Submitted By:

Vineet Mishra

C037

Ayush Parikh

C043

Prabakaran Nagarajan

C039

Ruchita Sen

C049

Jatin Nigam

C041

Sharanya Yaradi

C066

Corporate Social

Responsibility of Nike, Inc.

2 | P a g e Corporate Social Responsibility of Nike, Inc.

Table of Contents

S No. Topic Page No

1. About Nike, Inc. 3

2. Social Responsibility According to Nike 4

3. Social Responsibility Initiatives Taken by Nike 4

4. Integration with Business Model 6

4.1 Workplace CSR 7

4.2 Marketplace CSR 8

4.3 Environmental CSR 10

4.4 Community CSR 12

5. Stakeholder Mapping 13

6. Critical Analysis 14

7. Millennium Development Goals Analysis 17

8. Conclusion 18

9. References 19

10. Appendix 20

3 | P a g e Corporate Social Responsibility of Nike, Inc.

About Nike, Inc.

Nike, Inc. is an American multinational corporation focussing in the manufacturing,

marketing and selling of footwear, apparel and sports equipments. Headquartered in the

Portland metropolitan area, Oregon, USA, it is one of the world's largest suppliers of athletic

shoes and apparel and sports equipment. In 2012, it recorded revenues excess of US$24.1

billion and employed over 44,000 people.

Founded on January 25, 1964, by Bill Bowerman and Phil Knight, the company was initially

known as Blue Ribbon Sports. Products are marketed using its own brand, as well as Nike

Golf, Nike Pro, Nike+, Air Jordan, Air Force 1, Nike Dunk, Foamposite, Nike Skateboarding.

With sponsorships for high-profile athletes and sports teams around the world and with the

iconic slogan "Just Do It" and the Swoosh logo, Nike has an incomparable brand value.[1]

Mission: To bring inspiration and innovation to every athlete* in the world[2]

* If you have a body, you are an athlete

4 | P a g e Corporate Social Responsibility of Nike, Inc.

Social Responsibility According to Nike

Nike integrates sustainable ways of working across their business verticals. They plan to

bring sustainable growth across business right from design to production, to logistics and to

retail. Apart from bringing sustainable growth in its business processes, Nike has also been

addressing climate change, enhancing global economic opportunity and mainly preserving

earth’s constrained resources. Nike is also supporting global principles in areas of human

rights, labour, environment and anti corruption by working with global influencers including

United Nations Global Compact. They are creating opportunities for change by changing

environment of industry collaboration, partnership and transparency which helped them to

evolve towards power of innovation to manage risks, create opportunities which would help

them meet sustainability goals.

Social Responsibility Initiatives taken by Nike

Nike aims to bring more sustainable materials that can create positive effect on people and

our planet. With this aim, they are coming up with innovative technology that consumes

lesser natural resources such as water and creates lesser material wastage. They are also

focussed on health and safety of their workers and labour. Following are the initiatives taken

with respect Planet and People.

Initiatives taken with respect to Planet

Efforts have been made by Nike across four impact areas:

Reduce emission of CO2 and other green house gases

Reduce energy consumption

Reduce water consumption

Reduce material waste

To track sustainable development, Nike has come up with three indices listed below:

Nike Material Sustainability Index Nike created this index to provide information needed to make better decision about materials

based on sustainability as well as performance characteristics. The NIKE MSI measures

energy and water use, waste generation and chemical use in materials.

Two key improvements developed that can be measured using this index are:

Reducing waste by improving pattern efficiency

Choice of more sustainable options

The two products developed keeping in mind the above index:

ColorDry: Nike has introduced a new process called ColorDry which uses recycled

CO2 that eliminates the use of water and process chemicals in the dyeing process and

also provides consistent color results (See Appendix A: Environment Benefits of

ColorDry)

5 | P a g e Corporate Social Responsibility of Nike, Inc.

