NIKE CSR Analysis

March 4, 2017 | Author: ruchitasen | Category: N/A
Share Embed Donate


Short Description

Download NIKE CSR Analysis...

Description

Corporate Social Responsibility of Nike, Inc.

Submitted By: Vineet Mishra C037 Prabakaran Nagarajan C039 Jatin Nigam C041

Ayush Parikh C043 Ruchita Sen C049 Sharanya Yaradi C066

Table of Contents S No. 1. 2. 3. 4. 4.1 4.2 4.3 4.4 5. 6. 7. 8. 9. 10.

2|Page

Topic About Nike, Inc. Social Responsibility According to Nike Social Responsibility Initiatives Taken by Nike Integration with Business Model Workplace CSR Marketplace CSR Environmental CSR Community CSR Stakeholder Mapping Critical Analysis Millennium Development Goals Analysis Conclusion References Appendix

Page No 3 4 4 6 7 8 10 12 13 14 17 18 19 20

Corporate Social Responsibility of Nike, Inc.

About Nike, Inc. Nike, Inc. is an American multinational corporation focussing in the manufacturing, marketing and selling of footwear, apparel and sports equipments. Headquartered in the Portland metropolitan area, Oregon, USA, it is one of the world's largest suppliers of athletic shoes and apparel and sports equipment. In 2012, it recorded revenues excess of US$24.1 billion and employed over 44,000 people. Founded on January 25, 1964, by Bill Bowerman and Phil Knight, the company was initially known as Blue Ribbon Sports. Products are marketed using its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Air Force 1, Nike Dunk, Foamposite, Nike Skateboarding. With sponsorships for high-profile athletes and sports teams around the world and with the iconic slogan "Just Do It" and the Swoosh logo, Nike has an incomparable brand value.[1] Mission: To bring inspiration and innovation to every athlete* in the world[2] * If you have a body, you are an athlete

3|Page

Corporate Social Responsibility of Nike, Inc.

Social Responsibility According to Nike Nike integrates sustainable ways of working across their business verticals. They plan to bring sustainable growth across business right from design to production, to logistics and to retail. Apart from bringing sustainable growth in its business processes, Nike has also been addressing climate change, enhancing global economic opportunity and mainly preserving earth’s constrained resources. Nike is also supporting global principles in areas of human rights, labour, environment and anti corruption by working with global influencers including United Nations Global Compact. They are creating opportunities for change by changing environment of industry collaboration, partnership and transparency which helped them to evolve towards power of innovation to manage risks, create opportunities which would help them meet sustainability goals.

Social Responsibility Initiatives taken by Nike Nike aims to bring more sustainable materials that can create positive effect on people and our planet. With this aim, they are coming up with innovative technology that consumes lesser natural resources such as water and creates lesser material wastage. They are also focussed on health and safety of their workers and labour. Following are the initiatives taken with respect Planet and People.

Initiatives taken with respect to Planet Efforts have been made by Nike across four impact areas:    

Reduce emission of CO2 and other green house gases Reduce energy consumption Reduce water consumption Reduce material waste

To track sustainable development, Nike has come up with three indices listed below: Nike Material Sustainability Index Nike created this index to provide information needed to make better decision about materials based on sustainability as well as performance characteristics. The NIKE MSI measures energy and water use, waste generation and chemical use in materials. Two key improvements developed that can be measured using this index are:  Reducing waste by improving pattern efficiency  Choice of more sustainable options The two products developed keeping in mind the above index: 

ColorDry: Nike has introduced a new process called ColorDry which uses recycled CO2 that eliminates the use of water and process chemicals in the dyeing process and also provides consistent color results (See Appendix A: Environment Benefits of ColorDry)

4|Page

Corporate Social Responsibility of Nike, Inc.



NIKE Flyknit: Nike has developed this innovative technology and manufacturing process which helps reduce the footwear waste by upto 80% on an average compared with traditional production methods

Nike Apparel Sustainability Index and Nike Footwear Sustainability Index Nike is using these indices as a standard tool or as a benchmark for creation of products by its global product team. This ensures that design decision takes environmental factors into account.

