CORPORATE SOCIAL RESPONSIBILITY
Case Study about the CSR of Nike prepared by Paul SOMER
TABLE OF CONTENTS
• Background of the implementation of CSR at Nike (besides the existing legal commitment) • Activities of Nike regarding CSR • Responsibility by impementing the Environmental Apparel Design Tool • • Nike Responsibility Governance Conclusion and future prospects
BACKGROUND FOR CSR OF NIKE
• In 1992 it became public that Nike produces in Indonesia at minimum wages • Strike in the production Factory in Sung Hwa (Indonesia) • US State Department reports to Congress on Human Rights • Some articles with bad reputation against Nike were published (e.g.) • Harper´s magazine publishes "Nike: The New Free-Trade Heel“ • LA Times: "New Shots Fired in Indonesia Wage War (Nike and GSP)” • • Results were cancelled partnerships, decreasing revenues and share prices Nike formulates "Code of Conduct and Memorandum of Understanding"
ACTIVITIES OF NIKE REGARDING CSR
• • Slogan „Nike was founded on a Handshake“ CSR-Programme of Nike is divided into the following categories: • Design and Environment • Less toxics, less waste (support by using the Software Tool) • Only use of environmentally-friendly and sustainable materials • Restricted substances list • Workers and Factories • Audit Tools (for contracted factories) • Code of Conduct to improve working conditions
NIKE RESPONSIBILITY GOVERNANCE
• • • • • Codes and Policies CR Management at the Board Level CR Management at the Executive Level Leadership Responsibilities Integration of CR at the Operational Level
CONCLUSION AND FUTURE PROSPECTS
• • • • Nike publishes it´s CSR report on their website as well as on a separate website with several key figures about it Thus they seem to have learned from huge mistakes in the past Nike places emphasis on „Sustainability“ regarding their Business model As a conclusion it is difficult to find the balance between profitmaximization and responsible (social) behavior...
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