...distancing of Nike from the suppliers, Nike's Corporate Responsibility teams realized that paying the role of a corporate citizen not responsible for their supply chains was only going to make matters worse over time (DeTienne, Lewis, 359). Instead of incrementally creating programs that sought to bridge the gap in both critics and the publics' trust that Nike was indeed concerned about unethical and immoral practices in their supply chain, Nike should have immediately moved to ban any supplier caught in a violation. Nike however took years to get to this point, further fueling the need for even more expensive audits and independent monitoring and inviting more investigations over time. The invitation to Andrew Young appears patronizing and seems like yet another stop-gap measure. In the end the Corporate Responsibility team fails to get on top of this crisis through actions that support their contention they are justified by taking an arms-length approach to solving it. Wall Street Journal News Why have Nike's attempts to date to address its critics been unsuccessful? Economics - International Trade Term Nike creates a governance framework and adequately defines it yet does not bring it to fruition through to Nike itself, as it continues to push the responsibility of compliance down on suppliers. The company Negotations still has not shown that they are capable of taking ownership of the program at the senior management Business - Case Studies...
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...NIKE AND ITS FACTORIES IN VIETNAM THE CONTEXT OF THE ISSUE In order to offer competitive prices, a lot of Western companies relocate in low-wages countries. Nike is not unique in that respect: in fact the company choose to use subcontracted factories in Asia, especially in Vietnam. It is important to put this trend in context: this particular industry (the footwear industry) know a significant growth since two decades. Vietnam has a very high unemployment rate, which reflects the poor economic situation of the country. In this perspective it can be said that Nike factories are essential for Vietnam’s economy, because it offers plenty of jobs. In the 1990s some allegations were made that accused Nike of mistreating its Vietnamese workers. Nike tried to justify these local problems by the fact that cultural differences in South-East Asia make American management more difficult for the company. This was part of its explanation justifying its unethical behavior. WHAT IS IN STAKE AND AT WHICH LEVEL The problem was raised when people started to criticize Nike’s behavior. They acted publicly: college students asked their sport teams to drop Nike’s products, politicians signed petitions, web-sites against Nike were created… What enabled them to act what the researches done about Nike behavior: reports published had revealed information. Here we can notice different values in conflict. Profit, represented by big firms, would be one value, and the importance of ethical...
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...institutional or third party websites are prohibited. In most cases authors are permitted to post their version of the article (e.g. in Word or Tex form) to their personal website or institutional repository. Authors requiring further information regarding Elsevier’s archiving and manuscript policies are encouraged to visit: http://www.elsevier.com/copyright Author's personal copy Organizational Dynamics (2010) 39, 353—356 a v a i l a b l e a t w w w. s c i e n c e d i r e c t . c o m journal homepage: www.elsevier.com/locate/orgdyn Why Nike kicks butt in sustainability Marc J. Epstein, Adriana Rejc Buhovac, Kristi Yuthas Nike Inc. has a unique combination of capabilities and competencies that position the company as a leader in sustainability. Nike is among the world’s most prominent sustainable corporations, and is regularly recognized by organizations that rank sustainable performance. For example, Nike has been named one of 100 most sustainable corporations in the world by Innovest, ranked third in Corporate Responsibility Officers 100 Best Corporate Citizens list, and named one of the World’s Top Sustainable Stocks by Sustainable Business. Nike possesses a unique combination of strengths and capabilities that enable the company to make rapid advancements in sustainability that are ahead of other firms in its industry, and that increasingly contribute to the financial performance of the company. Nike believes that we are at the beginning of a shift from...
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...Corporate Sustainability and NGO-Activism: The Case of Corporate Watch Description and analysis of the mission, concept and impact of Corpwatch Corpwatch is an independent non-profit organization dealing with environmental, social and other topics. Therefore investigative research and journalism is practiced to inform public about environmental issues and to increase transparency. The organization was founded in 1996 in the San Francisco Bay Area. The project was started by the Tides Center and is led by a six-member Executive Committee of the Advisory Board. The foundation from which the organization emerged and evolved was the book, The Corporate Planet: Ecology and Politics in the Age of Globalization, written by 's founder Joshua Karliner, and published by Sierra Club Books in 1997. Another strong affiliated organization are the Friends of the Earth International. CorpWatch puts itself as a part of a diverse global movement for human rights, social justice, environmental sustainability, peace, corporate transparency and accountability. The Mission The vision of Corpwatch is to promote human, environmental, social and worker rights at the local, national and global levels by making corporate practices more transparent and holding corporations accountable for their actions. Actions, decisions, and policies undertaken and pursued by private corporations are seen with a huge impact on public life without public control, but only few mechanisms to hold them...
