Nike Corporate Responsibility
Corporate Social Responsibility at Nike, Inc.
Overview of Policies and Activities
CSR Structure
In its approach to social responsibility, Nike groups initiatives into six separate categories: reducing waste, cutting energy, slashing water use, rejecting toxins, supporting communities, and empowering workers.1 Each of these initiatives carries three types of goals: an aim, a target, and commitments. The aim consists of the overall vision of that segment, while the target identifies tangible short term goals needed to achieve the aim. The commitments further delineate goals related to the overall mission that are less quantifiable.2 The company utilizes these three types of goals when implementing and assessing any social or environmental policy.3 I will begin by describing Nike’s objectives related to social issues, and then proceed to an overview of its environmental policies.
Social Policy
Working conditions overseas. The biggest PR disaster Nike suffered occurred in the 1990’s resulting from issues surrounding the treatment of its outsourced manufacturers. Allegations at the time included poor factory working conditions as well as commonplace harassment and abuse.4 Recently, Nike revised its policy to encourage contract factories to implement changes for the benefit of workers.5 By the end of FY20, it hopes to prioritize sourcing in factories that have eliminated excessive overtime.6 Additionally, Nike is working with the Fair Labor Association and other leading brands to develop metrics to measure issues related to fair labor and responsible sourcing.7 Nike is one of 16 companies whose labor compliance program is accredited by the FLA, which indicates the presence of systems and procedures required for successful labor standards compliance.8
Community efforts. According to company sources, Nike’s approach to community development departs from traditional giving and philanthropy, and instead seeks to
Overview of Policies and Activities
CSR Structure
In its approach to social responsibility, Nike groups initiatives into six separate categories: reducing waste, cutting energy, slashing water use, rejecting toxins, supporting communities, and empowering workers.1 Each of these initiatives carries three types of goals: an aim, a target, and commitments. The aim consists of the overall vision of that segment, while the target identifies tangible short term goals needed to achieve the aim. The commitments further delineate goals related to the overall mission that are less quantifiable.2 The company utilizes these three types of goals when implementing and assessing any social or environmental policy.3 I will begin by describing Nike’s objectives related to social issues, and then proceed to an overview of its environmental policies.
Social Policy
Working conditions overseas. The biggest PR disaster Nike suffered occurred in the 1990’s resulting from issues surrounding the treatment of its outsourced manufacturers. Allegations at the time included poor factory working conditions as well as commonplace harassment and abuse.4 Recently, Nike revised its policy to encourage contract factories to implement changes for the benefit of workers.5 By the end of FY20, it hopes to prioritize sourcing in factories that have eliminated excessive overtime.6 Additionally, Nike is working with the Fair Labor Association and other leading brands to develop metrics to measure issues related to fair labor and responsible sourcing.7 Nike is one of 16 companies whose labor compliance program is accredited by the FLA, which indicates the presence of systems and procedures required for successful labor standards compliance.8
Community efforts. According to company sources, Nike’s approach to community development departs from traditional giving and philanthropy, and instead seeks to
Cited: Companies in the News. (2013, April 23). Retrieved from MallenBaker: http://www.mallenbaker.net/csr/CSRfiles/nike.html Nike, Inc. (n.d.). Nike, Inc. FY10/11 Sustainable Business Performance Summary. Retrieved from Nike Responsibility: http://www.nikeresponsibility.com/report/files/report/NIKE_SUSTAINABLE_BUSINESS_REPORT__FY10-11_FINAL.pdf Targets and Performance. (2012). Retrieved from Nike Responsibility: http://www.nikeresponsibility.com/report/content/chapter/targets-and-performance