Report_Production and CSR Nike Inc

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REPORT ADVANCED ENGLISH

Corporate Social Responsibility

in the case of Nie



Table of content

!" E#ec$ti%e S$&&ary

'" Intro($ction

)" Corporate Social Responsibility as a *feel+better, concept

-" The case of NI.E/ Inc"

0" I&ple&entation of Corporate Social Responsibility Strate1ies

0"! I&pro%e( stan(ar(s for &an$fact$rin1 2r&s

0"' Nie3s Vision + S$stainable principles

4" Nie3s Perspecti%e + Concl$sion an( 5$t$re O$tloo



1. Executive Summary

This report (eals 6ith the topic Corporate Social Responsibility an( ill$strates the

i&portance of this iss$e in the case of the foot6ear/ apparel an( e7$ip&ent

co&pany Nie" In the past the co&pany has been in the spotli1ht of &$chcriticis& concernin1 their 6orin1 con(itions at their pro($ction plants o%erseas"

Co$ntless reports in the &e(ia ne1ati%ely a8ecte( the co&pany3s rep$tation an(

perfor&ance" In or(er to o%erco&e these (i9c$lties Nie starte( to i&ple&ent

Corporate Social Responsibility Strate1ies into their core b$siness &o(el" As a

res$lt they &ana1e( to i&pro%e their labo$r an( en%iron&ental perfor&ance

alon1 the s$pply chain"

2. Introduction

The report starts 6ith a short (e2nition of the ter& Corporate Social

Responsibility" After6ar(s one can 2n( a short o%er%ie6 of the co&pany an( the

challen1es it face( concernin1 its corporate i&a1e in the past" Especially the

criticis& abo$t the 6orin1 stan(ar(s in its s$bcontractor 2r&s are o$tline(" The

follo6in1 part (eals 6ith the reaction of the co&pany concernin1 this lon1+ter&+

proble& an( (e&onstrates the i&portance of a 1oo( p$blic i&a1e" 5inally the

res$lts are (isc$sse( an( the report concl$(es 6ith a f$t$re o$tloo for the

co&pany"

3. Corporate Social Responsibility as a “feel-better concept

In the recent years Corporate Social Responsibility :CSR; has beco&e one of the

&ost pro&inent topics in b$siness ethics" It (escribes actions (esi1ne( to

i&pro%e social con(itions/ 6hile ai&in1 to in%ol%e ethical stan(ar(s in the

or1anisational (ecision+&ain1 process :Lo$che et al/ '<!<;" =oreo%er/ it can be

e#plaine( as corporate en1a1e&ent 6ith ecolo1ical an( social iss$es that are

beyon( the or1anisation3s econo&ic actions :Artha$(+Day/ '<<0;" =any

or1anisations ha%e i&ple&ente( CSR strate1ies to a((ress criticis& of 6orin1

an( en%iron&ental con(itions at their s$bcontractors3 factories :Li& > Phillips/

'<<?;" Those strate1ies can incl$(e social or en%iron&ental concerns/ e&ployee

practices/ s$pply chain approaches/ &aretin1 practices or h$&an ri1ht policies

:@as$ > Palao/ '<<?;"

!. "#e case of $I%E& Inc.



The i&portance an( e8ecti%eness of the i&ple&entation of CSR+Strate1ies can

be e#a&ine( in the case e#a&ple of Nie/ 6hich is the 6orl(3s lea(in1 athletic

foot6ear/ apparel an( e7$ip&ent co&pany" Nie is &an$fact$rin1 in &ore than

?<< factories/ e&ployin1 o%er 4<<"<<< 6orers in 0! co$ntries 6ith the

hea(7$arters in Ore1on/ BS" Nat$rally Nie3s control an( a6areness of the factory

con(itions (ecrease( 6ith e%ery e#pansion at the pro($ction le%el that 6as

o$tso$rce( to s$bcontractors :DeTienne et al/ '<<0;" Therefore the co&pany has

been a lot in the (isc$ssion concernin1 ethical stan(ar(s an( co$ntless ne1ati%e

reports in the &e(ia a8ecte( the 2r&3s perfor&ance an( rep$tation in the past

:Scherer > Palao/ '<<?;"

