group6 divd presentation nike
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CORPORATE SOCIAL RESPONSIBILITY
OF
NIKE INC.
Presented by
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Founded in 1964 as Blue Ribbon sportsRenamed 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 worldRevenues of over $25 Billion
Profit of over $3 Billion
Close to 50,000 employees all over the world
Total valuation close to $70 Billion
rivia
Nike Logo – “swoosh” is one of there most popular alongwith the logos of Mercedes and Apple Inc.
NIKE Inc.
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NIKE Inc.
Nike is the leading brand in theworld of sports. Their closestcompetitors are Adidas, Puma andReebok. Nike holds close to 1/3 ofthe global market share of Athletic
Footwear.Known for heavy promotionusing big stars.Sponsors the top athletes inall the popular sports.
Nike Inc. Has growth at a cumulative
average growth rate of 21 over the
last 10 years.
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CSR
A corporate self-regulation integrated
into business modelAn in-built mechanism to ensurecompliance with spirit of law & ethicsA move to encourage positive impactthrough it activity on environment
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 referred to as the "threepillars of sustainability".
Triple Bottom Line Approach to CSR
C•CORPORATE PHILANTHROPHY
S• RISK MANAGEMENT
R•CREATING SHARED VALUE
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CSR
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• Doing innovation through the lens ofsustainability is fundamental to achieving growththat is not dependent upon constrained resources
Vision
• Make better today – to improve its business andits value chain as they have environmental andsocial impacts that can be reduced through long-term commitment to continuous improvement
Mission
• Sustainable Innovation• Integrity of work process• Accountability
Values
NIKE + CSR
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Low wages and poor working conditions in Indonesia. Labours paid 14 cents aday which is lower than the minimum wage for IndonesiaUsing children to stitch balls in sweatshops in Pakistan in poor conditions.Children were not provided any benefits as well.
Nike became synonymous with “Slave” workers because of the low pay its contactors
used to give to the laboursIn most places labours were forced to workovertime mostly without incentivesOSHA clean air standards were not followedin the factories which amounted to extremelyharsh working conditions
Allegations
Against
Nike
CSR
Violations
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Corrective
Measures
CSR
Violations
All Nike Factories are rated using Nike’s Sourcing & Manufacturing Sustainability
Index (SMSI) – all suppliers and outsourced factories must follow same index The Sustainable Manufacturing Excellence team is formally aligned to both SB&Iand NIKE’s sourcing functions Nike integrated its Manufacturing Index which includes the Sourcing &Manufacturing Sustainability Index into our sourcing selection and evaluation criteria Established Project Rewire - To connect impacts of sourcing with decision makers Align sourcing decisions by the end of FY20 toprioritize sourcing in factories that haveeliminated excessive overtime Incorporate factory labour and environmentalperformance criteria into production vendorsourcing selection and evaluation In 2012, NIKE shared its manufacturing
vision: to create and deliver great productsthrough a sustainable, NIKE, Inc. sourcing base.
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CSR INITIATIVES BY NIKE INC
Designed to move
•
A movement initiated by Nike Foundation in collaboration•Seeks to capture women’s potential to end their poverty •Driving massive resources to women to empower them
Girl Effect
Lace up Save Lives
•Initiative meant to boost the declining physical activity ofpopulation•5 phases of framework that achieves the 2 asks
•Fighting Aids in Sub-Saharan Africa•Donating billions to governments andNGOs to fight Aids•Providing publicity to the cause at aninternational level
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The
Girl
Effect
The Nike Foundation, in collaboration with the NoVo Foundation, United NationsFoundation and Coalition for Adolescent Girls, started the movement called “Girl Effect”. This movement seeks to capture the potential of adolescent girls to endtheir poverty. The rationale behind the movement is supported by 2012 reportreleased by the World Bank:
India loses $383 billion in potential lifetime income due to 4 million adolescent
girls who become mothers each year.If girls in Kenya completed high school, the economy would gain $27 billion overtheir lifetime.In Nigeria, if women had the same employment rate as young men, the countrywould add $13.9 billion to its economy annually
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Designed
To
Move
Nike’s initiative “Designed to move” aims to increase the level of our population’s physical activitywhich seems to be on the declining trend.
Action Plan: The framework was developedand inspired by existing recommendationspromoted and discussed in the field. There arefive phases of action that provides aframework oriented toward the two asks that
enables unified and accelerated action
Situation: In many countries, physical activity isdisappearing from daily life. It happened in just oneor two generations in some countries, and evensooner in others. Our physical, emotional and
economic well-being has become increasinglycompromised as a result. The time for action is now
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Lace Up
Save
Lives
As a part of the Product Red brand Nike launched “Lace up Save Lives” campaign
to fight Aids, tuberculosis and malaria in Africa. They used the likes of MariaSharapova, Kobe Bryant and Didier Drogba to support the cause.Nike has released a special line of red shoelaces, with the entire profit going to thecharity. The profits of the sales goes to Global Fund to Fight AIDS, Tuberculosisand Malaria (GFATM), an international organization that aims to attract anddisburse additional funds to prevent and treat AIDS, tuberculosis and malaria.
