...rights concerns at this time? What ideas do you have for dealing with these problems? What is the role of corporate codes of conduct in dealing with these concerns? I believe that MNCs have a major role in regards to human rights. 6) As a manager in a foreign subsidiary, how can you reconcile local expectations of questionable payments with the Foreign Corrupt Practices Act? What is your stance on the problem of “payoffs?” How does the degree of law enforcement in a particular country affect ethical behavior in business? 8) What do you think are the responsibilities of MNCs toward the global environment? Give some examples of MNC activities that run counter to the concepts of ecological interdependence and sustainability. Nike’s CSR Challenge Last decade, Nike had a serious problem. It was discovered that there were many atrocities going on behind the scenes in the work places in Vietnam, the largest private-sector employer for Nike. It was reported that factories were accused of abusive treatment in...
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...1. Discuss the challenges regarding corporate social responsibility that companies in the apparel industry face in its supply chains around the world? Corporate social responsibility (CSR) has become one of the standard business practices of our time. For companies, the overall aim is to achieve a positive impact on society as a whole while maximizing the creation of shared value for the owners of the business, its employees, shareholders and stakeholders. 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. In this particular case, some of the challenges regarding corporate social responsibility that the apparel industry face are the supply chains around the world, the child labor and abusive treatment to employees in poor developing countries such as Vietnam, China, Indonesia and others. The subcontractors of Nike are taking advantage of the necessities of the people by not applying such working conditions as they are supposed to provide to their employees. Many factories restrict access to toilets and drinking water during the workday, deny workers at least one day off in seven, make people work more than 60 hours per week, punish workers who refuse working overtime and wages are below legal minimum. There is little...
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...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 et al., 2010). To embed its vision throughout the organization, Nike formed a Corporate Responsibility (CR) committee...
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...in the resit, you have to prepare the framework of a report about a research on 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...
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...This article appeared in a journal published by Elsevier. The attached copy is furnished to the author for internal non-commercial research and education use, including for instruction at the authors institution and sharing with colleagues. Other uses, including reproduction and distribution, or selling or licensing copies, or posting to personal, institutional or third party websites are prohibited. In most cases authors are permitted to post their version of the article (e.g. in Word or Tex form) to their personal website or institutional repository. Authors requiring further information regarding 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...
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...Nike’s CSR Challenge Discuss the challenges regarding corporate social responsibility that companies in the apparel face in their supply chains around the world. There have been cases reported abusive treatments in more than a quarter of its South Asian plants. Another report is that 25%-50% of factories in the region restrict access to toilets and drinking water during the workday. The same percentage that was reported also applied to factories denying workers at least one day off of the seven days they already work. Nike’s CSR Challenge highlighted that difficulty of bring wholesale to change to a company that isn’t centralized. Instead the challenge is now to reform the way business is done. Leadership was traditionally seen as guiding your employees towards the goal of the company. What is need is a more open form of leadership that calls for collaboration among mutually dependant parties in order to solve systemic problems. The challenges are too reshape the signals being given out by its supply chains group to itself and its competitors. So that the companies can operate in a sustainable and just way, which is also financially viable. Nike’s new corporate citizenship goal is “to effect positive, systematic change in working conditions within the footwear, apparel and equipment industries.” Discuss the meaning and implications of the statement by a Nike representative that “consumers are not rewarding us for investments in improved social performance in supply...
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...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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...Case Study Nike’s CSR Challenge Case Questions 1. In referring to the opening profile and the closing case for this chapter, discuss the challenges regarding corporate social responsibility that companies in the apparel industry face in its supply chains around the world? - There have been cases reported abusive treatments in more than a quarter of its South Asian plants. Another report is that 25%-50% of factories in the region restrict access to toilets and drinking water during the workday. The same percentage that was reported also applied to factories denying workers at least one day off of the seven days they already work. - Nike’s CSR Challenge highlighted that difficulty of bring wholesale to change to a company that isn’t centralized. Instead the challenge is now to reform the way business is done. Leadership was traditionally seen as guiding your employees towards the goal of the company. What is need is a more open form of leadership that calls for collaboration among mutually dependant parties in order to solve systemic problems. - The challenges are too reshape the signals being given out by its supply chains group to itself and its competitors. So that the companies can operate in a sustainable and just way, which is also financially viable. 2. Discuss the meaning and implications of the statement by a Nike representative that “consumers are not rewarding us for investments in improved social performance in supply chains.” - Nike starts to create a positive...
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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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...NIKE‘s CSR Challenge 1-In referring the opening profile and the closing case for this chapter, discuss the challenges regarding corporate social responsibility that companies in the apparel industry face in its supply chains around the world? 2005 Nike reports the followings social and environmental problems in their factories located in Asia: -Abuse treatment to their employees for example: they prohibited their employees to use the toilet and drink water. -denied days off. -Force to work more than sixty hours a week and those who refused accomplish this were punished. - 25% of the employees of the factories were paid less than minimum wage. 2-Discuss the meaning and implications of the statement by a NIKE representative that “consumers are not rewarding us for investments in improve social performance in supply chains.” One of the most important changes Nike should make in their working conditions should be based on “The responsibility of one is to work toward the accountability of all.” all business should respect the rights of their workers such as paid time off, paid overtime, time for lunch, and also breaks ; When the working conditions are good and the rights of the employees are respected this will increase productivity. 3-What does it means to have an industry open-system approach to social responsibility? What parties are involved? Who are the stakeholders? The fact that business organizations are open systems means that although businesses must make a...
