Ethames Graduate School

Page 1

Table of Contents
Approval Sheet: ................................ ................................ ................................ .................... 4 Task 1: Understandings ................................ ................................ ................................ ......... 5 Introduction: ................................ ................................ ................................ ..................... 5 Importance of the title: ................................ ................................ ................................ ...... 5 History of the organisation: ................................ ................................ ............................... 5 Aim of the Research:................................ ................................ ................................ ......... 6 Outcomes of the Research: ................................ ................................ ................................ 6 Scope of the Research: ................................ ................................ ................................ ...... 6 Limitations: ................................ ................................ ................................ ....................... 6 Task2: Literature Review: ................................ ................................ ................................ ..... 6 Introduction: ................................ ................................ ................................ ..................... 6 Products: ................................ ................................ ................................ ........................... 6 Nike¶s View on CSR: ................................ ................................ ................................ ........ 7 Factors causing changes in CSR of Nike: ................................ ................................ .......... 7 CSR related with innovation: ................................ ................................ ............................ 7 Changes in CSR due to Globalization:................................ ................................ ............... 8 Task3: Research Methodologies ± Detailed Study ................................ ................................ . 8 Introduction: ................................ ................................ ................................ ..................... 8 Research Methodologies: ................................ ................................ ................................ 10 Research Types: ................................ ................................ ................................ .......... 10 Research Approach: ................................ ................................ ................................ .... 11 Research Philosophy: ................................ ................................ ................................ .. 11 Research Strategy:................................ ................................ ................................ ....... 11 Conclusion: ................................ ................................ ................................ ................. 12 Research Flow: ................................ ................................ ................................ ............... 12 Data Types: ................................ ................................ ................................ ................. 12 Data Source:................................ ................................ ................................ ................ 12 Analysis: ................................ ................................ ................................ ..................... 12 Presentations: ................................ ................................ ................................ .............. 13 Conclusions: ................................ ................................ ................................ ............... 13 Task4: Findings and Recommendations: ................................ ................................ ............. 13 Title: ................................ ................................ ................................ ............................... 13
Ethames Graduate School Page 2

Description: ................................ ................................ ................................ .................... 13 Bases: ................................ ................................ ................................ ............................. 13 Recommendations:................................ ................................ ................................ .......... 13 Time Flow by Gant chart Representation:................................ ................................ .... 14 Conclusions: ................................ ................................ ................................ ....................... 15 References: ................................ ................................ ................................ ......................... 16 Books: ................................ ................................ ................................ ......................... 16 Websites: ................................ ................................ ................................ .................... 16

Ethames Graduate School

Page 3

Approval Sheet:

Ethames Graduate School

Page 4

TITLE: The Effect of CSR (Corporate Social Responsibility) on Nike¶s Performance Task 1: Understandings

Introduction:
The entire research depends on the title mentioned above. Nike is the leading sports brand with almost its incursion in all kind of sports like cricket, football, basketball, and golf etc. The timeline and history of Nike as a brand developed in a short period of time is described below. Apart from the product shoe which is the main trademark of Nike, it is also releasing clothing for all kind of sports, sporting accessories etc. The marketing strategy is very innovative as it exploited the peoples craze of sports, they made many sports personality the brand ambassadors for Nike which attracted more customers and also it gave confidence for developing new products in the market. As the business developed, Nike always noticed the responsibility it bares on the shoulder and kept them updated. Among the responsibilities, CSR was mainly aimed by Nike because it has major impact on the performance of the organisation. In this document the methods used for conducting a detailed research on how maintaining CSR functionality has an impact on the performance of Nike. It is also explained why the title carries so much importance regarding Nike, what are potential benefits this research will bring in the organisation to plan the strategies for the future. The researcher has also suggested some recommendations which can be taken into account for planning.

