Unveiling Nike's Strides in

Corporate Social Responsibility

ZHAW School of Management and Law

International Corporate Responsibility Management

Andrew, Basil, Chaeweon, Marissa

Introduction

This paper provides a comprehensive analysis of Nike's Corporate Social Responsibility (CSR)

practices, focusing on their growth trajectory, a comparative assessment with Organic Basics, an

exploration of past scandals, and recommendations for Nike's future CSR initiatives. Nike, a

prominent global leader in the athletic footwear and apparel industry, has faced significant

scrutiny over its CSR practices. By evaluating Nike's CSR initiatives, we aim to assess their

social and environmental impact and offer insights into their commitment to sustainability and

social responsibility.

By critically evaluating Nike's CSR performance, this paper contributes to the discourse on

ethical business practices, inspiring organizations to pursue sustainable and socially responsible

approaches in the global marketplace.

What is Nike?

Nike is a multinational corporation that designs, develops, and sells athletic footwear, apparel,

and accessories. The company was founded in 1964 by Bill Bowerman and Phil Knight as Blue

Ribbon Sports and officially became Nike, Inc. in 1971. (Britannica, 2023) It is headquartered

near Beaverton, Oregon, and operates in over 190 countries worldwide. They are known for

their innovative designs, high-quality products, and strong brand image. (Nike Company, 2014)

Nike’s Business Model

Nike's business model is focused on designing, developing, marketing, and selling athletic

footwear, apparel, and accessories. Their primary revenue comes from the sales of footwear,

followed by apparel. (Pereira, 2023) One key aspect of Nike's business model is its brand image

and marketing strategy. The company invests heavily in brand promotion and advertising,

leveraging its partnerships with athletes, teams, and events to create a strong emotional

connection with its customers. (Cuofano, 2023) Nike's marketing campaigns often feature

powerful and inspiring messages that resonate with its target audience, such as the “Just do it”

slogan. Another important aspect of Nike's business model is innovation. The company invests
heavily in research and development to create new products and technologies that enhance

athletic performance, comfort, and style (Anand, 2022).

Brand Image Through the Decades in relation to CSR

In the 2000s Nike had a strong association with athletic performance. They made high-quality

products with a focus on innovation and technology focused. The long-standing advertising

practice of partnering with high-profile athletes continued, with a high emphasis on exceptional

athletic abilities of sponsored athletes. However, the brand had started to face criticism for labor

practices and their environmental impact. They responded to criticisms with implementation of

a code of conduct for suppliers and started to make efforts to improve labor conditions and

environmental sustainability.

Moving into the 2010s there was a continued association with athletic performance and high-

quality products, but also expanded to partnerships with fashion and lifestyle brands, due to

change consumer wants. Nike was changing from a high-performance sports brand to a just a

sports brand. In doing so they expanded their CSR to be align with the average public they are

serving. Now annual sustainability reports are published. One part of this was the launch of

community and social initiatives, such as supporting youth sports programs and investing in

local communities. Emphasis on diversity and inclusion, including support for black-owned

businesses and organizations. Additionally, they now had an increased focus on sustainability

and environmental impact. The development of sustainable materials and products was

brought forward. Testing and small launches of these products were done in Nike’s urban

markets

Currently in the 2020s, Nike has continued making progress and transparency in CSR practices,

sustainability reports publish display growth. To be noted is the increased focus on social justice

issues and racial equality. They have new development of products and campaigns that

promote inclusivity and diversity. Continued support for the community and social initiatives,

such as donating to COVID-19 relief efforts and supporting voter registration. Continued
emphasis on sustainability and environmental impact, including carbon-neutral goals and

closed-loop manufacturing.

Greenwashing within Nike

Nike’s goals for sustainability have been less of a priority and thus minimal progress has been

made. By 2025, the brand hopes to be operating on entirely renewable energy and has set a goal

to reduce greenhouse gas emissions, and as part of the Supplier Climate Action Program, they

are committed to partnering with suppliers and manufacturers that operate with carbon

neutrality (Dean). However, there has been no clear indication that Nike’s carbon footprint and

other emissions goals have been achieved since their baseline set in 2015 (Dean). There have

been small environmental victories Nike has claimed such as 4 billion plastic bottles being

processed into polyester and other materials, and in 2020 the brand’s sustainable material

integration increased from 41% to 59% in clothing lines (Dean). While these statistics are

impressive the sustainable material integration increased by 18% in one year, which begs the

question, why this could not be a goal for every year. Interestingly, Nike has not addressed

deforestation as a company that relies heavily on trees for their products and packaging, even

though they have been piloting sustainable packaging solutions, yet to be standardized (Dean).

