Background: Nike is the leading company in sports and fitness fields and located near Beaverton, Oregon (CSRwire, 2012). In 1998, The New York Times exposed that Nike paid workers in China and Vietnam less than two American dollars a day. The aim of this report is to search how Nike response Corporate Social Responsibility (CSR). Theory: There are five dimensions of corporate social responsibility: physical environment, social (community), consumer, supply chain, and employee relation. ‘Corporate social responsibility is encompasses not only what company do with their profits but also how they make them.
It goes beyond philanthropy and compliance and addresses how companies manage their economic, social, and environmental impacts, as well as their relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm. ’(HARVARD Kennedy School, 2008)
Corporate social responsibility
Physical environment The chart from Nike Corporate Responsibility Report in 2012 showed the total emission volume of CO2 (Million Tonnes), which is the major element that causes the global warming.
As can be seen from this table, the emission of CO2 from 2003 to 2009 is significantly lower than it of year 1997-98. To create a sustainable market, Nike’ fabric suppliers produce jerseys based on used plastic bottles from landfill sites in Japan and Taiwan and a design tool which cost Nike seven years and six million dollars to help designers to reduce the impact on environment. In 2011, Nike doubled its use on recycled plastic bottles, which were 82 million bottles. (CSRwire, 2012)
Community The table shows that total community investment increased dramatically from 2004 to 2009 and in 2007, Nike estimated that it would support 315million dollar to the community (Nike corporate responsibility report, 2009). In 2007, Nike awarded 1million dollar to help schools, which were in finance problem and a Jordan Fundamental Program was set up to give finance support to the educators who have a significant achievement (CSRwire, 2012). In 1999, Jordan Fundamental Program aid more than eight million dollars on lunch program in public secondary school for teachers. (CSRwire, 2012). In 2007, Nike joined the United Nation Refugee Agency and raised 2 million dollar in the first year to support refugee youth education and sports. Nike also sold T-shirt associated with refugee to raise global awareness and capital. (CSRwire, 2012). Nike also had a Partnership with the Lance Armstrong Foundation that aim to encourage people who suffered cancer. (CSRwire, 2012)
Supply chain ‘The contractor does not use forced labor, including prison labor…Employees are age16 or older…Contractor’s employees are not subject to discrimination in employment…Contractor’s employees are timely paid at least minimum wage required by country law. Working hours are not excessive. Working place is healthy and safe… the Code is fully implemented’ In 2005, Nike was the first company that listed the location of more than 800 contractors publicly, and the location can be seen from the Manufacturing Map on Nike official website.
Employee relation In terms of sexual discrimination, the table indicates that 40-percent female and 60-percent male administrators are in Nike in 2009. From 2007 to 2009, the difference between male and female declined steadily. In 2009, Nike hired more women than men in Europe, the Middle East, and in the U.S. (Nike corporate responsibility report, 2009). According to the survey done by CNNMoney, paid vacation, onsite childcare, job sharing program and telecommuting are provided to employees by Nike.