Importance of Corporate Social Responsibility in Shaping Supply Chain Management: The Case of Sportswear Apparel

This research focuses on the importance of corporate social responsibility (CSR) in shaping supply chain management in the sportswear apparel industry. It examines the case of Nike and Puma, two multinational organizations, and their CSR practices. The study highlights the positive impact of CSR on social, economic, and environmental factors, as well as its role in gaining stakeholder trust and improving supply chain efficiency. The research also addresses the challenges and limitations of implementing CSR in supply chain management.

Importance of Corporate
Social Responsibility in
shaping supply chain
management: The case of
sportswear apparel

Table of Contents
CHAPTER 1: INTRODUCTION..............................................................................................3
1.1 Background of the research....................................................................................................3
1.2 Company Background............................................................................................................5
1.3 Problem statement.................................................................................................................6
1.4 Value & Significance of Research............................................................................................7
1.5 Rationale................................................................................................................................7
1.6 Research Aims........................................................................................................................7
1.7 Research Objectives................................................................................................................7
1.8 Research questions.................................................................................................................8
CHAPTER 2: LITERATURE REVIEW.......................................................................................8
2.1 Introduction............................................................................................................................8
2.2 The evolution of corporate social responsibility (CSR) activities.............................................8
2.3 The importance of CSR activities and Supply chain management for Nike and Puma.............9
2.4 To ascertain the benefits which Nike and Puma will get with sustainable supply Chain.......11
2.5 To ascertain the ways through which CSR can improve the Supply chain management
practices of Nike and Puma........................................................................................................12
2.6 CSR and ethical behaviour ....................................................................................................13
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................14
3.1 Introduction..........................................................................................................................14
3.2 Research approach...............................................................................................................14
3.3. Research strategy................................................................................................................15
3.4 Research Methods...............................................................................................................15
3.5 Ethical considerations...........................................................................................................16
3.6 Limitations ...........................................................................................................................16
CHAPTER 4: DATA ANALYSIS.............................................................................................17
4.1 Introduction..........................................................................................................................17
4.2 CSR and sustainability in the sportwear industry with backward referencing to sources used
in literature review. ...................................................................................................................17
4.3 How Nike incorporates CSR in its supply chain......................................................................18
4.4 How Puma incorporate CSR in their supply chain.................................................................19
4.5 DISCUSSION..........................................................................................................................19
CHAPTER 5: CRITICAL ANALYSIS DISCUSSION AND CONCLUSION.......................................21
5.1 Conclusion............................................................................................................................21
5.2 RECOMMENDATION.............................................................................................................22
5.4 LIMITATIONS.........................................................................................................................23

REFERENCES.....................................................................................................................24
CHAPTER 1: INTRODUCTION
Many Consumers do not know under which conditions the products are manufactured.
Many of the workers worked in unfavourable conditions, still the goods which are produced
are sold at higher prices. Some organisations use child labour, which is prohibited (Unicef,
2017). Practices like this must be abolished by companies as in order to perform their
operations ethically and bring up positive influence over the society (Grayson and Hodges,
2017). This is so because an organisation has to represent or publish the way they operate
thanks to Corporate Social Responsibility (CSR), which had made a massive impact on these
companies. This chapter involve an overview regarding the factors or areas that are involved
within this study. In addition to this it also represents the aims and objectives, background of
company as well as value of the research.
1.1 Background of the research
Corporate social responsibility (CSR) defines as the self-regulating business model,
which supports an organisation to remain socially accountable for its stakeholders, itself, as
well as the public (Crane, Matten and Spence,2019) It involves a set of activities performed
by an organisation that brings up a positive impact on the social, economic, and
environmental factors. The CSR practices play a significant role within the growth, and the
success of an organisation as a socially responsible company become able to gain the trust of
its stakeholder in a significant manner which in turn influence their decision in a positive way
for contributing towards organisation growth as well as success (Amini and Bienstock, 2014).
On the other hand, supply chain management refers to the process of managing the flow of
raw material, work-in-progress, inventory, goods, or services from the place of its origin to
final consumption (Daniel, 2020). Effective supply chain practices supports an organisation
to effectively manage the demand, deal with disruption, meeting customer demand, carrying
the right amount of inventory, etc. (Bostrom, 2014).The CSR practices not performed
individually by the owners of an organisation instead, it requires the involvement of all its
stakeholders for implementing practices related to social responsibility (Bernstein 2020).
Hence an organisation must focus on involving its close stakeholders in CSR practices for
bringing up positive responses.