In 2019 Nike introduced its new campaign “Move to Zero”, the framework for Nike’s journey

toward zero carbon emissions and zero waste. They launched the campaign during climate

week and decked out their New York headquarters with Information about how climate change

affects athletes. The campaign evolved around the idea of “if there is no planet, there is no

sport” (Bauck, 2019). Nike aimed to reduce greenhouse gas emissions by 500 thousand tons,

divert 100% of waste from landfills in its extended supply chain and recycle at least 80% of

waste back into Nike products and other goods, and reduce freshwater usage by 25%. Nike

aims to achieve these goals by 2025 but did not present a roadmap on how they are going to

reach them (Nike Sustainability. Move to Zero, n.d.). However, critics were quick to point out

that these goals were not new. They stated that Nike merely repackaged existing

sustainability goals and used the “Move to Zero”campaign to reach a wider audience
and put themselves into the spotlight. Furthermore, Noel Kinder, Chief Sustainability

Officer of Nike, admitted that some of the goals set by Nike themselves were not

realistic and are more difficult to reach than expected (Igini, 2022).

In 2021 it was reported that Nike destroys used products meant for recycling. Further

allegations go as far as stating that Nike destroys new products. German reporters were able to

track a used pair of sneakers, which they put in a recycling bin, to a shredding facility in

Belgium where they were destroyed. Furthermore, a second pair of shoes which was ordered

from Nike’s online store and later returned unused with a tracker inside the shoe was also sent

to the same facility in Belgium. The plant manager of the shredding facility confirmed that they

mostly destroy new Nike products (Kaleta, 2021). Noel Kinder was surprised when he was

confronted with the allegations and stated that this is not part of what Nike strategy. Further, a

Nike spokesperson rejected these claims and stated that they only destroy products with signs

of usage and faulty products, therefore, directly contradicting the claims made by the reporters

(NDR, n.d.).

Social Issues of Nike

Nike is one of the most prominent athletic wear brands, consequently their operations are

scrutinized by many environmentalists and social activists. Nike has faced criticism for its labor

practices in the past, particularly with labor conditions.

In the 1990s, Nike outsourced factory production to Indonesia because of the low labor costs,

but unfortunately that meant poor working conditions which was revealed in a report by

activists (Ethically Engineered, 2022). However, by 2016, there had been little improvement, as

the Worker Rights Consortium (WRC), an independent labor rights monitoring organization,

published a report accusing Nike of labor rights violations, subjecting workers to unlivable

wages, excessively long shifts, and forced overtime, in Indonesian factories. The WRC also

reported that Nike's audit process were, which is meant to monitor compliance with the

company's labor standards, was ineffective and failed to detect these violations. (Hensler, 2016)
Nike has also been criticized for being an enabler of the Uyghur genocide. Uyghur people are

minority ethnic community in China, living in the Xinjiang region. In recent years, there have

been widespread reports of human rights abuses against the Uyghur community by the Chinese

government, including forced labor, mass detention, and cultural suppression. The Chinese

government has facilitated large-scale transfer of Uyghurs to factories across the country. The

Uyghur people are subjected to forced labor in inhumane conditions. Uyghur labor has been

found in the supply chains of at least 82 global brands, Nike being one of them. In March 2020,

the Australian Strategic Policy Institute (ASPI) published a report accusing Nike of benefiting

from forced labor in their supply chains, including from Uyghur workers. Nike initially denied

the allegations and claimed they did not directly use products produced in Xinjiang. However,

they acknowledged that it had suppliers from the region and committed to conducting audits of

its supply chains to ensure compliance with labor standards. Since then, Nike has faced

constant pressure from human rights groups and consumers to take more concrete and active

action to address the issue. In response, the company announced measures such as

strengthening its supplier code of conduct and conducting further audits of its supply chain to

address this issue. (Xu, 2020)

Nike’s Comparison to Organic Basics

When analyzing an established company like Nike, who influences the standards across the

industry, it is important to consider the activities of similar emerging brands. In this case we

compared Nike to Organic Basics which is an up and coming sustainable activewear company

based in Denmark and ships worldwide. Organic Basics started in 2015 with a commitment to

sustainability, comfort for all body types, and quality production in Europe with a major focus

on ethics (Jamie). In 2019 Organic Basics became a certified B Corp with a score of 92.8, with a

goal to score 110+ as they are reevaluated in 2023 (Organic Basics). Organic Basics has

committed to finding natural alternatives and design solutions for environmentally harmful

materials (Organic Basics). With ethics for the planet and people at the forefront of their mission

Organic Basics exclusively partners with trusted and certified factories and companies that

share similar values and goals. Their standards for partners include paying a living wage to all
employees and having third party certifications such as EU Eco-Label and the Global Organic

Textile Standard (Jamie). Their website has an entire page dedicated to each factory and how

they continuously reduce environmental impact through innovative practices (Organic Basics).

