Beyond the Profit: Nike and the Quadruple Bottom Line

Beyond the Profit: Nike and the Quadruple Bottom Line
MGT 499
Capstone
02/27/2016
Executive Summary
Through Nike Inc.’s new strategic plan, they have proven, yet again, that profitability and corporate social responsibility (CSR) go hand in hand. Nike’s journey is unique because the company has been able to create real change in their corporate culture to include real concern for people and the environment. With innovation at the heart of its operation, Nike is able to create new products that appeal to a new set of customers, the Millenials, as well as create business processes that support sustainability in all levels of the social organization.
Unfortunately, Nike’s trouble are not yet fully addressed as current reports show that many workers in their overseas factories are denied their worker’s rights. Some are forced to work overtime at minimal pay. Others are abused physically and verbally. These reports signify that while Nike Inc. employees are becoming more and more empowered, workers in the production line are becoming disempowered. The problem is not that Nike is not paying attention, but rather, because the economic system is in general, profit-centered. The goal of most subcontractors is to earn the highest profit, and so will do everything necessary to save on costs of production.
If Nike hopes to meet its future CSR goals, it must discover how to engage subcontractors in its vision. While Nike cannot just come in factories and change all the business processes being supported by the organization, the company can utilize the Quadruple Bottom Line reporting to create a separate line item that will monitor the subcontractor’s performance in relation to creating a work culture that is respectful of individual contexts. Through the QBL, Nike can also allow subcontractors to determine their own indicators so that they can gain accountability for it.
Table of Contents
TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc445368476 \h 4Nike’s Business Issues PAGEREF _Toc445368477 \h 4Research Questions PAGEREF _Toc445368478 \h 6Significance of the Project PAGEREF _Toc445368479 \h 6Overview of the Company’s Mission, Vision and Values PAGEREF _Toc445368480 \h 7Overview of Industry and Market Analysis PAGEREF _Toc445368481 \h 9Comprehensive Business Analysis of Nike Inc. PAGEREF _Toc445368482 \h 11How the company understands the needs of its market PAGEREF _Toc445368483 \h 11How the company develops its products and services PAGEREF _Toc445368484 \h 12How Nike Manages Its Management Team PAGEREF _Toc445368485 \h 13Nike’s Current Economics PAGEREF _Toc445368486 \h 13SWOT Analysis PAGEREF _Toc445368487 \h 14Strengths PAGEREF _Toc445368488 \h 14Weaknesses PAGEREF _Toc445368489 \h 15Opportunities PAGEREF _Toc445368490 \h 15Threats PAGEREF _Toc445368491 \h 15How the company overcomes its challenge PAGEREF _Toc445368492 \h 19How the company develops strategies to gain its competitive advantage. PAGEREF _Toc445368493 \h 21Recommendations PAGEREF _Toc445368494 \h 22Conclusion PAGEREF _Toc445368495 \h 23References PAGEREF _Toc445368496 \h 25
Beyond the Profit: Nike and the Quadruple Bottom Line
Introduction
Nike, Inc., regard...