Case Study Nike Essay

CASE: IB-106

TIME: 08/13/13

NIKE:

SUSTAINABILITY AND LABOR PROCEDURES

1998 -- 2013

" Our foreseeable future depends seriously on advancement, collaboration, and transparency. Nike has learned the value of these types of principles first hand through several tough lessons over the years. I was one of the first firms to understand the challenges of global supply organizations. We acknowledged quickly our own efforts to create alter were not enough. It started us on a journey of partnering to get solutions. The time has come for daring solutions. Incremental change refuses to get us where we need to go. And it absolutely won't get us all right now there fast enough. Nor for a scale that makes a positive change. We are moving from an era of available innovation to one of systems innovation. ” −LAUNCH 2020 Summit, NIKE, Inc. Director & CEO Mark Parker, April 2013

1

A 15 -YEAR JOURNEY WITH NO FINISH RANGE

In 1998 with the National Press Club in Washington, DC, Nike Co-founder, Chief Executive Officer and Chairman from the Board, Phil Knight built the first public acknowledgement of the " cloud that had been over Nike's head” relating to issues that Nike had faced in its source chain.

1

http://nikeinc.com/news/nike-nasa-u-s-state-department-and-usaid-seek-innovations-to-revolutionizesustainable-materials. Debra Schifrin, Professor Glenn Carroll and Professor David Brady prepared this case as the foundation for discussion in the classroom rather than to illustrate both effective or perhaps ineffective controlling of an management situation. Katie Plichta proved some early research assistance. Copyright В© 2013 by the Board of Trustees from the Leland Stanford Junior University. Publically offered cases will be distributed through Harvard Organization Publishing by hbsp. harvard. edu and The Case Centre at thecasecentre. org, make sure you contact those to order clones and request permission to recreate materials. Not any part of this kind of publication might be reproduced, stored in a collection system, utilized in a schedule, or transmitted in any kind or by any means –– electronic digital, mechanical, photocopying, recording, or otherwise –– with no permission from the Stanford Graduate School of Business. Every effort continues to be made to admiration copyright and to contact copyright holders as appropriate. A high level00 copyright holder and have issues, please contact the Case Composing Office for [email protected] stanford. edu or perhaps write to Case Composing Office, Stanford Graduate College of Business, Knight Management Center, 655 Knight Method, Stanford University, Stanford, FLORIDA 94305-5015.

Nike: Sustainability and Labor Methods 1998 -- 2013 IB106

p. a couple of

He explained that " Nike came into existence synonymous with slave wages…”2 This instant was a crucial one pertaining to the company after enduring open public protests back in the 1990s over issues such as unsafe doing work conditions, salary rates, excessive overtime, limitations on organizing, and environmental impacts. Knight's speech began Nike's open public 15-year voyage of growing from its technique of reactive supply chain crisis managing to proactively taking steps to improve durability from the leading down and bottom up. (See Display 1 for any timeline of key approach shifts. )

Early measures included creating strategic associations with governments, non-governmental companies (NGOs), and labor assemblage, as well as calling some of the business harshest critics. Nike also formed new models of collaboration, and in early days of their sustainability quest, the company helped found the Fair Labor Association (FLA), which functions toward improving labor conditions around the world. Nike also transferred from only having a Code of Perform for industries, to monitoring its production facilities and collecting environmental and labor data.

Yet despite increased consciousness, the wider footwear and apparel industry still weren't getting a set of agreed upon standards and any transformative innovations a manager. This situation led Nike managing to echo more deeply about how to introduce standards into their business model since an integrated element of...

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