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., regarded as the father of corporate social responsibility ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "dropping-particle" : "", "family" : "Epstein-Reeves", "given" : "James", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "Forbes", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2010", "6" ] ] }, "title" : "The Parents Of CSR: Nike And Kathie Lee Gifford", "type" : "article-magazine" }, "uris" : [ "/documents/?uuid=450423ab-d3b2-4c8b-ae67-957cb5021c6c" ] } ], "mendeley" : { "formattedCitation" : "(Epstein-Reeves, 2010)", "plainTextFormattedCitation" : "(Epstein-Reeves, 2010)", "previouslyFormattedCitation" : "(Epstein-Reeves, 2010)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Epstein-Reeves, 2010) considers sustainability, a business’ capacity to "meet today’s global economic, environmental, and social needs without compromising the same opportunity for future generations" ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "dropping-particle" : "", "family" : "Wibbeke", "given" : "E.S.", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" }, { "dropping-particle" : "", "family" : "McArthur", "given" : "Sarah", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "edition" : "2nd", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2013" ] ] }, "publisher" : "Routledge", "title" : "Global Business Leadership", "type" : "book" }, "locator" : "63", "uris" : [ "/documents/?uuid=1b81299b-610c-459b-8d5f-824534d4381e" ] } ], "mendeley" : { "formattedCitation" : "(Wibbeke & McArthur, 2013, p. 63)", "plainTextFormattedCitation" : "(Wibbeke & McArthur, 2013, p. 63)", "previouslyFormattedCitation" : "(Wibbeke & McArthur, 2013, p. 63)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Wibbeke & McArthur, 2013, p. 63), as the route to future profitability.
In Nike’s new strategic plan released in 2015, environmental and social sustainability are crucial to the business’ future success: "We must succeed in a world where natural and human resources are constrained…We believe that the businesses that consider these challenges early, even anticipating them as part of their day-to-day operations, will be best positioned to turn them into opportunity" ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "URL" : "/crreport/content/strategy/2-1-1-corporate-responsibility-strategy-overview.php?cat=cr-strategy", "accessed" : { "date-parts" : [ [ "2016", "2", "25" ] ] }, "author" : [ { "dropping-particle" : "", "family" : "Nike Inc.", "given" : "", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "Nike Inc.", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2015" ] ] }, "title" : "Strategy: Innovation in the Offense", "type" : "webpage" }, "uris" : [ "/documents/?uuid=600e48b0-0706-44a7-90eb-47194b32be66" ] } ], "mendeley" : { "formattedCitation" : "(Nike Inc., 2015)", "plainTextFormattedCitation" : "(Nike Inc., 2015)", "previouslyFormattedCitation" : "(Nike Inc., 2015)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Nike Inc., 2015). A transition to a sustainable economy would require two important changes: industry-level systemic change and new approaches to innovation and collaboration. To pave the way for these changes to happen, drastic action has to be made.
A step forward is the use of the triple bottom line (TBL) reporting, which recognizes the transformational role of businesses to the community. But in this society wrought with numerous challenges – climate change, unending wars, poverty, loss of cultural heritage, mass depression – the TBL is just not enough.
Nike’s Business Issues
Using TBL reporting, Nike has undoubtedly created a positive impact on communities where their factories are located, enabling them to become a world standard in CSR efforts. But the reality is that there are persistent problems, one of which is related to subcontractor violation of worker rights. To illustrate, a report by the International Institute for Sustainable Development ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "URL" : "/business/viewcasestudy.aspx?id=81", "accessed" : { "date-parts" : [ [ "2016", "1", "25" ] ] }, "author" : [ { "dropping-particle" : "", "family" : "IISD", "given" : "", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "IISD's Business and Sustainable Development: A Global Guide", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2015" ] ] }, "title" : "Case Studies: Nike", "type" : "webpage" }, "label" : "part", "suppress-author" : 1, "uris" : [ "/documents/?uuid=9aefbfbc-4105-44fc-9119-286f980ab35e" ] } ], "mendeley" : { "formattedCitation" : "(2015)", "plainTextFormattedCitation" : "(2015)", "previouslyFormattedCitation" : "(2015)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(2015) says some of Nike’s overseas factories still have substandard working conditions. Because 80% of Nike’s outsourced factories are found in emerging economies in Asia and Latin America where there are laws prohibiting workers from forming independent unions, employees are unable to push for their rights. In a report published by the Institute for Global Labour and Human Rights ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "dropping-particle" : "", "family" : "Kernaghan", "given" : "Charles", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2015" ] ] }, "title" : "A Race to the Bottom: Trans-Pacific Partnership and Nike in Vietnam", "type" : "report" }, "uris" : [ "/documents/?uuid=3a322874-fe03-46bb-a242-c8588ae73af9" ] } ], "mendeley" : { "formattedCitation" : "(Kernaghan, 2015)", "plainTextFormattedCitation" : "(Kernaghan, 2015)", "previouslyFormattedCitation" : "(Kernaghan, 2015)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Kernaghan, 2015), it was mentioned that Vietnamese workers (typically women and uneducated) are paid 48 to 69 cents an hour (as of January 2015) which is way below the country’s subsistence levels. But this is not all. In 2011, workers in Nike’s Converse factory in Indonesia reported that they were being physically and mentally abused ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "dropping-particle" : "", "family" : "Daily Mail Reporter", "given" : "", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "Daily Mail Online", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2011", "7", "13" ] ] }, "title" : "Nike workers 'kicked, slapped and verbally abused' at factories making Converse", "type" : "article-newspaper" }, "uris" : [ "/documents/?uuid=76d9e300-1fe5-4843-8755-a3b2e0f65619" ] } ], "mendeley" : { "formattedCitation" : "(Daily Mail Reporter, 2011)", "plainTextFormattedCitation" : "(Daily Mail Reporter, 2011)", "previouslyFormattedCitation" : "(Daily Mail Reporter, 2011)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Daily Mail Reporter, 2011).
