CORPORATE SOCIAL RESPONSIBILITY

OF
NIKE INC.
Presented by

NIKE Inc.

Founded

in 1964 as Blue Ribbon sports

Renamed as Nike Inc. In 1971
Named after Greek God of Victory
Headquartered in Beaverton, Oregon
Largest athletic footwear and apparel manufacturer
One of the most visible brands in the world
Revenues of over $25 Billion
Profit of over $3 Billion
Close to 50,000 employees all over the world
Total valuation close to $70 Billion

Trivia
Nike Logo swoosh is one of there most popular along
with the logos of Mercedes and Apple Inc.

NIKE Inc.

Nike is the leading brand in the

world of sports. Their closest
competitors are Adidas, Puma and
Reebok. Nike holds close to 1/3 of
the global market share of Athletic
Footwear.
Known for heavy promotion
using big stars.
Sponsors the top athletes in
all the popular sports.

Nike Inc. Has growth at a cumulative

average growth rate of 21% over the
last 10 years.

CSR
A corporate self-regulation integrated
into business model
An in-built mechanism to ensure
compliance with spirit of law & ethics
A move to encourage positive impact
through it activity on environment
C
S
R

CORPORATE PHILANTHROPHY
RISK MANAGEMENT
CREATING SHARED VALUE

Triple Bottom Line Approach to CSR

The TBL is an accounting framework with three dimensions: social,
environmental and financial. The TBL dimensions are also commonly called
the three Ps: people, planet and profit and are referred to as the "three
pillars of sustainability".

CSR

NIKE + CSR

Vision

Doing
innovation
through
the
lens
of
sustainability is fundamental to achieving growth
that is not dependent upon constrained resources

Mission

Make better today to improve its business and

its value chain as they have environmental and
social impacts that can be reduced through longterm commitment to continuous improvement

Values

Sustainable Innovation
Integrity of work process
Accountability

CSR
Violations

Allegations
Against
Nike

Low wages and poor working conditions in Indonesia. Labours paid 14 cents a
day which is lower than the minimum wage for Indonesia
Using children to stitch balls in sweatshops in Pakistan in poor conditions.
Children were not provided any benefits as well.
Nike became synonymous with Slave
workers because of the low pay its contactors
used to give to the labours
In most places labours were forced to work
overtime mostly without incentives
OSHA clean air standards were not followed
in the factories which amounted to extremely
harsh working conditions

CSR
Violations

Corrective
Measures

All Nike Factories are rated using Nikes Sourcing & Manufacturing Sustainability
Index (SMSI) all suppliers and outsourced factories must follow same index
The Sustainable Manufacturing Excellence team is formally aligned to both SB&I
and NIKEs sourcing functions
Nike integrated its Manufacturing Index which includes the Sourcing &
Manufacturing Sustainability Index into our sourcing selection and evaluation criteria
Established Project Rewire - To connect impacts of sourcing with decision makers
Align sourcing decisions by the end of FY20 to
prioritize sourcing in factories that have
eliminated excessive overtime
Incorporate factory labour and environmental
performance criteria into production vendor
sourcing selection and evaluation
In 2012, NIKE shared its manufacturing
vision: to create and deliver great products
through a sustainable, NIKE, Inc. sourcing base.

CSR INITIATIVES BY NIKE INC

Girl Effect
A movement initiated by Nike Foundation in collaboration
Seeks to capture womens potential to end their poverty
Driving massive resources to women to empower them

Designed to move
Initiative meant to boost the declining physical activity of
population
5 phases of framework that achieves the 2 asks

Lace up Save Lives

Fighting Aids in Sub-Saharan Africa
Donating billions to governments and
NGOs to fight Aids
Providing publicity to the cause at an
international level

The
Girl
Effect
The Nike Foundation, in collaboration with the NoVo Foundation, United Nations
Foundation and Coalition for Adolescent Girls, started the movement called Girl
Effect. This movement seeks to capture the potential of adolescent girls to end
their poverty. The rationale behind the movement is supported by 2012 report
released by the World Bank:
India loses $383 billion in potential lifetime income due to 4 million adolescent
girls who become mothers each year.
If girls in Kenya completed high school, the economy would gain $27 billion over
their lifetime.
In Nigeria, if women had the same employment rate as young men, the country
would add $13.9 billion to its economy annually

Designed
To
Move
Nikes initiative Designed to move aims to increase the level of our populations physical activity
which seems to be on the declining trend.

Situation: In many countries, physical activity is

disappearing from daily life. It happened in just one
or two generations in some countries, and even
sooner in others. Our physical, emotional and
economic well-being has become increasingly
compromised as a result. The time for action is now

Action Plan: The framework was developed

and inspired by existing recommendations
promoted and discussed in the field. There are
five phases of action that provides a
framework oriented toward the two asks that
enables unified and accelerated action

Lace Up
Save
Lives
As a part of the Product Red brand Nike launched Lace up Save Lives campaign
to fight Aids, tuberculosis and malaria in Africa. They used the likes of Maria
Sharapova, Kobe Bryant and Didier Drogba to support the cause.
Nike has released a special line of red shoelaces, with the entire profit going to the
charity. The profits of the sales goes to Global Fund to Fight AIDS, Tuberculosis
and Malaria (GFATM), an international organization that aims to attract and
disburse additional funds to prevent and treat AIDS, tuberculosis and malaria.

