Case Study Nike Csr Challenge Essay Example
1. In referring to the opening profile and the closing case for this chapter, discuss the challenges regarding corporate social responsibility (CSR) that companies in the apparel business face in its supply chains around the world.
In today’s globalized economy, the challenge in engaging in CSR is in keeping costs low while at the same time keeping profits high and shareholders happy. With the implementation of a CSR strategy, Milton Friedman’s theory of maximizing shareholders’ profits as a company’s sole objective has become a balancing act of multinational corporations (MNCs). On the one hand, Nike wants to do the right thing environmentally, socially, and economically by their CSR strategy of contracting with local suppliers in developing countries for its apparel production. On the hand, it is difficult to keep a watchful eye on the locals regarding working conditions for their employees. It is simply not sufficient to uphold a CSR strategy, it is extremely important monitor it for correct implementation and to take necessary action should it be violated. Even though developing countries’ labor laws might differ from those in America, Nike should heed care in that basic human rights are not violated. Nike learned that it had to become more aware of its suppliers’ involvement in the company’s CSR implementation. Nike realized that its’ closed system approach was detrimental to implementing a CSR strategy beyond its own company. To rectify this, Nike adapted an open systems approach by taking leadership over the entire garment industry and implementing industry-wide CSR strategy that took into consideration environmental, societal, and organizational factors of MNC supplier host countries.
2. Discuss the meaning and implication of the statement by a Nike rep that “consumers are not rewarding us for investments in improved social performance in supply chains.”
Improving social performance in its supply chains is a cost for Nike which would be passed on
In today’s globalized economy, the challenge in engaging in CSR is in keeping costs low while at the same time keeping profits high and shareholders happy. With the implementation of a CSR strategy, Milton Friedman’s theory of maximizing shareholders’ profits as a company’s sole objective has become a balancing act of multinational corporations (MNCs). On the one hand, Nike wants to do the right thing environmentally, socially, and economically by their CSR strategy of contracting with local suppliers in developing countries for its apparel production. On the hand, it is difficult to keep a watchful eye on the locals regarding working conditions for their employees. It is simply not sufficient to uphold a CSR strategy, it is extremely important monitor it for correct implementation and to take necessary action should it be violated. Even though developing countries’ labor laws might differ from those in America, Nike should heed care in that basic human rights are not violated. Nike learned that it had to become more aware of its suppliers’ involvement in the company’s CSR implementation. Nike realized that its’ closed system approach was detrimental to implementing a CSR strategy beyond its own company. To rectify this, Nike adapted an open systems approach by taking leadership over the entire garment industry and implementing industry-wide CSR strategy that took into consideration environmental, societal, and organizational factors of MNC supplier host countries.
2. Discuss the meaning and implication of the statement by a Nike rep that “consumers are not rewarding us for investments in improved social performance in supply chains.”
Improving social performance in its supply chains is a cost for Nike which would be passed on