NATIONAL INSTITUTE OF FASHION TECHNOLOGY

CORPORATE SOCIAL RESPONSIBILITY

NIKE
Presented by:
Akriti Sharma
Kritika Ranjan
DFT-7

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 INTRODUCTION.. about nike

 NIKE was established in 1972 with head quarters in Beaverton,

Oregon.
 It employees more than 33,000 people globally and presently has a
revenue of more than $19,2 billion annually.
 Nike brand designs and sells products in three main product lines —
footwear, apparel and equipment.
 The products are manufactured in approximately 600 contracted
factories in 46 countries around the world.
 NIKE focuses on innovation, collaboration, transparency and
advocacy to prepare the company to thrive in a sustainable
economy.

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 VISION of NIKE

 “To thrive in a sustainable economy where people, profit and

planet are in balance”
 To get there, NIKE is integrating sustainability principles and
practices into everything they do:
• design;
• developing sustainable materials;
• rethinking processes;
• advocating for change in industry.
 To measure their progress, they set ambitious long-term targets and
report on their performance.

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 ETHICS AND CONDUCT

 NIKE has a code of ethics for all employees called Inside the Lines.
 It defines the standards of conduct that the company expects
employees to follow and includes a range of topics on employee
activity, ethical behavior, product safety, legal compliance,
competition and use of resources.
 Any reported concerns around accounting, auditing or internal control
are communicated to the Board’s audit committee, which determines
appropriate action.
 While Inside the Lines addresses the behavior of employees of NIKE
the Code of Conduct addresses contractors that manufacture Nike-
branded products.

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 INTRODUCTION.. About csr

 NIKE’s corporate responsibility approach has evolved from focusing

on risk management, philanthropy and compliance to one that utilizes
their natural focus on innovation to transition into a business that is
more sustainable, by which it brings people, planet and profits into
balance for lasting success.
 To do this, Nike:
• Innovates to deliver enterprise-level sustainability solutions.
• Integrates sustainability into the heart of the NIKE business
model.
• Mobilizes key constituents (civil society, employees, consumers,
government and industry) to partner in scaling solutions.

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 To guide it for the long term, Nike developed North Star in
collaboration with the Natural Step.

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 CSR activities towards people

 NIKE has invested in communities through a combination of cash,

product and in-kind contributions.
 Their community investment strategy has three primary areas of
focus:
• the Nike Foundation,
• brand and retail engagement, and
• innovating for a better world through sport.

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 towards people…

 In 2007 Nike began creating a system for evaluating and measuring

the social impact of the donations that they make. In addition to the
financial investment, they report on the broader support given
through:
• Employees
• Nike product and brand
• Programs
• The Nike Foundation

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 towards people…

 EMPLOYEES
• NIKE employees regularly participate in delivering inspiration by
donating their time and talent to community organizations.
• NIKE are leveraging employees’ skills as well as company
commitment through the Nike School Innovation Fund (NSIF),
which complements and builds funding and support for public
schools in backward communities.
• NSIF operates under the umbrella of the Portland Business
Alliance Charitable Institute, a registered nonprofit organization.
• Nike executives and employees supported public school students
by volunteering more than 3,000 hours.

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 towards people…

 PRODUCT AND BRAND

• NIKE leverages athletes, designers and the power of their brands
– including retail locations and new product innovation – to
support communities and causes.
• In 2004, Nike co-developed the yellow LIVESTRONG™
wristband that delivers $1 each of product sold to the Lance
Armstrong Foundation, which, since 1997 has united people in
the effort to fight cancer. Also a percent of their profit from shows
go to this foundation.
• Nike launched the Air Native N7 footwear product in 2007 to build
partnerships with Native American communities.

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 towards people…

• This unique athletic performance shoe was designed specifically

for Native Americans to help reduce Type 2 diabetes and
increase participation in sport through the promotion of a more
active and healthier lifestyle
• Profits from the sale of the shoe support programs on Native
American lands through the Native Lands Fund that is guided by
an advisory board and managed by the Charities Aid Foundation
of America (CAFA).
• In addition Nike supports the Native Vision program, an
unprecedented youth enrichment and empowerment initiative for
American Indian children, administered by the Johns Hopkins
Center for American Indian Health in partnership with the
National Football League Players Association
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 towards people…

 PROGRAMS
• They aim at elimination homelessness through out the world by
their contributions to Homeless World Cup, an organization that
supports homeless people by helping them change their life
circumstances.
• Nike is a founding partner of the United Nations High
Commission for Refugees (UNHCR) ninemillion.org initiative,
which aims to focus global attention on the world’s refugee youth,
and to raise funds to provide education and sports programming
for the more than 9 million youth who are living in refugee camps
today.

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 towards people…

• Nike cosponsored the ―Stand Up Speak Up‖ campaign to

empower soccer fans to voice their opposition to racism in and
around the game of football by creating two interlocking
wristbands; one black, one white.
• The sale of wristband raised awareness and generated a revenue
of more than $6 million over three years for a fund managed by
the King Baudouin Foundation.
• Nike has partnered with the China Children and Teenagers’
Fund, a division of the All China Women’s Federation, on a
program that empowers migrant youth and introduces more child-
centered, participatory teaching methods through sport.

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 towards people…

• The program, 让我玩 (Let Me Play), provides teacher training,

curriculum and sports equipment for use in physical education
classes in China.
• Nike also sponsors interschool competitions, which have resulted
in greater cooperation between schools.
• Nike also supports multiple communities that fight HIV/AIDS by
delivering educational materials through soccer.

