Nike Case Study

Nike Case Study

MGT 480

Part 1

• In 2005 Nike started to disclose their CSR activities after a couple of years of silence due to legal concerns.

• 25% to 50% of the factories in the south Asian region restricted access to toilets and drinking water during working day.

• More than half of Nike`s factories employees had to work for more than 60 hours per week.

• Therefore, Nike adopted a new strategy an approach to correct these problems.

• They attempted to take responsibility to effect positive systematic changes in working conditions with several branches of their industry.

Part 2

• Human rights.

• Conditions for workers in factories in developing countries.

• Excessive Overtime.

• Wages below minimum.

Part 3

Using the P.E.S.T.E.L factors

• Social: Nike`s new corporate citizenship goals is to effect positive, systematic change in working in conditions.

• Legal Factors: Nike was not was not giving their employees a good work condition for its workers in the factories, they were giving excessive overtime and wages below minimum.

• Economic factors: Seeking good societal relations should be seen as both good for society and good for profitability. Profits should be seen as a signal from society that Nike is succeeding in its mission of providing something people want.

• Business Model: maximizing profits, led Nike to not give their employees a good work condition in the factories, excessive overtime and wages below minimum.

• Strategy: Nike`s goal is to adopt a new strategy and approach to change their company image and reputation.

3. 

An open-system approach to social responsibility means that the organization views its actions in terms of the effect it has on the larger social system. In addition to being socially responsive to internal stakeholders such as domestic employees, the organization also views its impact on suppliers, regulators, investors, and communities, regardless of their location.

5. 

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