New Balance Csr Strategy

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New Balance
Developing an integrated CSR strategy

1. For each of the Corporate Citizenship Management Framework (CCMMF) dimensions, identify key strengths and weaknesses for New Balance. CCMF Dimension Key Strengths • An accepted and understood corporate culture of “doing good” throughout all vertical aspects of the company • History of attempting CSR activities throughout the company Key Weaknesses • No formal CSR strategy that guides the companies initiatives • No centralized method or metrics for measuring the company’s total contribution towards CSR • History of attempting CSR was guided by employee pet-projects • No product life-cycle impact analysis • No globalized metrics for business activity and activity impact

Values, Mission, Principles & Policies

Products and Services

Operations

Community

• Increase recycled content from 20% 25% between ’08 and ‘09 • Proactive in eliminating PVC from shoes, before government regulation • Finding ways to build a “Green Store” • Corporate culture capability to change and maintain flexibility • Lowered Chinese working hours from 70 to 60 per week; with a resultant increase in productivity • Decreased the janitorial chemicals from 20 to only 4; in which these four chemicals were “green” and promoted a healthier working environment • Recycled 99% of waste • Utilized 30% of renewable energy • Job Coaching program to reduce job related injuries • 3rd Party certified by the British Leather Group • Consistent and large philanthropic and monetary donations • New Balance has a good CSR image in the American eye • Feasibility for employee volunteering leads to higher-moral employees

• No cross-functional communication about initiatives or best-practices • Lack of control and/or lack of attempt to control the licensees CSR in relation to New Balance CSR perspectives

• Localized CSR • Lack of Transparency to Stakeholders

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2. Based on the analysis of strengths and weaknesses, identify any two areas (e.g. products and services or operations or community support) for New Balance to focus on and develop a CSR strategy that is integrated with the business strategy. While all four dimensions of the CCMF need to be integrated into a single strategy, our response will deal with only two: Governance and Community support. New Balances current governance board, the RSLC, promotes CSR effectively, but has no structure in place that visualizes, measures or continually improves the CSR efforts of the company. This lack of intercompany transparency leaves business functions without any solid direction in which to organize and implement CSR initiatives. A good example of this would be the “eco score card” utilized by The Outdoor Group Division. This scorecard considered the “cost-effectiveness, functionality and other design

criteria in addition to environmental impacts” of the trade-offs of materials utilized within this division. While the business benefits of this score card weren’t entirely clear, it outlined cost savings and trade-offs in attracting consumers. A policy of inter-company transparency would have encouraged other functions to utilize, or at least be aware, of this scorecard methodology for juxtaposing their functional trade-off decisions. Due to New Balances corporate culture of continuous improvement, albeit highly siloed, a large probability existed that this scorecard methodology would have been used intra and extra functionally and would have been given the chance to either prove or disprove its business case. The instance of the eco-scorecard is just one symptoms of the overlying issue; no integrated strategic approach. Without an integrated strategy, New Balance CSR initiatives had not clear direction on What CSR should be doing, Who CSR should be targeting, Where to target these stakeholders and Why CSR should be initiated with stakeholders. This lack of centralized strategy left CSR up to people whom then treated it as their pet-project. This...
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