NIKE Flyknit: Nike has developed this innovative technology and manufacturing

process which helps reduce the footwear waste by upto 80% on an average compared

with traditional production methods

Nike Apparel Sustainability Index and Nike Footwear Sustainability Index

Nike is using these indices as a standard tool or as a benchmark for creation of products by its

global product team. This ensures that design decision takes environmental factors into

account.

Initiatives taken with respect to People

Sourcing & Manufacturing Sustainability Index (SMSI)

This is a component of Nike’s manufacturing index which focuses on sustainability

consideration equally with quality, cost and timely delivery of its product. This index also

measures progress in worker’s health and safety, labour compliance, human resources

management, lean implementation, energy and carbon management and other environmental

sustainability issues.

Nike has been working to raise the bar for working conditions across its supply chain. They

have developed their Code of Conduct and Code Leadership standards to assess supplier’s

compliance with their requirement and legal standards.

Nike also aligned itself with community engagement activities more closely with its

businesses and geographies. This embeds planning and performance tracking into the

appropriate business cycles and increases accountability.

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Integration with Business Model

We have studied the Sustainability Report of NIKE and classified their CSR activities into

four categories. These activities as described by their report are well imbibed in their business

models. The four categories which are described in the next part of our report are:

Workplace CSR: Includes activities related to Labor

Marketplace CSR: Includes activities related to Product and Manufacturing

Environmental CSR: Includes activities related to Climate & Energy, Chemistry

(reducing toxic chemicals), Waste and Water

Community CSR: Includes activities related to Community development

Indices used for measuring sustainability of footwear, apparel, materials and contract factory

which are FSI, ASI, MSI, SMSI respectively are developed by NIKE.

An important thing to note is that these indices are central to the business of NIKE and

impacts NIKE’s CSR activities. So, all these activities will overlap when it comes to these

indices but studying and reporting them separately gives us a clear and holistic picture of

NIKE’s CSR activities. In describing these activities, we have taken complete reference of

NIKE’s Sustainability Report and have reported everything at its face value. Critical analysis

is done in the later part of the report.

After analysing the report and the CSR activities done by NIKE, we arrive at a conclusion

that it falls under First and Second Generation of CSR. The sustainable innovations like

Flyknit Technology and ColorDry technology are NIKE’s long term business strategy.

Through the philanthropic initiatives taken like the Girl Effect, it is in the First Generation of

CSR. Though they are working on various measures to reduce their footprint regarding

environmental degradation which makes a strong case for classifying it into Third Generation

of CSR but we believe that it falls less of the significant contributions towards addressing

poverty, inclusion and environmental degradation. Hence, we believe that it activities are not

Third Generation of CSR.

Drivers of CSR in case of NIKE are:

Stakeholder Management

Environmental Degradation & Emissions

Consumer Pressure

Risk Management & Sustainability

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Workplace CSR

Labour

NIKE’s aim is to transform working relationship with contract factories to incentivize

changes that benefit their workers. To achieve these they have done various activities.

NIKE employs 1.01 million people in 785 factories globally (See Appendix B: NIKE’s

contract factory labor data)

One of the initiatives is that NIKE is a participating brand in the Play Fair Freedom of

Association Protocol in Indonesia where training of factory management and workers is

providing the platform for greater engagement in this area.

NIKE believes that lean manufacturing provides an approach that will significantly reduce

excessive working hours. NIKE provides training to contract factory management to engage

employees in problem solving and continuous improvement.

In pilot programs in Indonesia, NIKE worked with factories to improve data quality, and to

study and assess absenteeism, worker engagement and well-being, factory management and

supervisor skills. Many of the factories in NIKE supply base invest in providing support to

their workers through on-site health clinics or financial literacy training.

In FY12, NIKE launched NikeU – an online platform for employee training and development

in areas such as merchandising, retail, leadership and management that will help NIKE

employees build capabilities to execute on our business strategy.

Manager90 is an upward feedback tool that NIKE launched in FY12 to provide managers

with insights from their employees about key strengths and opportunities to improve

according to the four core principles of our manifesto.

