Corporate Social Performance of Nike Company - Case Study Example

Running head: NIKE COMPANY 8TH April History of Nike Company The company was founded by university of Oregon and the original name of the firm was Blue Ribbon Sports (BRS). The company started to operate in 1964 where it was a major distributor of a Japanese shoe maker making a lot of sales since the company was associated with athlete like Philip knight and his coach Bill Bowerman (Vanderbilt, 1998). Blue Ribbon Sports made the first sale in 1964 the year the company became operational where more than 1300 pairs of running shoes were sold in Japan and about $8000 was made. The company was selling their brands from the back of their cars but in 1966 Blue Ribbon Sports opened the first retail store in Santa Monica, California (Strasser, 1991). As the company kept on thriving, the number of employees also increased thus in 1967 the company increased the sales thus expanding retail and distribution of their brands, the company opened other stores in east coast in Wellesley, Massachusetts among other areas. Geographical aspects of Nike Company Nike is headquartered in Portland area near Beaverton. The company is among the two companies that are in Portland and headquartered in Oregon among over 500 companies that are in Portland (Lorenz, 2007). Nike Company is the world’s largest company that supplies athletic shoes and apparel and the major manufacturer of sports equipment which boost the company with a lot of sales (Wilson 1996). To enhance consumer focus the Company has extended to North America, Western Europe, Central Europe, China and Japan (Alan, 1966). To market the company, its brands are distributed in different geographical areas thus attaining expansive market segments. As a result, the company has enjoyed strong customer awareness in the global market (Westra, 1998). In 1971, Blue Ribbon Sports changed the name and became Nike Company which meant goodness of victory (Hurley, 1994). The company has also expanded the distribution of sports wears in emerging economies including Africa region thus increasing its profit and sales. Environment of Nike Due to ethical practices, no Company is allowed to operate and produce harmful chemicals to the environment thus, Nike Company is determined to design brands which are environmental friendly (Hitchcock, 1995). The Company is persuading the chain suppliers to control their waste in the environment thus protecting the interest of sports globally (Ryan, 1997). To follow the code of ethics, Nike Company has shown significant effort to reduce environment footprint thus making sure that all the shoes are recycled if they are not going to distributed or if they do not look like they are intended (Hoberman, 1997). Sulfur hexafluoride is a major chemical that is usually produced when manufacturing sports wears and the company does have chimney and carbon chips that it uses to control Sulfur hexafluoride so that it is not be released in the environment (Langehough, 1998). The Company has a culture of manufacturing its different brands using recycled waste products. By use of recyclable products, Nike follows the code of ethic regarding the environment. International position of Nike Company Nike Company is the largest sport wear company that is based in United States and the largest supplier of footwear in the world. Nike in 1975 opened a store in Taiwan and this is the year that it became an international Company since as per today, the Company has branches and offices all over the world (Noe, 2013). Nike brands are manufactured outside United States and this gives the company a chance to give other companies contract in production of its brands making it internationally (Beaubien, 2004). The contracts that are given to different companies which are located in various countries make the company to internationally operate making it to effectively compete with other firms that produce footwear brands (Tedham, 1994). Due to Nike operating in different countries, the company is a successful and popular in many countries which make the brands that are produced to be acceptable in the market and accessible by the customers. Technological aspects of Nike Innovation is the key pillar in the company and thus Nike does not create brands just for the sake of it but the company creates brands that are better and designed with purpose (Fox, 1989). Nike Company has a high profile of innovations that drives the company forward. For example, the Company usually uses Nike Aeroloft technologies that keep the runners warm and comfortable in cooler conditions. This means that the brands have ventilations that allow heat to escape the body (Gare, 1995). The Company also employs Dri-FIT Knit technologies that are usually lightweight fabrics which help the athletes maintain optimal performance temperatures (Papanek, 1984). Another technology that the Company engage when designing and manufacturing different brands is Nike Free Hyper feel and the technology usually make the athlete to feel like an extension of the body thus minimizing layers between the foot and the ground. Political factors of Nike Company Nike Company has rules and regulations to follow and thus the employees consult the Nike Government and Public Affairs (GPA) or the legal department on issues that the federal, state and local governments are involved in (Atkinson, 1991). Government and Public Affairs of the Company expresses the company views to the government if any and the board has the