Initiatives taken with respect to People Sourcing & Manufacturing Sustainability Index (SMSI) This is a component of Nike’s manufacturing index which focuses on sustainability consideration equally with quality, cost and timely delivery of its product. This index also measures progress in worker’s health and safety, labour compliance, human resources management, lean implementation, energy and carbon management and other environmental sustainability issues. Nike has been working to raise the bar for working conditions across its supply chain. They have developed their Code of Conduct and Code Leadership standards to assess supplier’s compliance with their requirement and legal standards. Nike also aligned itself with community engagement activities more closely with its businesses and geographies. This embeds planning and performance tracking into the appropriate business cycles and increases accountability.

5|Page

Corporate Social Responsibility of Nike, Inc.

Integration with Business Model We have studied the Sustainability Report of NIKE and classified their CSR activities into four categories. These activities as described by their report are well imbibed in their business models. The four categories which are described in the next part of our report are:    

Workplace CSR: Includes activities related to Labor Marketplace CSR: Includes activities related to Product and Manufacturing Environmental CSR: Includes activities related to Climate & Energy, Chemistry (reducing toxic chemicals), Waste and Water Community CSR: Includes activities related to Community development

Indices used for measuring sustainability of footwear, apparel, materials and contract factory which are FSI, ASI, MSI, SMSI respectively are developed by NIKE. An important thing to note is that these indices are central to the business of NIKE and impacts NIKE’s CSR activities. So, all these activities will overlap when it comes to these indices but studying and reporting them separately gives us a clear and holistic picture of NIKE’s CSR activities. In describing these activities, we have taken complete reference of NIKE’s Sustainability Report and have reported everything at its face value. Critical analysis is done in the later part of the report. After analysing the report and the CSR activities done by NIKE, we arrive at a conclusion that it falls under First and Second Generation of CSR. The sustainable innovations like Flyknit Technology and ColorDry technology are NIKE’s long term business strategy. Through the philanthropic initiatives taken like the Girl Effect, it is in the First Generation of CSR. Though they are working on various measures to reduce their footprint regarding environmental degradation which makes a strong case for classifying it into Third Generation of CSR but we believe that it falls less of the significant contributions towards addressing poverty, inclusion and environmental degradation. Hence, we believe that it activities are not Third Generation of CSR. Drivers of CSR in case of NIKE are:    

Stakeholder Management Environmental Degradation & Emissions Consumer Pressure Risk Management & Sustainability

6|Page

Corporate Social Responsibility of Nike, Inc.

Workplace CSR Labour NIKE’s aim is to transform working relationship with contract factories to incentivize changes that benefit their workers. To achieve these they have done various activities. NIKE employs 1.01 million people in 785 factories globally (See Appendix B: NIKE’s contract factory labor data) One of the initiatives is that NIKE is a participating brand in the Play Fair Freedom of Association Protocol in Indonesia where training of factory management and workers is providing the platform for greater engagement in this area. NIKE believes that lean manufacturing provides an approach that will significantly reduce excessive working hours. NIKE provides training to contract factory management to engage employees in problem solving and continuous improvement. In pilot programs in Indonesia, NIKE worked with factories to improve data quality, and to study and assess absenteeism, worker engagement and well-being, factory management and supervisor skills. Many of the factories in NIKE supply base invest in providing support to their workers through on-site health clinics or financial literacy training. In FY12, NIKE launched NikeU – an online platform for employee training and development in areas such as merchandising, retail, leadership and management that will help NIKE employees build capabilities to execute on our business strategy. Manager90 is an upward feedback tool that NIKE launched in FY12 to provide managers with insights from their employees about key strengths and opportunities to improve according to the four core principles of our manifesto. NIKE has measured and monitored their contract factory performance on quality and on-time delivery and costing through Sourcing and Manufacturing Sustainability Index (SMSI). Ratings for last three years are shown below:

7|Page

Corporate Social Responsibility of Nike, Inc.