NIKE has measured and monitored their contract factory performance on quality and on-time

delivery and costing through Sourcing and Manufacturing Sustainability Index (SMSI).

Ratings for last three years are shown below:

8 | P a g e Corporate Social Responsibility of Nike, Inc.

At the end of FY13, 82% of contract factories had grievance systems in place and were in

compliance with NIKE standards. Also 93% of audited contracted factories reported no

incidents of excessive overtime.

NIKE also strives for achieving Diversity and Inclusion in its workforce. (See Appendix C:

Diversity and Inclusion)

Marketplace CSR

Product

NIKE’s aim is to design products that provide superior performance and lower environmental

impact across NIKE, Inc.

NIKE has developed NIKE Footwear Sustainability Index (FSI) and the NIKE Apparel

Sustainability Index (ASI) providing a way for our product creation teams to measure the

environmental profile of each product. A glimpse of percentage of indexed products is shown

below:

By the end of FY13, NIKE succeeded in using the new indices to score 98% of all new,

global, NIKE Brand footwear product (with 63% of those achieving silver or gold ratings)

9 | P a g e Corporate Social Responsibility of Nike, Inc.

and 86% of all new, global, NIKE Brand apparel product (with 51% of those achieving

bronze or higher ratings)

Below are some of the statistics about the raw materials used for making products:

88% of NIKE Brand global cotton-containing apparel used at least 5% organic cotton

in FY13, down slightly from 90% in FY11

19% of the polyester used by NIKE Brand in FY13 was recycled polyester (compared

to 16% in FY11), and more than 35% of our global NIKE Brand polyester apparel

contains some recycled content

100% of the leather used by NIKE Brand in footwear is certified according to the

standards of the Leather Working Group, an organization that rates and classifies

tanneries based on environmental standards for leather processing

Manufacturing

In terms of manufacturing, NIKE’s aim is to drive improvement in factory sustainability

performance by implementing sourcing systems that include measures of sustainability

performance in sourcing-evaluation processes.

The Manufacturing Index (MI) helps determine whether to buy from contract factories.

Also, Sourcing & Manufacturing Sustainability Index (SMSI) helps score factories based

on five parameters (See Appendix D: SMSI Detailed Process).

NIKE is also interested in looking at developing assessing factories’ approach to people

management. For that they are using HRM, an integral part of Lean 2.0 which enables them

to improve the skills of their employee base.

To improve factory capabilities to manage working conditions and reduce risks, NIKE with

the Fair Labor Association (FLA) played a key role in the development of the Sustainable

Compliance Initiative (SCI) methodology and assessment tool.

When it comes measuring, SMSI measured data shows results and rankings of its factories in

footwear, equipment and apparel segments:

10 | P a g e Corporate Social Responsibility of Nike, Inc.

Environmental CSR

Nike has identified areas of greatest impact on environment and set targets and made

commitments for each: Energy, Chemistry, Water and Waste. Through systems analysis, the

company is improving their understanding of the interconnected nature of impacts and bring

those insights into approach to manage them. The section that follows provides an overview

of their aims and commitments as well as how the strategies are executed, measured and

monitored.

1. Climate& Energy

Goal: To deliver carbon reductions across the value chain. Achieve a 20% reduction

in CO2 emissions per unit.

Reduction was accomplished by reducing process heat loss, fostering better

engagement between factories and NIKE’s energy field team. At retail stores, energy

use per square foot is reduced by 8% from FY11 to FY13, largely due to better energy

management systems and through system and control upgrades. Also, by shipping

more products by ocean than air, they reduced fuel consumption and cost.

2. Chemistry

Goal: Minimize the impact of product ingredients throughout the lifecycle.

NIKE helped launched ZDHC coalition and committed itself to the goal of zero

discharge of hazardous chemicals by 2020. Strategic relationship with bluesign®

system partner enabled their manufacturers to bluesign®-certified textile chemical

formulations, including dye systems, detergents and other chemicals used in

manufacturing. It is an easy-to-use, rigorously vetted list of chemical products that

will help them to reduce the environmental impacts of their processes – and therefore

their products.

