...Responsibility (CSR) and its Importance: 1.1 Definition of CSR: What does Corporate Social Responsibility or CSR mean? The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts, used the following definition: Corporate Social Responsibility is the continuing commitment by business to behave ethically and to contribute to economic development while improving the quality of life of the workforce and their families, as well as of the local community and society at large. Traditionally in the United States, CSR has been defined much more in terms of a philanthropic model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities. This model tends to be more sustainable because : • Social responsibility becomes an integral part of the wealth creation process - which if managed properly should enhance the competitiveness of business and maximise the value of wealth creation to society. • When times get hard, there is the incentive to practice CSR more and better - if it is a philanthropic exercise that is peripheral to the main business, it will always be the first thing to go when push comes to shove. Different organisations have different definitions of CSR- although...
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...CORPORATE SOCIAL RESPONSIBILITY OF NIKE INC. Presented by NIKE Inc. Founded in 1964 as Blue Ribbon sports Renamed as Nike Inc. In 1971 Named after Greek God of Victory Νίκη Headquartered in Beaverton, Oregon Largest athletic footwear and apparel manufacturer One of the most visible brands in the world Revenues of over $25 Billion Profit of over $3 Billion Close to 50,000 employees all over the world Total valuation close to $70 Billion Trivia Nike Logo – “swoosh” is one of there most popular along with the logos of Mercedes and Apple Inc. NIKE Inc. Nike is the leading brand in the world of sports. Their closest competitors are Adidas, Puma and Reebok. Nike holds close to 1/3 of the global market share of Athletic Footwear. Known for heavy promotion using big stars. Sponsors the top athletes in all the popular sports. Nike Inc. Has growth at a cumulative average growth rate of 21% over the last 10 years. CSR A corporate self-regulation integrated into business model An in-built mechanism to ensure compliance with spirit of law & ethics A move to encourage positive impact through it activity on environment C S R • CORPORATE PHILANTHROPHY • RISK MANAGEMENT • CREATING SHARED VALUE Triple Bottom Line Approach to CSR The TBL is an accounting framework with three dimensions: social, environmental and financial. The TBL dimensions are also commonly called the three Ps: people, planet and profit and are...
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...the Corporate Social Responsibility (CSR) of the chosen organization in according to the two given ethics theory, which is Shareholder Value Theory, and Stakeholder Theory. Nike Inc., the chosen company had implement the CSR practices in many of its business activities especially in its product design. Nike Inc. had preserved some serious ways of processing and promoting the CSR as they appreciate about the importance and the benefits of it. Nike Inc. had implement the business theory of shareholder value theory in, allowing the company’s shareholders been satisfied by the performance of the company and at the same time being the customers favorites which clearly indicates that the organization heading towards the right path. And at the same time, the Nike also implement the stakeholder theory whereby, the company includes the element of moral and values in its organization management in very healthy and innovative ways. This report also identifies how serious does Nike desirably tend to implement both of these theories in the company business practices. This reports also discussed few recommendations that can be implemented by the Nike Inc. in its practices to enlarge the CSR influence in its business practices. Improve labor practices, uses better and more nature resources and also emphasizing more on safety and healthy concern are few of the proposition that been highlighted in this report. This report clearly classifies that Nike Inc. had accomplish many achievement...
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...Benefits of CSR A sustainable report is away to show the companies sustainable growth in a way which is similar in manner of financial report and facilitates companies to have a sustainability comparison. A sustainability reporting has the benefits of metrics and agreed disclosures reporting which systematic and in order.CSR is basically the combined integrated approach of good social and environmental governance practices in to all aspects of business which provide an integrated approach to all aspects material with non-financial issues. There are two basic benefits of CSR for both at company levels and property levels. First, it acts as a guide to the company and its programs that also acts as measure in facilitating organizational shifts and continuity in turnover. Secondly, it also helps in invoking the tracking procedures and measurement that enable analysis in terms of purchases, waste, water and energy. The data above further helps in in decision making in terms of retrofits and programs and capital expenses. The careful implementation of CSR policies can help an organization and it is a resource drain which is good for an organization. The benefits of CSR to Nike are The company has started new business ventures like New Green Venture Capital Arm to Fuel Innovation, New Model of Corporate Venture Capital etc. It has gained customer retention and has established some permanent motivated customers. The company has also improved its relationships with suppliers...