Organic Basics is an extremely transparent company compared to Nike. Their website has a

section entitled “Our Fuck Ups” where they lay out their mistakes and how they they revised

their operations. They shared that due to overproduction sales were instituted, which they were

trying to avoid because they did not forecast production accurately and thus have overstock

(Organic Basics). Additionally, they overestimated the feasibility of their take back program,

which was an effort to recycle old garments, however mixed material garments are much

harder to recycle due to construction and lack of tools (Organic Basics). They promised to have

net zero carbon emissions by 2025, but explained that will not be achieved because of internal

expansion of sizing, colors, and product categories. They revised their goal to reduce emissions

intensity by 50%, meaning they will reduce emissions by 50% relative to revenue growth

(Organic Basics). To strive for accurate emissions statistics and track progress, they study their

entire supply chain to ensure accountability of partners and pinpoint weak links (Organic

Basics). Clearly, they are committed to their values and the betterment of people and the planet

while trying to stay profitable to continuously make impactful change.

To reinforce their values Organic Basics has committed to financially contributing to ongoing

projects that give back to the planet. They are a member of 1% For the Planet, so 1% of sales

revenue is donated to grassroots climate activists and organizations (Organic Basics). One

project is Rewilding Europe- an organization that aids in conserving and protecting Europe’s

biodiversity with the goal to let nature thrive on its own (Organic Basics). Another organization

they contribute to is the Nordic Ocean Watch which educates the community to inspire change

and active participation in protecting the oceans (Organic Basics). Lastly, they partner with the

Regenerative Organic Cotton Pilot Project with the World Wildlife Fund, which is the first

regenerative cotton farm in Turkey (Organic Basics).

As corporate social responsibility has become a popular initiative in business, Nike has

published their goals, which address three key areas: sustainability, diversity and inclusion, and

community investment (Dean).

Nike has made progress in their diversity and inclusion efforts internally and externally. In

2019, Nike amended their pregnant athlete policy and stopped financially penalizing female

athletes under contract (Dean). Since 2020, all eight of Nike’s employee networks-

“NikeUNITED” have partnered with Charities Aid Foundation and collectively given millions

of dollars to nonprofit organizations of their choosing who focuses on promoting social

equality, regardless of race, gender, and sexual orientation (Nike). To create a better

understanding of racial equality and diversity and inclusion in the workplace, in 2020 Nike

began programs such as Unconscious Bias Awareness training and a Juneteenth learning

initiative (Dean). That same year, Nike created a five year plan to reach 50% representation of

women and 35% representation of racial and ethnic minorities in their corporate workforce and

proclaimed to invest $125 million by 2025 in support of other businesses contributing to leveling

the playing field on a corporate level (GlobalData). As proof of working towards their corporate

goals, in 2021 Nike reported they have 50.4% women participation, and their Asian and African

American participation both increased by 1% (GlobalData).

Nike has also made efforts to invest in the community. Between 2015 and 2020 Nike invested

over $100 million into their Girl Effect program with the purpose to improve the lives of

millions of girls in 20 African and Asian countries (Dean). Additionally, in 2020 they had

several initiatives, such as creating the Until We All Win program which allocated $4 million to

support diversity and inclusion in North America (Dean). That same year they collaborated

with Converse, Jordan Brand, and Michael Jordan to undergo a 10 year, $140 million investment

plan to support social equality for Black Americans, and $40 million of that will be allocated to

organizations that address systematic inequality (Dean).

Organic Basics is a company that has put corporate social responsibility at the forefront of their

mission and has made it profitable in order for them to continue their initiatives for people and

the planet. Nike has made small efforts and achieved very little in accordance with their scale as
a company, particularly in environmental sustainability. It is important to point out that they

have made some progress with diversity and inclusion and community engagement by

financially supporting organizations and educating employees, but there is significant room for

improvement. Recently, there has been an emergence of many small start-up brands with

progressive business practices and genuine intent to help people and the planet. As consumers

realize the authenticity of some brands over others, their loyalty will begin to fall somewhere

else.