Importance of the title:
In the competitive world of business, the ultimate goal of any organisation would be to gain competitive advantage and achieve profitable and linear growth. Nike as a global organisation is able to achieve this without forgetting the responsibilities it bares on the shoulders. The responsibility that is vital for the survival and growth of the organisation Nike is CSR (Corporate Social Responsibilities). Hence the selection of the research topic is most worthy for the organisation for its performance in the present and for the future. It will be unpredictable for the organisation in future the preferences of the customer and also the business market has become more complex and hence it is necessary for the organisation to adopt CSR.

History of the organisation:
The responsibility as the founder of the organisation Nike is Phil Knight and it was in the year 1962. It is started as Blue Ribbon Sports and transformed to brand name Nike in the year of 1971 and the logo introduced in 1972. Official changes took place in the year 1978. Phil Knight the founder of Nike is credited for transforming the organisation into one of the world¶s known brand names and that too less than a decade. At present Nike employs 33,000 people worldwide.

Ethames Graduate School

Page 5

Aim of the Research:
To research and analyse the importance of CSR in the performance of an organisation, in this research the organisation chosen is Nike. As the modern world of business demands the need of employing CSR, it will be useful for determining the strategy for the future of the business and hence this research title has been chosen.

Outcomes of the Research:
By employing the CSR in an organisation, many changes occur and also benefits are obtained due to the activities of the strategy. It depends on the goal set by the organisation, in this case the main goal is how performance achieved by the CSR employed by Nike. Outcome indicators are installed for monitoring the performance as a result of employing CSR.

Scope of the Research:
Infrastructure resilience is one of the major issues of CSR (Corporate Social Responsibility) predicted by many economists which will happen in the future and the scope of the current research topic selected extends to the prediction on how Nike performance get effected in the future by CSR.

Limitations:
Performance of any organisation is not limited to particular issues or factors. In this research, researcher is only discussing on how changes occur in the performance of an organisation due to maintaining the functionality CSR. Various strategies of an organisation help the performance and also a huge part lies on the market situation which is very competitive in modern world which are not discussed. Task2: Literature Review:

Introduction:
In this section the researcher review and analysis all the reports and literatures on the given title by different authors and analyst. As the title chosen by the researcher is sensitive topic because CSR has became one of the critical functions of the business in modern world. Published articles which are related to the title is analysed and from this analysis researcher draws the recommendations and conclusions.

Products:
The primary production plans for Nike products are footwear that is used for purpose of sport of any kind. The footwear product is one of the most selling commodities in Nike, in parallel to their footwear market. Nike is also manufacturing various other sports apparels with the same features which are available in their footwear collections. Most of the focus is on the production of sports activities, for e.g. performance equipments introduced by Nike such as eyewear, timepiece, skates, bats, etc are most known products. As the business got developed, now there is no sport activity without any of the products of Nike and it helped

Ethames Graduate School

Page 6

the global market attraction as well because the sport is one place where different nations participate.

Nike¶s View on CSR:
According to Mark Parker CEO of Nike, business is a sort of chemical reaction where the end result will be success, growth and innovations to new developments and for achieving this result normal reaction is not enough there should be some elements which acts as catalyst. The important role of a catalyst in a chemical reaction is to catalyse the reaction for reaching the desires result in our case. In April 2005, the corporate responsibility report were published, sooner after the publishing, a review was launched for understanding the functionality of CSR in Nike and as a result of the review two findings were brought forward which are 1. Due to various changes happening internally within Nike, the role of CSR is overshoot more than solving the compliance issues or risk management. CSR has become the pat of innovation process in Nike and much other process by which the company operates 2. Getting better is never the goal of Nike, rather achieving and winning among the toughest market competition. As CSR became the most important part of the business, it is necessary for Nike for setting strategic targets which are rapid at the same time it is possible. The focus of Nike is never left behind on standardised working conditions, global environment footprints are minimized through innovations and gaining advantage with the help of its brand value and name.

