Nike's Corporate Social Responsibility: Strategy, Problems, Solutions

This essay provides an overview of Nike's Corporate Social Responsibility (CSR) initiatives, highlighting its commitment to reducing carbon footprint, innovative manufacturing, consumer engagement, sustainable materials, closed-loop products, renewable energy, and diverse workplaces. It identifies strategic problems, particularly inventory management and market penetration in developing nations, suggesting that Nike primarily targets higher-income groups, limiting its reach among the lower-middle class in countries like India, Sri Lanka, and Kenya. The proposed solution involves increasing investment in research and development and product development teams to create innovative, cost-effective production methods while maintaining Nike's quality standards. The essay references academic sources to support its analysis and recommendations.

Nike

Contents
Introduction......................................................................................................................................2
Nike - Corporate Social Responsibility...........................................................................................2
Problems in Strategy........................................................................................................................2
Solution to the Problem...................................................................................................................2
References........................................................................................................................................3

Introduction
Corporate Social Responsibility refers to self-regulations policies that are used by private
businesses. Voluntary at one point of time, it has now become more of a compulsory regulation
on which the reputation of the brand rests.
Nike - Corporate Social Responsibility
The CSR of Nike could be highlighted below:
 Carbon footprint is to be reduced. Nike has committed to it.
 Manufacturing in an innovative way.
 Making voice of the consumers the base of every operation within the company
 Researching and developing on more sustainable materials.
 Going for products that have close loop.
 Shifting to renewable energy.
 Encouraging workplace that is diverse and all cultural inclusive (Korpi, 2018).
Problems in Strategy
If we are to discuss the past issue that Nike has faced, then definitely it is inventory management.
At present, observing as the consumers, one can say that Nike has been able to penetrate the
markets of developing nations but the consumers that it is targeting are mainly the higher income
group. In developed nations the brand may be pocket friendly to all classes, but the scenarios
change once the economy is different.
Inability to produce for consumers who belong to lower middle class in nations like India, Sri
Lanka and Kenya may be keeping the company from getting mass appreciation which is going to
add to the CSR of Nike (Athukorala and Ekanayake, 2018).
Solution to the Problem
The solution to this problem is to have more employees in the research &development team and
product development team so that they can get into innovative methods of production with lower
cost yet maintain the quality trademark of Nike.

References
Korpi, A.E., 2018. The effectiveness of corporate social responsibility initiatives to promote
labour and human rights in the global supply chains. A case study of effectiveness of Nike's CSR
initiatives and actions.
Athukorala, P.C. and Ekanayake, R., 2018. Repositioning in the global apparel value chain in the
post‐MFA era: Strategic issues and evidence from Sri Lanka. Development Policy Review, 36,
pp.O247-O269.