Nike – Innovate for a better world

Nike is the biggest sports clothing manufacturer in the world and companies like Nike they get a lot of attention, because they sponsor famous people around the world and helps people in need with big projects. Some people began to research the company’s structure, there way to make business and their supple chain. Nike was criticized worker conditions at there factories in 1990s. It was discovered under a increased scrutiny at the factories in Asia. The factories had poor conditions for the employees and that critic gave Nike a bad PR among the costumers.

Nike began a project called “Innovate for a better world”. The idea with that was to design and manufacture their products with a minimum of wasting material as possible. Nike had introduced new pair of shoes called “Nike Flyknit”. The Flyknit only need 2 pieces of materiel compared with the Air Pegasus model that need 48 pieces of materiel. The company are still making efforts to improve the production of their products, because it will only give them a better reputation.

The project “ Innovate for a better world” is not only about their product. It’s also about making better conditions for the employees, which are working in factories under Nike. For that, Nike created a rating system where the condition in the factories can get between Gold, Silver and Bronze. If they get a rating below bronze, the factory will improve the condition before working again. The minimum requirements are bronze for a factory and Nikes mission is to have all their factories in 2020 a bronze rating.

The problem Nike had in 1990s was that they didn’t care so much for the conditions at the factories for the employees and who was working and who wasn’t. They only think they had in mind was how they could sell as many products as possible. In an Interview with the president of sustainable business and innovation at Nike, Hannah Jonas, she said that the problem was the business model were based on how much they could sell and didn’t care for the sustainability in the supply chain. The business model today has been replaced to a business model that makes social responsibility the way of market growth.

Innovate for a better world isn’t only about how the company should work it is also to get children around the world to be a part of sports. This project to get children up and do sports at a low age. Nike is a big part of sport and has their own academy for children who don’t have the chance at their country to show their skills internationally. Nike created an academy that travels around the world to give everybody a chance to show off skills.
Nike has a foundation that supports the people in need. They have partnerships like “Lace Up Saves Lives” to support a good cause.

When Nike gets children into sport or Nike foundation gives aid to the people in need, it gives a good reputation around the world. When you have a good reputation there will automatically come more customers. When Nike gives something to the world the world give something back. In this case it’s more customers. That is a one of the consequences when Nike put their efforts in charity. Nike were once a company that didn’t care for the environment, the conditions or for CSR because they didn’t want to spend money and working on it, until they realized that if they still want to be in the top of the market in the future, they should start thinking on other think than money and how they sell as much as possible. It’s was their wake up call.

Nikes own conclusion on why their new business model has been so successful is because they are innovative. They have worked hard to innovate design, supply chain and the to minimize the wasting of material. Nike stands out compared to competitors. Nike started to have focus on recycle customers old shoes and clothes, not only Nike product, and making it into new products. That way they have more focus on the environment and can cut down on the waste of materials and be more a “green” company.

Nike is now a role model for other companies that want to become more sustainable and wants to innovate for a better world. Their entire project has getting positive responses around the world, financial and good PR. Nike have proved that CSR is the new way of business just look at their record high stock this year.