Integrating
CSR with
Business

Sustainable
Innovation

Innovation
CSR has led to innovation. Development of new effective methods of production.
Recycling of old materials to reduce cost. Introduction of new materials never
used before hence creating a new consumer segment for itself.

Integrating
CSR with
Business

Sustainable
Innovation

Plastic landfill has been a major problem for the past few years. To
address this issue, Nike has come forward with the idea of recycling
plastic. Since 2010, Nike has diverted 2 billion plastic bottles from
landfills and has used the recycled polyester to produce sports kit. In
fact, in 2014, Brazil national team kit has been made with recycled
polyester for superior performance innovation.

Integrating
CSR with
Business

Sustainable
Innovation

Using Recycled Polyester for

manufacturing
Using new rubber formulations which
is being used in rubber compounds
Using organic cotton and hybrid cotton
which consumes less water
Using of leather that do not require
solvents for processing
Process leather in facilities that are
rated by The Leather Working Group

Integrating
CSR with
Business

Sustainable
Innovation

63% of scored footwear product

achieved a silver rating or better in
our first season using the new index
51% of scored new apparel product
achieved a bronze rating or better in
our first season using the new index

32% of scored equipment product

(bags only) achieved a bronze rating
or better in FY13. A new equipment
index will be launched in the fourth
quarter of FY14
The average total NIKE Materials
Sustainability Index score assessing
chemistry, energy/ ghg emissions,
water and land-use intensity and
physical waste of the base material;
vendor practices; and additional
environmental criteria

Integrating
CSR with
Business

BUSINESS
STRATEGY

Employee Engagement
Nike is able to engage their employees in
social
activities
which
helps
the
employees gain a lot of satisfaction.
Satisfied workforce means better results

Reputation Management
Nike has been able to ward of the
criticism and negative publicity it had
received during the 1990s. Its goodwill
and brand image has improved over the
years due to its contribution to the
society through CSR.

Integrating
CSR with
Business

BUSINESS
STRATEGY

Increasing Global Footprint

Nike products are available in almost all the countries. Their
sustainability model has gone down well with most nations and its
helping Nike to capture a larger chunk of the global market.

Integrating
CSR with
Business

CORPORATE
PHILANTHOPY

Impact
Analysis
LEVERAGING BRAND POWER

Nikes support for Hurleys H2O non-profit partner Waves For Water has
helped an estimated 5 million people gain access to clean water through
portable water solutions
The NIKE N7 Fund provides grants to Native American and aboriginal
communities in the United States and Canada in support of sports and
physical activity programs for youth. Since 2009, approximately $1.8 million
has been directed to these communities.
Involving kids from Africa in Sports for Social Change Network to promote the
use of sport as a vehicle to achieve lasting social change

Impact
Analysis
THE GIRL EFFECT

A high-profile launch of Smarter Economics: Investing in Girls at the annual

meetings of the World Bnk and International Monetary Fund in 2012; this
report makes the economic case for investing in adolescent girls
The opening of Girl Hub Ethiopia and the launch of the Yegna-brand radio
drama and girl band to connect, inform and inspire girls across Ethiopia
Ensuring girls were included in commitments made at the London Family
Planning Summit in 2012, where over $4 billion was pledged to tackle the
unmet family planning needs of 120 million girls and women by 2020

Impact
Analysis
EMPLOYEE ENGAGEMENT
Nikes WE Portal brings together employees around volunteering, service, giving
and community activities that matter most to them. NIKE launched a new WE
Portal in FY13, providing enhancements to their online experience. The new
portal includes features that allow employees to create volunteer teams in their
communities, design specific cause campaigns and engage directly with
qualified and vetted non-profit organizations. Globally, employees used the
portal to track personal contributions of $2.5 million to non-profit organizations
during FY12 and FY13, which NIKE matched with an additional $2.4 million

Impact
Analysis
DISASTER RESPONSE
When disaster strikes a community, Nike mobilize to help where they can have
the greatest impact. For instance, in the aftermath of widespread damage to the
US East Coast caused by Superstorm Sandy, it committed $2 million to
rebuilding efforts in New York and New Jersey and an additional $1 million
worth of product donations to New York City non-profit organizations. Hurley
H2O and Waves For Water also helped mobilize relief efforts reaching 350,000
people by distributing essential supplies, rebuilding 150 homes and donating
40,000 meals.

Impact
Analysis
DISASTER RESPONSE
In 2013, Nike also responded to the earthquake in Chengdu, China, by working
with local partners to provide humanitarian assistance. And after the tornados
in Oklahoma in May 2013, it helped rebuild playgrounds and support Native
American tribal communities through our N7 program.

Chengdu
Earthquake,
China, 2013