When the discovery of sweatshop practices and human rights exploitation surfaced in the 1990s, Nike was forced to review and change its operations in order to please the expanding group of conscientious customers who are concerned with the conditions under which the products are manufactured (Suehle, 2011). The pressure for change resulted in Nike’s decision to integrate corporate and social responsibility (CSR) into its business operations. Since then, Nike has acknowledged the importance of CSR to their innovation and performance, and has been progressively working towards integrating it into every step of the business functions.
2.0 Nike’s Vision
To incorporate CSR in its business operations and culture, Nike defined its visions (Nikeresponsibility.com, 2014):
To build a sustainable business and create value for Nike and our stakeholders by decoupling profitable growth from constrained resources.
To Nike, building business sustainability means developing business model to achieve sustainable growth that generates profit, while aiming to reduce its dependence on scarce resources, eliminate waste and minimize negative environmental impact.
Nike seeks to achieve this commercial success by focusing its CSR efforts on designing and innovating products that targets at creating positive environmental, labor and social change through honoring ethical values, and respecting people, communities and the natural environment.
3.0 Nike’s Organizational Structure
At Nike, commitment to CSR begins at the top – the board level (Epstein et al., 2010). To embed its vision throughout the organization, Nike formed a Corporate Responsibility (CR) committee as part of its Board of Directors committee structure (as shown in Figure 1). The CR committee consists of a group of CR practitioners who are responsible for working with the business at different levels where they are involved in Nike’s strategies relating to the environment, labor and social aspects