Accounting Assignment: Nike's CSR, Environmental Policies & Finance

This report examines Nike's corporate social responsibility (CSR) initiatives, focusing on the environmental challenges the company faces as a manufacturer of sports and active wear. It details the policies Nike has formulated to mitigate these environmental issues, such as reducing waste in product design (e.g., NIKE Free RN Flyknit shoe), committing to 100% renewable energy sources by 2025, and reusing water in production to reduce wastage. The report also mentions Nike's adoption of the AFIRM Group Restricted Substance List (RSL) to manage chemical usage. The analysis is supported by references to Nike's sustainability report, highlighting the company's efforts to integrate sustainability into its overall business strategy. Desklib provides access to this assignment and many other resources for students.

Accounting
Assignment

Corporate Finance
Prepared By
Student Name:
Date: 18th January,2018
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Table of Contents
Introduction................................................................................................................ 2
Environmental issues faced by the company.............................................................4
Policy formulated by the company to mitigate the environmental Issues faced-.......4
References..................................................................................................................... 6
Introduction
Nike is an American company that is popularly known for its design development
and manufacturing in sports and active wear, the company has been in operations
since a long time and there has been major growth in the overall CSR activities that
the company has indulged in over the years. The company was founded in 1964
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and has been one of the few companies to include sustainability as a vision in their
overall agenda for the company and the society in which they are operating. CSR
aims to make sure that the companies operate their business in such a way that it is
ethical, and the companies should take in consideration the needs of the society in
which the company exists. The authorities have made is mandatory that listed
companies should spend 2% of their total income for CSR activities and should
report the same in their annual report. In case the company fails then the
management of the company can have held them responsible for compliance issues
and thus nowadays all the companies are indulging in such activities which are
sustainable (Charles H, et al., 2015). The main aim of the company is that there is a
reduction in the overall levels of pollution so that people can have a healthy life
which the company aims to vouch for, through its products and services. This
thought is also reflected in the overall purpose of the company with regards to
sustainability that is mentioned in its annual report. In case of Nike also the
company has done the same and have also made all the relevant disclosures in
their sustainability report. An abstract from the sustainability report of the company
has been given below-
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Environmental issues faced by the company
 Nike is a manufacturing company that indulges in manufacturing of shoes
and other products that might lead to a lot of wastage degrading the
environment.
 Manufacturing also leads to wastage of water and energy emission is also
huge, and that is one of the major concerns for the company (Boghossian,
2017).
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Policy formulated by the company to mitigate the
environmental Issues faced-
 The company has made changes to its products to reduce the overall
wastage, such as the NIKE Free RN Flyknit shoe reduces waste by 60 percent.
 The company has signed purchase agreements in North America, that will
help them in making use of 100% renewable sources of energy, the company
aims to be operated by using only renewable energy by the end of 2025.
 The company is trying to reuse the water for production that will help in
reducing the wastage to more than 40 percent. The suppliers who are
operating in areas in which the overall water scarcity is high, the company is
planning to shift the same and mitigate the same (Coate & Mitschow, 2017).
 The company has also adopted AFIRM Group Restricted Substance List (RSL),
that states the chemical limits that is based on the overall best practices that
the company should adopt.
A screenshot from the sustainability report has been attached below-\
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References
Boghossian, P., 2017. The Socratic method, defeasibility, and doxastic
responsibility. Educational Philosophy and Theory, 50(3), pp. 244-253.
Charles H, C., Giovanna, M., Dennis M, P. & Robin W, R., 2015. CSR disclosure: the
more things change…?. Accounting, Auditing & Accountability Journal, 28(1), pp. 14-
35.
Coate, C. & Mitschow, M., 2017. Luca Pacioli and the Role of Accounting and
Business: Early Lessons in Social Responsibility. s.l.:s.n.
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