4.2CSR Impact

Similarly, business ethics refers to a moral philosophy that involves the differentiation between right and wrong and consequently taking decisions and acting for the greater good of the stakeholders and society.(Weiss, 2014). In the context of Nike, the primary stakeholders include their employees, suppliers, factory owners. Engaging with the factory owners, Nike has been undertaking annual training events, supplier engagement events to share information on sustainability policies, labour law best practices along with annual training to those directly involved the supply chain management. (eg: Community events in Thailand and Malaysia addressing migrant worker management and risks of forced labour respectively.) Nike has also been prioritizing the wellbeing of factory workers and engaging with them to understand their needs and improve performance. Steps such as uplifting the culture of health and safety, elimination of excessive overtime and sharing the gains from productivity to the factory workers ensures an engaged workforce. Nike had implemented a Manufacturing Index in 2012, which is a scoring system for the supplier factories based on sustainability and labour practices along with metrics such as quality, cost and on time delivery. These have been targeted to deliver improvement in factory workers wellbeing and unplanned absenteeism. (Nike. Inc, 2019c)

4.2 CSR Impact

Urip describes CSR as a practice through which an organization serves not only the best interests of itself but also caters to the wider community by creating bigger opportunities. This would fuel the company’s long term success along with benefit for the wider society.(Urip, 2010) CSR programs provide substantial growth opportunities, when these principles are embraced fully. Nike has been on the forefront CSR projects which are covered in its “Unleash Human Potential” sphere of issues. Some of the community impact programs undertaken include conducting Kids events from ages 7-12 to get active, coaching close to 100,000 community coaches to improve coaching experiences for kids. Nike also encourages majority of the employees to engage in activities supporting the local community, with donations of $9.8m and more than 147,000 hours volunteering hours contributed by the employees in the FY 2019. Nike has also invested $ 417m on various programs that impact the community.(Nike. Inc, 2019c)