Nike asked material vendors to commit in writing to green chemistry practices.

Bluesign® tools helped them in achieving

Restricted substance list(RSL) are shared with vendors that catalogs

substances not to be used in NIKE products

Reduce Petroleum derived solvents (PDS) per pair in the products.

Phase out long-chain, per-flourinated chemicals(PFCs) till 2015

3. Water

Goal: Improve water efficiency in apparel materials dyeing and in footwear

manufacturing.

Product creation teams have been made more water–efficient using the NIKE

Materials Sustainability Index (MSI) and preferring materials from water efficient

vendors. Water quality and quantity has been improved and profiling of materials has

seen improvement through Better Cotton Initiative (BCI). Improving metering and

data analysis to reduce leaks; repurposing treated gray water, setting standards for

water-consuming processes such as cleaning; and reduce flow rates are some

initiatives taken. Many factories have developed and implemented mid-sole washing

processes that recycle and extend the life of water through a three-step filtration

11 | P a g e Corporate Social Responsibility of Nike, Inc.

process. Using NIKE ColorDry technology eliminates water and process chemicals

from the dyeing process.

4. Waste

Products which are thrown away after their life cycle – makes up 59% of the total

waste in our value chain. Targets to reduce waste from finished goods manufacturing

across NIKE, Inc. and also in shoebox weight per unit.

Through Reuse-A-Shoe program 28 million shoes have been recycled into NIKE

Grind

Nike Grind converted the scrap and recycled shoes to sports surfaces, carpet

underlays and fitness flooring

Flyknit shoes which reduce footwear waste by 80% on average when compared to

typical NIKE running footwear

Redesigned new NIKE Brand box which reduces waste by 3%

Measure

Nike has developed tools, processes and indices to establish metrics which can be used to

measure, track and analyze sustainability-impact. Also, Nike has launched a Smart Data

Initiative to provide data on the company’s overall footprint.

Business and Environmental Scenario Tool (BEST)

BEST provides a 10-year quantified view of environmental and financial impacts from

changes to scenarios such as materials used or changes in sourcing.

NIKE Apparel Sustainability Index and NIKE Footwear Sustainability Index are now part of

the standard product creation suite of tools used by all of our designers. Their Sourcing &

Manufacturing Sustainability Index was integrated as a component into Nike’s overall

Manufacturing Index, making sustainability a factor in all supplier evaluations and ratings.

Monitor

Nike monitors and reports the progress effectively and continues to develop and test tools that

help to identify the key actions each function and assess their progress toward integrating

sustainability into the way they operate.

The below figure show the progress achieved on the environment sustainability targets.

12 | P a g e Corporate Social Responsibility of Nike, Inc.

Community CSR

NIKE’s aim is to catalyse human potential by creating community and business impact

through a portfolio of innovative partnerships, advocacy and movement-making initiatives

NIKE says that they contribute 1.5 % of pre-tax income contributed annually. The exact

contribution is shown below.

NIKE identifies that physical inactivity has reached epidemic levels that threaten social and

economic prosperity for individuals, companies and nations around the world.

Initiatives taken are:

Raise Awareness: more than 100 organizations have officially aligned under Designed

to Move, adopting a common language to collectively advocate for urgent change.

Create Active schools

Reshape youth sports

Aligning to Deliver Early Positive Experiences in Sports

Employee empowerment

Other initiatives by NIKE for community include the NIKE N7 Fund that provides grants in

support of sports and physical activity programs for youth.

Philanthropy by NIKE is The Girl Effect which includes initiatives like launching Ni

Nyampinga brand radio show, opening of Girl Hub Ethiopia and magazine in Rwanda to

connect girls and inspire them to reach their full potential. Ensuring girls were included in

commitments made at the London Family Planning Summit in 2012, where over $4 billion

was pledged to tackle the unmet family planning needs of 120 million girls and women by

2020.