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...human rights exploitation surfaced in the 1990s, Nike was forced to review and change its operations in order to please the expanding group of conscientious customers who are concerned with the conditions under which the products are manufactured (Suehle, 2011). The pressure for change resulted in Nike’s decision to integrate corporate and social responsibility (CSR) into its business operations. Since then, Nike has acknowledged the importance of CSR to their innovation and performance, and has been progressively working towards integrating it into every step of the business functions. 2.0 Nike’s Vision To incorporate CSR in its business operations and culture, Nike defined its visions (Nikeresponsibility.com, 2014): To build a sustainable business and create value for Nike and our stakeholders by decoupling profitable growth from constrained resources. To Nike, building business sustainability means developing business model to achieve sustainable growth that generates profit, while aiming to reduce its dependence on scarce resources, eliminate waste and minimize negative environmental impact. Nike seeks to achieve this commercial success by focusing its CSR efforts on designing and innovating products that targets at creating positive environmental, labor and social change through honoring ethical values, and respecting people, communities and the natural environment. 3.0 Nike’s Organizational Structure At Nike, commitment to CSR begins at the top – the board...
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...……………………………………………………………...5 Financial Overview…….…………………………………………..……………...6 Chapter 2…………………………………………………………………...….7 Internal & External Environment Analysis…………..……………………………….8 SWOT Analysis………………………………………………………….…….….9 Challenges faced by Nike………………………………………………………….11 Strategic Implemented for Rectification………………………………………….….13 Chapter 3…………………………………………………………………..….16 Leadership Hierarchy……………………………………………………..…...….17 Chapter 4…………………………………………………………….…….….21 Nike Core Competencies…………………………………………………..………22 Value Chain Analysis……………………………………………….…………….24 Chapter 5………………………………………………………………….…..26 Cooperate Governance……………………………………………………………27 BIBLIOGRAPHY……………………………..………………………….….30 C C hapter hapter 1 1 Introduction “Everything you need is already inside. Just do it” * Bill Bowerman (Fabrega, n.d.) “NIKE”, one of the most synonymous names with the sporting world, was initially established as Blue Ribbon Shoes in 1964. The brand was started by Bill Bowerman and Phil Knight at the University of Oregon; where the former was the latter’s track and field coach. (10 things you did not know about Nike, 2011) During Phil Knight’s time at Stanford University, he wrote a paper on ending German dominance...
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...Nike Business Strategy By singkboy | Studymode.com Nike’s Gameplan for Growth that’s Good for All | Management Innovation eXchange Page 1 of 29 M-Prize winner This story is one of ten winning entries in the Long-Term Capitalism Challenge, the third and final leg of the Harvard Business Review / McKinsey M Prize for Management Innovation. Story: Nike’s Gameplan for Growth that’s Good for All by Lorrie Vogel - General Manager of Considered Design at Nike Inc. Co-Authored by Agata Ramallo Garcia October 17, 2012 at 1:29pm 18 36 0 Comments 2 Ratings: Overall 4 Innovative 4 Detail Summary Innovation is a cornerstone of the Nike brand. Our company was founded by two visionaries, Bill Bowerman and Phil Knight, who set out to reinvent athletic footwear. Over the past decade, our drive to design and produce better, faster, lighter products has evolved into an even more ambitious agenda – to embed long term sustainability into our business. This broader vision calls for new approaches to design, management, partnership and new tools and metrics to support integration and adoption throughout Nike. Many of Nike’s http://www.managementexchange.com/story/nike%E2%80%99s-gameplan-growth-that%E2%80%99s-good-all 21/02/2013 Nike’s Gameplan for Growth that’s Good for All | Management Innovation eXchange Page 2 of 29 management innovations for sustainable growth started internally, with the Corporate Responsibility and Considered Design...