At the end of FY13, 82% of contract factories had grievance systems in place and were in compliance with NIKE standards. Also 93% of audited contracted factories reported no incidents of excessive overtime. NIKE also strives for achieving Diversity and Inclusion in its workforce. (See Appendix C: Diversity and Inclusion)

Marketplace CSR Product NIKE’s aim is to design products that provide superior performance and lower environmental impact across NIKE, Inc. NIKE has developed NIKE Footwear Sustainability Index (FSI) and the NIKE Apparel Sustainability Index (ASI) providing a way for our product creation teams to measure the environmental profile of each product. A glimpse of percentage of indexed products is shown below:

By the end of FY13, NIKE succeeded in using the new indices to score 98% of all new, global, NIKE Brand footwear product (with 63% of those achieving silver or gold ratings)

8|Page

Corporate Social Responsibility of Nike, Inc.

and 86% of all new, global, NIKE Brand apparel product (with 51% of those achieving bronze or higher ratings) Below are some of the statistics about the raw materials used for making products:  



88% of NIKE Brand global cotton-containing apparel used at least 5% organic cotton in FY13, down slightly from 90% in FY11 19% of the polyester used by NIKE Brand in FY13 was recycled polyester (compared to 16% in FY11), and more than 35% of our global NIKE Brand polyester apparel contains some recycled content 100% of the leather used by NIKE Brand in footwear is certified according to the standards of the Leather Working Group, an organization that rates and classifies tanneries based on environmental standards for leather processing

Manufacturing In terms of manufacturing, NIKE’s aim is to drive improvement in factory sustainability performance by implementing sourcing systems that include measures of sustainability performance in sourcing-evaluation processes. The Manufacturing Index (MI) helps determine whether to buy from contract factories. Also, Sourcing & Manufacturing Sustainability Index (SMSI) helps score factories based on five parameters (See Appendix D: SMSI Detailed Process). NIKE is also interested in looking at developing assessing factories’ approach to people management. For that they are using HRM, an integral part of Lean 2.0 which enables them to improve the skills of their employee base. To improve factory capabilities to manage working conditions and reduce risks, NIKE with the Fair Labor Association (FLA) played a key role in the development of the Sustainable Compliance Initiative (SCI) methodology and assessment tool. When it comes measuring, SMSI measured data shows results and rankings of its factories in footwear, equipment and apparel segments:

9|Page

Corporate Social Responsibility of Nike, Inc.

Environmental CSR Nike has identified areas of greatest impact on environment and set targets and made commitments for each: Energy, Chemistry, Water and Waste. Through systems analysis, the company is improving their understanding of the interconnected nature of impacts and bring those insights into approach to manage them. The section that follows provides an overview of their aims and commitments as well as how the strategies are executed, measured and monitored. 1. Climate& Energy Goal: To deliver carbon reductions across the value chain. Achieve a 20% reduction in CO2 emissions per unit. Reduction was accomplished by reducing process heat loss, fostering better engagement between factories and NIKE’s energy field team. At retail stores, energy use per square foot is reduced by 8% from FY11 to FY13, largely due to better energy management systems and through system and control upgrades. Also, by shipping more products by ocean than air, they reduced fuel consumption and cost. 2. Chemistry Goal: Minimize the impact of product ingredients throughout the lifecycle. NIKE helped launched ZDHC coalition and committed itself to the goal of zero discharge of hazardous chemicals by 2020. Strategic relationship with bluesign® system partner enabled their manufacturers to bluesign®-certified textile chemical formulations, including dye systems, detergents and other chemicals used in manufacturing. It is an easy-to-use, rigorously vetted list of chemical products that will help them to reduce the environmental impacts of their processes – and therefore their products. Nike asked material vendors to commit in writing to green chemistry practices. Bluesign® tools helped them in achieving  Restricted substance list(RSL) are shared with vendors that catalogs substances not to be used in NIKE products  Reduce Petroleum derived solvents (PDS) per pair in the products.  Phase out long-chain, per-flourinated chemicals(PFCs) till 2015 3. Water Goal: Improve water efficiency in apparel materials dyeing and in footwear manufacturing. Product creation teams have been made more water–efficient using the NIKE Materials Sustainability Index (MSI) and preferring materials from water efficient vendors. Water quality and quantity has been improved and profiling of materials has seen improvement through Better Cotton Initiative (BCI). Improving metering and data analysis to reduce leaks; repurposing treated gray water, setting standards for water-consuming processes such as cleaning; and reduce flow rates are some initiatives taken. Many factories have developed and implemented mid-sole washing processes that recycle and extend the life of water through a three-step filtration