Factors causing changes in CSR of Nike:
Nike is running the business in which the brand value plays huge role. The business structure of Nike has shown progression due to its wide spread of its brand name. The business strategies which are planned by the managers have their first priority to reach the brand value to as many people possible. Many analysts had different views on the value of the functionality CSR in the organisation Nike which was read and understood by the researcher and described below, As globalization is an important scenario which is known to be another revolution in business, it is must to have a wide spread politically enlarged concept of CSR in Nike (Scherer and Palazzo, 2007). The political implications made by the government before globalization in an organisation in order to regulate their activities is powered down due to globalisation, because the national authorities is not powerful enough to regulate the activities of an organisation which is expanding its business globally, other governments come into the picture very strongly.

CSR related with innovation:
Nike, as described the functionality of CSR is in another words the innovation it can bring to the organisation and so a collaborated terminology was used by Rosabeth Moss Kanter as ³corporate social innovation´ which mainly focuses on developing new markets by analysing and finding solution for the social issues happening around Nike. As Patrick Cescau, the terminology is meant to satisfy the customer¶s aspiration as citizens of the country and this is the area where Nike should focus for the latest innovations of their
Ethames Graduate School Page 7

products and services, but in most cases, CSR is considered as effective mechanism for reducing risk and cost reduction which is revealed in the study of Hockerts (2008) and also only few organisation which are highly rated follow CSR for driving the innovation of their products.

Changes in CSR due to Globalization:
In NIKE the changes in CSR functionality is highly influenced by globalization. According to Davis, Whitman and Zald (2006), various process and actions inside a corporate is opposing to that happening outside the corporate entity, which is caused due to the globalization of the business functions. Nike has to bring important changes in the CSR functions because of 2 most important reasons, one is explained above and the second reason for this is due to influence of the governments the civil society has become more political. The emergence of CSR is commitments to the employees and the society which includes other corporate entities where they are established. In 2006 according to Locke who has the proof where Nike is forced to improve the conditions in the factories of their suppliers after the consumer boycott due to the gossips where suppliers of Nike were exploiting the use of child labour in many countries. According to Polanyi, the behaviour of the market and the social state were referred as ³double movement´ process. There is a mutual relation between CSR and globalization and the thought of the author is most appropriate. The double movement can be described as; the state is responsible for the formation of the market structure by pushing the social changes and then after a stage of development market structure started causing reverse impact on the society and the state becomes responsible for defending the society from such impacts. Ruggie were followed from the year 2003, organisation were given the role of the state and forced for responsibility of the corporate behaviour, since the role is new there will be more societal attacks and hence to protect the organisation, CSR (corporate social responsibilities) is made necessary. This is why thoughts of Polanyi about the mutual influence between CSR and globalization are worth understanding. Conclusion: From the literature materials which when analysed the researcher came to the conclusion how important are the changes in the functionality of the CSR affecting the performance of the company. The employees in the higher level of the organisation must form strategic plans for the future progression in Nike by giving more consideration to the functions of CSR. Task3: Research Methodologies ± Detailed Study

Introduction:
In this section of the report the researcher make a detailed study of various tools for conducting the research of the given title. It is also important for the researcher to understand methodologies available in this field which helps for choosing the right one. Interpretation of the data collected is performed with the involvement of various tools and techniques which
Ethames Graduate School Page 8

ed i detail i t i followi are di the form of the flow diagram below,

report Various t pes of researches are concluded in

Quantitative Types Qualitative Deductive Approach Inductive Research Methodologies Positive Philosophy Phenomenon Theoretical Strategy Empirical

Fig: 1: Various methodologies of research in the form of flow diagram. arious Various methodologies are studied and anal sed, then the researcher describes v tools used for data anal sis and interpretations as the flow of research pattern shown below,

¥

¤

Etha

£¢ ¡  
e

aduate

choo

P

9

Figure 2: Flow of a research document.