The 2r& has recei%e( hi1h criticis& abo$t the ethics of its b$siness proce($res of

their s$bcontractors" One of the &ost striin1 topics (isc$sse( in p$blic is that

al&ost all of Nie3s pro($ction is (one o%erseas in lo6+cost+labo$r co$ntries" The

&aority of Nie shoes are &an$fact$re( in (e%elopin1 nations in So$th East Asia"

The 2r& has been acc$se( of &an$fact$rin1 shoes an( apparel in Vietna& in

*s6eatshop, con(itions/ incl$(in1 lo6 salaries for yo$n1 6orers that 6ore(

lon1 ho$rs in an $nsafely an( $nhealthy en%iron&ent :Herbert/ !;"

In a((ition to that Nie also e#perience( protests an( cons$&er boycotts as a

res$lt of chil( labo$r ab$se in o$tso$rcin1 2r&s in Asia" Therefore it is of hi1h

i&portance for the& to &onitor an( respon( 7$icly to local CSR concerns"

'. Implementation of Corporate Social Responsibility Strate(ies

@ein1 consi(ere( as the &aret lea(er/ the 2r& trie( har( to i&pro%e their

ethical stan(ar(s an( its corporate i&a1e" After noticin1 that those p$blic

concerns are a lon1+ter& proble& the co&pany inte1rate( CSR initiati%es into

their core b$siness strate1ies" In contrast to other *1reen6ash, co&panies Nie

(i( not only tae (etaile( actions to (eal 6ith proble&s of poor 6orin1con(itions/ b$t trie( to sol%e those proble&s fro& roots by i&ple&entin1 an

ethical c$lt$re in the co&pany an( a($stin1 the co&pany str$ct$re to ens$re

that their b$siness strate1ies are CSR (ri%en :Nie/ Inc"/ '<!';"

'. 1 Improved standards for manufacturin( )rms

Nie a((resse( the criticis& by intro($cin1 ne6 r$les an( control &echanis&s for

the pro($ction plants in lo6+labo$r co$ntries" The ne6 stan(ar(s for its

&an$fact$rin1 facilities incl$(e( factory &onitorin1/ &ini&$& a1e re7$ire&ents/

en%iron&ental safety stan(ar(s an( a 1reater transparency :=c.ee > La&b/



'<<-;" =oreo%er/ Nie3s factory ratin1 syste& starte( to loo (eeper at contract

factories in or(er to ele%ate the labo$r an( en%iron&ental perfor&ance alon1 the

s$pply chain" @esi(es the co&pany re7$ires its s$bcontractors to f$l2l se%eral

re7$ire&ents an( allo6 $nanno$nce( %isits by inspectors chosen by Nie" Other

s$stainability tar1ets incl$(e pro($ct (esi1n/ cli&ate an( ener1y/ labo$r/

che&istry/ 6ater/ 6aste an( co&&$nity :Nie/ Inc"/ '<!';"

'.2 $i*e+s ,ision - Sustainable principles

In the co&pany3s s$stainable b$siness perfor&ance s$&&ary an( on their

corporate 6ebsite/ Nie is a((ressin1 se%eral tar1ets in or(er to i&pro%e their

ethical stan(ar(s" Nie3s lon1+ter& strate1ic %ision is to f$rther inte1rate

s$stainability principles into its inno%ation processes" @y (oin1 so/ the 2r& 6ants

to foc$s on inno%ati%e perfor&ance pro($cts that ha%e increasin1ly beco&e core

to their b$siness approach" Therefore the *Nie @etter Forl(, ethos has to be

&entione( in this conte#t/ 6hich re%ol$tionies s$stainability in hi1h perfor&ance

pro($cts" The ca&pai1n refers to the creation of pro($cts for s$perior athletic

perfor&ance 6ith an e#tre&ely lo6 en%iron&ental i&pact" It is all abo$t the $se

of en%iron&entally preferre( &aterials in the &an$fact$rin1 process in or(er tore($ce 6aste an( eli&inate to#ics" This in%ol%es for e#a&ple to tae &aterial

fro& an ol( shoe/ 1rin( it $p an( transfor& it into the ne6 pro($ct" 5or e#a&ple

$nifor&s in the *Nie Pro T$rboSpee(, collection consist of an a%era1e of ?'

