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Copy of Nike Inc. CSR Case Study

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vishal prasad

on 27 November 2014

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Transcript of Copy of Nike Inc. CSR Case Study

Innovation, Transformation & Sustainability
--Nike, Inc. CSR

Goal Setting and Performance Measurement
Sustainability Governance and Management
Board: In 2001, formed Corporate Responsibility Committee
Management: 2006, Sustainable Business & Innovation Team led by VP for SB & I
Executive: In 2012, a Committee for Sustainable Innovation was created to provide additional supervise and support
Conclusion
From risk management to opportunity & advantage
Collaboration as essential vehicle towards sustainable system change
From corporate governance to global corporate citizen, and from corporate philanthropy to transformation of the ecosystem
Business Growth: Reach $30 Billion by BY2015
Path to Sustainability
1992: Nike published it’s first Code of Conduct
Mid 1990s: Work with NGOs to develop pilot factory worker programs in Vietnam.Shifting from petroleum-derived solvents to water-based adhesives.
1998: VP of CR position was created.
2000: Nike endorses principles of the UN Global Compact
2002: Nike develops an environmentally-preferred rubber for footwear outsoles: Contains 96% fewer toxins by weight than the original formulations
2005, Considered Design Ethos formally embedded within business strategies
2009: Nike moved from a CR function to the SB&I Team
2009: Nike initiates the formation of the BICEP
2012: Nike establishes a new factory rating system and sustainability targets for 2015-2020
2013: Nike launches a sustainability app for designers

Nike's Sustainability Frameworks
Energy and Climate
Labor
Chemistry
Water Stewardship
Public Policy
More than 60 billion gallons of water use annually
Dyeing and finishing facilities: 12 to 24 gallons of Water per pound of textile
Nike Water Program (2001)
50 material vendors to 500
H2O* Insight: online data-collection system Nike developed
Nike Material Sustainability Index (MSI)
Waterless Dyeing Technique -- using CO2 instead of H2O
Community -- Health, Safety, and Vitality
Waste

Shoebox Experiment
Since 1995, 100% recycled cardboard
IN FY11, switched to a new box structure with 19% less material by weight
Nike Product-Creation Teams
Nike Considered Index
19% reduction in waste related to footwear uppers in 5 years
Manufacturers and Vendors
Factory Rating Indexes
Nike, Inc., the NoVo Foundation, and the UK's Department for International Development
Brands and Consumer Engagement
LIVESTRONG collection: helped the Lance Armstrong Foundation raise more than $100 million, and supported 28 million people
Dealing with Natural Disasters
Support NGO Partners: Mercy Corps & CARE
Climate & Energy Summit
The Nike Energy & Carbon Program
Launched in 2008 with contract footwear manufacturers to help reduce these emissions
In 2010 expanded to include apparel and equipment manufacturing
In 2011 expanded to include select material vendors
Results: contracted footwear factories absolute CO2 emissions were down 6% from 08-11, despite a 20% increase in production
Goals
Achieve 20% reduction in CO2 emissions from 2011 through 2015
Achieve LEED certification in all new Nike retail stores

Working conditions in factories
Environment
Safety & Health
Labor Rights
Workers Lives

Restricted Substance List
Details chemical compounds that can’t be present in any finished products sold by Nike Inc
Green Chemistry
2010 established Sustainability Chemistry Guidance
Green Screen for Safer Chemicals
Assess chemical hazards using benchmarks
Nike Material Sustainability Index
Environmentally Preferred Rubber & Water-Based Chemistry

Tax
Intellectual Property
Anti-Counterfeiting Trade Agreement (Treaty)
Employment/NonDiscrimination
Access to Sport
Sustainability
Member of UK’s Sustainable Clothing Action Plan
Helped create the U.S. Business for Innovative Climate and Energy Policy

NIKE'S BUSINESS STRATEGY
COST CONTROL
Low labor costs
Outsourcing all manufacturing
Independent contractors

MARKETING
Money saved by outsourcing would be spent on marketing
Celebrity endorsements
Brand identity
Outsourcing
First supply outsourcing contracts started in JAPAN
Supply base was shifted to SOUTH KOREA & TAIWAN to reduce costs in the 1980s
These countries are ideal because of:
Low wages
Docile workforce
Authoritarian government
By 1990, INDONESIA and CHINA replaced previous supplying countries. Indonesia had 6 factories.
NIKE, INC. CONTINUES TO DELIVER STRONG GROWTH
DECOUPLING PROFITABLE GROWTH FROM CONSTRAINED RESOURCES
UNDERSTANDING IMPACTS
MATERIALS MATTER-
RENEWABLE, RECYCLABLE & BETTER FOR ATHLETES AND THE ENVIRONMENT
NIKE Materials Sustainability Index (MSI)

56% of emissions, 54% of energy and 83% of water

19 % of the polyester we used was recycled content
(bringing us to 2 billion water bottles worth of
recycled polyester used since FY10)

11 % of the cotton we used was organic (keeping NIKE
as one of the world’s top organic cotton users)
Making 2.0 - Nike apps
Wastes
Agenda:

Introduction
Business Strategy
Outsourcing
Path to sustainability
Governance and Management
Sustainable Growth
Impacts
Energy , Climate, Labor, Water, Community
Public Policy
Conclusion
Company Profile Nike

NIKE, Inc. includes seven brands: Nike, Converse, Cole Haan, Hurley International LLC, Umbro, Nike Golf, Gordan brand.

Total of $25 billion in revenue

Products are mainly manufactured by independent contractors and sold in approximate 170 countries around the world.

Nearly 38,000 employees allocated in 700 stores, 65 administrative offices and more than 100 sales offices & showrooms
Full transcript