Corporate Social Responsibility: Case Study of Nike, Inc.
Nike Inc. was founded in 1964 by Bill and Phil as Blue Ribbon Sports. It is headquartered in Oregon, United States and operates on a global scale. The company is traded on NYSE and operates in apparel industry. Its segment markets include athletic footwear and apparel, sports equipment’s, and recreational products. With control of over 60% of the business Nike has become a pop culture and at the same time involved in corporate social responsibilities. Increase in market resulted to be marked as the advertisement of the year in 2003 while in 2004 its annual revenues exceeded $ 13 billion. Nike’s acquisitions include Starter and Umbro (NIKE, INC., 2013). Its subsidiaries include Hurley International and Converse Inc. with over 44,000 employees it made a revenue of US$ 24.128 billion and a net income of US$ 2.223 billion in the fiscal year 2012. In 2 fiscal year 2009 Nike reported a revenue of US$ 19.2 billion. Nike has offices are located over 45 countries. Nike sells products in over 180 countries. Nike Portfolio include top competitive brands which include: NIKE brand ( accessories, footwear, apparel, and equipment); Cole Haan (designs, distributes and markets handbags, luxury shoes, outwear and footwear); Converse ( athletic footwear, apparel and accessories); Hurley International LLC (action sports and youth lifestyle footwear, apparel and accessories); Umbro; Nike Golf; and Jordan brand providing similar products (Carbasho, 2010).
The mission of Nike is to bring inspiration and innovation to every athlete in the world. They consider anyone with a body as an athlete. This has been achieved and guided by the 11 Maxims that help to guide its employees in daily duties and representation of Nike globally. They believe that through nurturing the right organizational culture and motivating employee’s engagement in business activities they will achieve their vision. They consider Nike as a company, a brand, and it is their nature to innovate, simplify and go, let the consumer decide as they evolve immediately. They do the right thing and master the fundamentals, are always on offense, and that they are a sponge. Its core principles for the management team include to lead, coach, drive, and inspire. Therefore their vision is to help the business and their consumers thrive in a sustainable economy where planet, profit and people are at balance. This is done through integrating sustainable practices and principles into daily operations like development of sustainable materials, design, rethinking processes and advocating for change within the industry (NIKE, INC., 2013). Through its sustainable business and innovation, the company aspires to create sustainable products and business models so as to bring about a systematic change in footwear, equipment, and apparel industry.