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...TOPIC: CASE QUESTIONS, Nike`s CSR Challenge Question 1, 4 and 5 Nike's CSR Challenge CASE STUDY- 1. What are the challenges regarding corporate social responsibility that companies in the apparel industry face in its supply chains around the world?. A. SOLUTION TO CASE 1: This discusses the challenges facing Nike in overcoming the stigma of poor human rights practices in their past, and how that has affected their overall business in the current decade. Social responsibility has always been an important factor to a company’s long term performance and sustainability. If you compare the stock performance of the top 50 most socially responsible companies, as published by Boston College’s Institute for Corporate Responsibility, to the S&P 500, the companies perceived as having the most ethical corporate governance consistently outperforms the competition in the long-run. This has become particularly important within the apparel industry, which has developed a stigma due its use of sweatshops over the last several decades. As many industries have become more and more automated, the apparel industry still requires an incredible amount of human capital to produce its products. Because of this, the industry has traditionally outsourced its production facilities to nations with low minimum wages and even lower working standards. There is little that can be done to avoid the nature of profit maximization and outsourcing, but companies like Nike have since realized...
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...Industry Analysis * Outlines the main issues facing the industry and it’s global value chain Innovation has never been more important than it is today. It’s the main issue facing Nike industry. Innovation. It’s Nike’s growth engine. It’s what they athletes, consumers and investors expect of them – and always have. It’s what they expect of themselves. It enables new heights in performance and raises the bar for their industry and beyond. We focus sustainable innovation on our biggest areas of opportunity and risk. We ask difficult questions of ourselves, our business model and our industry. We seek to understand the meta-trends and the signals – strong and weak – that add complexity and uncertainty to the future. Rather than working to avoid only known risk, we work to understand where risks and opportunities may emerge as well as what’s needed to address them and enable new forms of innovation to take hold. Innovation has never been more important than it is today. It’s not just about improving the products we make. It’s about how we invent better ones, work with other companies and organizations to develop markets that value and encourage the creation of new sustainable processes and products, and improve lives by leveraging sustainability as the world’s greatest innovation opportunity. We focus sustainable innovation on our biggest areas of opportunity and risk. We ask difficult questions of ourselves, our business model and our industry. We seek to understand...
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...Sustainability Assessment of Nike Shoes Andrew Derrig Jake Stocker Luke Warren Pearson King Ethan Tinson Ellen Winston For Sustainability Science ENVS 195, Fall 2010, Dr. Saleem H. Ali Introduction and Justification In Greek, Nike means “victory” and since the beginning of the company in 1972, victory has been a term that has represented many things about the Nike brand. The Nike corporation produces athletic shoes, apparel, equipment and accessories that can be found in distributors in over 170 countries worldwide, it sponsors many professional and college level sports teams and has grown to be one of the largest athletic apparel corporations in the world. In the early „70s they started out manufacturing running shoes featuring innovative new technology that increased traction and made the shoe lighter as a whole. (Nike, 2010) Since then the Nike brand has taken off and become more than simply successful, it is infamous though for a few different reasons. The Nike name, generally linked to success and wealth, first got into trouble in the early „90‟s when footage of sweatshop and child labor in their factories was broadcast on international television, smearing their name across the globe. (Beder, 2002) In 1998 cofounder and CEO Phil Knight even recognized that the Nike name and product “has become synonymous with slave wages, forced overtime, and arbitrary abuse.”(Levenson, 2008) Since those dark days however, Nike has made a concerted effort to both improve their reputation...
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...returned clean to communities, waste is a new asset, workers across the industry are consistently valued and environmental impact will be a critical metric of success. This is a future that will be good for business, economies and communities, and citizens, workers and consumers. And we are determined to set Nike up to lead and thrive, in this environment. In order to get there, we will need to move from incremental to disruptive innovation. Our aim of decoupling growth from constrained resources will require change at a systems-wide level. No single company can eliminate toxic chemicals from vast supply chains, nor improve living conditions of workers in low-income communities, nor eliminate waste from consumption. We need step change in collaboration to drive collective understanding of the systemic issues we face and agreement on the solutions. Competitive advantage should be built on a sustainable playing field where getting better faster than the competition raises the bar for everyone. That will require relentless focus on systems innovation and collaboration across government, industry, social influencers and even consumers. It also will require putting sustainability at the...
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...Module Title: Business Ethics and Social Responsibility Question 1: Set out the main criticisms that have been levelled at the above three MNC's In the case of Nestle, it became evident that no formal research into the emerging market was carried out. No approached to local authorities or government agencies was made; who may have had great knowledge/insight into feeding practice within the region or problems/issues that Nestle may be faced with. They simply tried to implement existing 'western' aspirational marketing practice into a region that they knew nothing about. Their communications with the target market were poor & unclear which led to the misconception that formula was a good way to replace breast milk and other forms of nutrition vital to child development. The company did not play its role in educating the public as to the proper methods of using the product and indeed the danger of it's misuse, and also did not consider the different living conditions as a factor in which could lead to such misuse. Their aggressive marketing approach ignored or de-emphasized breast feeding & much of their promotional efforts were misleading in encouraging poor & illiterate mothers to bottle-feed rather than breast feed their infants. Advertising portrayed breast-feeding as primitive and inconvenient. Free gifts & samples were supplied by sales reps dressed as quasi-medical staff known as 'milk nurses'; which were viewed as 'endorsements by association'. Quality control...