Research Methodologies:
Research Types:
here are two t pes of research available which is classified on the basi of the data s collected and they are Quantitati e Research: he research types are classified as mentioned earlier, according to data obtained and the analysis performed, in quantitative research empirical analysis are followed. Researcher decides depending on the need of the research the amount and values of data to be collected. Quantitative research results in the analysis of all numerical values of various achievements and reports. heoretical researches are also used, where all the source of da available, online, ta newspaper etc are used. Qualitati e Research: his type of research is used for the analysis of the behavioural science. It focuses mainly on the behaviour of the humans responding to certain scenarios. Reports will no longer help qualitative type of research as quantitative research, conducting more surveys and interview with the customers will have much better help. Since this research focuses on the behavioural analysis, methodical analysis is never a part of this research.  

©¨ § ¦

Etha

e

aduate

choo 

  

C ntinu u   

uantitati

ualitati

Di r t   

#

uantitati

ualitati

P  

 

" 

Data Typ

S ur f Data 

   
Data Analy i Pr ntati n
10

Fl w f th R ar h 

!  

In empirical type of research, depending on the number of experiments conducted by researcher helps for better analysis.

Research Approach:
On the basis of quantitative and qualitative research methodologies, the approach toward each research can be classified into two, Deductive Approach: This type of approach is the most effective among the two. All the available data from various sources are analysed and result is obtained, during the analysis the researcher should have the assumption capability, opinion capability and validating both these assumptions and opinions. Inductive Approach: This type of approach is in the level lower than of deductive approach, where opinions are outlined in this approach, concept wise knowledge is most preferred in this type where tentative hypothesis is used.

Research Philosophy:
Classified into two types, Positive Philosophy: Regarding the time consideration, this philosophy is most effective and it is based on the available data represented in a huge model of operations. Hypothesis is examined precisely after its regulation. Researcher is independent in this case and the values of science are evaluated. Phenomenal Philosophy: It depends on the meanings obtained from the statement of human beings. The only part where it back logs the other philosophy is at the time consumption. Even small factors are considered important and that analysis takes too much time.

Research Strategy:
Theoretical Strategy: Data available from various sources are used in this strategy. Facts are given more importance and also phenomenal data are used. Reference of available data is used by these strategic methods. Empirical Strategy: Internal links are never considered, where the solution found will not be effective because a doubt exist in the mind of the researcher. Available external links are expanded and carefully analysed.

Ethames Graduate School

Page 11

Conclusion:
In this research, the researcher have selected from the above options on the basis of the title, which effect of CSR on Nike and hence quantitative research, inductive approach, theoretical strategy, and positive philosophy flow of research methodology is used.

Research Flow:
Data Types:
The researcher analysed on various types of data available regarding the title chosen. It is a necessary task for the researcher in understanding the data types and so it will help the researcher to interpret the data accordingly. There are two types of data available which are, Quantitative: This type of data is used where there is a need of precision result for the analysis of the results. The form of such data types in most of the case will be in numerical form. The performance of Nike is better to be projected in precise values in means of sales, expenditure, gross profit etc. Percentage representation is mostly used for this kind of data. Quantitative type of data can be further classified into two,
1. Discrete Whatever quantity measured and represented in terms of whole number are discrete data types. 2. Continuous When the quantity is represented in a scale of period, time or any other measurement is continuous data types.

Qualitative: Information or data is represented in other forms than representing it by terms of numbers and then such data types are called qualitative data types.

Data Source:
The source for the availability is huge while considering any situations. In this report the researcher has wide range of choices, it is only necessary for the researcher to choose which source should be used for the data interpretation and analysis. The primary data source will be getting information from customers, which can be through surveys conducted directly and indirectly, then interview with managers, corporate meetings on this issue, analysing the behaviour of the company in the past the effect of CSR etc. Documentary and survey are other methods where source of data are available.