The current report is based on the topic “Importance of Corporate Social
Responsibility in shaping supply chain management: The case of sportswear apparel Nike
and Puma” and for conducting this study Nike and Puma is taken into consideration, which
are both large multinational organisations and deals in offering products or services related
with footwear and apparels along with the accessories in sports category. Both the
organisations are proliferating by providing a variety of products or services associated with
sports and other divisions by maintaining a range of physical as well as online channels for
offering its commodities to customers (Gualandris and Kalchschmidt, 2014). To protect its
brand, in 2004, Nike became active and acknowledging human rights and increased their
monitoring efforts on their plants and factories (Nisen, 2013). As a result of that, in 2005,
Nike became the first company in its industry to provide a thorough list of the factories they
worked with and the revealed working conditions and wages (Poker, 2016).
This success becomes possible due to the effective management of the supply chain,
but it is not remaining enough to sustain in the market. As companies related with apparels as
well as accessories involve tremendous amount of wastage or a manufacturing process that
directly harms the environment, therefore, to deal with this issue majority of organizations
started getting involved in CSR practices, Nike and Puma are two among them by putting
more emphases toward the set of activities performed by the suppliers. Majority of
organisations putting emphasis on encouraging the supplier towards achieving eco-friendly
activities by reducing wastage, pollution, controlling gas emissions, and encouraging them to
comply with government regulation and policies (Ayers and Odegaard, 2017). So that they
can contribute towards the safety and welfare of environment by getting involved in several
CSR practices and at the same time maintain profitability. Therefore, nowadays, CSR
practices are also involved by the organisations in its supply chain management which helps
them in increasing their profitability while reducing the cost as well as wastage. This is so
because while supplying the raw material and other things through different channels, there is
a more substantial number of issues that may get arises at a different end of the supply chain
cycle, which leads to an increase in wastage. These waste materials usually aren’t properly
disposed of by the channel members and as a result of which it directly harms the
environment. These things are especially prevalent in the footwear sector, where the
organisation is using such material for manufacturing that can't get adequately disposed of,
such as plastic, rubber, etc. (Tippayawong and Tippayawong, 2017). Hence the waste
material from all these do not get disposed of fully, and on the other side also brings a huge
influence over the environment. Therefore, it can be said that CSR helps in shaping up the

supply chain management as CSR practices involve making use of raw material that is eco-
friendly and does not harm the environment (Chkanikova and Mont, 2015). Despite this, it
also consists in using raw material in an efficient manner so that wastage can be minimized
which in turn brings efficiency in supply chain management and when the activities are
governed as per the government regulations and practices then it generates fewer chances of
legal compliances which ensure smooth flow of operations (Collier, 2018).
Pressure groups find it challenging to get the attention of global brands, so they now
look into where brands like Nike and Puma source their products. (Amaneshi et al. 2008).
The rise of multimedia communication makes it easier for any unethical practices by their
suppliers to be brought to the public’s attention.
A perfect example is Nike's, case which brought them negative attention as a
company. Their production sites were making use of child labour and poor wages (Teather,
2005). Even though Nike wasn’t directly doing this, they were forced to take responsibility
for the impudent behaviours of their suppliers to protect their brand.
1.2 Company Background
Both the organisations come under the apparel, accessories, and sports equipment as they
mainly offer products related to footwear as well as sports-related things. Both the
organisation are competitors of one another as both deals in the same market and offer similar
kinds of products or services. The background of both organisations is mentioned below:
Nike: - The Nike Incorporation is an American multinational organisation that works
toward designing, developing, manufacturing as well as marketing and sales of footwear,
equipment, apparel, and accessories. Nike was founded in the year 1964 and headquartered in
the Portland metropolitan area with Beaverton, Oregon. Within the early 21st century, Nike
had its retail outlet as well as distributor within more than 170 countries, and after that, its
logo, a curvy checkmark known as "swoosh," get recognised throughout the world (Nike,
Inc., 2020).
Later in year 1980s, Nike steadily expanded its business and diversified the product
line through several acquisitions that include shoe companies Cole Haan, Converse Inc.,
athletic and equipment company Umbro, and Canstar Sports Inc. Later on, the company
started offering sports technology accessories which include heart rate monitors, high altitude
wrist compasses. The main reason for its success is that the brand adopts an endorsement
strategy where it gets endorsed by athletes such as Mia Hamm, Tiger Wood, Michael Jordon,
etc. (THE POWER OF SPORT TO MOVE THE WORLD, 2020). It is the world's largest

supplier of apparel and athletic shoes as a major manufacturer of sports equipment. Its
primary mission is to drive everything possible to expand the potential of the human. It
creates ground-breaking sports innovation for developing the product more sustainably by
building up a more creative and diverse global team to make a positive impact on the
community. Nike Inc. work while viewing everybody as an athlete that is united in the joy of
movement. Whether the task is to design a sneaker or to code the revolutionary app, Nike
works over a single mission, i.e., "Bringing inspiration as well as innovation to every athlete
within the world" (THE POWER OF SPORT TO MOVE THE WORLD, 2020).
Puma: - It is a German multinational company that operates as a designer as well as a
manufacturer of casual and athletic footwear, accessories, and apparel. It is headquartered
within Herzogenaurach, Bavaria, Germany, and ranked as third-largest sportswear
manufacturer in the world (Gulden, 2018). Puma founded as one of the leading athletic
footwear, accessories, and apparel company within the world that began its operations within
the year 1924 when the founder of the company, i.e., Rudolph Dassler, started a
manufacturing company with his brother named as Adolf. At that time, it was a family
business that mainly produces slippers as well as outdoor shoes when they identified the need
for athletic shoes within the market. After this, during the year 1928 Olympics, Puma gained
national attention when nearly half of the participants of sports wore Dassler shoes (PUMA,
2020). Today, Puma maintains an impressive as well as a versatile collection of accessories,
apparel, and footwear. It offers a variety of products which include Basketball, Running,
Training, Football, Golf, Sport style, Motorsports, Fitness, etc. In the past time, it sponsored a
range of legendary athletes such as Pelé, Eusébio, Diego Maradona, Lothar Matthaus, Clyde
Frazier, Jim Hines, Boris Becker, Johan Cruyff, Colin Jackson, Heike Drechsler, Martina
Navratilova, Tommie Smith, Joe Namath, Linford Christie, and Michael Schumacher among
others.
1.3 Problem statement
The main problem over which current study focused is about the role of corporate
social responsibility which is to be followed while managing supply chain. This is so because
the organisations mainly performed CSR practices in several different area of a business but
mainly fails to involve supply chain management into it, which is a major concern within the
society. As there are number of channel members that plays a significant role within
manufacturing of products to its final consumption. These channel members perform range of
practices which may results into wastage that affect environment which may become a major