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...Ethics and Corporate Governance: Corporate Social Responsibility Contents Introduction 2 Definition of Ethics 2 Definition of Corporate Social Responsibility (CSR) 2 History of Ethics 2 Socrates 2 Plato 2 Aristotle 2 Cynics 2 Cyrenaics 2 Business Ethics 2 Nike 2 McDonalds 2 Enron 2 Wal-Mart 2 Why Business Ethics is Necessary 2 Conclusion 2 Bibliography 2 Introduction This assignment is a brief over view of ethics in the modern day era. It begins with a definition of ethics, followed by a concise explanation of corporate social responsibility. Ethics has evolved over a number of decades and still is to this day, with that a short history of ethics will be demonstrated in this assignment. Ethics determines whether or not a company has good or bad morale. Unfortunately a company that holds excellent ethics are not highlighted in the media as a company that has bad ethics. In this essay will illustrate examples of how large national and international companies came to have bad ethics. To conclude this assignment will be a brief outlay of why ethics is necessary to the business environment in this day and age. Definition of Ethics Ethics can be defined at vital concepts and essential principles of moral human conduct. It consists of the study of universal ethics such as the essential parity of all men and women, natural or human rights, compliance to the law of land, concern for health and safety and, progressively more, for the natural environment...
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...Bond University ePublications@bond Corporate Governance eJournal Faculty of Law 4-12-2007 Corporate Social Responsibility: Impact of globalisation and international business Kim Kercher Bond University, Kim_Kercher@bond.edu.au Recommended Citation Kim Kercher. (2007) "Corporate Social Responsibility: Impact of globalisation and international business" ,, . http://epublications.bond.edu.au/cgej/4 This Journal Article is brought to you by the Faculty of Law at ePublications@bond. It has been accepted for inclusion in Corporate Governance eJournal by an authorized administrator of ePublications@bond. For more information, please contact Bond University's Repository Coordinator. Corporate Social Responsibility: Impact of globalisation and international business Abstract [Extract] Corporate Social Responsibility (CSR) is associated with the conduct of corporations and in particular whether corporations owe a duty to stakeholders other than shareholders. Whilst the phrase ‘Corporate Social Responsibility’ may be gaining momentum, the concept itself is not new. The question as to whether corporations owe duties to broader stakeholders has been debated at various times throughout the twentieth century. Keywords corporate social responsibility, corporations, globalisation, international business This journal article is available at ePublications@bond: http://epublications.bond.edu.au/cgej/4 Corporate Social Responsibility ‐ Impact of globalisation and international business ...
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...Toward Sustainability The Roles and Limitations of Certification Final RepoRt June 2012 prepared by the Steering Committee of the State-of-Knowledge assessment of Standards and Certification Toward Sustainability The Roles and Limitations of Certification Steering Committee Mike Barry Head of Sustainable Business, Marks & Spencer Ben Cashore Professor, Environmental Governance and Political Science; Director, Governance, Environment and Markets (GEM) Initiative; and Director, Program on Forest Policy and Governance; Yale University Jason Clay Senior Vice President, Market Transformation, World Wildlife Fund Michael Fernandez Director of Public Policy and Global Partnerships, Mars, Incorporated Louis Lebel Director, Unit for Social and Environmental Research, Chiang Mai University Tom Lyon Director, Erb Institute for Global Sustainable Enterprise, University of Michigan Patrick Mallet (Steering Committee chair) Director of Credibility, ISEAL Alliance Kira Matus Lecturer in Public Policy and Management, London School of Economics and Political Science Peter Melchett Policy Director, Soil Association Michael Vandenbergh Professor of Law, Tarkington Chair in Teaching Excellence; Director, Climate Change Research Network, Vanderbilt University Jan Kees Vis Global Director, Sustainable Sourcing Development, Unilever Tensie Whelan President, Rainforest Alliance RESOLVE Staff Abby Dilley Vice President of Program Development Jennifer Peyser Senior Mediator Taylor...
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