NIKE has done lot of community investment globally. A brief can be seen below:

13 | P a g e Corporate Social Responsibility of Nike, Inc.

Stakeholder Mapping

1) Stakeholder 1: Factory Workers, Trade Unions, Employees

They form the dependent Stakeholders with legitimacy and urgency. They can’t force

the company to bring about a change.

2) Stakeholder 2: Shareholders

Shareholders possess all three attributes: power, legitimacy and urgency.

Hence, they are the Definitive Stakeholders

3) Stakeholder 3: Nike supported Governments

Nike generally sets up its factories in monarchies and military dictatorships. They

have power but they do not utilize it against Nike. They possess the power to impose

their will but they choose not to, hence they are Dormant stakeholders.

4) Stakeholder 4: Consumers (collectively)

With recent protests against Nike, the consumers have shown their power and

legitimacy. Power has come through a collective movement against Nike. A lot of

their consumers are high-profile sportspersons who have a lot of power and have

legitimate rights. Hence, they become the Dominant Stakeholder.

5) Stakeholder 5: Greenpeace, Activist Marc Kasky

NGOs like Greenpeace which has protested against Nike’s polluting the Chinese

rivers and activist Marc Kasky who sued Nike become the Dangerous Stakeholders

with a lot of power and urgency.

6) Stakeholder 6: Suppliers

Suppliers possess only urgency. They can’t afford to strain relations with such a big

company as Nike. They are the Demanding Stakeholders.

14 | P a g e Corporate Social Responsibility of Nike, Inc.

Critical Analysis

Approximately half of Nike's product line is manufactured by independent contractors in

foreign markets - including Indonesia, Vietnam, Bangladesh, China, Malaysia, Mexico and

Haiti.

Origins of allegations against Nike can been seen in the Op-ed article by Bob Herbert in New

York Times published in June 1996 criticizing the sweatshops of Nike and oppression of the

laborers.(DeTienne et al., 2005)

Since then, Nike has been under the scrutiny for outsourcing labor to developing countries to

exploit labor and thereby exponentially increase its revenues. Nike’s sweatshops are known

for its safety hazards, inadequate wages and long working hours.

Campaigns have been taken up by many activists, political leaders, prominent sportspersons,

universities, as well as several anti-sweatshop groups to protest against Nike.[1]

The company was ranked 2nd in the Global Exchange’s Top Ten Corporate Criminals 2013

list. [3] In comparison, Adidas, Nike’s chief rival, is a constant ranker in top 10 in The Global

100 Index for CSR, the index objectively calculates and assesses the corporate sustainability.

(Rank 8th in 2014, 17th in 2013). Nike is not even featured in the top 100. [4]

Issues against Nike

Child Labor Issue in Pakistan, China

About 70% of the world’s high-quality soccer balls are produced in Sialkot, Pakistan and a

wide range of subcontractors and specialist input suppliers employ children. And Nike having

its production units in Pakistan was accused of use of child labour for its soccer balls. In its

1996 issue, Life magazine showed a photo of a 12 year old stitching a Nike soccer ball in its

article on child labour in Pakistan. This image had a devastating effect on Nike as a brand.

Although Nike took action to curb reduce it, they continue to give their production contracts

to companies that operate in areas where it is difficult to monitor and regulate labor practices.

(Locke, 2002)

Worker and Human Rights violation

Nike does not adhere to the local minimum wage laws, pays inadequate wages and forces

overtime in Vietnam, China, Haiti, Indonesia.

At many plants, employees are forced to work 65 hours per week, well over the legal

maximum hours. Also, overtime wages are sometimes not paid. In addition, many plant

workers are paid less than the local laws dictate concerning minimum wage. Vietnam

workers were paid $1.60 per day, even though the cost of eating was approximately $2.10 per

day.

15 | P a g e Corporate Social Responsibility of Nike, Inc.

