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Why Did Nike Fail To Address CSR

Nike failed to address corporate social responsibility earlier because when the company was founded, the two founders were sports enthusiasts focused on profits, not professional businessmen. They were unaware that CSR programs like giving back were expected of American companies. Nike should have used models like the Friedman Model, where the primary duty is developing the business and CSR is a natural result, or the Ackerman Model with its four stages of identifying social issues and implementing solutions. Now Nike uses some models like the Carroll Model's four levels of responsibility and cites goals like sustainability from the Corporate Citizenship Model.

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71 views2 pages

Why Did Nike Fail To Address CSR

Nike failed to address corporate social responsibility earlier because when the company was founded, the two founders were sports enthusiasts focused on profits, not professional businessmen. They were unaware that CSR programs like giving back were expected of American companies. Nike should have used models like the Friedman Model, where the primary duty is developing the business and CSR is a natural result, or the Ackerman Model with its four stages of identifying social issues and implementing solutions. Now Nike uses some models like the Carroll Model's four levels of responsibility and cites goals like sustainability from the Corporate Citizenship Model.

Uploaded by

alpha kachhap
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1. Why did Nike fail to address corporate social responsibility earlier on?

use relevant
theories and model to support your answer.

Nike Inc. maintains corporate social responsibility (CSR) programs to address the interests of its
major stakeholder groups. According to Archie Carroll, stakeholders are individuals or groups that
have a significant stake in what the business does. The company influences them, and they influence
the company in return. The brand image and sales performance of Nike sports shoes, apparel, and
equipment are significantly subject to the effects of stakeholders’ interests and corresponding actions.
Nike addresses these stakeholders’ interests through a number of corporate social responsibility
programs. However, the Nike Foundation is the main arm of the company’s corporate social
responsibility strategy.
Nike failed to address corporate responsibility during their early ventures because the two men who
started the company just simply did not know any better. They were not professional businessmen at
the time the company was created. At this point in time, they were two sports enthusiast who were
looking to turn their passion into a profit and early on in its existence, the Nike company was more so
concerned with just making money. The company’s founders had not the slightest clue that the
manner in which an upright American company operated included the act of participating in corporate
responsibility ventures, like giving back to the needy.

The manner in which the Nike company has been carrying on suggests that the company does
not care about the manner in which the public reacted to the Nike company’s contract
manufacturing methods. The reason I say this is due to the fact that the Nike company has not
even tried to make amends with the people and organizations that they let down when news
broke out about the company using unethical practices in their design houses that are located
overseas in countries that include both Pakistan and Japan. Interestingly enough, the company
has always remained silent whenever they have received backlash from the public for failing
to conduct its dealings in morally upright manners. They have never once apologized for the
wrongdoing of which they have been accused in the past. In terms of corporate responsibility,
the company has remained around the second stage where it is typical for such institutions to
exhibit a sense of compliance in regards to corporate procedures.

There are totally 6 models to address the corporate social responsibility and the Nike didn’t use these
models before and now they are using the some of the model and theses model are to in the interest
towards the society. That what a company should do to take the corporate social responsibility. Theses
model tells us about the what a business man or a organization should do to get moral values and to
do good to the society.
Nike should have used the Friedman Model is this model a business man or the organization has no
duty other than the developing his business and if he performs that duty so he take care about the
social and moral duties.
Friedman Model – a businessman has no duty other than developing his business. If he performs that
duty, he takes care of social and moral duty.
Nike should have used the Ackerman model in this model there are four stages of CSR, first stage is
the project should be identified and which is required by the society and should be done. And the top
manager gets to know about the most common problems of the society and they will express. The 2 nd
stage is that Nike would have hired the experts for the suggestions and can have made the project very
easily understood. The 3rd stage is that the projects are made and are implemented in the society and
can be benefitted to the society. The 4th and the final stage is Identifying the problem and giving the
solution.
Ackerman Model – There are four stages of CSR. In the first stage, the project will be identified for
social delivery. The top managers get to know the most common social problem and express
willingness to take part in a particular project. In the second stage, experts are hired for suggestions to
make the projects operational. In the third stage, project are made public and implemented. In the
fourth stage, societal issues are considered and addressed in details.

Nike have used the Carroll Model in this there four level first is the nike would have identified
the donations where we have to be donated And which cause we have to be paid and how benefit
is that and how ethical and moral standard is this holding and how ethically is this.
Carroll Model – four levels of social responsibility are identified : philanthropic (donations, gifts
etc.), economic (ROI), legal (compliance), and, ethical (moral standards and values).

The CDC model enables community-engaged partnerships to identify a comprehensive list of factors


that contribute to poor health and develop a broad approach to health problems that involves actions at
many levels to produce and reinforce change.
Environmental integrity and Community Health Model – CSR will provide greater opportunity to
do business in a healthier community.
Corporate Citizenship Model
We all want to help accelerate innovation that will answer some of the world’s most pressing and
complex challenges—things like water and waste and the need to really evolve our economy and our
communities to a much more sustainable future,” said Hannah Jones, chief sustainability officer and
vice president, innovation accelerator at NIKE, Inc. during last year’s LAUNCH 2020 Summit Nike
quoted this in his LAUNCH 2020 Summit.
Corporate Citizenship Model –a firm has to satisfy four conditions : sustainable economic
performance, ethical actions and behaviour, legal compliance, and voluntary social actions.
As a global business, Nike Inc. has a wide variety of stakeholders with significant influence on the
sales of the firm’s sports shoes and other products. However, the company’s corporate social
responsibility programs target only a number of major stakeholder groups. Nike has the following
stakeholders, arranged according to the firm’s prioritization:

Customers (top priority)

Communities

Employees

Governments

Interest Groups

Stakeholder Model – Economic and social stakeholders’ interest to be protected.

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