CSR Case Study

reek
Created in 1972
Named for the Greek goddess of victory
Just Do It!
Employs 33,000 people worldwide
Reported earnings of $19.2b at the end of fiscal year 31-05-2009
Ranked the 31st Top Brand (2006)
1st Sports Brand on the list

So What Happened?

Child Labour Scandal
June 1996

So What Happened?
Child Labour in Pakistan
12 year olds were paid 60c/day to make footballs
Company had factories in South Korea, Indonesia & Thailand
Children worked 12 hour days in sub-standard conditions

The Solution
Code of Conduct: all suppliers must agree to it
Creation of an Excessive Overtime Task Force
Wages: Nike, Other Brands, NGOs to effect change
Short-term results poor, hope for success in the Long-Term
Nike’s CSR website: nikebiz.com

Critique
“The CSR cost for Nike is about $10 million to $12 million a year, just for the CSR staff and expenses, to go to these sustainability meetings all over the world. They have two or three Nike people at every meeting. That’s part of the CSR game.
“I figure 75 cents per pair of shoes to the worker would fix the problem. If Nike instead paid workers 75 cents more per pair of shoes, do you know what that would cost Nike compared to the CSR cost? That would cost them $210 million a year.”
Jeffrey Ballinger, Anti-sweatshop activist

CSR as Crisis Management?
In June 2007, Nike apparently renounced its use of CSR as "a risk and reputation management tool“
It was to become a core "business objective.“
Source: “Nike back in responsibility rehab” by Steve Bruin The Oregonian, 3rd June

So what is CSR?
A commonly used term to describe CSR in its current evolutionary state, CSR was mentioned on national television news for the first time in early 2004. Appears to promote the social at the expense of the environmental dimension so Corporate Responsibility has emerged in preference to CSR
Source: Rebecca Collings

Discussion
Is CSR as a crisis management tool really CSR?

Kantian approach
The motive behind the programme matters
CSR should be governed by duty not self-interest
CSR programmes would exclude evaluation of programme’s benefit to the organisation
Focus on Corporate duties & beneficiaries allowed to define scope of the relationship

Friedman Approach
Social responsibility of business is to be successful
CSR programmes should be governed by the self-interest of the corporation
Businesses aren’t governments (risk to democracy)

Any Questions

Thank You!

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CSR Case Study

by Soyini Grey on Feb 25, 2010

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CSR Case Study — Webinar Transcript