Escolar Documentos
Profissional Documentos
Cultura Documentos
Presented By: Section C Group 1 Rishi R. Chaturvedi (13P162) Shivam Atri (13P167) Anshuman Joshi (13P126) Nancy Pahuja (13P151) Jaskiran Singh (13P144) Abhishek Minda (13P121)
Nike - Overview
Largest manufacturer of sportswear in the world Almost 1 million employees Founded in 1964 as Blue Ribbon Sports Nike outsourcing contracts 500 factories in 45 countries Business Model: High end consumer products sourced in cost efficient supply chain In 1990s, protestors rallied against conditions at Nikes overseas suppliers and made Nike the global poster child for corporate ethical fickleness
Social Issues
No overtime pay
One bathroom break
Child Labour
- Company had factories in South Korea, Indonesia & Thailand - Children worked 12 hour days in sub-standard conditions
Nikes Evolution
Organizational Learning
Defensive
Compliance
Managerial
Strategic
Civil
2000 - Nike labor compliance team had more than 80 members Costly external auditors were hired to audit about 900 suppliers Non-compliance to own labor codes revealed Increased frustration both within and outside organization Eventually, team of senior managers was assembled led by Maria Eitel, VP (Corporate Responsibility) The new team focused on upstream drivers Group considered issues at factory level symptoms of larger systemic problem Concluded that Nike approach of doing business was root cause
Nikes Learnings
Nike realized corporate responsibility as an issue integral to realities of globalization
It regarded CSR as major source of learning, relevant to core business strategy and practices
Nikes experience shows that business benefits of CSR are at best hard-won and are realized over the long term
Shift of Focus
Reacting to Criticisms Pursuing Sustainability as an integral driver for long term growth
External Challenges
Traditional models of manufacturing and distribution need to evolve to offset rising energy costs and environmental concerns Many more natural resources will become increasingly scarce, driving up competition and cost Ongoing globalization, access to information and transparency will intensify the demand for equal access to economic opportunity
Nike - Vision
Deliver Value
Water
Waste Community
Design allows you to prototype the future, rather than retrofit the past
To make real change, you have to be a catalyst
Nike Sustainability
Thank You!!!
Adopt policy based approach as cost of doing business Mitigate erosion of economic value in medium term due to ongoing reputation and litigation risks
Embed societal Integrate societal issue in their core issue into core management business strategy processes Enhance long Integrating term economic responsible value business practices Gain first mover into daily advantage by operations aligning strategy and innovation with societal issue
Promote broad industry participation in corporate responsibility Enhance long term economic value by overcoming any first mover disadvantages and realize gains by collective action
Defensive
Compliance
Managerial
Strategic
Civil
Emerging
Institutionalized
Sector-wide voluntary initiatives Increasing view of need
Legislation established
for legislation
Voluntary standards developed, collective action occurs
Embedded practices
become part of business model
Latent
Consolidating