Nike's CSR Challenge
Case 2- Nike’s CSR Challenge
1. The challenges regarding corporate social responsibility that companies in the apparel industry face in their supply chain around the world is very complex. Apparel is something that everyone can make, so for companies they need to find a way to keep their prices competitive but also provide quality products. In this case we see some evidence of what was going on in The South Asian plants that produce Nike’s shoes. These poor conditions are not caused by Nike but they are caused by the subcontractors trying to provide Nike the products fast enough so they don’t go to another plant. The workers at these plants are not given a day off, they are restricted from using the restroom and drinking water during the work day, and they work 60 hour weeks.
2. When the Nike representative states that “consumers are not rewarding us for investment in improved social performance in supply chains” they mean that all the good that Nike is doing doesn’t mean anything to the consumer, ultimately most consumers are just worried about getting the best bang for their buck, otherwise known as getting the best deal. Unfortunately for Nike investment in improved social performance will costs them more money which will lead to product prices to rise.
3. To have an open-systems approach means that although businesses must make a profit in order to survive, they must equal out their desire for profits against the needs and desires of the society. The parties involved would be the company and the society in which it is affecting. The stakeholders would be anyone that can affect or be affected by the actions or decisions of the business.
4. Leadership beyond borders means people who can see across borders created by others, such as the borders of their jobs and reach across borders to engage in dialogue and action to address systematic problems. An example is Nike stepping up to try encourage others to help the working conditions for these workers.
1. The challenges regarding corporate social responsibility that companies in the apparel industry face in their supply chain around the world is very complex. Apparel is something that everyone can make, so for companies they need to find a way to keep their prices competitive but also provide quality products. In this case we see some evidence of what was going on in The South Asian plants that produce Nike’s shoes. These poor conditions are not caused by Nike but they are caused by the subcontractors trying to provide Nike the products fast enough so they don’t go to another plant. The workers at these plants are not given a day off, they are restricted from using the restroom and drinking water during the work day, and they work 60 hour weeks.
2. When the Nike representative states that “consumers are not rewarding us for investment in improved social performance in supply chains” they mean that all the good that Nike is doing doesn’t mean anything to the consumer, ultimately most consumers are just worried about getting the best bang for their buck, otherwise known as getting the best deal. Unfortunately for Nike investment in improved social performance will costs them more money which will lead to product prices to rise.
3. To have an open-systems approach means that although businesses must make a profit in order to survive, they must equal out their desire for profits against the needs and desires of the society. The parties involved would be the company and the society in which it is affecting. The stakeholders would be anyone that can affect or be affected by the actions or decisions of the business.
4. Leadership beyond borders means people who can see across borders created by others, such as the borders of their jobs and reach across borders to engage in dialogue and action to address systematic problems. An example is Nike stepping up to try encourage others to help the working conditions for these workers.