NATIONAL INSTITUTE OF FASHION TECHNOLOGY
CORPORATE SOCIAL RESPONSIBILITY
Presented by: Akriti Sharma Kritika Ranjan DFT-7
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.
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.
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 Nikebranded products.
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.
To guide it for the long term, Nike developed North Star in collaboration with the Natural Step.
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.
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
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.
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.
• 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
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.
• 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 childcentered, participatory teaching methods through sport.
• 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.
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-AShoe 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
• 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.
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.
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
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.
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.
• 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.
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).
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.
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.
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.
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.