mandate of registering all the stores that are opened in different areas (Paine, 2013). Leaders of the company are elected using ballot method and the employees may participate in the political process (Shogan, 1999). Decision to participate in political issues is personal and optional. Though those leaders who are at the top management in the company are not allowed to pressurize other employees to make contributions or support or oppose any political candidates, during elections (Allan 2011). Code of ethics in the company must be adhered to by all employees including casual workers or even top management. Cultural aspects of Nike Company Nike Company is well known for designing comfortable shoes and this is one of cultural aspect of the firm. The management of the company encouraged its original manufacturers to emulate the culture of producing quality brands. This created a powerful cultural process within individuals and the cultural practice is extending to other countries (Du Gay, 1997). The shoes do cover ones body and thus it provides a good example of cultural practice to different people though it started in Oregon and thus becoming a cultural practice in other countries (Kidron, 1995). Many people usually use Nike shoes and other related products since one feels complete with Nike brands which have made people to depict the brands as a cultural practice that athletes and other users observe (Durning, 2002). The cultural practice makes Nike Company to be one of the most recognized multinational corporations in the world. Social aspects of Nike Company One of social aspects of Nike Company is that it is associated with corporate social responsibilities like helping those who are needy and even planting trees in different countries. Another social aspect of Nike Company is that the company has engaged in the health and safety of the workers who normally make the company to produce different design and unique brands that are competitive in the market (Latour, 1987). Nike workers are highly considered since overtime payment and ability of workers to freely associate and work as groups highly motivates the employees. In Nike working environment, child labor is not encouraged and workers are not forced to work (Margolin, 1995). Nike Company has improved the working conditions in the factories. The environment in which the employees operate in takes into consideration their health and safety (Wood, 1991). Labor rights are encouraged and freedom to form labor movement is allowed and lastly the workers are given free accommodations. Economic factors of Nike Company Nike Company is a global supplier of different brands and thus the company directly connects and impacts a wide range of people around the world (Lubszynski, 1974). The Company recognizes all the key stakeholders like consumers and workers since they make Nike to be successful in its local and global operations. This leads to a positive economic and social change to individuals (Jacobs, 1991). For example, the Company has employed more than 800,000 workers in contracted supply chain thus making different countries to benefit in terms of increased Gross Domestic Products (Schumacher, 1973). Nike Company has a significant positive economic contribution. For instance, the poverty levels of the countries where stores are established is reduced since the company usually employ a lot of people and thus the living conditions of individuals are improved (Klein, 1999). The company is encouraging young people and middle aged individuals to join the organization and work as a team towards achieving the firm’s objectives (Wackernagel, 1996). The living conditions of workers have been improved and thus the company has being beneficial to workers and the countries it has established production facilities and markets since they pay a certain amount of money to operate in those countries. Resources of Nike Company Resources are scarce and the company aim is to provide sustainability in business for example Nike Company recycles waste in order to make its products (Shuldiner, 1983). The Company use a lot of funds either loans from the government or savings to buy the required raw materials (Partlow, 2003). For example, the company converts hide to leather a process that require a lot of energy, water and chemicals thus making Nike to spend a lot of funds in the manufacturing of footwear brands. Nike is a major manufacturer of sports equipment with revenue of about US$24.1 billion in the fiscal year 2012 being achieved. The company employs more than 44,000 people in some countries but more than 800,000 employed individuals worldwide (Wetzel, 2000). The different brands that the company manufactures are usually worth $10.7 billion and this make Nike Company to be the most valuable among sports businesses. The firm values the employees a lot and they are normally not overworked. Flexible time, holidays and training among other benefits are awarded to the employees (Schifrin, 2013). The company works with different suppliers of raw materials to make it successful and able to manufacture well fitting and unique brands that are of high quality to the consumers. Market strategies of Nike Company Nike Company has different market segments. This is based on the fact that it has expanded to different parts of world making it possible to intermingle with different income earners (Scott, 1999). In 1982, the company aired the first advertisement and this made the firm to get high sales in the market comparing with