IM - Nike

1.

Discuss the challenges regarding corporate social responsibility

that companies in the apparel industry face in their supply chains
around the world.
In the apparel industry, the customers are looking for good
quality, trendy and low-priced products. With those requirements,
the companies needed to raise their cost on hiring professionals to
design clothes and items continuously with different innovations.
In order to provide good quality, the firm needs to spend more on
the raw material and production. But in terms of providing lowpriced products to the customers, the firm needs to find someway
to lower the production cost and maintain the profitability of the
company, they may try to save money in the production process.
For example, the brand may provide lower salaries to workers, ask
them to work over-time with little or even non compensating them,
hire child labor as they are cheaper and discharge waste without
appropriate procession. Nowadays, public noted the importance of
sustainability and equity, they start to pay more attention on CSR
of companies, and how they behaved. Those ways that companies
took to maximize their profit are being considered as unethical,
the apparel industry need to figure out new ways and modify their
operations on their supply chain and production to keep
profitability and take up their corporate social responsibility at
the same time.

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.
The meaning of the statement consumers are not rewarding us
for investments in improved social performance in supply chains.
is that consumers do not consider being social responsible needs
to be rewarded. Even the company paid effort on improving their
social and environmental performance, the consumers took this
for granted as they might think that Nike as one of the leaders in
the apparel industry has the responsibility to maintain a high
standard in corporate social responsibility as they had made so
much profit each year and they have a lot of resources work on
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CSR. For example, Nike tried to be proactive in investigating and

keeping their supply chain members work with their ethic values
and standards, they punished the factories which cannot achieve
or even violate with the company policies. However, general public
didnt show their appreciation on their actions as they might think
that Nike just did what it should do.
3.

What does it mean to have an industry open-systems approach to

social responsibility? What parties are involved? Who are the
stakeholders?
Having an industry open-systems approach means that the
company should be more accountable in business operations,
with the increased the transparency of their systems. As most of
the social responsibility justice based on how the company
operates, with more operation routines being disclosed to public
can address public concerns on whether the company is running
ethically or not. Moreover, stakeholders needs and requirement to
the company also will be included during the setting of business
strategy and company policies. The consumers, labors and staffs
in managerial level are involved. The stakeholders are the
consumers, company, general public and also the government.

4.

What is meant by leadership beyond borders?

Leadership beyond borders means that people now not just
worked within their specialty but also engaged in other areas and
corporate with others who had the same goals or in the same
situation to solve the problem. The leaders no longer are limited to
the area of their professions or area of works, which assigned by
their companies, such as the departments, regions etc. They are
more interconnected in their work; leaders will share their
experience, professional advices and design a more complete plan
on problem solving. With the collective goal and gathering of
different people geared with different abilities, the effectiveness
and efficiency will increase.

5.

Is it possible to have a compatibility of profits with people and

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planet? Whose responsibility is it to achieve that state?

Yes, I think with technological innovations, it is possible to have a
compatibility of profits with people and planet. Nowadays, with
the help of technology, the effort required in environmental
protection is lessened. Also, with the help of machine, the cost of
production can be also lowered, which allowed the companies to
have higher flexibility on setting price to raise their profitability
without violating their corporate social responsibility that they
needed to take up. At this state, the business should try to work
towards sustainability and get a balance between social,
environment and company profit. Beside the business, the
customers and government also have the responsibility to help to
achieve the state. The customers should act as monitors to check
whether the company behaved well or not. And the government
should put more effort on law enforcement to ensure the
companies obey the law and regulations.
6.

Research Nikes CSR actions since this time frame and why it has
earned the reputation as one of the worlds foremost organizations
in sustainability?
Nike's culture is one of innovation, that have very consciously
moved away from the concept of corporate responsibility as a risk
and reputation management approach to one that stresses
sustainability as an opportunity for innovation and business
growth. The company tried to impose a board oversight, proactive
stakeholder engagement and product sustainability. In board
oversight, they tried be objective in reviewing companys policies
and activities by separating operation team of Corporate
Responsibility with the company administrative members. The
Corporate Responsibility team meets to review strategies, plans
and develops targets regarding Nikes labor and environmental
practices, community affairs, and sustainability initiatives. Also,
the company increased their transparency in operation and post
the CSR report of the company every year to public, at the same
time, the company proactively investigate on their supply chain to
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ensure suppliers work with Nikes company policies. Nike's

considered design performed in their innovations that based on
Nikes sustainability principles to produce all of their products
with a lower environmental footprint. Their proactive beliefs in
CSR helped them to earn the reputation.