NIKES CSR

CHALLENGE

Ailin
Win
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FACTS
DISCUSSION
RECOMMENDATION

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DISCUSSION
RECOMMENDATION

FACTS

Nikes CSR Issues

Nikes CSR
Challenge

FACTS
Nikes CSR Issues
General

Nikes CSR Challenge

Indonesia

Nike reported that their overseas factories have

their employees working in terrible
environments for low pay and in unsanitary
health conditions
25% - 50% Nikes factory prohibited their
employees to go to toilet, and drink clean water
Nike forced the employees to work one week
full without holiday and work more than 60
hours per week
Nike also gave punishment to the employees
who were refusing overtime

FACTS
Nikes CSR Issues
General

Nikes CSR Challenge

Indonesia

Workers were being kicked and slapped by

supervisors
PT Amara Footwear factory located outside
Jakarta, a supervisor ordered six female workers
to stand in the hot sun for 2 hours after they
failed to meet their target of 60 dozen pairs of
shoes on time.
Workers subjected to foul language from the
management
Workers subjected to sexual harassment,
including inappropriate touching and language

FACTS
Nikes CSR Issues
General

Nikes CSR Challenge

Indonesia

Workers subjected to having shoe parts thrown

at them
Hiring children under 16 yo as the workers
Workers were paid under the legal minimum
which was only $2.5 a day in Indonesia where
the minimum was $4-$4.5.

FACTS
Nikes CSR Issues

Nikes CSR Challenge

Improve the labor standards in global supply chain

Struggle to create a better
working condition

FACTS
Nikes CSR Issues

Supplier
Employee
Customer

Shareholder

Environmen
t

Nikes CSR Challenge

Analysing and measuring CSR can be quite

challenging to the suppliers in the
developing countries
Lacking behind of incompetency supervisor
to implement CSR

FACTS
Nikes CSR Issues

Supplier
Employee
Customer

Shareholder

Environmen
t

Nikes CSR Challenge

Eliminating child labor

High demand and large-scale production lead
to receive thousands of orders per day
Neglecting of CSR in working overtime and
working conditions

FACTS
Nikes CSR Issues

Supplier
Employee
Customer

Shareholder

Environmen
t

Nikes CSR Challenge

Have negative mind-set about Nike

Do not trust the transparency of the reports

FACTS
Nikes CSR Issues

Supplier
Employee
Customer

Shareholder

Environmen
t

Nikes CSR Challenge

Want to get high profits

Expensive costs for implementing CSR

FACTS
Nikes CSR Issues

Supplier
Employee
Customer

Shareholder

Environmen
t

Nikes CSR Challenge

Nikes footprint is the greatest source of CO2

and energy use especially water
Destroy human health and environment

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DISCUSSION

Nikes Awareness
Nikes Action

DISCUSSION
Nikes Awareness

Nikes Action

An anti-sweatshop campaign called Just Dont

Do It
Demand Nike to pay a living wage, one not based
on overtime and promote working conditions
consistent with human rights

DISCUSSION
Nikes Awareness

Nikes Action

A lawsuit of Serikat Pekerja Nasional to Nike

Factory in Indonesia, PT Nikomas
PT Nikomas should pay $1million in overtime
compensation to about 4500 indonesian workers
over the past two years

DISCUSSION
Nikes Awareness

Planet

Nikes Action

Reduce emission CO2

Reduce energy consumption

Employee

Community

Reduce water consumption

Reduce material waste

DEVELOP NEW SYSTEM IN THE DYEING AND

THE USING OF CHEMICALS

DISCUSSION
Nikes Awareness

Planet

Nikes Action

Re-use a shoe to be recycled into Nike Grind

Recycle plastic water bottles to make jerseys

Employee

Community

DISCUSSION
Nikes Awareness

Planet
Employee

Community

Nikes Action

Reduce the number of styles in each of Nikes

categories
Reduce overtime
Provide workers training
Set supplier code of conducts to regulate the
wages in which at least minimum wage

DISCUSSION
Nikes Awareness

Planet
Employee

Community

Nikes Action

Increase cancer and obesity awareness,

LIVESTRONG
Establish a physical education program for
preshool children, HeadStart to encourage
children to embrace physical activities at an
early age

DISCUSSION
Nikes Awareness

Nikes Action

AWARENESS

Nike aware of their CSR issues and aware that corporate social
responsibility and stakeholder can effect the sustainability of Nike

ALIGNMENT

Nike link and analysis the CSR issues with the condition of global
business competition

ACTION

Nike do some actions regarding to the respect of planet and people

ADOPTION

Nike set some targets that should be achieved, such as 45% reducing
emission CO2 every year

ASSURANCE

Nike have a measurement called Manufacturing Index to know

whether their actions have achieved

ANTICIPATIO Nike anticipate for their failures thus Nike always create a new way to
encourage stakeholders
N

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RECOMMENDATION
AWARENES
S
ALIGNMENT
ACTION

ADOPTION
ASSURANC
E
ANTICIPATIO
N

RECOMMENDATION
AWARENES
S
ALIGNMENT

Aware what the most important factors in doing business, what

your stakeholder needs and wants, and what went wrong and right
at CSR that needs to be improved
Align and link what you aware of with what is your company,
suppliers, employees, market and global condition
Do some actions needed in order to sustain

ACTION

ADOPTION
ASSURANC
E
ANTICIPATIO
N

Adopt new targets and monitor the results from your

actions
Measure and assure the results by using key performance
index whether the results are as you expect
Anticipate for all those possible worst results since you need
to take another action

NIKES CSR

https://www.youtube.com/watch?
v=ReY56KuMvUo