An Analysis of Nike's Sustainable Practices in Business Ethics

This report provides an overview of Nike's sustainable practices, focusing on their commitment to environmental responsibility and ethical business conduct. It identifies key sustainable practices, such as innovations in product design and manufacturing, including the use of recycled materials like the Nike Vapor Uniforms. The report assesses the value of these innovations, highlighting how they contribute to customer satisfaction and competitive advantage. It also examines how Nike measures the impact of its sustainability initiatives, demonstrating the positive effects on revenue and operating performance. Furthermore, the report discusses Nike's future prospects, emphasizing its goals to minimize its environmental footprint through waste management, reduced water usage, and the use of sustainable materials. Overall, the report showcases Nike's dedication to building a sustainable future through innovative practices and ethical considerations.

Running head: BUSINESS ETHICS AND SUSTAINABILITY
Business Ethics and Sustainability
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BUSINESS ETHICS AND SUSTAINABILITY
Table of Contents
Identification of the Sustainable Practices of Nike..........................................................................2
Value Assessment for the Innovations at Nike................................................................................2
Measurement of Values...................................................................................................................3
Future Prospects...............................................................................................................................3
References........................................................................................................................................4

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Identification of the Sustainable Practices of Nike
Sustainable innovation is conceptualized as the catalyst for driving the revolutionary
method of business practices. Nike is fostering the culture of intervention by offering innovative
product and services. The company focuses on the issues related with the energy, water and
waste, and chemistry (Sadachar & Einollahi, 2017). Therefore, Nike is concentrating on
minimising the environmental footprint by bringing innovations in the products. For instance, in
order to develop the sustainable business practices, Nike federation introduced the latest
sustainable performance solutions by launching the Nike Vapor Uniforms with the Aero Swift
Technology (Nike.com, 2018). The uniform is especially designed to reduce the distractions by
maximizing supports for sweat management thermoregulations, movement, and breathability.
The recycled polyester is used for making this uniform. World’s leading clubs have also been
wearing such Aero Swift technologies during the summer heat.
Value Assessment for the Innovations at Nike
The current world is continuously changing in keeping pace with the advancements in the
technological ground. The operational process of Nike is always inclined towards adopting more
advancement in the technical fields. In fact, the company is focusing on developing more
sustainability by offering innovative products, which are quite demanding in this sophisticated
world (Müller-Stewens et al., 2017). The athletes all across the world prefer the brand quality
offered by Nike. The business innovations thus create more values for the target customers and
secure the competitive edge for the sustainable future.

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Measurement of Values
The sustainable report of Nike indicates that such product innovations brought to the
customers by Nike is increasing the revenues. It has been observed that the operating
performance of Nike-US is relatively good when it is compared to its peers (Childs & Jin, 2018).
Even though the market does not expect higher growth in earning, but the high rates of return is
quite expected. The innovations brought to the products estimate the high profit margin while
operating with turns of median asset (Sadachar & Einollahi, 2017). It is even expected that the
higher rate of capital investment would ensure the growth with the innovative technologies
introduced to the consumers. With the help of the innovative materials helped Nike to reduce
almost 18% per unit in apparel materials and almost 43% per unit in footwear manufacturing
process (Nike.com, 2018).
Future Prospects
The major motto of the company is to develop the sustainable future by addressing the
environmental issues related to the waste management, energy, and chemistry. Müller-Stewens et
al., (2017) observed that minimising the carbon footprint can develop the sustainable future and
eliminate the issues with the environmental degradation. Nike thus concentrates on minimising
the waste emitted from the manufacturing process. The company has already converted 54
million pound scraps into premium materials. In fact, the company is also focusing on the future
sustainable development by reducing the water use (Sadachar & Einollahi, 2017). The innovative
products offered to the consumers help in achieving such future goals and develop the
sustainable position for the company in upcoming years.

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References
Childs, M., & Jin, B. (2018). Nike: An Innovation Journey. In Product Innovation in the Global
Fashion Industry (pp. 79-111). Palgrave Pivot, New York.
Müller-Stewens, J., Schlager, T., Häubl, G., & Herrmann, A. (2017). Gamified information
presentation and consumer adoption of product innovations. Journal of Marketing, 81(2),
8-24.
Nike.com, (2018). BRING INSPIRATION AND INNOVATION TO EVERY ATHLETE* IN THE
WORLD *IF YOU HAVE A BODY, YOU ARE AN ATHLETE.. Available from
https://news.nike.com/news/at-nike-cr-sustainable-business-innovation Accessed on 4
April 2018.
Sadachar, A., & Einollahi, S. (2017). Application of GAPS Model to Improve Textile and
Apparel Industry's Sustainable Practices.