BUSINESS, GOVERNMENT AND SOCIETY
For: Deryk Stec
By: Shyam Maheshwari (3461529)
This paper explains the sustainability strategies of Adidas and Nike and then compares itself with the sustainable value framework of Hart’s.
What is Sustainability?
As defined by Environment Canadai, Sustainable development is the process of developing land, cities, businesses and communities so that our current needs are met without compromising the ability of future generations to meet their own needs.
Competitors for Sustainability Framework
Strategies for Sustainability Development:
Social Compliance in Supply
Sustainable models for
Sourcing and Manufacturing
Contribution to Community
Nike`s sustainable strategies consists of 4 pillars which are interconnected with one another. The four pillars are:
Creating a portfolio of sustainable materials
o This pillar addresses Nike’s greatest potential threat. The
material the company uses for its products has a cascading
effect on the value chain.
o The material used by the company makes up about 60% of
the environmental impact where as the manufacturing
process accounted for only 25%.
o Nike upgraded their materials rating tool, the Nike
Materials Sustainability Index (Nike MSI) to meet the
o Polyester, rubber, Eva Foam, Cotton, Synthetic leather and leather are the most commonly used materials for making
Nike products. Except Eva, all other materials are used
after they are made environmental preferred.
Prototyping and scaling sustainable sourcing and manufacturing models
o Vision is it to create a sustainable supply chain and benefit everyone who is doing business with Nike using Lean
o Lean manufacturing is a business system that delivers
highest quality products by eliminating waste.
o A manufacturing Index was launched in 2012, which is
used to measure the factory’s sustainable manufacturing
Igniting and driving market transformation
o The main vision of this pillar is to engage everyone in
sustainability, customers, suppliers, stakeholders, etc.
o Through “Nike better world” they have taken forward the initiative of serving the needs of athletes and the planet at the same time.
Creating digital service revenue
o The strategy here is to become market leader in athletic
footwear and help every athlete to do better. This will help them increase their business, which in turn will help them
diversify away from the natural resources they depend on
The various strategies adopted by Adidas are as follows:
o This strategy aims at integrating environment with the
daily operations, developing and changing processes
across the value chain.
Social Compliance in the Supply Chain
o A set of “workplace standards” are developed and
implemented as workers have the central role in the
o The supply chain is large, multi-tiered and varied. Adidas has come up with approaches to manage suppliers and
other parties in the supply chain.
o The strategy here is the company engages/ interacts with
all. It gets suggestions and feedbacks from both internal
and external shareholders.
o Managers and employees engage internally to develop
innovative ways of increasing sustainability in the
o Externally, Adidas is ready to collaborate with companies
and firms with innovative ideas that help in improving the
Contributing to local Community
o Being a multinational enterprise, it impacts people`s live s in many countries around the world. Every Community
needs are different and thus Adidas follows a decentralised
References: Review, 75, No. 1, 1997, pp. 66-76;
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