New Balance Case Study
Implementing a New CSR Strategy for New Balance
Introduction
New Balance is a large company specialized in manufacturing footwear products at a global level. The case study reveals that New Balance is currently committed to formulating an integrated Cooperate Social Responsibility (CSR), which will enable it to place itself in a good position in a highly competitive market (Veleva, 2010). In 2009, the company was still struggling to build a CSR, which would create a reputable name for its products in the global market. However, as Veleva (2010) illustrates, the firm faced various challenges such as lack of a CSR department, which would foresee the implementation of an integrated CSR. This calls for the analysis of the various strengths and weaknesses of the company and lay out the steps it should follow in implementing an integrated CSR strategy.
New Balance Strengths and Weaknesses
Overall Governance According to Veleva (2010), even before the word CSR became a common word in the global industries. New Balance always insisted on being responsible for all its employees and the communities in which it was operational. Luo and Bhattacharya (2006) support this argument by explaining that for a company to have an effective CRS, it should start internally before going external. New Balance has strong values and governance system that ensures a commitment to responsibility both for internal and external components of its operations. Despite the fact that New Balance was so much committed to CSR, it left out important segments of corporate responsibility such as openness and accountability (Veleva, 2010). The company’s framework did not provide a basis for its leaders to analyze the risks and opportunities of CSR, and this explains clearly, why it was affected by the economic recession of the year 2007-2009. Products and Services From the case study, New Balance had many consumers in the global market. One of its main strengths was the designing
Introduction
New Balance is a large company specialized in manufacturing footwear products at a global level. The case study reveals that New Balance is currently committed to formulating an integrated Cooperate Social Responsibility (CSR), which will enable it to place itself in a good position in a highly competitive market (Veleva, 2010). In 2009, the company was still struggling to build a CSR, which would create a reputable name for its products in the global market. However, as Veleva (2010) illustrates, the firm faced various challenges such as lack of a CSR department, which would foresee the implementation of an integrated CSR. This calls for the analysis of the various strengths and weaknesses of the company and lay out the steps it should follow in implementing an integrated CSR strategy.
New Balance Strengths and Weaknesses
Overall Governance According to Veleva (2010), even before the word CSR became a common word in the global industries. New Balance always insisted on being responsible for all its employees and the communities in which it was operational. Luo and Bhattacharya (2006) support this argument by explaining that for a company to have an effective CRS, it should start internally before going external. New Balance has strong values and governance system that ensures a commitment to responsibility both for internal and external components of its operations. Despite the fact that New Balance was so much committed to CSR, it left out important segments of corporate responsibility such as openness and accountability (Veleva, 2010). The company’s framework did not provide a basis for its leaders to analyze the risks and opportunities of CSR, and this explains clearly, why it was affected by the economic recession of the year 2007-2009. Products and Services From the case study, New Balance had many consumers in the global market. One of its main strengths was the designing
References: Engardio, P., Capell, K., Carey, J., & Hall, K. 2007. Beyond The Green Corporation. Retrieved from http://static.twoday.net/foehrenbergkreis/files/bw-january-29-2007-beyond-the-green-corporation.pdf Luo, X., & Bhattacharya, C.T. (2006). Corporate social responsibility, customer satisfaction, and market value. Journal of Marketing, 70(4), 1–18; Margolis,J.D., Elfenbein,H.A, & Walsh, J.P (2007). Does pay to be good? A meta-analysis and redirection of research on corporate social and financial performance. Working Paper, University of California at Berkeley. Sen S., Bhattacharya, C.T., & Korschun, D. (2006). The role of corporate social responsibility in strengthening multiple stakeholder relationships: A field experiment. Journal of the Academy of Marketing Science, 34(2), 158-166. Veleva V. (2010). New Balance: Developing an integrated CSR strategy. Richard Ivey School of Business.