10 | P a g e

Corporate Social Responsibility of Nike, Inc.

process. Using NIKE ColorDry technology eliminates water and process chemicals from the dyeing process. 4. Waste Products which are thrown away after their life cycle – makes up 59% of the total waste in our value chain. Targets to reduce waste from finished goods manufacturing across NIKE, Inc. and also in shoebox weight per unit.  Through Reuse-A-Shoe program 28 million shoes have been recycled into NIKE Grind  Nike Grind converted the scrap and recycled shoes to sports surfaces, carpet underlays and fitness flooring  Flyknit shoes which reduce footwear waste by 80% on average when compared to typical NIKE running footwear  Redesigned new NIKE Brand box which reduces waste by 3% Measure Nike has developed tools, processes and indices to establish metrics which can be used to measure, track and analyze sustainability-impact. Also, Nike has launched a Smart Data Initiative to provide data on the company’s overall footprint. Business and Environmental Scenario Tool (BEST) BEST provides a 10-year quantified view of environmental and financial impacts from changes to scenarios such as materials used or changes in sourcing. NIKE Apparel Sustainability Index and NIKE Footwear Sustainability Index are now part of the standard product creation suite of tools used by all of our designers. Their Sourcing & Manufacturing Sustainability Index was integrated as a component into Nike’s overall Manufacturing Index, making sustainability a factor in all supplier evaluations and ratings. Monitor Nike monitors and reports the progress effectively and continues to develop and test tools that help to identify the key actions each function and assess their progress toward integrating sustainability into the way they operate. The below figure show the progress achieved on the environment sustainability targets.

11 | P a g e

Corporate Social Responsibility of Nike, Inc.

Community CSR NIKE’s aim is to catalyse human potential by creating community and business impact through a portfolio of innovative partnerships, advocacy and movement-making initiatives NIKE says that they contribute 1.5 % of pre-tax income contributed annually. The exact contribution is shown below.

NIKE identifies that physical inactivity has reached epidemic levels that threaten social and economic prosperity for individuals, companies and nations around the world. Initiatives taken are:     

Raise Awareness: more than 100 organizations have officially aligned under Designed to Move, adopting a common language to collectively advocate for urgent change. Create Active schools Reshape youth sports Aligning to Deliver Early Positive Experiences in Sports Employee empowerment

Other initiatives by NIKE for community include the NIKE N7 Fund that provides grants in support of sports and physical activity programs for youth. Philanthropy by NIKE is The Girl Effect which includes initiatives like launching Ni Nyampinga brand radio show, opening of Girl Hub Ethiopia and magazine in Rwanda to connect girls and inspire them to reach their full potential. Ensuring girls were included in commitments made at the London Family Planning Summit in 2012, where over $4 billion was pledged to tackle the unmet family planning needs of 120 million girls and women by 2020. NIKE has done lot of community investment globally. A brief can be seen below:

12 | P a g e

Corporate Social Responsibility of Nike, Inc.

