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CSR Case Study

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A look at Nike's approach to Corporate Social Responsibility as a Crisis Management Tool. This case study is designed to draw attention to the ethical quagmire that is CSR. Particularly the arguements that it looks good on paper but not in reality. It will also look at some theoretical approaches to divising a CSR strategy.

This isn't an attack on Nike, but is looking at the reports against the company and their "reported" responses as food for thought.

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CSR Case Study

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  2. 2. reek<br />Created in 1972<br />Named for the Greek goddess of victory<br />Just Do It!<br />Employs 33,000 people worldwide<br />Reported earnings of $19.2b at the end of fiscal year 31-05-2009<br />Ranked the 31st Top Brand (2006)<br />1st Sports Brand on the list<br />
  3. 3. So What Happened?<br />
  4. 4. Child Labour Scandal<br />June 1996<br />
  5. 5. So What Happened?<br />Child Labour in Pakistan<br />12 year olds were paid 60c/day to make footballs<br />Company had factories in South Korea, Indonesia & Thailand<br />Children worked 12 hour days in sub-standard conditions<br />
  6. 6. The Solution<br />Code of Conduct: all suppliers must agree to it<br />Creation of an Excessive Overtime Task Force<br />Wages: Nike, Other Brands, NGOs to effect change<br />Short-term results poor, hope for success in the Long-Term<br />Nike’s CSR website: nikebiz.com<br />
  7. 7. Critique<br />“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.<br />“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.”<br />Jeffrey Ballinger, Anti-sweatshop activist<br />
  8. 8. CSR as Crisis Management?<br />In June 2007, Nike apparently renounced its use of CSR as "a risk and reputation management tool“<br />It was to become a core "business objective.“<br />Source: “Nike back in responsibility rehab” by Steve Bruin The Oregonian, 3rd June <br />
  9. 9. So what is CSR?<br />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<br />Source: Rebecca Collings<br />
  10. 10. Discussion<br />Is CSR as a crisis management tool really CSR?<br />
  11. 11. Kantian approach<br />The motive behind the programme matters<br />CSR should be governed by duty not self-interest<br />CSR programmes would exclude evaluation of programme’s benefit to the organisation<br />Focus on Corporate duties & beneficiaries allowed to define scope of the relationship<br />
  12. 12. Friedman Approach<br />Social responsibility of business is to be successful<br />CSR programmes should be governed by the self-interest of the corporation<br />Businesses aren’t governments (risk to democracy)<br />
  13. 13. Any Questions<br />
  14. 14. Thank You!<br />

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