Nike Inc Sydney Business Sustainability Analysis

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Nike Inc Sydney Business Sustainability
Analysis
Introduction
Business sustainability has become part of businesses today. Businesses are part of the society
and their activities have impact to all stakeholders and the environment. The old business
objective of maximizing shareholders’ wealth by making profits is outdated and businesses have
to take responsibilities for their actions (Willard, and Hitchcock, 2009). Sustainability is the
process of meeting current needs without compromising the future generations’ needs (Larson,
and York, 2017). Business sustainability involve to corporate achieving balance between
economic, social and environmental factors (Dauvergne, and Lister, 2012). Corporate
sustainability enables businesses to attain competitive advantage and business growth in the long
term. Companies integrate sustainability strategies in the company strategic plan, practices, or
policies that change how things are do ensuring benefits to all stakeholders and environmental
conservation. The following report analysis business sustainability of Nike Inc in Sydney. This
will involve analyzing the company vision and mission statement, sustainability reporting, and
indicators of strategic sustainability.
Company Information
Nike Inc Sydney is a subsidiary of the parent American Multinational Corporation and deals with
manufacturing, design development, and marketing and sales of apperal, accessories, and
footwear. Nike is the world largest manufacturer and supplier of sports equipments, athletics
shoes, and apparels (Larson, and York, 2017). The Company was founded in 1964 by Bill
Bowerman and phillip Knight. Nike Inc is headquartered in Beaverton, Orgeni in America. The
company is led by Mark Parker as the CEO while Phillip Knight as the Chairman Emeritus. The
company has grown over the years to employ more than 44000 employees and operate in more
and 190 countries around the globe. The Company recorded US $ 34.4 billion in 2017 financial
year (Larson, and York, 2017).

Research Questions
1. Is there evidence of sustainability in Nike Inc mission statement?
2. What is the form of Nike Inc sustainability reporting?
3. What are the indicators of sustainability in Nike Inc?
Nike Mission
The Nike mission is “bringing inspirations and innovation to every athlete in the world”. The
company mission is accompanied by a saying “if you have a body, you are an athlete”. The
mission statement captures the main purpose of the company existence that is to serve athletes
around the globe and projects the future that the company wants to design future sport. Nike Inc
outlines in the mission statement that it committed to elevating human potential through
innovation and obsess the needs of world best athletes. The company takes big risks to pursue
development of most fit, beautiful, and useful athletes’ products that sets new standards. The
company is 100% committed to using renewable energy in all its facilities. The company also
outlines it culture where all employees are explorers. The company invest in it employees in
order to inspire new ideas, products, and methods that will drive the future in sporting industry.
The Nike Inc mission statement has incorporated sustainability that positions the company for
attain a competitive advantage. First there is evidence of the company using 100% renewable
energy in all its facilities for manufacturing and office use. This ensures that the company uses
clean energy that conserves the environment compared to use of condensed source of energy to
emit carbon to the atmosphere and increases water temperature. Usage of renewable energy
fulfills the company current needs of energy without compromising the environmental ability to
meet future generation need. This sustainable activity makes the company “likable” that attract
more customers and increase customers’ loyalty increasing the company long term profits.
Secondly, the Nike Inc invests in employees to inspire them to pursue the company vision.
Investing in employees improves their skills and ability to perform better in the workplace
(Kaplan, and Montiel, 2016). The company is then able to equip and retain highly skilled
personnel who are efficient. The Nike Inc is therefore able to lower its production cost while
producing high quality products that increase it profit margin.