Stakeholder Mapping 1) Stakeholder 1: Factory Workers, Trade Unions, Employees They form the dependent Stakeholders with legitimacy and urgency. They can’t force the company to bring about a change. 2) Stakeholder 2: Shareholders Shareholders possess all three attributes: power, legitimacy and urgency. Hence, they are the Definitive Stakeholders 3) Stakeholder 3: Nike supported Governments Nike generally sets up its factories in monarchies and military dictatorships. They have power but they do not utilize it against Nike. They possess the power to impose their will but they choose not to, hence they are Dormant stakeholders. 4) Stakeholder 4: Consumers (collectively) With recent protests against Nike, the consumers have shown their power and legitimacy. Power has come through a collective movement against Nike. A lot of their consumers are high-profile sportspersons who have a lot of power and have legitimate rights. Hence, they become the Dominant Stakeholder. 5) Stakeholder 5: Greenpeace, Activist Marc Kasky NGOs like Greenpeace which has protested against Nike’s polluting the Chinese rivers and activist Marc Kasky who sued Nike become the Dangerous Stakeholders with a lot of power and urgency. 6) Stakeholder 6: Suppliers Suppliers possess only urgency. They can’t afford to strain relations with such a big company as Nike. They are the Demanding Stakeholders.

13 | P a g e

Corporate Social Responsibility of Nike, Inc.

Critical Analysis Approximately half of Nike's product line is manufactured by independent contractors in foreign markets - including Indonesia, Vietnam, Bangladesh, China, Malaysia, Mexico and Haiti. Origins of allegations against Nike can been seen in the Op-ed article by Bob Herbert in New York Times published in June 1996 criticizing the sweatshops of Nike and oppression of the laborers.(DeTienne et al., 2005) Since then, Nike has been under the scrutiny for outsourcing labor to developing countries to exploit labor and thereby exponentially increase its revenues. Nike’s sweatshops are known for its safety hazards, inadequate wages and long working hours. Campaigns have been taken up by many activists, political leaders, prominent sportspersons, universities, as well as several anti-sweatshop groups to protest against Nike.[1] The company was ranked 2nd in the Global Exchange’s Top Ten Corporate Criminals 2013 list. [3] In comparison, Adidas, Nike’s chief rival, is a constant ranker in top 10 in The Global 100 Index for CSR, the index objectively calculates and assesses the corporate sustainability. (Rank 8th in 2014, 17th in 2013). Nike is not even featured in the top 100. [4]

Issues against Nike Child Labor Issue in Pakistan, China About 70% of the world’s high-quality soccer balls are produced in Sialkot, Pakistan and a wide range of subcontractors and specialist input suppliers employ children. And Nike having its production units in Pakistan was accused of use of child labour for its soccer balls. In its 1996 issue, Life magazine showed a photo of a 12 year old stitching a Nike soccer ball in its article on child labour in Pakistan. This image had a devastating effect on Nike as a brand. Although Nike took action to curb reduce it, they continue to give their production contracts to companies that operate in areas where it is difficult to monitor and regulate labor practices. (Locke, 2002) Worker and Human Rights violation Nike does not adhere to the local minimum wage laws, pays inadequate wages and forces overtime in Vietnam, China, Haiti, Indonesia. At many plants, employees are forced to work 65 hours per week, well over the legal maximum hours. Also, overtime wages are sometimes not paid. In addition, many plant workers are paid less than the local laws dictate concerning minimum wage. Vietnam workers were paid $1.60 per day, even though the cost of eating was approximately $2.10 per day. 14 | P a g e

Corporate Social Responsibility of Nike, Inc.

