Ethic and Sustainability Issues
New Balance had faced many new challenges in terms of ethical and sustainability issues. The challenge for the company was to recognize how to incorporate an effective Corporate Social Responsibility program for stimulating a successful global business, while increasing the contribution of New Balance to developing an upright and sustainable world. New Balance is enduring a commitment to environmental principles in its business operations to have the least minimal negative impact on the global or local environment, community, society, or economy. This is why the company knew that the time was right to create headway on their CSR strategy to differentiate themselves from their competitors. Pertaining to the goals of New Balance for better sustainability, they faced key issues that could interrupt their process and makes things difficult for the company to move forward with a better implemented strategy. These issues included a lack of transparency throughout the company, no centralized method or metrics for measuring the company’s total contribution towards CSR, innovating new environmentally friendly products, managing oversea supplier factories, and no product life-cycle analysis for the company’s products. New Balance had lacked the ability to have openness, communication, and accountability throughout the company. In some of the interviews with the senior management on the key aspects to CSR, they believed New Balance had left out critical areas like transparency and accountability (Veleva 8). The organization needs to decide how to become more transparent because it increases stakeholder trust and support. Greater trust from the stakeholders allows a better emotional bond that leads to better customer loyalty. Trust is important for a company because it relieves pressures from the community to take actions on better ethical movements. A greater transparency could build trust and mitigate unexpected reputation recalls or...
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