issue for the business. Therefore this study is conducted to study about this issue of corporate
social responsibility and its importance within footwear sector.
1.4 Value & Significance of Research
Multiple events have contributed to the scrutiny that has tormented the sportswear
apparel industry. The Rana Plaza incident in Bangladesh where five garment factories that
supply various global brands collapsed and killed and over a 100 people. The use of child
labour, poor working conditions and low minimum wages by some of the worldwide sporting
brands (Hunter, 2015). This all create a threat over several different players working within
the footwear industry which require them to strictly follow the standard and policies for
assuring that practices must be performed in ethical manner. Hence, this study holds value as
it provide an awareness regarding the importance of corporate social responsibility within
supply chain management.
1.5 Rationale
The main aim behind the conduct of this study is to determine the role of corporate
social responsibility in shaping up an effective supply chain and manner in which it supports
an organisation in its growth as well as success. This research is valuable as it helps the
organisations to determine how they can perform CSR practices at the end of the supply
chain and the benefit it offers to them. It will also support in determining the ways through
which CSR plays a significant role in shaping up an effective supply chain management that
might not benefit the society but allow an organisation to achieve higher profitability as well
as success in the marketplace. Additionally, the investigation holds value as it helps in
generating awareness among several other organisation in terms of performing CSR practices
at the supply chain by making them clear about the list of benefits that they will get from this.
1.6 Research Aims
This study about the importance of Corporate Social Responsibility in shaping supply
chain management. The case of sportswear apparel Nike and Puma
To explore the concept of CSR and why companies within the sportswear industry implement
it in their supply chain management
1.7 Research Objectives
 To study the evolution of CSR activities.

 To determine the importance of CSR activities and Supply chain management for
Nike and Puma.
 To ascertain the benefits which Nike and Puma will get with a sustainable supply
chain.
 To discover the ways through which CSR can improve the Supply chain management
practices of Nike and Puma.
1.8 Research questions
 What is the evolution of CSR activities?
 What is the importance of CSR activities and Supply chain management for Nike and
Puma?
 What are several benefits that Nike and Puma will get with sustainable Supply Chain?
 What are the different ways through which CSR can improve the Supply chain
management practices of Nike and Puma?
 What is the extent to which Puma and Nike’s contracting capabilities affect the
Business to Business purchasing relationship?
CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
The literature review includes a comprehensive summary of the particular research and
its topic. The main aim of a literature review is to provide an insight over the nature of study
by exploring the already available information which is already researched previously (Vurro,
Russo and Perrini, 2009). It includes the use of various books, articles, online sites, and other
possible resources that provides a description, critical evaluation, and summary of research
work. The present research is associated with the “Importance of Corporate Social
Responsibility in shaping supply chain management,” a case study on Nike and PUMA.
Following is the literature review on various objectives of this research:
2.2 The evolution of corporate social responsibility (CSR) activities
CSR is associated with the activities that make an organisation and company more
socially accountable for itself, its stakeholders, the general public, and overall society and
environment. As per the viewpoint of Bostrom, 2014, various factors have contributed to the
evolution of CSR activities that includes a rapid change in social values and enhancement in
consumer demands for companies to remain on the right side of social justice (Gaur and
Vazquez-Brust, 2019). Besides this, the rising awareness about accounting scandals and other

unethical business operations has also led to the evaluation of CSR activities that are related
to risk management, cost savings, access to capital, customer relationships, talent
management, the capacity to innovate, etc. (Hombach and Sellhorn, 2019). The further right
approach of CSR activities and programs includes yielding and creating benefits for society
and both internal and external stakeholders of cooperation’s (Gualandris and Kalchschmidt,
2014) .
Apart from this, Runde 2020 is having a viewpoint that these are multinational
companies like Nike, Puma, etc. that is the main reason behind evaluation and enhancement
in the importance of CSR activities. In past times CSR activities and mainly concerned only
with the company's core business and aim at steaming or prevent criticism and were focused
on their development only but now the organisation have begun to make use of CSR
activities more strategically and aim at aligning their business project and models with
overall needs and expectation of the stakeholders and other associated parties together with
prevention of environment. Besides this, the effects of broader social problems associated
with inequalities are creating and leading harmful influence business organisations and also
hinders their overall success in the long-term, mainly at a global level (Khan and Yu, 2019).
Thus, the concept of corporate social responsibility is enhancing that have focused more than
ever on social responsibility and created accountability of business organisation towards a
wide range of stakeholders and lead to a continuing commitment by business to behave fairly
and responsibly, towards improving the quality of life of the workforce, families, the local
community, and society at large.
2.3 The importance of CSR activities and Supply chain management for Nike and Puma.
CSR activities play an essential role in demonstrating business operations towards
broader social issues together with their impact on brand image and overall society that
attracts a more extensive section of customers that have shared values towards sustainability.
As per the opinion of Doug Guthrie, 2020, the CSR activities and managing of the supply
chain help an organisation in increasing its prosperity by leading the way for supply chain
mapping and realising corporate social responsibility. A responsible and sustainable supply
chain management helps an organisation in improving collaboration with suppliers thus,
contributes to increasing productivity through the smooth and uninterrupted flow of raw
material and also reduce the cost of production together with improving product quality
(Yamoah, 2019). Besides this, the current global marketplace also has an emphasis on and

