Nikes CSR Challenge - Case Study Example

?Nike’s CSR Challenge What are the challenges regarding corporate social responsibility that companies in the apparel industry face in its supply chains around the world? Corporate social responsibility has become a critical success factor in the 21st century. Many multinational corporations are facing challenges with their supply chains because their suppliers are not acting in an ethical manner. It is sometimes difficult to detect problems with the actions of suppliers due to a lack of proper auditing of their operations. Some of the specific challenges associated with the apparel industry include child labor, poor working conditions, and the existence of sweetshops. Back in the late 1990’s Nike suffered a big blow to its reputation when the media found out the firm was doing business with companies that sponsored sweetshops. It is also important for companies doing business in foreign countries to help out the community in which they operate. Helping out the community will help the company gain the support of the local people and its governmental institutions. Discuss the meaning and implications of the statement by a Nike representative that “consumers are not rewarding us for investments in improved social performance in supply chains.” The statement made by the Nike representative implies that the media does not report the good actions of companies such as Nike. They prefer to run stories about companies that are not acting in a socially responsible manner than to publish stories about the efforts of Nike which is a firm that is fighting to stop foreign suppliers from abusing the civil rights of its workers. The statement also implies that in many consumer marketplaces acting in an ethical manner does not provide a firm with a competitive advantage due to the presence of many companies that are acting in an irresponsible manner. What does it mean to have an industry open-systems approach to social responsibility? What parties are involved? Who are the stakeholders? An open-systems approach to social responsibility means that the firm allows other stakeholder groups to become a part of their decision making process in regards to social responsibility matters. For instance if the company needs advice on how to deal with foreign employees they should be open to advice from governmental institutions or private consultants to ensure the proper treatment of its workers. Some of the most important stakeholder groups that the company must satisfy include customers, government, suppliers, lenders, community, and the environment. What is meant by “leadership beyond borders”? “Leadership beyond borders” means finding people who can see across borders created by others, such as the borders of their job, and reach across such borders to engage others in dialogue and action to address systemic problems. Such a leader is a person that is educated in the cultural matters of another country. Learning and adapting to a different culture is imperative towards the success of leaders in foreign countries. Corporations must provide training and development in cultural matters to all its supervisors and managers. Is it possible to have “a compatibility of profits with people and planet”? Whose responsibility is it to achieve that state? Companies can utilize a social responsibility strategy to enhance the profits of the enterprise. In today’s competitive global environment firm’s that have strong CSR programs can differentiate themselves from the competition. An example of a company that has increased its market share to become its industry leader utilizing sound CRS principles is Starbucks Cafe. Starbucks Cafe sources all its coffee utilizing fair trade coffee practices. Fair trade coffee practices guarantee a price of $1.26 per pound. It also provides farmers with technological transfers and financing assistance. Kelly’s Assignment in Japan Explain clashes in culture, customs, and expectation that occurred in this situation Kelly was given a new job assignment in Japan in order to land an important contract. She moved to Japan with her family. As a female executive Kelly did not realize that the Japanese culture is dominated by men. Originally the workers thought that Kelly was a man instead of a woman. Her staff was composed of 11 members including seven Japanese workers. All the employees of the team were men. The Japanese men did not respect her and to a certain extend did not recognize her authority. During one of the first assignments Kelly wanted a report overnight, but she did not realize that Japanese workers work at a slower pace and wanted the opinion of the group prior to submitting a report. When Kelly tried to chat with her colleagues she asked the workers about their family. The Japanese workers felt offended by this. Kelly made some major mistakes in her dealings with the client. The CEO of the firm gave her a business card and Kelly did not give one back nor she look at it. This was a mortal sin because a business card for a Japanese executive is something that is important to them. She also made the mistake of touching the Japanese executive by giving a pad in the back. Her actions were also wrong and were perceived by the Japanese executive as a lack of respect. What stage of culture shock is Kelly’s family experiencing? The first shocking event for the family was the very small apartment that they were given. Based on the price Kelly and her husband thought it was going to be much bigger. Kelly’s husband was having troubles adjusting to the Japanese culture and he was getting frustrated by his inability to find a job. Based on the high cost of living in Tokyo the family needed two salaries instead of one. The children of Kelly were placed in a bilingual school, but most of the children there did not speak fluent English. They were disoriented and were having problems adjusting to the customs, classes, and food. The children were also frustrated with the television programming that did not include their favorite American shows. Joe was finding it hard to cook meals because all the instructions of the packaging were in Japanese. Turn back the clock to when Kelly was offered the position in Tokyo. What, if anything, should have been done differently, and by whom? Kelly made the mistake of accepting the job without knowing anything about the culture of Japan or the language. She should have told her boss that prior to taking the assignment she needed at least a month of training to learn the culture of Japan and to take a short course in Japanese. Kelly failed at her assignment due to her inability to follow the customs and traditions of Japanese workers. You are Kelly. What should you do now? Based on her failure in her new job the best course of action for Kelly is to return to the United States. Looking for a new job in Japan is not an alternative for Kelly. She learned in Japan that women are visualized as second class citizens in the workplace due to the male oriented culture of Japan. By moving back to the United States Kelly might be able to get her old job back and her husband will have an opportunity to find work in a job market in which his skills and abilities are in demand. Her children are going to find happiness once again when she moves back to the U.S. Read More