In Malaysia, major worker rights violations at one of its Malaysian contract factories, including squalid living conditions, garnisheed wages and withheld passports of foreign workers.[5][6] Nike in response acknowledged the problems in its report which included the falsification of factory documents such as payroll records, lack of effective grievance systems for disgruntled workers and hiring practices that did not ensure minimum age standards were met. Recently, in April 2014, about 30,000 workers at the Yue Yuen factory complex in Jiangxi province, southern China for the issue of historic underpayments for social security and housing fund contributions. Workers at the plant Yue Yuen – earn as little as $1.67 an hour making shoes that can sell for up to 100 times as much in the US.[7][8] Hazardous and dangerous sweatshops Sweatshops in Vietnam have caused liver, kidney brain damage in many workers. Also, workers suffer from exhaustion, heat, fumes and poor nutrition. One plant in China operated with I77x the legal limit of carcinogens in the factory air. Over 75% of the workers at this plant suffered from respiratory disease. In addition, many workers have complained of dangerous job functions that have resulted in severed fingers and maimed limbs.[5] Sexual Harassment and Exploitation In the countries that Nike works in, human trafficking is on a major scale" of foreign workers at the factory. There have been many reports of sexual harassment of female workers by male supervisors. In a report published by researchers from the Global Alliance for Workers and Communities in Indonesia, female workers in one factory told that they were forced to trade sexual favours to gain employment. Nearly 30% said they had witnessed or experienced abuse. [9] Supports military dictatorships that crush labor unions and worker protest In 2013, 650,000 workers that are the backbone of Cambodia's multi-billion dollar garment industry and are key labor for Nike were demanding a doubling of the minimum wage to $160 a month, or about $8 a day. The Cambodian police retaliated by using violence and force against striking garment workers at some of their suppliers. Nike kept its silence and did not condemn the issue. But, Puma came forward and released a statement against the actions of the Cambodian police. Nike’s silence demonstrates a genuine disinterest for human rights.[10][11] Partnership with Daewoo International In Uzbekistan, Nike collaborated with Daewoo International, the largest processor of forced labor cotton. Uzbek human rights activists, political leaders, and prominent dissidents released an open letter calling on Nike to cut ties with Daewoo. The campaign spurred Nike into action and the company has now finally cut all its ties with Daewoo. 15 | P a g e

Corporate Social Responsibility of Nike, Inc.

Though it has officially ended its partnership, the time taken for Nike to arrive on this decision certainly raises doubts about its genuine interest to end forced labor. [12][13] The Marc Kasky Case In 1998, a California resident, Marc Kasky sued Nike for unfair and deceptive practices as Nike made a number of "false statements and/or material omissions of fact" concerning the working conditions under which Nike products are manufactured. This court case was a huge blow to Nike’s reputation. Later, Nike and Kasky agreed to settle the case with an out-of-court settlement for $1.5 million. The settlement involved investments by Nike to strengthen workplace monitoring and factory worker programmes. [14][15][16] Greenpeace’s Dirty Laundry Greenpeace’s latest report titled ‘Dirty Laundry’ focuses on the high levels of industrial pollutants being released into China’s major rivers like the Yangtze and the Pearl and commercial ties between a number of international brands such as Nike with two Chinese manufacturers responsible for releases of those hazardous chemicals. Greenpeace has also launched the challenge ‘Detox’ Campaign, calling Nike, to take the initiative and use their influence on its supply chain. [17] As discussed, Nike flouted labor and human rights in several countries. At first, Nike managers refused to accept any responsibility for the various labor and environmental/health problems found at their suppliers’ plants. But, there was severe criticism and pressures from organizations such as IBLF, Global Exchange. Media also played an important part in the Nike campaign by reaching to a wider audience and thereby gaining legitimacy. The campaign attracted world-wide attention and resulted in Nike initiating and expanding CSR measures apart from the initial adoption of codes of conduct. These measures included devoting staff within the company to the problem, engaging external expertise and joining CSR initiatives such as Business for Social Responsibility, the Fair Labor Association(Nike is a founding member) and the Vietnamese Business Link Initiative. It has also insisted that all footwear suppliers adopt US Occupational Safety and Health Administration (OSHA) standards for indoor air quality. (Segerlund, 2010) Apart from the initiatives mentioned in its recent CSR report, it has also expanded its independent Monitoring, raised Minimum Age Requirements - Independent of local laws, launched Environment, Health and Safety Standards ("EHSMS") to ensure continuous improvement of conditions at Nike factories, Jobs + Education Program, Micro-Enterprise Loan Program, Rising Tides Program.[6] In its first country-specific supply chain report, focusing on China for its Beijing Olympics, Nike detailed the efforts it has been making to get suppliers to comply with its code of conduct and with Chinese law, including a program to monitor Olympics-related suppliers.[18]

16 | P a g e

Corporate Social Responsibility of Nike, Inc.