demands for a nimble and diffuse supply chain that must be responsive towards changing
priorities with the help of keeping costs in line, schedules on time and also providing room
for an organisation for achieving better growth and expansion in future.
But, according to the perception of Abhijeet Pratap, 2019, most of the big brands have
made a substantial investment towards social and environmental initiatives as it has been
observed that customers prefer those brands that create lower ecological impacts and fulfil
their CSR activities associated with effective management of supply chain. Nike is also
among those most popular brands invested a lot in CSR and sustainable businesses to
improve their image at the global level. Nike has made many efforts to reduce its negative
environmental impacts and is focusing on sustainable innovation for leading a better future
for the world (Balasubramanian and Sundarakani, 2019). Nike has faced many criticisms and
controversies related to child labour and ethics in the supply chain; thus, effective
management of supply chain and adopting and implementing CSR activities the best way for
Nike to improve and uphold its brand position in the global market. Thus, an important role is
played by CSR and supply management in enhancing overall reputation and achieving a
positive impact on society through managing its supply chain and adopting CSR activities
that include setting a code of conduct for its suppliers and keeps only those who are
compliant with rules and regulations.
Further, as per the opinion of Bjørn Gulden, 2018, sustainability and CSR activities
are considered as the critical value of PUMA that is deeply integrated with their business
operations and guides for PUMA to work faster and more effectively towards a sustainable
and better future. The CSR activities plays a vital role in leading and creating better
environmental, human rights, health and safety and governance matters within PUMA and
also facilitates effective management of supply chain that aim at reducing harm to
environment and follow all the ethical standards associated with quality, pricing and other
aspects of material (Chandler, 2019). Besides this, CSR activities and management of supply
chain are essential for PUMA as it facilitates an increase in customer satisfaction and
competitiveness in the business environment and enables an organisation to quickly deliver
products together with a better-quality product, faster services, and lower prices. Thus, based
on the above discussion, it can be evaluated that CSR activities and supply chain
management is essential for both Nike and PUMA. As for Nike, it leads to enhancing image
at a global level and provides a base to follow all ethical aspects of supply chain whereas for
PUMA effective management of CSR led to a critical principle that had provided guidance

and directed this organisation towards achievement of sustainability and ethical growth
through leading better customers satisfaction and competitive strength.
2.4 To ascertain the benefits which Nike and Puma will get with sustainable supply Chain
The benefits that are associated with a sustainable supply chain include protection
against reputation damage, improving continuity of supply, reducing environmental impacts
and costs, creating partnerships, or global industry standards together with innovating
products and services. Besides this, a sustainable and ethical supply chain facilitates a
reduction in cost and also enhances efficiency and productivity through yielding an improved
quality and reliable supply chain network (Tokar and Swink, 2019). As per the viewpoint of
Jessica Lyons Hardcastle, 2019, the sustainable supply chain is a key that leads to trust and
commitment among the organisation, suppliers, and customers and creates a more profitable
and reliable supplier relationship that ensures timely availability of raw materials and
products. One of the vital benefits and factor that has to lead more emphasis on management
and adoption of a sustainable supply chain is associated with reducing corporate greenhouse
emissions that help in reducing adverse impacts on the environment together with the saving
of money. Besides this, a sustainable supply chain leads to an improvement in continuity of
supply, which is necessary for an organisation to have an uninterrupted and free flow of
production line to maintain its integrity and productivity. Together with this, the sustainable
supply chain has also lead to the creation of partnerships and global industry standards with
the help of a shared commitment that provide direction to industry towards the achievement
of the target of zero discharge of hazardous chemicals for protection and conservation of the
environment (Hombach and Sellhorn, 2019). Besides all these benefits, sustainable supply
chain facilitates a productive relation between suppliers and organisation that helps a
suppliers to understand a company's long term plans and vision thus; supplier can make
useful suggestion for up-gradation of product quality and other related processes that create
an improvement in operations and product and lead to accomplishment of innovation goals of
an organisation.
Further, according to the opinion of Mark Nutburn, 2019, the company's supply chain
accounts for around 80% of its total greenhouse gas emissions that creating many climatic
changes and adverse impacts on the environment. Thus, the organisation must make efforts
towards the adoption of a sustainable supply chain to address and solve various