Analysis:
In the process of analysing there are two techniques used which are
1. Quantitative Technique This technique is used in a way that the data obtained through various tools are formulated accordingly to the source of the data and sampling technique is performed Ethames Graduate School Page 12

on the data. The most effective and cost controlled sampling technique which is used by the researcher is convenience sampling.
2. Qualitative Technique Data of performance analysis of the competitive organisation of Nike is used for analysing and such technique where information and reports of other organisation are analysed is called qualitative technique.

Presentations:
All the data collected which are sorted into reports and presented in way of power point presentations, word file, graphs, plots etc.

Conclusions:
It is the most vital part of the research and the survey is conducted by preparing a questionnaire in which questions are developed so that the answers wrote down will be to the point for the needs. Forming questionnaire by the researcher in a suitable manner will decide how effective the research will be at the end. Task4: Findings and Recommendations:

Title:
With the knowledge obtained from literature review and research methodology a title which best suits the research is ³Pursuing CSR objective through advocacy with the power of Nike´.

Description:
Customer Social Responsibility (CSR) is function which Nike feels responsible pursuing it and the value for the brand name improve the power of the responsibility in pursing the CSR policy. The method preferred by Nike is through advocacy. In the recent years, commitment on Nike towards achieving these goals are reflected by legislative and initiative of public policies driven by the power of brand name. Public policies keep on changing and it is important for Nike to be on the top of these changes and hence advocacy is preferred.

Bases:
The recent trend of Nike is focussing mainly on three areas, through an integrated and innovative business approach to the supply chain, the business operational conditions are standardised and improved. Innovation in their products and supply chain helped Nike to reduce its global environmental footprints. Sporting activities were spread along youth by Nike with the help of its powerful brand name.

Recommendations:
An improvisation is made in the information system which includes both data collection and information management systems which will help in planning the strategy for the future with more robust and reliable data. More integration of CSR into the business will
Ethames Graduate School Page 13

be necessary in the future and also a plan for handling the pressure when CSR compliance, price, quality and delivery goals are running parallel. Establishing an effective industrial relationship is a must and for a positive step forward in the industry disclosing the supply base will help. Extending the stakeholder engagement, forming new partnerships and collaboration have always been benefited to Nike obtained from the analysis of the past report.

Time Flow by Gant chart Representation:
Task/Weeks Selection of the Research Topic and getting approval Significance of the title Scope and limitations of the title Collecting data from journal, books etc. Preparing Literature review Research Methodology Research Design Conducting interview with employees of Nike Using collected data, research methodology and research design are prepared Analysis and recommendation s Conclusion and Formatting Duration / days 7 1 2 3 4 5 6 7 8 9 10

7 14

28

21

14 14

3

14

7

14

Ethames Graduate School

Page 14

Conclusions: From the literature review, detailed understanding for the need of the functionality CSR in a business environment is obtained. The researcher knowledge on how a research is conducted is completely studied and in future with the help of this report he can do any number of researches and projects. Research methodology gives a brief idea of what and how researches are conducted and formatted into a report in the presentation section. Researcher by conducting this report is able to plan the entire time structure of the research and the timeline for completing each section is clearly mentioned. Managers find it easier with this report for analysing the various methods available and appropriate strategic planning are modelled.

Ethames Graduate School

Page 15

References:

Books:
[1] Manuel E. Contreras, 2004. Corporate Social Responsibility in the Promotion of Social Development, 1st Edition. Inter-American Development Bank [2] Elena Bueble, 2009. Corporate Social Responsibility: CSR Communication as an Instrument to Consumer-Relationship Marketing, Edition. GRIN Verlag [3] Sri Urip, 2010. CSR Strategies: Corporate Social Responsibility for a Competitive Edge in Emerging Markets, 1 Edition. Wiley [4] Kolja Paetzold, 2010. Corporate Social Responsibility (CSR): an International Marketing Approach, Edition. Diplomica Verlag [5] William B. Werther, 2010. Strategic Corporate Social Responsibility: Stakeholders in a Global Environment, Second Edition. Sage Publications, Inc