Nike Inc has sustainable compliance standards that are used by the company to attain
sustainability. The compliance standards are mainly catalyst the company use to change the way
it does business by integrating them across the business processes, products, and policies
(Larson, and York, 2017). First, the company compliance standard is minimizing environmental
footprint. This standard focuses on energy, chemistry, waste and water use. It enables the
company indentify strategies to use less energy, minimize water and chemicals usage while
recycling waste. The second compliance standard is transforming manufacturing. The standard
enables the company to make products using sustainable labor and new technology innovation.
This standard ensures the company invests in highly skilled and valued employees to support the
company mission. Another compliance standard for Nike Inc is unleashing human potential. This
standard encourages every person in the company to reach their full potential. This standard is
meant to bring inspiration to employees and meet the company mission of innovating solutions
to benefits athletes.
Nike Inc Sustainability Reporting
Nike Inc uses integrated sustainable reporting. The company uses integrated report that explains
shareholders how the company creates value in the long run. The report combines qualitative and
quantitative information that have six capitals; manufacture, human, financial, nature, social, and
relationship. The integrated report detail a strong progress that the company makes against its
social and environmental targets and set low carbon emission as part of growth strategy. Nike Inc
aims to double its operations while halving environmental impact. The report combines
minimization of environmental footprint, transformation of the manufacturing and human capital
potential in creating company’s value over time.
Integrated sustainable reporting is the best form of report for Nike Inc. Integrated reporting is
detailed and enables stakeholders to understand how the company is creating value overtime
(Gao, and Bansal, 2013). First, integrated reporting is best to Nike Inc because it enables the
company to be accountable and responsible of it operations. The report outlines what the
company has to achieve and the objectives to be met in a specified period of time. The company
keeps track of their performance in terms of environment conservation and other stakeholders
that indicate company’s effort in being a sustainable business (Lueg, Pedersen, and Clemmensen,
2015). Another reason that integrated sustainable reporting is best for Nike Inc is that it drives

strategies for sustainable business. Integrated reporting show the effectiveness of the current
sustainability strategies to offer recommend on suitable strategies to enhance sustainability
(Zokaei et al., 2016). The management is able to see which strategies are working and the ones
that are not working and make changes accordingly to attain corporate sustainability. Therefore,
integrated sustainability reporting is the best for Nike Inc.
Nike Indicators of Strategic Sustainability
Several indicators of strategic sustainability can be identified in Nike Inc. The first indicator of
strategic sustainability is integrated reporting. Nike Inc has fully adopted integrated reporting
where it combines both qualitative and quantitative details of the company. The integrated report
contains strategies of reducing environmental footprint, transforming manufacturing and
unleashing human potential. The report is therefore comprehensive to report on all company’s
stakeholders and environmental conservation. For instance, the Nike sustainable business report
in 2014- 2015 financial year detailed all company information on sustainability outlining
strategies, policies, and objectives to be met. Secondly, Nike has launched a circular economy
that it targets to fully implement by year 2010. This will change the Nike business model from
linear to a circular business model. Circular model indicate that Nike Inc will have a closed loop
products that will allow reuse hence reducing waste (Schaltegger, and Wagner, 2017). The
Company has already started recycling it waste that is used back in the production system.
Thirdly, Nike has enhanced its supply chain sustainability. The company invests in ensuring it
suppliers meet generally accepted standard and practices. Sustainable supply chain ensures the
company responsibility sources it raw materials and can evaluate it supply chain (Willard, 2012).
Another sustainability indicator in Nike Inc is disruption of green technology. The company uses
100% renewable energy in it factories with an objective of conserving the environment. Lastly,
Nike Inc has a net positive impact to all it stakeholders. Nike is creating positive impact by
engaging consumers, equipping adolescent girls, expanding access to sports and empowering
employees to give back to their communities. Therefore, Nike Inc has sustainability strategic
indicators that will eventually transform the company to sustain organization.

Conclusion
From the analysis of the report, Nike Inc Sydney is a subsidiary company to parent Nike Inc
headquartered in USA. Nike Inc mission statement is bringing inspirations and innovating to
every athlete. The mission statement has evidence of sustainability in it positioning and it
indicate that the company is committed to use green energy and empower employees. Nike Inc
has integrated reporting that enable a detailed qualitative and quantitative reporting for the
company strategies and activities for a specific time. Nike Inc also has indicators of strategic
sustainability that include integrated reporting, use of green energy, circular economy and a
positive impact to the society. Therefore it can be concluded that business sustainability require
businesses to change their business model and formulate sustainable strategies that increase the
company value in the long term.

References
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Larson, A. and York, J., (2017). Nike: Moving Down the Sustainability Track Through Chemical
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Zokaei, K., Lovins, H., Wood, A. and Hines, P., (2016). Creating a lean and green business
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