in the future due to a limited number of suppliers. Such a situation will have grim impacts on the company’s performance. Nike shares information regarding its contract factories. Hence, critics know the plants that deal with Nike. The company is bound to be at odds with activists in the future. Critics will have an easy time visiting the factories to investigate non-compliance with the established sustainability policies.
Nike’s business model comprises a mixture of artistic shoe design and cost-effective production by contract factories. The factories are in low-wage nations as a measure to reduce production costs. The company has a research and development center that works in liaison with athletes to develop innovative prototypes. The prototypes are sent to production factories spread across Asia. Nike has invested in the sports industry and has numerous retail outlets across the globe. It has partnered with Apple to develop gadgets that monitor a person’s activities. Nike has invested least in diversification. The company requires enhancing its financial risks by venturing into other industries. For instance, Nike should invest in premium products and accessories.
Nike leverages CSR to boost competitiveness and guarantee sustainability. The need for sustainability has led to the company investing in research and development. In return, Nike has heightened innovation, which has helped to minimize operations costs. Nike encourages contract factories to improve working conditions for employees. The urge to innovate, evolve and master fundamentals are some of the norms that drive Nike’s CSR.
The company operates on the ideal that customers take priority at all times. It also encourages employees to always do right despite the cost. Nike’s stakeholders include customers, governments, interest groups, and employees. The company shares information regarding its contract factories with the public. Such information may result in the business being at odds with activists.
Paine, Lynn, et al. Governance and Sustainability at Nike (A) . 2016. Web.
Thompson, Arthur, et al. Crafting and Executing Strategy: The Quest for Competitive Advantage Concepts and Cases . 20th ed., McGraw-Hill Education, 2016.
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IvyPanda. (2021, July 21). Nike Company's Governance and Sustainability. https://ivypanda.com/essays/nike-companys-governance-and-sustainability/
"Nike Company's Governance and Sustainability." IvyPanda , 21 July 2021, ivypanda.com/essays/nike-companys-governance-and-sustainability/.
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IvyPanda . 2021. "Nike Company's Governance and Sustainability." July 21, 2021. https://ivypanda.com/essays/nike-companys-governance-and-sustainability/.
1. IvyPanda . "Nike Company's Governance and Sustainability." July 21, 2021. https://ivypanda.com/essays/nike-companys-governance-and-sustainability/.
IvyPanda . "Nike Company's Governance and Sustainability." July 21, 2021. https://ivypanda.com/essays/nike-companys-governance-and-sustainability/.
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