environmental, economic, social, and other legal concerns from the overall supply chain
process and networking. With the adoption of Sustainable supply chain organisation like
Nike and PUMA can take a holistic way and approach that leads to a reduction in waste and
environmental footprints and at the same time also facilitates improvement in labourers
conditions and health and safety through conducting a check on worker exploitation (Yeoman
and Mueller Santos, 2019). Further, with adopting a sustainable supply chain, both Nike and
PUMA can reduce environmental impacts by reducing the emission of waste and increasing
the efficiency of buildings, vehicles, and machinery to have better profits and savings. It has
been seen that, with making changes in its supply chain and making modifications in
manufacturing and other processes, Nike has achieved a reduction in its labour costs by up to
50% and reduction in material usage by 20%, which has improved its profit margin by
0.25%. Apart from this improvement in continuity of supply is the most significant benefit of
sustainable supply chain for both Nike and PUMA that has led to avoidance in over-reliance
and dependency on a single link and provide an effective networking of multiple suppliers to
improve the continuity and availability of product and prevents and safeguards organisation
from costly downtime and reputation damage.
2.5 To ascertain the ways through which CSR can improve the Supply chain management
practices of Nike and Puma.
Corporate social responsibility plays a crucial role in establishing an ethical and
strategic atmosphere in the organisation for improving the earnings in long run and
shareholders trust through creating a positive public relations and high ethical standards to
reduce business and legal risk by taking responsibility for corporate actions (Stekelorum,
Laguir, and Elbaz, 2019). Thus, this ethical atmosphere also creates a better framework for
improvement in supply chain management practices, which should also follow all the
standards, principal, and ethics of supply chain management. As per the viewpoint of Ellie
Collier, 2018, corporate social responsibility facilitates an ethical and sustainable way that
makes an organisation able to effectively deal with its environmental and social impacts and
carefully consider human rights, environment, community and society in which it operates
thus, creates a framework and outline for a sustainable supply chain. Supply chain success
depends upon the information available to consumers in the scenario of of e-commerce,
therefore, appropriate CSR strategy is the key for success of company and it doesn't affects
the goodwill of company, millions of dollars in lost sales, and even penalization by watchdog
groups.

Further, according to the viewpoint of Stefan Seidel, 2018, corporate social
responsibility helps PUMA in developing and implementing a more science-based and
efficient supply chain that is totally based on the ethics and standard of supply chain
management (Khan and Yu, 2019). Besides this, CSR has also lead to development safe, fair,
legal, and humane working conditions throughout the supply chain, with workplaces where
human rights are respected, and workers’ health and safety are protected. Thus, it can be said
that CSR has improved the supply chain management of PUMA. Besides, this CSR has made
a healthy ecosystem possible at PUMA through reducing carbon emissions, electricity usage,
waste, and air pollution in their offices and supply chain thus, lead to improved supply chain
management in PUMA.
As per the viewpoint of Jill Bernstein, 2020, Nike is seeing CSR is an opportunity to
have innovative ways to achieve its objective and vision of reducing its environmental impact
by sustainable use of resources, such as materials, water, and energy through having an
improved supply chain within the organisation. For this purpose, Nike has joined hands with
many material vendors and suppliers and contract manufacturers to have a reduction in the
negative impact on the environment and to achieve the goal of zero discharge of hazardous
chemicals into the atmosphere by 2020. Nike has established a new Manufacturing Index, a
rating system to evaluate its contract manufacturers worldwide and select the ones that
conform to its sustainability efforts. It also adopted a set of codes of conduct for its suppliers
from various parts of the world to keep a connection with only those suppliers that complied
with rules and regulations and standardised set for an ethical and sustainable supply chain
(Vurro, Russo and Perrini, 2009). Thus, it has been evaluated that CSR has led to an
improvement in the supply chain management of Nike by keeping a check on carbon
emission and reducing other wasteful footprints.
2.6 CSR and ethical behaviour
As per the view point of Crane, A., Matten, D. and Spence, L. eds., 2019., ethics and
shoes are consider to be two opposite things as in wider industry context footwear sector is
marred criticised throughout environmental, human, animal and welfare categories. This is so
because in order to create footwear several organisations make use of animal skin, rubber,
plastic etc. which create more harm to the environment. On other side, number of famous
brands such as Puma, Nike, Adidas, Reebok etc. are being accused over their involvement in
child labour practices. This in turn has leads to formation of some strict norms, standards and
policies that such brands have to consider while performing their business operations.

Therefore, it become crucial for these brands to maintain ethical behaviour while performing
its business practices such as reducing the wastage, minimizing the carbon footprint for
avoiding pollution, restricting the child labour practices, adopting eco-friendly raw material
to manufacture the products.
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
The research methodology is that section of an investigation that presents the
information regarding the type of tools and techniques used for conducting a particular study.
These tools are related to the gathering of information, analysis of data, presentation of data,
etc. which further support in concluding the findings so that appropriate recommendations
can be presented (Flick, 2015). The research methodology supports in guiding and directing
the researcher towards the set of action to be taken into consideration to perform a particular
investigation adequately.
This section of research methodology provide a detailed information regarding the
number of tools and techniques that are taken into consideration for this study. This includes
information regarding Ethical considerations which involve number of ethical practices that
are being consider by researcher, Research Methods explains about kind of method used for
gathering information, Research strategy which describes about the tactics used by
investigator for collecting information and Research approach is all about techniques used for
collecting and analysing information. Hence this section represent about the methods or
techniques used for performing current study by the researcher along with representing the
reason behind selecting a particular method.
3.2 Research approach
The section of research methodology contains two parts, i.e., data collection and data
analysis, which form up a significant portion of an investigation (Gioia, Corley and Hamilton,
2013). The data collection within a study is performed in two types, such as qualitative and
quantitative. From them, the qualitative investigation work toward the presentation of
information by considering theories and models to develop understanding. But the
quantitative investigation involves the collection of data that consists of numerical facts and
figures about a particular event or situation. In this investigation, the qualitative method will
be considered as it helps in gathering and presenting the more significant amount of data by