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...Chapter 2 Case Study 1. Corporate Social Responsibility challenges that companies in the apparel industry face in its supply chains around the world: Corporate social responsibility (CSR) has become a subject of increasing significance. Companies are usually faced with the benefits versus harm created by their operations around the world. In spite of the benefits a company may enjoy in their business venture, there are several social downfalls that they need to take responsibility for. Such downfalls include but are not limited to, lack of equality, employee safety & welfare, both of the home countries and the host countries. The opening profile highlighted the subcontracting of child labor by Primark. The case study highlighted the issue of work treatment & conditions by Nike. In addition, workers were underpaid & punished for refusing overtime. At this level, the ethicality of the companies are being challenged, with varying legal and cultural limits across borders. The main question a company should answer is how should their ethical standard be based? Should it based on the home country or the host country or can it be reconciled? If the company ignores its ethical responsibility to workers, how will that affect production and sales? Association in unethical business operations can be quite disastrous to companies. Another ethically challenging aspect is that companies are also limited by jurisdiction. In the instance of the host country, legislations may...
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...Eric Yarbrough Dr. Martha Troxell April 1, 2010 BLAW 235 Nike, Inc. 1. The corporation I chose for this assignment was Nike, Inc. Nike was started by two men, Bill Bowerman and Phil Knight. Bowerman was the head track and field coach who actually coached Knight before starting Nike. Nike’s headquarters are located in Beaverton, Oregon and Nike is currently operating in more than 160 countries across six continents. Nike provides products such as clothing, equipment, accessories, etc. for all people and for most sports. 2. Background information about Nike was found on its website, www.nikebiz.com, or specifically, http://www.nikebiz.com/company_overview/index.html. Information about the four categories of social responsibility came from the class book, Pearson Custom Business Resources. Nike’s Income statement came from www.bloomberg.com, or http://investing.businessweek.com/businessweek/research/stocks/financials/financials.asp?ticker=NKE:US. The quality of Nike’s products came from www.articlesnatch.com or http://www.articlesnatch.com/Article/The-Unmatched-Quality-Of-Nike-Shoes-/943926. The BBC article came from http://news.bbc.co.uk/2/hi/programmes/panorama/970385.stm. The website which contained information about Nike closing a production plant without notice was http://www.allbusiness.com/retail-trade/miscellaneous-retail/4428149-1.html. Nike’s challenge and donations were found from http://inside.nike.com/blogs/nikerunning_news-en_GB/2010/02/22/thank-you-for-helping-haiti...
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...This was the first time the details of all factories were published in a major corporate report. As a result of this report, the company realized that they invested more into improving conditions than many of its competitors. Although Nike has made attempts through voluntary corporate studies to improve their labor standards in global supply chains, it has been suggested that while they are delivering improvements widely. New approaches are needed that engage governments, NGO’s and local businesses. In May 2005, Nike’s Vice President came to the realization at The Ethical Trading Initiative conference that previously the company was looking at solving problems for themselves. Now they are exploring how to create systematic change in the industry going beyond what the media, consultants and academics currently understand. Key Issues It was found that many of Nike’s employees were mistreated in more than one-third of its South Asian Plants. Reportedly many of the factories denied access to water and even the toilet, employees work more than a 60hr work week and are even denied an off day. Not only are they paid below the minimum wage but if they refuse to work overtime they were punished. Also, in an attempt to improve their labor standards Nike believes that they should engage governments, NGO’s and local businesses My Approach Even though the practices in the western culture is different to ours here in the east, I believe that every individual should be allowed access...
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...Sustainability Assessment of Nike Shoes Andrew Derrig Jake Stocker Luke Warren Pearson King Ethan Tinson Ellen Winston For Sustainability Science ENVS 195, Fall 2010, Dr. Saleem H. Ali Introduction and Justification In Greek, Nike means “victory” and since the beginning of the company in 1972, victory has been a term that has represented many things about the Nike brand. The Nike corporation produces athletic shoes, apparel, equipment and accessories that can be found in distributors in over 170 countries worldwide, it sponsors many professional and college level sports teams and has grown to be one of the largest athletic apparel corporations in the world. In the early „70s they started out manufacturing running shoes featuring innovative new technology that increased traction and made the shoe lighter as a whole. (Nike, 2010) Since then the Nike brand has taken off and become more than simply successful, it is infamous though for a few different reasons. The Nike name, generally linked to success and wealth, first got into trouble in the early „90‟s when footage of sweatshop and child labor in their factories was broadcast on international television, smearing their name across the globe. (Beder, 2002) In 1998 cofounder and CEO Phil Knight even recognized that the Nike name and product “has become synonymous with slave wages, forced overtime, and arbitrary abuse.”(Levenson, 2008) Since those dark days however, Nike has made a concerted effort to both improve their reputation...