The problem is systemic. Research has shown that wherever multinational companies are found, cultures tend to become homogenized and polarized ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "DOI" : "10.1177/000271620057000111", "author" : [ { "dropping-particle" : "", "family" : "Holton", "given" : "Robert", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "American Academy of Political and Social Science", "id" : "ITEM-1", "issue" : "1", "issued" : { "date-parts" : [ [ "2000" ] ] }, "page" : "140-152", "title" : "Globalization's Cultural Consequences", "type" : "article-journal", "volume" : "570" }, "uris" : [ "/documents/?uuid=5da37dc3-2e69-429b-ba77-9b55e51c49ba" ] }, { "id" : "ITEM-2", "itemData" : { "URL" : "/component/content/article/162/27573.html", "accessed" : { "date-parts" : [ [ "2016", "3", "8" ] ] }, "author" : [ { "dropping-particle" : "", "family" : "Tardif", "given" : "Jean", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "Global Policy Forum", "id" : "ITEM-2", "issued" : { "date-parts" : [ [ "2002" ] ] }, "title" : "The Hidden Dimensions of Globalization:", "type" : "webpage" }, "uris" : [ "/documents/?uuid=afd59bb7-2c79-4c95-be97-020060753bb4" ] } ], "mendeley" : { "formattedCitation" : "(Holton, 2000; Tardif, 2002)", "plainTextFormattedCitation" : "(Holton, 2000; Tardif, 2002)", "previouslyFormattedCitation" : "(Holton, 2000; Tardif, 2002)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Holton, 2000; Tardif, 2002). On one hand, this trend is advantageous because it improves the quality of products and the level of services being offered in the countries. On the other hand, this development tends to dilute the traditions and belief systems that local cultures value, and focus on instead, on profit creation ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "dropping-particle" : "", "family" : "Banjo", "given" : "Shelley", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "The Wall Street Journal", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2014", "4", "21" ] ] }, "publisher-place" : "Dhaka, Bangladesh", "title" : "Inside Nike's Struggle to Balance Cost and Worker Safety in Bangladesh", "type" : "article-newspaper" }, "uris" : [ "/documents/?uuid=68c678dc-f636-49b9-bcee-cd13a60cac9a" ] } ], "mendeley" : { "formattedCitation" : "(Banjo, 2014)", "plainTextFormattedCitation" : "(Banjo, 2014)", "previouslyFormattedCitation" : "(Banjo, 2014)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Banjo, 2014). As a multinational, Nike is also a contributor to this culture change, promoting a culture of independence and competition. Diluting strong societal links means that workers are slowly becoming disengaged from their communities. Nike may have a strong CSR plan, but the company is missing on an important factor: if workers lose their sense of community, a source of their identity, then they will not see the importance of meeting Nike’s CSR goals relating to the sustainability of the community.
Research Questions
This research paper attempts to answer the following research questions:
1 Why does Nike have to consider societal sustainability as a strategy?
2 How has Nike incorporated societal sustainability in its strategy? How have they impacted the company’s business?
3 What are some of Nike’s persistent CSR issues?
4 How can the quadruple bottom line solve Nike’s issues; improving working condition, image of the company, improve financial, etc?