making use of a theoretical framework that contains detail description of theories and
concepts (Turker and Altuntas, 2014).
On the other side, the data analysis technique is of two types, such as inductive or
deductive. Among them, the inductive approach puts more emphasis on the observations and
theories for developing understanding about the study (Green, Camilli and Elmore, 2012). On
the other hand, the deductive approach focuses on developing a hypothesis based on existing
theory and then forming a strategy to test that hypothesis. Conducting this research, the
inductive approach will be taken into consideration as it is more suitable for the qualitative
approach and helps in presenting the information in a more detailed manner.
Inductive approach is suitable at looking at the Importance of CSR in shaping supply
management. The aim of the research is to generate and develop the theory surround the topic
not prove a set hypothesis.
3.3. Research strategy
This section contains information regarding the method or approach that is adopted by the
researcher in order to collect information about the current area of research and answer
research questions (Kumar, 2019). To conduct a research, several strategies can be taken into
consideration, such as magazines, articles, books, journals, etc. For this dissertation, critical
evaluation of online article strategy will be taken into account that supports in gathering the
more substantial amount of data in less possible time so that more meaningful data can be
presented in this dissertation. Case studies and newspaper articles
3.4 Research Methods
It refers to the type of method that is taken into consideration to gather information regarding
the current topic of concern. The research methods are of two types, such as primary and
secondary. Among these, the primary data collection method is referred to as one where the
information gathered is totally new and not yet been collected by any person before
(Mackenzie, Tan, Hoverman, and Baldwin, 2012). The primary data is gathered from sources
like questionnaires, interviews, surveys, focused groups, etc. On the other hand, the
secondary data collection method is one where the information is gathered through several
sources where the information related to the current topic of study is already presented or
published by some other person previously and now support in developing understanding.
The secondary data is mainly gathered through books, journals, articles, online publications,
etc.

To conduct this research, secondary research method will be taken into consideration
where the information will be gathered through several online sources by conducting a
literature review (Gereffi and Lee, 2016). In this, the viewpoint of several authors will be
critically evaluated to develop an understanding regarding the particular study area. The
secondary data will be addressing all the CSR activities which are being undertaken by Nike
and PUMA for ensuring that their supply chain practices are ethical. Also, the secondary data
is detailing the conditions which are faced by these organisations in context of their CSR and
it connection with the issues faced by the company. This method of research was chosen due
to primary research not being suitable for this type of research. The secondary data would be
collected from secondary websites such as Google Scholar, newspaper articles/reports, annual
reports, websites of the companies that are being used to research the case study (Nike and
PUMA) and databases such as market reports which are available for the general public
without charges.
3.5 Ethical considerations
Ethics is considered as a core factor for the success of an investigation, which requires an
investigator to follow all the ethical guidelines within each and every step of the research.
The current research is based on secondary sources where the information is gathered through
sources where the information is already being presented by some other person (Mackey and
Gass, 2015). So, while presenting this information, there are certain ethical issues that are
faced by a researcher, which includes unauthenticated and outdated information available
within the previous studies. Hence for performing the research activities in an effective
manner, it is crucial for an investigator to follow every ethical implication or consideration.
Thus, while conducting the subsequent investigation, researcher must consider some ethics
while collecting and presenting the data. This includes data must be rechecked and redefined
when submitting the information within the investigation so that not any kind of obsolete and
false data remain that can mislead the people in term of information presented. In addition to
this, there are some other types of ethical practices that must be considered by the researcher
to avoid any sort of ethical issues (Quinlan and et al., 2019). These include information that
must be gathered from the authenticated sources so that the most accurate as well as reliable
information can be presented excellently.
3.6 Limitations

The current research report involve several limitation such as time and cost provided
for the study was limited which restrict researcher to adopt only few of the methods for
conducting study. On the other side, the current study involve secondary information only
and not the primary one which make it quite difficult to present latest changes that get
anticipated by both the brands.
CHAPTER 4: DATA ANALYSIS
4.1 Introduction
The data analysis is the process of transforming, cleaning, and modelling the gathered
data for discovering essential information, which is crucial for the completion of the project.
The current research will be performed based on secondary data, where the data analysis
done by making use of thematic analysis. Under this section the information regarding the
Nike and Puma will be represented under small themes to make it more explanatory or
setting up the direction for reader. This will support in determining the current CSR practices
that are being performed by both of the footwear brands.
4.2 CSR and sustainability in the sportwear industry with backward referencing to sources
used in literature review.
The sportwear industry work toward manufacturing and supplying such wearable
accessories which can avoid any kind harm to the person involve in certain type of sports. As
a result of which they are required to involve certain kind of raw materials which is rough or
tough and at the same time it remain more flexible to the body. Hence for this companies has
to use such raw material like rubber, Polyester, plastic etc. in order to make light-weight, long
lasting and breathable wears so that it can compliment the sports activities of an individual.
Hence it get more difficult for the Sportswear brand to maintain the CSR practices in more
efficient manner. But on the same time majority of organisations are now started using eco-
friendly material to offer their products that involve less wastage and harm to the
environment which support them in achieving sustainability within the society. On the other
side, CSR can be performed within the organisation by providing better working environment
to employees by avoiding child labour, providing equal opportunity, fair compensation etc. in
order to achieve sustainability. This is so because the promotional activities started from