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...TOPIC: CASE QUESTIONS, Nike`s CSR Challenge Question 1, 4 and 5 Nike's CSR Challenge CASE STUDY- 1. What are the challenges regarding corporate social responsibility that companies in the apparel industry face in its supply chains around the world?. A. SOLUTION TO CASE 1: This discusses the challenges facing Nike in overcoming the stigma of poor human rights practices in their past, and how that has affected their overall business in the current decade. Social responsibility has always been an important factor to a company’s long term performance and sustainability. If you compare the stock performance of the top 50 most socially responsible companies, as published by Boston College’s Institute for Corporate Responsibility, to the S&P 500, the companies perceived as having the most ethical corporate governance consistently outperforms the competition in the long-run. This has become particularly important within the apparel industry, which has developed a stigma due its use of sweatshops over the last several decades. As many industries have become more and more automated, the apparel industry still requires an incredible amount of human capital to produce its products. Because of this, the industry has traditionally outsourced its production facilities to nations with low minimum wages and even lower working standards. There is little that can be done to avoid the nature of profit maximization and outsourcing, but companies like Nike have since realized...
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...12/15/2015 10 Recommendations for Lean Production Execution Success Advertisement 1. Lean Manufacturing 3. Lean Manufacturing 5. Lean Production Systems 2. Lean Manufacturing 4. Lean Resources 6. Lean Production Tuesday, December 15, 2015 Health Business Finance Travel Home Repair Technology Computers Autos Family Entertainment Nirav Patel 10 Recommendations for Lean Production Execution Success Management Articles | July 11, 2015 Lean principles have been used with terrific success in manufacturing, elevating the inquiry as to whether economic service establishments could differentiate their service supplying with Lean. ADVERTISEMENTS 1. Lean Manufacturing Advertisement 2. Lean Manufacturing 3. Lean Manufacturing 4. Lean Resources 1. Lean Manufacturing Seminars Advertisement 5. Lean Production Systems Communication Marketing 2. Lean Manufacturing Techniques Law Education 3. Lean Manufacturing Consultant 10Recommendations for Lean Manufacturing Execution Success Sports Other 4. Lean Resources Home Business Self Help 5. Lean Production Systems Making The Shift To A Lean Venture Flawless Execution: Bridging the Continuous Improvement Gap XGap: Using Strategic Planning to Close the Project Execution ECommerce Internet Partners RELATED ARTICLES FOCUS ON LONG TERM RESULTS Lean Management for Efficacious Administration of Your Routine ...
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...corporate social responsiblity (CSR) , for a brand of your own choice. You as a researcher are being asked to research the company image (of the brand you choose yourself) in terms of CSR. The Resit assignment consists of 5 parts: 1. Choose a brand 2. Develop the research methodology a. Formulate the research problem b. Define the central research objective c. List the key concepts d. Design at least 4 research questions 3. Develop the table of contents of this report. The table of contents has to look like a professional table of contents. 4. Give a short summary of what you are going to describe in each chapter of your report. Don’t use more than 5 lines per chapter. 5. Give the bibliography in APA-style, with at least 3 relevant sources (wikipedia is not allowed). To be clear, you have to execute the 5 parts of the assignment, you do not have to write the whole research report. Start each part on a new page. You have to upload the assignment on DLWO before the deadline. The deadline for the resit is the 10th of January before 17.00 pm. If you participate in the resit, then the result for the resit will replace the results of the individual assignments. Resit assignment 1. Choosing a Brand for a research about Corporate Social Responsibility About (CSR) (CSR) is defined as the voluntary activities undertaken by a company to operate in an economic, social environmentally sustainable manner. NIKE JUST DO IT Summary Nike, Inc was started by Bill...