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 towards people…

 NIKE FOUNDATION
• As a separate nonprofit organization the Nike Foundation focuses
on adolescent girls in the developing world as powerful agents of
change in their communities, capable of unleashing a ripple effect
that will change the course of poverty.
• Nike partnered with the LA84 Foundation to transform 22 sport
surfaces across the city of Los Angeles using Nike Grind™
surfaces, made from shoes recycled through Nike’s Reuse-A-
Shoe program.
• In 2007, Nike joined Changemakers’ founder Ashoka to launch a
platform exploring the idea that sport is a catalyst to create a
better world

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 towards people…

• The company subcontracted shoe production to a factory by

Union Footwear in the Nong Pruk Sub district, the Chakkarat
district, and the Nakhon Ratchasima province in Northeast
Thailand, and helped villagers through its 'NIKE Village
Development Project' in setting up revolving funds.
• Main beneficiaries of the company’s efforts were the villagers and
communities of Non Pruk Sub district, especially the Nong Bua
Klang, Non Ngiew, Hong Chong, Bu, Nong Kla villages targeted
by NVDP.

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 CSR activities towards planet

1) CONSIDERED DESIGN:
• Through innovative design, NIKE designs out waste, chemicals
and energy, and design in new materials and new approaches.
They call this concept Considered Design.
• By this they reduce waste and carbon dioxide emissions across
the whole supply chain.
• Under this waste that cannot be eliminated is recycled and
product is less reliant on oil and water.
• They use healthier chemistry to minimize the impact of product
ingredients through the product lifecycle.

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Towards planet…..

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 Towards planet…..

2) Environmentally Preferred Materials (EPMs)

 Nike defines Environmentally Preferred Materials (EPMs) as
materials that have significantly lower impact on the environment in
one or more categories of chemistry, energy, water or waste.
• Organic cotton
• Recycled polyester
• Leather
• Environmentally preferred rubber
• PVC and Phthalates

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 Towards planet…..

 Nike has a long-term goal of blending a minimum of 5-percent

organic cotton in all cotton-containing apparel products by 2011.
 Nike has been actively working to remove PVC from product since
the late 1990s.
 In 2009 they began implementing a detailed phase-out plan to
eliminate PVC-containing screen-prints with alternative, non- PVC
inks
 At the end of 2009, Nike, in collaboration with our leather suppliers,
created a sourcing policy related to supply chains to exclude hide
sourced from within the Amazon Biome.

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 Towards planet…..

3) WASTE MANAGEMENT
• In 2006, they began to understand the physical waste across the
entire company by performing a waste mapping study of more
than 100 sources.
• In 2006, they shared targets for reductions in footwear
manufacturing and packaging.
• In 2007-09 they increased their focus further on high-volume
materials to concentrate their reduction efforts on those items that
have the most impact.
• They have also led to the development of waste management
centers near clusters of contract factories.

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 Towards planet…..

• By 2006, five waste management centers operated in four

countries, serving more than 85 percent of Nike-contracted
footwear factories in Asia.
• Designers have also found ways to reduce packaging by using
less and different materials.

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 Towards planet…..

4) PETROLEUM-DERIVED SOLVENTS
• Nike manages this effort through its Restricted Substance List
(RSL) program to reduce petroleum derived solvents used in
footwear manufacturing.
• They continue to see value in cooperative efforts in the industry
to reduce or eliminate these materials by sharing their lists
through working groups such as AFIRM (Apparel and Footwear
International RSL Management).

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 Towards planet…..

5) CLIMATE AND ENERGY

• Nike partnered with Levi Strauss & Co., Starbucks, Sun
Microsystems and Timberland as a founding member of Business
for Innovative Climate and Energy Policy (BICEP).
• BICEP members have agreed on nine guiding principles.
• This includes greenhouse gas reduction targets, green job
growth, adopting a national renewable energy standard, carbon
capture, and storage technologies, adapting to climate change
and reducing carbon emissions.
• Nike keeps a check on carbon footprints of its factories.

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 Towards planet…..

6) WATER
• Nike incorporates water responsibly and returning it clean to
communities.
• All new Nike apparel suppliers enroll in the Water Program during
their new source approval process.
• Nike Water Program guidelines for standard water quality
indicators (pH, biochemical oxygen demand (BOD), chemical
oxygen demand, total suspended solids and color) were
developed with Business for Social Responsibility’s Sustainable
Water Group.

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 CSR activities and profit

 In 2004, Nike co-developed the yellow LIVESTRONG™ wristband

that has sold more than 70 million units thus increasing the revenue.
 The shoebox and its shipping carton account for half of Nike
packaging waste. So to reduce packaging waste, Nike took a fresh
look at the shoebox. They applied innovative design to the challenge
and came up with corrugated cardboard boxes thereby reducing
weight and cost in shipping.
 HIV/AIDS awareness programs have been led through Nike’s
partnership with Grassroot Soccer in South Africa, Zimbabwe and
Malawi, Kalusha Bwalya Foundation in Zambia, The Kids League in
Uganda, AKWOS in Rwanda, the Mathare Youth Sports Association
in Kenya.

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 CSR activities and profit

 For waste management, in some cases, such as sunglasses, they

have found ways to reduce both packaging material costs and the
end-of-life recycling costs – a clear example of an exponential return
on investment.
 Nike sponsors many games and even school level competitions as a
part of CSR activity thus having a good marketing and reaching to
every common man.

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