Significance of the Project
As more and more of the millennial generation become economically active, businesses have to deal with a new set of clientele that pay attention to the social messages of corporations and brands. Becoming involved in the sustainability of future generations ensures that a company will always have a market, and that its business will always be relevant. In an article published by the Harvard Business School, it was said: "Sustainability defines the life line of any organization…As brand value will soon be included in a company’s valuation…we can more than ever monetize sustainable behavior" ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "URL" : "http://hbswk.hbs.edu/item/how-sustainable-is-sustainability-in-a-for-profit-organization", "accessed" : { "date-parts" : [ [ "2016", "1", "7" ] ] }, "author" : [ { "dropping-particle" : "", "family" : "Heskett", "given" : "Jim", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "Harvard Business School", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2008" ] ] }, "title" : "How Sustainable Is Sustainability in a For-Profit Organization?", "type" : "webpage" }, "uris" : [ "/documents/?uuid=3e6127cf-6481-461d-bbec-31783597450e" ] } ], "mendeley" : { "formattedCitation" : "(Heskett, 2008)", "plainTextFormattedCitation" : "(Heskett, 2008)", "previouslyFormattedCitation" : "(Heskett, 2008)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Heskett, 2008).
By looking at Nike’s experience, one can gain an understanding of the importance of corporate social responsibility (CSR) and why it is integral for companies to adhere to business processes that serve the community as a whole. Also, Nike’s experience will serve as an example for companies with bad CSR, and can provide them with various solutions on how to improve their own corporate practice so that they become relevant to their communities. Lastly, finding solutions to Nike’s current CSR issues, the terrible working conditions in its overseas factories, will help show that there is a way to balance profitability and worker’s rights.
Overview of the Company’s Mission, Vision and Values
Originally known as Blue Ribbon Sports, Nike Inc.’s initial goal was to "distribute low cost, high-quality Japanese athletic shoes to American consumers in an attempt to break Germany’s domination" ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "dropping-particle" : "", "family" : "Enderle", "given" : "Kim", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" }, { "dropping-particle" : "", "family" : "Hirsch", "given" : "Dan", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" }, { "dropping-particle" : "", "family" : "Micka", "given" : "Lisa", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" }, { "dropping-particle" : "", "family" : "Saving", "given" : "Brian", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" }, { "dropping-particle" : "", "family" : "Shah", "given" : "Sheetal", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" }, { "dropping-particle" : "", "family" : "Szerwinski", "given" : "Tatiana", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2000" ] ] }, "publisher" : "De Paul Universiity", "title" : "Strategic Analysis of Nike, Inc.", "type" : "thesis" }, "uris" : [ "/documents/?uuid=1598b5c3-3d45-456a-b76d-ef5b96a94e88" ] } ], "mendeley" : { "formattedCitation" : "(Enderle et al., 2000)", "plainTextFormattedCitation" : "(Enderle et al., 2000)", "previouslyFormattedCitation" : "(Enderle et al., 2000)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Enderle et al., 2000). Starting from a modest capital of $1,000, the company made many steps to make real its mission statement, "to bring inspiration and innovation to every athlete in the world" - from signing on prominent artists as their endorsers to improving shoe technology and launching successful marketing campaigns. Today, Nike is the largest sports brand in the world, with brand value estimated at $15 billion ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "URL" : "/sites/mikeozanian/2015/10/22/the-forbes-fab-40-the-most-valuable-brands-in-sports-2015/#761429022e2a", "accessed" : { "date-parts" : [ [ "2016", "2", "26" ] ] }, "author" : [ { "dropping-particle" : "", "family" : "Ozanian", "given" : "Mike", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "Forbes", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2015" ] ] }, "title" : "The Forbes Fab 40: The World's Most Valuable Sports Brands 2015", "type" : "webpage" }, "uris" : [ "/documents/?uuid=34ed801a-5797-40cb-b384-f8fd699b8f0a" ] } ], "mendeley" : { "formattedCitation" : "(Ozanian, 2015)", "plainTextFormattedCitation" : "(Ozanian, 2015)", "previouslyFormattedCitation" : "(Ozanian, 2015)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Ozanian, 2015) and the world’s most valuable apparel brand ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "dropping-particle" : "", "family" : "Friedman", "given" : "Vanessa", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "The New York Times", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2015", "5", "29" ] ] }, "title" : "Nike Is the Most Valuable Apparel Brand in the World", "type" : "article-newspaper" }, "uris" : [ "/documents/?uuid=d7020704-c623-4442-8760-910d560b676b" ] } ], "mendeley" : { "formattedCitation" : "(Friedman, 2015)", "plainTextFormattedCitation" : "(Friedman, 2015)", "previouslyFormattedCitation" : "(Friedman, 2015)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Friedman, 2015).