Millennium Development Goals Analysis With the help of the Nike’s CSR Report and our critical analysis, we have mapped the following MDGs and Nike’s impact.

1. Eradicate Extreme Poverty and Hunger On one hand, it has empowered adolescent girls through Nike Foundation’s The Girl Effect but on the other hand, it makes its workers struggle in sweatshops with inadequate wages and massive overtime hours. 2. Achieve Universal Primary Education The Girl Effect helps in the primary and secondary education of girls. It has also started the Jobs + Education Program for its workers. 3. Reduce Child Mortality The Girl Effect discourages female foeticide. 4. Improve Maternal Health The Girl Effect functions to improve the health of adolescent girls who are the future mothers of the next generation. 5. Promote Gender Equality and Empower Women The Girl Effect promotes gender equality and empowers adolescent girls. But, on the other hand, cases of sexual harassment and exploitation have been brought forward from the sweatshops that Nike operates in the developing countries. 6. Combat HIV/AIDS, Malaria and Other Diseases Initiatives have been taken by the Nike Foundation, the Girl Effect for improving the health of adolescent girls. But, workers’ health has been neglected and they suffer from ill health and deformity due to bad working conditions. 7. Ensure Environmental Sustainability Technologies like ColorDry, FlyKnit used to save water, materials and energy. But, Nike has done several environmental violations including polluting the Chinese rivers. 8. Develop a global partnership for development Collaborating with bluesign®, partnerships with various Governments to help set up factories in those countries.

17 | P a g e

Corporate Social Responsibility of Nike, Inc.

Conclusion Nike has made serious mistakes in the past. But, by accepting them and taking initiatives Nike has taken the right step forward. Introducing the Flyknit and ColorDry technology has been substantial to reduce its impact on the environment and improve its sustainability quotient. As of 2014, it is off the Global Exchange’s Top Ten Corporate Criminals List proving that it has taken steps in the area of social responsibility. But, in comparison to its chief competitor Adidas, it still has a long way to go in promoting sustainability practices and improving human rights. It has clearly failed to keep pace with their stakeholders’ expectations and has to work on improving its credibility by being more responsive to workers and initiate talks with them. To be successful, Nike has to engage and balance all stakeholders’ interests. The priority must be to establish the right culture and leadership, making human rights to their core value for their business decisions.

18 | P a g e

Corporate Social Responsibility of Nike, Inc.

References 1. Company Report References  Nike Inc. (2013). 2012 NIKE, INC. FY12/13 Sustainable Business Performance Summary. Retrieved from http://www.nikeresponsibility.com/report/uploads/files/FY1213_NIKE_Inc_CR_Report.pdf 2. Book References  Segerlund, Lisbeth Dr. (2010). Making Corporate Social Responsibility a Global Concern: Norm Construction in a Globalizing World 3. Article from a Scholarly Journal, Retrieved from an Online Database  DeTienne, Kristen Bell, Lewis, Lee W. (2005). The Pragmatic and Ethical Barriers to Corporate Social Responsibility Disclosure: The Nike Case. Journal of Business Ethics, Vol. 60, Issue 4, PP: 359-376. 18p. Retrieved from http://www.jstor.org/stable/25123589  Locke, Richard M. (2002). The Promise and Perils of Globalization: The Case of Nike. MIT IPC. Retrieved from http://ipc.mit.edu/sites/default/files/documents/02-007.pdf