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Integrating
CSR with
Business
Sustainable
Innovation
Innovation
CSR has led to innovation. Development of new effective methods of production.Recycling of old materials to reduce cost. Introduction of new materials neverused before hence creating a new consumer segment for itself.
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Sustainable
Innovation
Plastic landfill has been a major problem for the past few years. Toaddress this issue, Nike has come forward with the idea of recyclingplastic. Since 2010, Nike has diverted 2 billion plastic bottles fromlandfills and has used the recycled polyester to produce sports kit. Infact, in 2014, Brazil national team kit has been made with recycled
polyester for superior performance innovation.
Integrating
CSR with
Business
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Integrating
CSR with
Business
Sustainable
Innovation
Using Recycled Polyester formanufacturingUsing new rubber formulations whichis being used in rubber compoundsUsing organic cotton and hybrid cottonwhich consumes less water
Using of leather that do not requiresolvents for processingProcess leather in facilities that arerated by The Leather Working Group
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Integrating
CSR with
Business
Sustainable
Innovation
63% of scored footwear productachieved a silver rating or better inour first season using the new index
51% of scored new apparel productachieved a bronze rating or better inour first season using the new index
32% of scored equipment product(bags only) achieved a bronze ratingor better in FY13. A new equipmentindex will be launched in the fourthquarter of FY14
The average total NIKE MaterialsSustainability Index score – assessingchemistry, energy/ ghg emissions,water and land-use intensity andphysical waste of the base material;vendor practices; and additionalenvironmental criteria
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Integrating
CSR with
Business
BUSINESS
STRATEGY
Employee EngagementNike is able to engage their employees insocial activities which helps theemployees gain a lot of satisfaction.Satisfied workforce means better results
Reputation Management
Nike has been able to ward of thecriticism and negative publicity it hadreceived during the 1990s. Its goodwill
and brand image has improved over the years due to its contribution to thesociety through CSR.
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Integrating
CSR with
Business
Increasing Global FootprintNike products are available in almost all the countries. Theirsustainability model has gone down well with most nations and itshelping Nike to capture a larger chunk of the global market.
BUSINESS
STRATEGY
i
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Integrating
CSR with
Business
CORPORATE
PHILANTHOPY
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Impact
Analysis
• Nike’s support for Hurley’s H2O non-profit partner Waves For Water hashelped an estimated 5 million people gain access to clean water throughportable water solutions• The NIKE N7 Fund provides grants to Native American and aboriginalcommunities in the United States and Canada in support of sports andphysical activity programs for youth. Since 2009, approximately $1.8 million
has been directed to these communities.• Involving kids from Africa in Sports for Social Change Network to promote theuse of sport as a vehicle to achieve lasting social change
LEVERAGING BRAND POWER
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I
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Impact
Analysis
THE GIRL EFFECT
•A high-profile launch of Smarter Economics: Investing in Girls at the annualmeetings of the World Bnk and International Monetary Fund in 2012; thisreport makes the economic case for investing in adolescent girls• The opening of Girl Hub Ethiopia and the launch of the Yegna-brand radiodrama and girl band to connect, inform and inspire girls across Ethiopia• Ensuring girls were included in commitments made at the London Family
Planning Summit in 2012, where over $4 billion was pledged to tackle theunmet family planning needs of 120 million girls and women by 2020
I t
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Impact
Analysis
EMPLOYEE ENGAGEMENT
Nike’s WE Portal brings together employees around volunteering, service, givingand community activities that matter most to them. NIKE launched a new WEPortal in FY13, providing enhancements to their online experience. The newportal includes features that allow employees to create volunteer teams in theircommunities, design specific cause campaigns and engage directly withqualified and vetted non-profit organizations. Globally, employees used the
portal to track personal contributions of $2.5 million to non-profit organizationsduring FY12 and FY13, which NIKE matched with an additional $2.4 million
I t
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Impact
Analysis
DISASTER RESPONSE
When disaster strikes a community, Nike mobilize to help where they can have
the greatest impact. For instance, in the aftermath of widespread damage to theUS East Coast caused by Superstorm Sandy, it committed $2 million torebuilding efforts in New York and New Jersey and an additional $1 millionworth of product donations to New York City non-profit organizations. HurleyH2O and Waves For Water also helped mobilize relief efforts reaching 350,000people by distributing essential supplies, rebuilding 150 homes and donating40,000 meals.
I t
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Impact
Analysis
DISASTER RESPONSE
In 2013, Nike also responded to the earthquake in Chengdu, China, by working
with local partners to provide humanitarian assistance. And after the tornadosin Oklahoma in May 2013, it helped rebuild playgrounds and support NativeAmerican tribal communities through our N7 program.
Chengdu
Earthquake,
China, 2013
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