In Malaysia, major worker rights violations at one of its Malaysian contract factories,

including squalid living conditions, garnisheed wages and withheld passports of foreign

workers.[5][6]

Nike in response acknowledged the problems in its report which included the falsification of

factory documents such as payroll records, lack of effective grievance systems for disgruntled

workers and hiring practices that did not ensure minimum age standards were met.

Recently, in April 2014, about 30,000 workers at the Yue Yuen factory complex in Jiangxi

province, southern China for the issue of historic underpayments for social security and

housing fund contributions. Workers at the plant Yue Yuen – earn as little as $1.67 an hour

making shoes that can sell for up to 100 times as much in the US.[7][8]

Hazardous and dangerous sweatshops

Sweatshops in Vietnam have caused liver, kidney brain damage in many workers. Also,

workers suffer from exhaustion, heat, fumes and poor nutrition.

One plant in China operated with I77x the legal limit of carcinogens in the factory air. Over

75% of the workers at this plant suffered from respiratory disease. In addition, many workers

have complained of dangerous job functions that have resulted in severed fingers and maimed

limbs.[5]

Sexual Harassment and Exploitation

In the countries that Nike works in, human trafficking is on a major scale" of foreign workers

at the factory.

There have been many reports of sexual harassment of female workers by male supervisors.

In a report published by researchers from the Global Alliance for Workers and Communities

in Indonesia, female workers in one factory told that they were forced to trade sexual favours

to gain employment. Nearly 30% said they had witnessed or experienced abuse. [9]

Supports military dictatorships that crush labor unions and worker protest

In 2013, 650,000 workers that are the backbone of Cambodia's multi-billion dollar garment

industry and are key labor for Nike were demanding a doubling of the minimum wage to

$160 a month, or about $8 a day. The Cambodian police retaliated by using violence and

force against striking garment workers at some of their suppliers.

Nike kept its silence and did not condemn the issue. But, Puma came forward and released a

statement against the actions of the Cambodian police. Nike’s silence demonstrates a genuine

disinterest for human rights.[10][11]

Partnership with Daewoo International

In Uzbekistan, Nike collaborated with Daewoo International, the largest processor of forced

labor cotton. Uzbek human rights activists, political leaders, and prominent

dissidents released an open letter calling on Nike to cut ties with Daewoo. The campaign

spurred Nike into action and the company has now finally cut all its ties with Daewoo.

16 | P a g e Corporate Social Responsibility of Nike, Inc.

Though it has officially ended its partnership, the time taken for Nike to arrive on this

decision certainly raises doubts about its genuine interest to end forced labor. [12][13]

The Marc Kasky Case

In 1998, a California resident, Marc Kasky sued Nike for unfair and deceptive practices as

Nike made a number of "false statements and/or material omissions of fact" concerning the

working conditions under which Nike products are manufactured.

This court case was a huge blow to Nike’s reputation. Later, Nike and Kasky agreed to settle

the case with an out-of-court settlement for $1.5 million. The settlement involved investments

by Nike to strengthen workplace monitoring and factory worker programmes. [14][15][16]

Greenpeace’s Dirty Laundry

Greenpeace’s latest report titled ‘Dirty Laundry’ focuses on the high levels of industrial

pollutants being released into China’s major rivers like the Yangtze and the Pearl and

commercial ties between a number of international brands such as Nike with two Chinese

manufacturers responsible for releases of those hazardous chemicals. Greenpeace has also

launched the challenge ‘Detox’ Campaign, calling Nike, to take the initiative and use their

influence on its supply chain. [17]

As discussed, Nike flouted labor and human rights in several countries. At first, Nike

managers refused to accept any responsibility for the various labor and environmental/health

problems found at their suppliers’ plants.

But, there was severe criticism and pressures from organizations such as IBLF, Global

Exchange. Media also played an important part in the Nike campaign by reaching to a wider

audience and thereby gaining legitimacy. The campaign attracted world-wide attention and

resulted in Nike initiating and expanding CSR measures apart from the initial adoption of

codes of conduct. These measures included devoting staff within the company to the

problem, engaging external expertise and joining CSR initiatives such as Business for Social

Responsibility, the Fair Labor Association(Nike is a founding member) and the Vietnamese

Business Link Initiative.