At the heart of Nike’s success is innovation – from the development of new products and experiences to the creation of new business processes that decrease transactional costs. In 2014, the company was awarded more than 500 patents, 70 of which were patent for shoe technology while 39 are for manufacturing ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "URL" : "http://blogs.marketwatch.com/behindthestorefront/2014/04/17/nike-was-awarded-540-patents-in-2013-heres-what-that-means-for-investors/", "accessed" : { "date-parts" : [ [ "2016", "2", "24" ] ] }, "author" : [ { "dropping-particle" : "", "family" : "Cheng", "given" : "Andria", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "Market Watch", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2014" ] ] }, "title" : "Nike was awarded 540 patents in 2013: Here\u2019s what that means for investors", "type" : "webpage" }, "uris" : [ "/documents/?uuid=beb23131-fc74-47e9-8ac9-4b053586aa2e" ] } ], "mendeley" : { "formattedCitation" : "(Cheng, 2014)", "plainTextFormattedCitation" : "(Cheng, 2014)", "previouslyFormattedCitation" : "(Cheng, 2014)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Cheng, 2014). It has created the Nike Explore Team whose main function is to drive product innovation "through knowledge and insight gained from scientific understanding of athletes and athletic performance" ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "URL" : "http://about.nike.com/pages/nike-explore-team-sport-research-lab", "accessed" : { "date-parts" : [ [ "2016", "2", "25" ] ] }, "author" : [ { "dropping-particle" : "", "family" : "Nike Inc.", "given" : "", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "Nike Inc.", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2016" ] ] }, "title" : "Overview: Nike Explore Team", "type" : "webpage" }, "uris" : [ "/documents/?uuid=fadf0702-ec66-43bb-bb6a-606aebef787d" ] } ], "mendeley" : { "formattedCitation" : "(Nike Inc., 2016d)", "plainTextFormattedCitation" : "(Nike Inc., 2016d)", "previouslyFormattedCitation" : "(Nike Inc., 2016d)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Nike Inc., 2016d). But innovation is not the only thing that fuels Nike’s success. The commitment to sustainability is a major factor too. In Nike Inc.’s website it was mentioned,
…creating and building business models that not only recognize and accommodate but thrive on the constraints of the natural world is the only way we can achieve growth in the present that won’t compromise our ability to grow and succeed for decades to come…Transforming NIKE in this way will take time and is a long term commitment. It touches every aspect of our business, from how we design and make our products to how we engage our employees and businesses in our value chain. It begins with placing sustainability at the beginning of the innovation process. ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "dropping-particle" : "", "family" : "Nike Inc.", "given" : "", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2016" ] ] }, "title" : "Nike: Our Sustainability Strategy", "type" : "report" }, "uris" : [ "/documents/?uuid=9e637d5d-857e-4beb-aafa-f8a73e9b2941" ] } ], "mendeley" : { "formattedCitation" : "(Nike Inc., 2016b)", "plainTextFormattedCitation" : "(Nike Inc., 2016b)", "previouslyFormattedCitation" : "(Nike Inc., 2016b)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Nike Inc., 2016b)
For sure, Nike Inc. is onto something, what with its revenues rising annually at 5% and increasing market shares in all geographic locations ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "dropping-particle" : "", "family" : "Trefis Team", "given" : "", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "Forbes", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2015", "6" ] ] }, "title" : "Earnings Review: Nike Continues Its Strong Run", "type" : "article-magazine" }, "uris" : [ "/documents/?uuid=e20fb0c9-0a8e-4285-a22d-6b1c0f33ec6b" ] } ], "mendeley" : { "formattedCitation" : "(Trefis Team, 2015)", "plainTextFormattedCitation" : "(Trefis Team, 2015)", "previouslyFormattedCitation" : "(Trefis Team, 2015)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Trefis Team, 2015). But what is causing this increase in annual revenues? A deeper analysis of Nike’s business process shows that its value creation is the key to this question, and that it is also the main contributor to the various CSR issues being experienced by the company.
Overview of Industry and Market Analysis
As governments continue to promote sporting activities, and consumers become conscious of the health benefits of sports participation, industry experts project that sales of sporting goods (athletic shows, equipments and apparel) will increase by 1.1% annually, reaching $9 billion by 2020 ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "URL" : "/industry/default.aspx?indid=895", "accessed" : { "date-parts" : [ [ "2016", "2", "24" ] ] }, "author" : [ { "dropping-particle" : "", "family" : "IBIS World", "given" : "", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "IBIS World", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2015" ] ] }, "title" : "Athletic & Sporting Goods Manufacturing in the US: Market Research Report", "type" : "webpage" }, "uris" : [ "/documents/?uuid=6d396743-7acd-4dfc-833f-3acce9916129" ] } ], "mendeley" : { "formattedCitation" : "(IBIS World, 2015)", "plainTextFormattedCitation" : "(IBIS World, 2015)", "previouslyFormattedCitation" : "(IBIS World, 2015)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(IBIS World, 2015).
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