other competitors like rebook and Addidas (Schwartz, 2010). The company has adopted new media marketing like internet marketing, email management technologies and use of broadcasts. This has created multimedia marketing campaigns that make Nike company to venture in the market without problems (Ross, 1999). The marketing strategies that are used have increased public awareness and thus Nike dominating the market as compared with other competitors (Porter 2002). Due to different market segments, the company is acceptable in the market thus high sale volume being achieved and making the organization to generate high revenue boosting the economy of the country and still expanding and employing workers from different corners of the world. In conclusion, Nike objective is to see global transformation from industrial economy to a sustainable economy where energy will be saved while at the same time living standard of the consumers will be improved (Waddell, 2000). The management train and hire employees based on competence and qualification to make the company to produce high quality brands that are going to be accepted in the market and still upholding ethics (Bryant 1996). In its future expansion, the company will be looking for talented, diverse and inclusive employees who are going to be creative in the market thus coming up with unique brands meet the needs of its market segments (Rappaport, 1987). References Alan, T. 1966. Nike Moving to Different Parts of Country as the Competitors Expand. New York: New York press. Allan, B. 2011. Nike Courts Controversy, Publicity with Drug-Themed Skater Shirts. New York: New York press. Atkinson, A. 1991. Principles of Political Ecology. London: Belhaven Press. Beaubien, J. 2004. Nike Company Becoming an International Company. London: Harper Brothers. Bryant, P. 1996. Compensation, Benefits and Employee. London: Belhaven Press. Du Gay, P.1997. Doing Cultural Studies: The Story of the Sony Walkman. London: Sage. Durning, A. 2002. Cultural Observance of Different Societies. New York: W.W. Norton press. Fox, A. 1989. Green Design, Architecture Design. London: Technology Press. Gare, A.1995. Postmodernism and the Environmental Crisis. New York: Routledge. Hitchcock, P. 1995. Environment and Recyclable Products. Minnesota: University of Minnesota Press. Hoberman, J. 1997. Darwin’s Athletes and the environment. Boston: Houghton Mifflin. Hurley, R. 1994. How Nike Company Divide the Stores Geographically. Toronto. University of Toronto Press. Jacobs, M. 1991. The Green Economy. London: Pluto Press. Kidron, M. 1995. Cultural Footwear. London: Penguin. Klein, N.1999. The Economic Sustainability of Countries Where Stores are Scattered. Toronto: Toronto press. Langehough, S. 1998. Symbol, Status, and Shoes that are recyclable Design for Sports. Princeton Architectural Press, 4 (2) pp 20-45. Lorenz, K. 2007. Regional Headquarters of Mncs in the Sports Industry. London: Harper Brothers. Latour, B. 1987. Science in Action: How to Follow Engineers and Scientists through Society. Cambridge: Harvard University Press. Lubszynski, H. 1974. Suppliers of Different Brands Worldwide. London: Harper Brothers. Margolin, V. 1995. The Product Milieu and Social Action Discovering Design. Chicago: University of Chicago Press. Paine, L. 2013. Governance and Sustainability at Nike. Harvard: Harvard university press.  Partlow, J. 2003.Nike Drafts an All Star in terms of resources. Washington: Washington press. Porter, J. 2002. International Business Management. New York: Harper & Row. Papanek, V. 1984. Design for the Real World, Academy. Chicago: Chicago Publishers. Rappaport, A.1987. Making Employee Benefits Responsive to Family Diversity. New York: New York press. Ross, A. 1999. No Sweat: Fashion, Free Trade, and the Rights of Garment Workers. New York: New York press. Ryan, J. 1997. Stuff: The Secret Life of Everyday Things, Northwest Environmental Watch. Seattle: Seattle press. Noe, R. 2013. How Nike Company operate internationally. New York: McGraw-Hill/Irwin. Schifrin, D. 2013. Nike: Sustainability and Labor Practices. Stanford: Stanford press. Shogan, D. 1999. The Making of High Performance Athletes: Discipline, Diversity, and Ethics. Toronto: University of Toronto Press. Shuldiner, H. 1983. Resources That Are Scarce but Need to Provide Sustainable Business. New York: New York press. Schumacher, E. 1973. Small is Beautiful: Economics as if People Mattered. New York: Harper & Row. Strasser, J. 1991. Historical Background of Nike Company. New York: New York press. Scott, S. 1999. Marketing and Advertisement of Nike Products in Different Countries at Large Amount. New York: McGraw-Hill/Irwin. Schwartz, P. 2010. The Worlds Top Sports Brand. New York: new York press. Tedham, W. 1994. Market Segment and how the Company Operates. New York, NY: Norton & Co press. Vanderbilt, T. 1998. The Sneaker Book: Anatomy of an Industry and an Icon. New York: New Press. Wackernagel, M.1996. Our Ecological Footprint. Philadelphia: New Society Publishers. Waddell, S. 2000. New institutions for the practice of corporate citizenship: Historical Intersectoral, and Developmental Perspectives. Business and Society Review 104: 23–45. Wilson, B.1996. Race and Sneak Commercials in different geographical areas. London: Sage. Westra, L.1998. Business of Consumption and how divided into boundaries. NY: Rowman. Wetzel, D. 2000. Sole influence. New York: Warner Books. Wood, D. 1991. Corporate Social Performance Revisited. Academy of Management Review 4: 69–71. Read More