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...Corporation Background and History Nike was founded on January 25, 1964 (O'Reilly, 2014) as Blue Ribbon sports by Bill Bowerman and Phil Knight. The company officially became NIKE on May 30, 1971. The name Nike comes from the Greek Goddess of Victory. Nike Currently has a net worth of 86 billion dollars. (Forbes, 2015) Currently Nikes trades were sharing at 124 dollars each on the stock market. II. Description of CSR Issue Nike has contracts with about 700 sweat shops throughout the world. (Nike, INC., 2007-2009) In 58% of Indonesian sweatshops their worker are between the ages of 20 and 24. 83% of these employees are females. (Nike, INC., 2007-2009) III. Organizational Stakeholder Impact A. Help prioritize key issues and develop procedures (Nike, INC, n.d.) B. Must engage to avoid issues again from the 90’s (Nike, INC, n.d.) IV. Societal Stakeholder Impact A. Reviews report for transparency (Nike, INC, n.d.) B. Had most recent report re worked to seek more candidly about lessons learned from both successes and failures (Nike, INC, n.d.) V. Current Status of Corporation Nike pays 25 million annually to implements and follow Corporate Social Responsibility. (Arias, 2010) However, Nike refused to pay 2.2 million dollars to Honduran workers in severance (Arias, 2010) when two subcontractors closed down their facilities. Years later they agreed to pay 1.54 Million dollars to help these workers. VI. Strategic CSR Nike agrees that innovation through the lens...
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...rights exploitation surfaced in the 1990s, Nike was forced to review and change its operations in order to please the expanding group of conscientious customers who are concerned with the conditions under which the products are manufactured (Suehle, 2011). The pressure for change resulted in Nike’s decision to integrate corporate and social responsibility (CSR) into its business operations. Since then, Nike has acknowledged the importance of CSR to their innovation and performance, and has been progressively working towards integrating it into every step of the business functions. 2.0 Nike’s Vision To incorporate CSR in its business operations and culture, Nike defined its visions (Nikeresponsibility.com, 2014): To build a sustainable business and create value for Nike and our stakeholders by decoupling profitable growth from constrained resources. To Nike, building business sustainability means developing business model to achieve sustainable growth that generates profit, while aiming to reduce its dependence on scarce resources, eliminate waste and minimize negative environmental impact. Nike seeks to achieve this commercial success by focusing its CSR efforts on designing and innovating products that targets at creating positive environmental, labor and social change through honoring ethical values, and respecting people, communities and the natural environment. 3.0 Nike’s Organizational Structure At Nike, commitment to CSR begins at the top – the board level (Epstein...
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...Elsevier’s archiving and manuscript policies are encouraged to visit: http://www.elsevier.com/copyright Author's personal copy Organizational Dynamics (2010) 39, 353—356 a v a i l a b l e a t w w w. s c i e n c e d i r e c t . c o m journal homepage: www.elsevier.com/locate/orgdyn Why Nike kicks butt in sustainability Marc J. Epstein, Adriana Rejc Buhovac, Kristi Yuthas Nike Inc. has a unique combination of capabilities and competencies that position the company as a leader in sustainability. Nike is among the world’s most prominent sustainable corporations, and is regularly recognized by organizations that rank sustainable performance. For example, Nike has been named one of 100 most sustainable corporations in the world by Innovest, ranked third in Corporate Responsibility Officers 100 Best Corporate Citizens list, and named one of the World’s Top Sustainable Stocks by Sustainable Business. Nike possesses a unique combination of strengths and capabilities that enable the company to make rapid advancements in sustainability that are ahead of other firms in its industry, and that increasingly contribute to the financial performance of the company. Nike believes that we are at the beginning of a shift from a service- or...
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...“Currently, the organisations must also think about the authorization, honourable, ethical along with developmental outcomes with their selections.” (Anderson 15). This essay will discuss “ what the dangers and the benefits of corporate social responsibility, for employees, management, organisation, society and the environment. It will argue about the importance for an organisation to have corporate social responsibilities, which bring the advantages and the disadvantages to the society, cooperation and the government. Corporate social responsibility (CSR) is not explain that how much profit that the firm may earn and then donate to some charity organisation, but it is the connection with several actions that bring the benefits to the society. Corporate social responsibility becomes one of the ordinary activities in the business world and has become one of the basic principles of the world business community (Banerjee 2007). (CSR) have affected the activities of the employees, management, organisation, society and the environment. “It was also gradually apparent to increase the plainness of a cooperation, which contributes to the...
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