Recommendations
Based on the research conducted in this paper and the comparison to Organic Basics, a leader in

sustainability, the following recommendations are the first steps to improve Nike’s CSR efforts.

1. Nike should exclusively partner with certified factories to guarantee that they do not

support child or slave labor and that environmental guidelines are respected.

2. Invest in better materials and processes to reduce waste and emissions.

3. Contribute to climate change projects and use its reach and that of its testimonials to

promote the projects to a large audience.

4. Reduce carbon emissions in their supply chain by producing closer to the consumer,

eliminating long transports.

5. Implement a reward program for customers who return used products to incentivize

recycling.

6. Prioritize inclusion and diversity in hiring practices and company culture. Support

minority athletes and use its influence to raise awareness.

7. Set attainable goals and commitments and ensure they are reached or fulfilled.
 APPENDIX

Marketing from the Decades

2000s
2010s

2020s – Current
Work Cited

Bauck, W. (2019, September 25). Despite Much Fanfare, Nike’s New “Move to Zero” Sustainability
Campaign Falls Short. Fashionista. https://fashionista.com/2019/09/nike-move-to-zero-
sustainability-campaign

Dean, M. (n.d.). Nike Corporate Social Responsibility (CSR) and Sustainability. Thomasnet® -
Product Sourcing and Supplier Discovery Platform - Find North American
Manufacturers, Suppliers and Industrial Companies.
https://www.thomasnet.com/articles/other/nike-csr/

GlobalData. (n.d.). Nike: Diversity in workforce in 2021. GlobalData.

https://www.globaldata.com/data-insights/consumer/nike-diversity-in-workforce-
2095670/

Igini, M. (2022, August 24). 5 Fast-Fashion Brands Called Out for Greenwashing. Earth.Org.
https://earth.org/fast-fashion-brands-greenwashing/

Jamie. (2023, February 4). 15 Best Sustainable Activewear Brands in 2023: The top ethical workout
clothes reviewed. Eco Friendly Habits. https://www.ecofriendlyhabits.com/sustainable-
activewear-and-workout-clothes/

Kaleta, P. (2021, November 12). Nike: Der Sportartikelhersteller soll laut einem Medienbericht neue
Sneaker schreddern – trotz vollmundiger Recyclingversprechen. Business Insider.
https://www.businessinsider.de/wirtschaft/handel/nike-der-sportartikelhersteller-soll-
laut-einem-medienbericht-neue-sneaker-schreddern-trotz-vollmundiger-
recyclingversprechen/

NDR</em>, <em>Von M. D., Johannes Edelhoff, Willem Konrad, Felix Rohrbeck und Christian
Salewski. (n.d.). Nike vernichtet Neuware—Vorgehen wohl gesetzeswidrig. tagesschau.de.
Retrieved May 23, 2023, from https://www.tagesschau.de/investigativ/sneakersjagd-
panorama-101.html

Nike. (2020, June 24). Until We All Win Community Investment Program. About.nike.com.
https://about.nike.com/en/newsroom/statements/until-we-all-win-community-investment

Nike Sustainability. Move to Zero. (n.d.). Nike.Com. Retrieved May 23, 2023, from
https://www.nike.com/sustainability

Organic basics: Eco-friendly. ethically made. Organic Basics EU. (n.d.). https://organicbasics.com/
Anand, S. (2022, May 17). Nike - Ruling The Sneaker Industry. Retrieved from Startup Talky:
https://startuptalky.com/nike-success-story/

Britannica. (2023, April 28). Nike, Inc. Retrieved from Encyclopedia Britannica:
https://www.britannica.com/topic/Nike-Inc

Cuofano, G. (2023, Feburary 22). Nike Business Model: Demand Generation As Core Asset. Retrieved
from FourWeekMBA: https://fourweekmba.com/nike-business-model/

Ethically Engineered. (2022). Is Nike Greenwashing? A Breakdown!

Hensler, S. N. (2016, 12 6). Retrieved from https://www.workersrights.org/communications-to-

affiliates/new-wrc-report-on-hansae-vietnam-nike/

Nike Company. (2014). About Us. Retrieved from Nike Company Blog:
https://nikecompanyblog.wordpress.com/about-us/

Pereira, D. (2023, April 14). Nike Business Model. Retrieved from The Business Model Analyst:
https://businessmodelanalyst.com/nike-business-model/

Xu, V. X. (2020, 3 1). Uyghurs for sale. Retrieved from https://www.aspi.org.au/report/uyghurs-sale