4. Website References 1. Nike Inc. (2014). Retrieved from http://en.wikipedia.org/wiki/Nike,_Inc. 2. About Nike, Inc. (2014). Retrieved from http://nikeinc.com/pages/about-nike-inc 3. Top 10 Corporate Criminals List. (2014). Retrieved from http://www.globalexchange.org/corporateHRviolators 4. Global 100 Index. (2014). Retrieved from http://global100.org/global-100-index/ 5. FACTs and FAQs about Nike’s labor abuses. (n.d.). Retrieved from http://wwwpersonal.umich.edu/~lormand/poli/nike/nikelabor.htm 6. Study of Corporate Social Responsibility. (1999). Retrieved from http://web.stanford.edu/class/e297c/poverty_prejudice/citypoverty/hedge_poverty. htm 7. Strike spreads at Chinese supplier to Adidas and Nike. (2014). Retrieved from http://www.theguardian.com/world/2014/apr/22/strike-spreads-chinese-supplieradidas-nike-yeu-yuen-factory-jiangxi-guangdong 8. Worsening China Factory Strike Threatens Adidas, Nike Sneakers. (2014). Retrieved from http://www.nbcnews.com/news/world/worsening-china-factorystrike-threatens-adidas-nike-sneakers-n87951 9. Abuse rife in Indonesian Nike plants. (2001). Retrieved from http://www.theguardian.com/world/2001/feb/23/indonesia.johnaglionby1 10. Cambodia: Walmart, Nike Slammed over Garment Workers Deaths Silence. (2014). Retrieved from http://m.ibtimes.co.uk/cambodia-walmart-nike-bashedsilence-over-garment-workers-killings-1431677

19 | P a g e

Corporate Social Responsibility of Nike, Inc.

11. Cambodia's clothes makers being killed after protesting for a pay rise to make clothes for Nike, Gap. (2014). Retrieved from http://www.news.com.au/world/cambodias-clothes-makers-being-killed-afterprotesting-for-a-pay-rise-to-make-clothes-for-nike-gap/story-fndir2ev1226797612232 12. Daewoo International: Stop Profiting from Forced Labor & Start Respecting Workers. (2013). Retrieved from http://www.cottoncampaign.org/2013/08/09/daewoo-international-stop-profitingfrom-forced-labor-start-respecting-workers/ 13. Cotton Crimes Campaign - Latest Action. (n.d.). Retrieved from http://www.antislavery.org/english/campaigns/cottoncrimes/default.aspx 14. Nike lawsuit (Kasky v Nike, re denial of labour abuses). (n.d.). Retrieved from http://business-humanrights.org/en/nike-lawsuit-kasky-v-nike-re-denial-of-labourabuses-0#c9325 15. NIKE, INC., ET AL., PETITIONERS v. MARC KASKY. (n.d.) Retrieved from http://www.law.cornell.edu/supremecourt/text/539/654 16. Kasky v. Nike: Just the Facts. (n.d.). Retrieved from http://reclaimdemocracy.org/kasky_nike_justfacts/ 17. Should Nike be Applauded for Beating Adidas on the Greenpeace Detox Challenge? (2011). Retrieved from http://www.triplepundit.com/2011/08/shouoldnike-be-applauded-beating-adidas-greenpeace-detox-challenge/ 18. Nike Sweatshops in China. (n.d.) Retrieved from http://fashion.lilithezine.com/Nike-Sweatshops-in-China.html

Appendix Appendix A: Environment Benefits of ColorDry

20 | P a g e

Corporate Social Responsibility of Nike, Inc.

Appendix B: NIKE’s contract factory labor data

Appendix C: Diversity and Inclusion (by gender and ethnicity)

21 | P a g e

Corporate Social Responsibility of Nike, Inc.

22 | P a g e

Corporate Social Responsibility of Nike, Inc.

Appendix D: SMSI Detailed Process

23 | P a g e

Corporate Social Responsibility of Nike, Inc.

View more...

Comments

Copyright ©2017 KUPDF Inc.
SUPPORT KUPDF