percent polyester fabric an( $p to an a%era1e of !) recycle( plastic bottles :Nie/

Inc" '<!0;"

In a((ition it is i&portant to &ention that Nie s$pports a n$&ber of sport+base(

co&&$nity pro1ra&s aro$n( the 1lobe" Therefore Nie helps to inspire

(isa(%anta1e( chil(ren/ as 6ell as stren1then yo$n1 r$nners :Nie/ Inc"/ '<!);"

. $i*e+s erspective - Conclusion and /uture outloo*

@eca$se of bein1 repeate(ly criticise( by the p$blic for ab$sin1 h$&an ri1hts in

its o%erseas factories/ Nie has p$t stron1 e8ort an( contin$o$s i&pro%e&ent on

their b$siness operations an( is no6 consi(ere( as the best practice of CSR" @y

restr$ct$rin1 its or1anisation/ Nie achie%e( to incorporate CSR as a part of its

b$siness approach" Ha%in1 been in the spotli1ht of &$ch criticis& in the pastyears/ the co&pany is contin$ally intro($cin1 ne6 tar1ets an( o$tlinin1 its



pro1ress a1ainst ey b$siness/ labo$r an( en%iron&ental 1oals" As a6ar(s ha%e

pro%en that Nie3s e8ort 6as yet s$ccessf$l/ Nie earne( No"! ranin1 in the

Apparelaccessories sector in the Cli&ate Co$nts perfor&ance ranin1 in '<!'/

for the si#th ti&e in a ro6 :Nie/ Inc" '<!);" Despite of the fact that Nie has

&a(e &istaes in the past it has to be &entione( that it also pa%e( the 6ay for

econo&ic (e%elop&ent in so&e of the co$ntries" 5inally 1oin1 on lie this it is

liely that the co&pany 6ill stay s$ccessf$l in the f$t$re an( a bench&ar for

CSR+strate1ies"

Sources

0rt#aud-ay& . 244'5 Transnational Corporate Social Responsibility A Tri+Di&ensional Approach to International CSR Research" @$siness Ethics $arterly/Vol" !0/ No" !/ pp" !+''" P$blishe( by Philosophy Doc$&entation Center" ArticleStable BRL http666"stor"or1stable)?0440

6asu& %. 7 ala88o& 9. 244:5 Corporate Social Responsibility A Process =o(elof Sense&ain1" Aca(e&y of =ana1e&ent Re%ie6" Vol" ))/ No" !/ pp" !''J!)4

e"ienne& %. 7 ;e<is& ;. 244'5 The pra1&atic an( ethical barriers tocorporate social responsibility (isclos$re The Nie case" Ko$rnal of @$sinessEthics/ 4<:-;/ pp" )0+)4

=erbert& 6. 1>>?5 @r$tality in Vietna&" Ne6 or Ti&es/ p"?

;ouc#e& C@lineA Ido<u& Samuel B.A ;eal /il#o& alter 2414; Inno%ati%eCSR" 5ro& ris &ana1e&ent to %al$e creation" She9el(/ B. Greenleaf"

$i*e& Inc. 24125 5!<+!! SBSTAINA@LE @BSINESS PER5OR=ANCE SB==AR"A%ailable at httpnieinc"co&ne6snie+inc+intro($ces+ne6+tar1ets+ele%atin1+s$stainable+inno%ation+6ithin+b$siness+strate1yMinline!<-44 Accesse( '!thDece&ber '<!0

$i*e& Inc. 24135 AFARDS > RECOGNITION" A%ailable athttpnieinc"co&pa1esa6ar(s+reco1nition Accesse( '<th Dece&ber '<!0

$i*e& Inc. 241'5 NI.E REVOLBTIONIES SBSTAINA@ILIT IN PER5OR=ANCEPRODBCT" A%ailable at httpne6s"nie"co&ne6snie+better+6orl( Accesse('!th Dece&ber '<!0

Sc#erer& 0.A ala88o& 9. 244:5D Han(boo of research on 1lobal corporatecitienship" Cheltenha& E(6ar( El1ar"

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Report_Production and CSR Nike Inc

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