CASE STUDY – NIKE CSR (page 70)
1. In referring to the opening profile and the closing for this chapter, discuss the challenges regarding corporate social responsibility that companies in the apparel industry face in its supply chains around the world? Answer:
There are 5 challenges related to CSR:
a. Lack of awareness and benefit of CSR
In fact, many of companies have little knowledge about CSR. In some cases, companies may have a greater understanding of CSR issue but lack of understanding on how to begin implementing a CSR program. Finally, there is significant ignorance about the benefit that can be gained from good CSR practices. b. Lack of human resources in company
Many companies claim that they are lack of manpower that they can assign to CSR practices. In addition, many management systems being used by companies are very unproductive, inefficient and wasteful of human resources. c. Competing code of conduct and multiple requirements
A major concern for many business owners and managers is connected to competing codes of conduct from different customers. Such duplication is expensive and frustrating to suppliers. d. Costs
Companies constantly face the challenge of tighter budgets brought about by rising costs of material, energy and wages. Therefore, most are unable to spend much money on CSR initiatives. e. Over emphasis on inspection & cheating
Many companies are guilty of not complying with codes of conduct. Many stakeholders and managers have the perception that they cannot do business and make profits while adhering to codes of conduct and regulation.
2. Discuss the meaning and implications of the statement by a NIKE representatives that “customers are not rewarding us for investment in improved social performance in supply chains”
It means that social performance are depends on relationship with suppliers itself instead of customers which have positive outcomes such as:...
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