It has also insisted that all footwear suppliers adopt US Occupational Safety and Health

Administration (OSHA) standards for indoor air quality. (Segerlund, 2010)

Apart from the initiatives mentioned in its recent CSR report, it has also expanded its

independent Monitoring, raised Minimum Age Requirements - Independent of local laws,

launched Environment, Health and Safety Standards ("EHSMS") to ensure continuous

improvement of conditions at Nike factories, Jobs + Education Program, Micro-Enterprise

Loan Program, Rising Tides Program.[6]

In its first country-specific supply chain report, focusing on China for its Beijing Olympics,

Nike detailed the efforts it has been making to get suppliers to comply with its code of

conduct and with Chinese law, including a program to monitor Olympics-related suppliers.[18]

17 | P a g e Corporate Social Responsibility of Nike, Inc.

Millennium Development Goals Analysis

With the help of the Nike’s CSR Report and our critical analysis, we have mapped the following

MDGs and Nike’s impact.

1. Eradicate Extreme Poverty and Hunger

On one hand, it has empowered adolescent girls through Nike Foundation’s The Girl

Effect but on the other hand, it makes its workers struggle in sweatshops with

inadequate wages and massive overtime hours.

2. Achieve Universal Primary Education

The Girl Effect helps in the primary and secondary education of girls. It has also

started the Jobs + Education Program for its workers.

3. Reduce Child Mortality

The Girl Effect discourages female foeticide.

4. Improve Maternal Health

The Girl Effect functions to improve the health of adolescent girls who are the future

mothers of the next generation.

5. Promote Gender Equality and Empower Women

The Girl Effect promotes gender equality and empowers adolescent girls. But, on the

other hand, cases of sexual harassment and exploitation have been brought forward

from the sweatshops that Nike operates in the developing countries.

6. Combat HIV/AIDS, Malaria and Other Diseases

Initiatives have been taken by the Nike Foundation, the Girl Effect for improving the

health of adolescent girls. But, workers’ health has been neglected and they suffer

from ill health and deformity due to bad working conditions.

7. Ensure Environmental Sustainability

Technologies like ColorDry, FlyKnit used to save water, materials and energy. But,

Nike has done several environmental violations including polluting the Chinese

rivers.

8. Develop a global partnership for development

Collaborating with bluesign®, partnerships with various Governments to help set up

factories in those countries.

18 | P a g e Corporate Social Responsibility of Nike, Inc.

Conclusion

Nike has made serious mistakes in the past. But, by accepting them and taking initiatives

Nike has taken the right step forward.

Introducing the Flyknit and ColorDry technology has been substantial to reduce its impact on

the environment and improve its sustainability quotient. As of 2014, it is off the Global

Exchange’s Top Ten Corporate Criminals List proving that it has taken steps in the area of

social responsibility.

But, in comparison to its chief competitor Adidas, it still has a long way to go in promoting

sustainability practices and improving human rights. It has clearly failed to keep pace with

their stakeholders’ expectations and has to work on improving its credibility by being more

responsive to workers and initiate talks with them.

To be successful, Nike has to engage and balance all stakeholders’ interests. The priority

must be to establish the right culture and leadership, making human rights to their core value

for their business decisions.

19 | P a g e Corporate Social Responsibility of Nike, Inc.

References

1. Company Report References

Nike Inc. (2013). 2012 NIKE, INC. FY12/13 Sustainable Business

Performance Summary. Retrieved from

http://www.nikeresponsibility.com/report/uploads/files/FY12-

13_NIKE_Inc_CR_Report.pdf

2. Book References

Segerlund, Lisbeth Dr. (2010). Making Corporate Social Responsibility a

Global Concern: Norm Construction in a Globalizing World

3. Article from a Scholarly Journal, Retrieved from an Online Database

DeTienne, Kristen Bell, Lewis, Lee W. (2005). The Pragmatic and Ethical

Barriers to Corporate Social Responsibility Disclosure: The Nike Case.