within the organisation as when employees remain satisfied then they prefer to perform word
of mouth publicity that support in creating positive image in front of society.
4.3 How Nike incorporates CSR in its supply chain
Nike has long story of success which t incorporated by started performing its
operations in several different countries specially in Asian region as they get labour at
cheaper rate. This supported it in expanding its presence at global level by strengthening its
foundation in countries that help in manufacturing the products at cheaper rate and distribute
it in cost efficient manner (The street, 2020). In the year 1988, the CEO of Nike named Phil
knight made a promise to bring changes to its operations and focus on formulating and
enforcing new policies. In the year 2005, Nike became the first company within the business
to bring clearness when it comes to present the list of contract factories. Additionally, it also
published detail about pay scales as well as working premises are acknowledging about
continuing difficulty. In continuing to this work, Nike also innovates its material
development as well as management for addressing the influence of climate changes over the
supply chain as well as its environmental consequence. One segment of compactness was
water conservation. In the year 2012, Nike went in partnership with the DyeCoo Textile
system, a Dutch start-up where the company has adopted a new carbon-based dyeing process
where the garment's dye automatically without using any water and chemicals. This
procedure, in turn, also reduces 60 percent of energy consumption as the garments are not
required to dry. Additionally, it dyes 40 percent faster, which benefits the company and, at
the same time, also divert the direction of organisational operation toward the welfare of
society and the environment.
The saving of water is crucial as previously, the process of dying requires around 25
to 40 gallons of water for every 2 pounds of textiles. Until this process got narrowed by the
textile plant of Nike, it mainly used 3 billion gallon water a year. But in 2013, Nike
introduced its first water-free dyeing facility within its supply chain at a Taiwanese contract
maker and unveiled about the name of sustainable innovation Colour Dry in order to
highlight the environmental benefit and intense colouring achieved with the technology. This
was mainly performed in order to eliminate hazardous chemicals from its global supply

chain. Hence it can be said that with Nike, there remains no finish line when it comes to the
best solution for athletes, businesses, as well as the planet. This company is attached to
sustainable innovations , the exploration of advanced innovation such as Colour Dry
continues to remain a part of Nike's effort for reducing the dependency over constraints
natural resources. This, in turn, contributed towards enhancing the quality of operations from
the perspective of the environment as well as social benefit which means set of activities are
introduced within the supply chain practices in order to improve the performance while
keeping the harmful things away from the operations performed by third-party organisations
so that Nike present its contribution toward environmental safety.
4.4 How Puma incorporate CSR in their supply chain
Puma started incorporating the CSR practices from years before and in year 2010 it is
being awarded with “Best Corporate Social Responsibility Award” as it put more emphasis
toward creating a world which remain more safe, creative and peaceful. This become possible
due to its effort toward minimizing the negative impact of the operations it perform over the
environment in order to achieve sustainability in marketplace (Entrepreneurs in the Shoe
Industry, 2020). Sustainability is considered as the critical value of Puma as it deeply gets
integrated within the business operation of the company. It guides the organisation to perform
its services in a faster way towards a more sustainable future. It is mainly heard that supply
chain finance that develop favourable situations for buyers and suppliers both. But companies
like Puma identifies how to apply supply chain management and forced it to gain social
changes while serving the suppliers to betterment in their environmental sustainability
performance and work towards raising the working condition. In the year 2016, Nike started
working over the SCF program, where the finance rates were offered to the suppliers for
getting linked with sustainability as well as ethical practices. This was accomplished with the
aim that keeping the best supplier is to ensure that they perform environmentally friendly
practices and take their responsibility seriously by offering fair wages.
Through this, Puma started working over a platform called GT Nexus, which is used to
connect all its parties, including suppliers and third parties, so that they get involved in CSR
practices of the company. In addition to this, the suppliers are rewarded by putting their
efforts towards the performance of CSR activities and improving the operations performed by
the suppliers toward the welfare of society as well as the environment.
4.5 DISCUSSION