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...one of the leading companies in athletic shoes and apparel for many years and it all started from writing assignment. Phil Knight founded Nike (formerly known as Blue Ribbon Sports) back in 1964 with the help of Bill Bowerman. Phil wanted to create a new company that could be of competition for Adidas and Puma. Nike started distributing for a shoe company out of Japan but soon came up with its own brand (Ferrell, 2013). The common issue of supply and demand took over the company and Nike began using overseas manufacturing companies in Third World countries. This raised an eye for many labor and human rights activist which put Nike under many legal issues. “Nike’s response to the issue has been considered by critics to be more focused on damage control than on a sincere attempt at labor reform” (Ferrell, 2013, p. 495). Nike’s Failure to Address Corporate Social Responsibility Early Ferrell (2013) discuss what a senior from Harvard University referred to as the five stages of corporate responsibility. They are as follows: 1. Defensive: “It’s not our fault.” 2. Compliance: “We’ll do only what we have to do.” 3. Managerial: “It’s the business.” 4. Strategic: “It gives us a competitive edge.” 5. Civil: “We need to make sure everybody does it” (Ferrell, 2013). In the beginning, Nike was in the defensive stage. In an article from the Journal of Business Ethics (2005), author Kristen Bell DeTienne discusses how Nike responded to their first sweatshop allegations...
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...rights than the distancing of Nike from the suppliers, Nike's Corporate Responsibility teams realized that paying the role of a corporate citizen not responsible for their supply chains was only going to make matters worse over time (DeTienne, Lewis, 359). Instead of incrementally creating programs that sought to bridge the gap in both critics and the publics' trust that Nike was indeed concerned about unethical and immoral practices in their supply chain, Nike should have immediately moved to ban any supplier caught in a violation. Nike however took years to get to this point, further fueling the need for even more expensive audits and independent monitoring and inviting more investigations over time. The invitation to Andrew Young appears patronizing and seems like yet another stop-gap measure. In the end the Corporate Responsibility team fails to get on top of this crisis through actions that support their contention they are justified by taking an arms-length approach to solving it. Wall Street Journal News Why have Nike's attempts to date to address its critics been unsuccessful? Economics - International Trade Term Nike creates a governance framework and adequately defines it yet does not bring it to fruition through to Nike itself, as it continues to push the responsibility of compliance down on suppliers. The company Negotations still has not shown that they are capable of taking ownership of the program at the senior management ...
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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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...Case study: Nike’s CSR Challenge After the widespread report on the workers of Nike in the plantation in 2005, Nike worked on the reports of social and environmental practices. Nike needs to consider the welfare of the workers and the profits they are earning. Nike’s future depends on the reconstructing the information that are being sent to customers, suppliers, investors, so that company is sustainable as well as profitable. Changing the rules and regulation is not only enough but they should also engage in transcending leadership and should be able to resolve systematic problems to achieve the goals of the organization. If they don’t make any changes in the financial markets, all their changes are worthless. 1) What are the challenges regarding corporate social responsibility that companies in the apparel industry face in its supply chains around the world? * There were many cases found such as mistreating employees in more than one third of Nike’s south Asian plants. There were also reports claiming most of the factories in the same region didn’t allow access to toilet or to drink water. And in some factories the workers were forced to work all seven days of the week. They were also paid below the minimum and were also punished if they refused to work overtime. They wanted to reconstruct the signals being given out so that they could be sustainable as well as profitable. 2) Discuss the meaning and implications of the statement by a Nike representative that “Consumers...
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...The article „Nike says Time to Team up” was published in the Journal of Corporate Citizenship in Autumn 2005, written by Jem Bendell from Auckland University of Technology The text deals with the challenge of Corporate Social Responsibility, being progressively reflected and implemented by Nike´s Management. Nike, as many other companies, outsources the production in different countries (for example Vietnam), which lowers costs and makes it possible to sell products for cheap all over the world. However, the employees in the factories are suffering from bad working conditions, including very low wages, prohibitions to go to the toilet and drink water during the workday. These conditions are enlightened by non-governmental organizations (NGO), recognizing that other competitors have the same issues. But Nike is the only one who has invested more in improving conditions. Aiming to “create systemic change in the industry”, Nike has successfully started to improve conditions in Asian factories, and to seek good “societal relations” which are considered “good for society and good for profitability”. Therefore, Nike seems to comprehend profit and success as a broader concept, which is not only growing on financial grounds, but depends on every single stakeholder, and their relations to the company and each other. This new strategy is depending on changes in frameworks - concerning strategy and leadership. The transcending leadership model is one approach to neglect strict borders, but...
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