Journal of Business Ethics, Vol. 60, Issue 4, PP: 359-376. 18p. Retrieved from

http://www.jstor.org/stable/25123589

Locke, Richard M. (2002). The Promise and Perils of Globalization: The Case

of Nike. MIT IPC. Retrieved from

http://ipc.mit.edu/sites/default/files/documents/02-007.pdf

4. Website References

1. Nike Inc. (2014). Retrieved from http://en.wikipedia.org/wiki/Nike,_Inc.

2. About Nike, Inc. (2014). Retrieved from http://nikeinc.com/pages/about-nike-inc

3. Top 10 Corporate Criminals List. (2014). Retrieved from

http://www.globalexchange.org/corporateHRviolators

4. Global 100 Index. (2014). Retrieved from http://global100.org/global-100-index/

5. FACTs and FAQs about Nike’s labor abuses. (n.d.). Retrieved from http://www-

personal.umich.edu/~lormand/poli/nike/nikelabor.htm

6. Study of Corporate Social Responsibility. (1999). Retrieved from

http://web.stanford.edu/class/e297c/poverty_prejudice/citypoverty/hedge_poverty.

htm

7. Strike spreads at Chinese supplier to Adidas and Nike. (2014). Retrieved from

http://www.theguardian.com/world/2014/apr/22/strike-spreads-chinese-supplier-

adidas-nike-yeu-yuen-factory-jiangxi-guangdong

8. Worsening China Factory Strike Threatens Adidas, Nike Sneakers. (2014).

Retrieved from http://www.nbcnews.com/news/world/worsening-china-factory-

strike-threatens-adidas-nike-sneakers-n87951

9. Abuse rife in Indonesian Nike plants. (2001). Retrieved from

http://www.theguardian.com/world/2001/feb/23/indonesia.johnaglionby1

10. Cambodia: Walmart, Nike Slammed over Garment Workers Deaths Silence.

(2014). Retrieved from http://m.ibtimes.co.uk/cambodia-walmart-nike-bashed-

silence-over-garment-workers-killings-1431677

20 | P a g e Corporate Social Responsibility of Nike, Inc.

11. Cambodia's clothes makers being killed after protesting for a pay rise to make

clothes for Nike, Gap. (2014). Retrieved from

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protesting-for-a-pay-rise-to-make-clothes-for-nike-gap/story-fndir2ev-

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http://www.antislavery.org/english/campaigns/cottoncrimes/default.aspx

14. Nike lawsuit (Kasky v Nike, re denial of labour abuses). (n.d.). Retrieved from

http://business-humanrights.org/en/nike-lawsuit-kasky-v-nike-re-denial-of-labour-

abuses-0#c9325

15. NIKE, INC., ET AL., PETITIONERS v. MARC KASKY. (n.d.) Retrieved from

http://www.law.cornell.edu/supremecourt/text/539/654

16. Kasky v. Nike: Just the Facts. (n.d.). Retrieved from

http://reclaimdemocracy.org/kasky_nike_justfacts/

17. Should Nike be Applauded for Beating Adidas on the Greenpeace Detox

Challenge? (2011). Retrieved from http://www.triplepundit.com/2011/08/shouold-

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18. Nike Sweatshops in China. (n.d.) Retrieved from

http://fashion.lilithezine.com/Nike-Sweatshops-in-China.html

Appendix

Appendix A: Environment Benefits of ColorDry

21 | P a g e Corporate Social Responsibility of Nike, Inc.

Appendix B: NIKE’s contract factory labor data

Appendix C: Diversity and Inclusion (by gender and ethnicity)

22 | P a g e Corporate Social Responsibility of Nike, Inc.

23 | P a g e Corporate Social Responsibility of Nike, Inc.

Appendix D: SMSI Detailed Process