Based on the above performed study over Nike and Puma, both contribute a lot in
order to improve their CSR practices while performing supply chain management practices.
From study it can be evaluated that CSR is being evaluated to divert the attention of
organisation towards their responsibility of meeting the expectation and desires of all
stakeholders that includes all shareholders, customers, suppliers, and whole society together
with maintaining a healthy and positive atmosphere and reducing negative impacts on
environment. The main reason behind the judgement of CSR is the bending of customers and
society preference towards the organisations that are more concerned and alert of the social
and ethical issues prevailing in the business environment. This has created pressure on
organisations, mainly those who operate at a global level, to fulfil their CSR activities and
reduce negative applying their business operations on overall society and environment (Gaur
and Vazquez-Brust, 2019). Besides this, various important roles are played by CSR activities
and supply chain management that includes the creation of a better image and enhancement
of the reputation of Nike and PUMA. It's been discovered that Nike is involved in many
issues and controversies related with child labour, low wage rate and also based on its
product quality, thus, use and implication of CSR has provided an enhanced way for Nike to
improve its image and lead to a better position at the global market. PUMA has also achieved
a better competitive strength and direction for sustainable growth.
Apart from this it has been also interpreted from this research work that sustainable
supply chain also ascertains many benefits for Nike and Puma that includes regular
availability of resource and an effective supply chain networking which ensures smooth and
uninterrupted flow of business operations and production for both the organisation. Apart
from this, it has been seen that a sustainable supply chain leads to a reduction in negative
impacts on the environment through reducing and keeping a check on carbon emission in the
supply chain process (Yamoah, 2019). Apart from all these, the sustainable supply chain has
helped Nike and Puma in building and creating a better reputation and also provide the
opportunity to expand their business at some new or different location by providing a better
and more effective network of suppliers. It has also been analysed from this research report
that CSR ascertain many ways through which the supply chain management of organisations
like Puma and Nike can be improved. It includes the creation of an ethical and more strategic
workplace environment that facilitates the meeting of standards of ethical and sustainable
supply chain thus, lead to improvement and enhancement in the efficiency of the supply
chain of Nike and Puma.

CSR has evolving continuously and its practices are taking place in Supply chain
management system, which includes, suppliers, customers and logistics provider (Maloni and
Brown 20016). The criticism of NGO and consumers about the sportswear apparels
companies like Puma and Nike of their supply chain management systems and activities. It
made the whole industry to make changes and take more accurate CSR actions in their supply
chain management and ensure there are extensive supplier labour codes (Emmelhainz and
Adams, 1999).
CHAPTER 5: CRITICAL ANALYSIS DISCUSSION AND CONCLUSION
5.1 Conclusion
From the conducted research, it has been concluded for supply chain management
plays a crucial role in the growth and performance of an organisation. This is because
effective supply chain management helps in ensuring that there is a smooth flow of products
or services from the point of origin to its consumption within the period which is assigned to
them. But as the competition is increasing and people are getting more aware of eco-friendly
operations performed by an organisation. Which as a result, they are getting attracted to the
organisations which get involved in such activities that lead to social as well as
environmental benefits and avoid the actions that directly affect the environment. Therefore,
it becomes very crucial for every organisation to get involved within the practices related to
Corporate Social Responsibility within supply chain management. This is so because the
majority of issues that harm the environment are being performed at the supply chain process
as such practices involve maximum wastage, the supply of harmful material like rubber,
plastic, etc. while manufacturing of footwear. These materials do not dispose quickly and
harm the environment as well as a human being while it gets placed under the earth, or it gets
burned by the people. Therefore, by performing the CSR practices within the operations
performed throughout supply chain management as it not only helps in creating a positive
brand image in front of the target market but also contributes toward reducing the cost of the
company.
The application of CSR to the supply chain has allowed Nike and PUMA to be ethical.
5.2 RECOMMENDATION
By conducting this research, it has been found that Corporate social responsibility plays a
significant function within the development of brand image in the marketplace. Therefore,
Puma and Nike must try to involve the practices related to CSR so that they can earn the trust
and confidence of their clients in the market. So, it is recommended that,

 Nike and Puma should both try to reduce the wastage that mainly gets generated due
to stock, which remains within warehouses for longer duration and then get damaged.
Therefore, it is recommended that both the organisation must try to produce their
product or services as per the order that gets placed by the retailers so that wastage
can be minimized.
 Both the organisations must focus on adopting the recycling practices at their
manufacturing sites where the waste, as well as defective pieces, can be used to
produce new products despite despising it under the ground or burning it. This will
not only help in reducing the cost of the company but also assist in developing a
positive brand image in front of the targeted customers.
 Both organisations must focus on involving the supply chain partners within the
practices related to corporate social responsibility. It must focus on having regular
interaction with the suppliers and other partners so that consistent information can be
gathered regarding the efforts that the channel partners are performing for performing
eco-friendly practices. The regular feedback from the suppliers as well as having a
monthly report of their end operations it becomes easier for both the organisation to
determine that the area where it requires improvement in the supply chain so that most
favourable practices can be performed that contribute toward the Corporate social
responsibility related practices.
 Nike and Puma should add more detailed information in their reports about the costs
of implementing and executing CSR activities in supply chain and its results
reflecting CSR impacts on the finances.
5.4 LIMITATIONS
There are several limitations as well as issues that were faced by the researcher, the first
and foremost is the focus of it is only on the significance of CSR actions which are related to
supply chain management of the sportswear apparel industry. The scope of research could
have been wider and in worked upon the importance of CSR over entire supply chain
management.

Other significant issue is vast confusion regarding authenticity, as well as the accuracy of the
data available to the researcher. This is so because there is lots of information available on
this topic, all of which was looking important from the perceptive of study.
The most of the collected information for the research came from the sustainability reports
which were found on the websites of Nike and PUMA, which implies the information is
likely to be biased. Lastly, the unavailability of primary data the investigation limits the
research for current data relevant information

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