Websites:
1) Nikebiz: Nike Responsibility. 2011. Nikebiz: Nike Responsibility. [ONLINE] Available at: http://www.nikebiz.com/responsibility/.Corporate Social Responsibility - Companies in the News - Nike. 2011. Corporate Social Responsibility - Companies in the News - Nike. [ONLINE] Available at: http://www.mallenbaker.net/csr/CSRfiles/nike.html. 2) Nike, Inc. Corporate Social Responsibility News, Reports and Events ± CSRwire.com. 2011. Nike, Inc. Corporate Social Responsibility News, Reports and Events ± CSRwire.com. [ONLINE] Available at: http://www.csrwire.com/members/12858-Nike-Inc-. 3) CSR and Business Strategy with Nike « World is Green. 2011. CSR and Business Strategy with Nike « World is Green. [ONLINE] Available at: http://worldisgreen.com/2007/06/05/csr-and-business-startegy-with-nike/. 4) Nike¶s Corporate Social Responsibility efforts falling short? (or, why I¶m so sceptical about CSR) | Sasha Dichter's Blog. 2011. Nike¶s Corporate Social Responsibility efforts falling short? (or, why I¶m so sceptical about CSR) | Sasha Dichter's Blog. [ONLINE] Available at: http://sashadichter.wordpress.com/2008/11/24/nikecorporate-social-responsibility-efforts-falling-short-skeptical-about-csr/. 5) Nike Spends $25 Million on CSR Annually; Refuses to Pay $2.2 Million in Severance to Honduran Garment Workers | Corporate Social Responsibility. 2011. Nike Spends $25 Million on CSR Annually; Refuses to Pay $2.2 Million in Severance to Honduran Garment Workers | Corporate Social Responsibility. [ONLINE] Available at: http://www.justmeans.com/Nike-Spends-25-Million-on-CSR-Annually-Refuses-Pay2-2-Million-in-Severance-Honduran-Garment-Workers/22753.html. 6) Nike Timeline. 2011. Nike Timeline. [ONLINE] Available at: http://xroads.virginia.edu/~class/am483_97/projects/hincker/timeline.html.

Ethames Graduate School

Page 16

7) . 2011. . [ONLINE] Available at:http://www.samfundsansvar.dk/graphics/Samfundsansvar.dk/csrinnovation/Dokum enter/literaturereviewsep08full.pdf. [Accessed 18 June 2011] 8) 2.1.1 Overview - NIKE, Inc. 2011. 2.1.1 Overview - NIKE, Inc. [ONLINE] Available at: http://www.nikebiz.com/crreport/content/strategy/2-1-1-corporate-responsibilitystrategy-overview.php?cat=cr-strategy. 9) Nike Case Presentation. 2011. Nike Case Presentation. [ONLINE] Available at:http://www.scribd.com/doc/3903349/Nike-Case-Presentation. 10) Nike¶s Core Values | The Natural Step. 2011. Nike¶s Core Values | the Natural Step. [ONLINE] Available at: http://www.naturalstep.org/en/usa/nike-s-core-values. 11) Strategic Analysis of Nike, Inc. 2011. Strategic Analysis of Nike, Inc. [ONLINE] Available at: http://condor.depaul.edu/aalmaney/StrategicAnalysisofNike.htm. 12) . 2011. . [ONLINE] Available at: http://gredos.usal.es/jspui/bitstream/10366/68683/1/TM_TiagoMelo_Effects_of_CSR _on_Brand_Value.pdf. 13) Corporate Social Responsibility - Companies in the News - Nike. 2011. Corporate Social Responsibility - Companies in the News - Nike. [ONLINE] Available at: http://www.mallenbaker.net/csr/CSRfiles/nike.html. 14) Unit 11 Section 1 : Types of Data. 2011. Unit 11 Section 1: Types of Data. [ONLINE] Available at: http://www.cimt.plymouth.ac.uk/projects/mepres/book7/bk7i11/bk7_11i1.htm.

Ethames Graduate School

Page 17

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.