Strategic Alternatives Available to the Organization

Strategic Alternatives Available to the Organization

First, we want Nike to play a role in effecting positive, systemic change in working conditions within our industries. If our efforts lead to a workplace oasis -- one solitary and shining example in a desert of poor conditions -- then we’ve not succeeded. Even if that single shining example were to exist (and we’re not claiming it does), we’ve learned that positive changes won’t last unless the landscape changes. Our challenge is to work with the industry and our contract manufacturers to collectively address these systemic non-compliance issues that our data so highlight. This is one of the key reasons we made the decision to disclose our supply base; we believe this could encourage other companies to do the same. Our belief is that in disclosing, the industry will find ways to better share knowledge and learnings. This, in turn, will facilitate the building of further partnership approaches that are built on best practice and gradually lead us to standard codes, standard approaches to monitoring, standard reporting and standard parameters for transparency. It’s our belief that for market forces to enable responsible competitiveness, consumers must be able to reward brands and suppliers using fact-based information. Compliance efforts need to be optimized, made affordable and demonstrate real return if better working conditions are to become widespread. Disclosure of our supply chain is done in an effort to jump-start disclosure and collaboration throughout the industry and support efforts towards that final goal of market forces, providing the tipping point for the mainstreaming of best practice.

Second, we want to create innovative and sustainable products. We live to innovate -- it’s who we are. When our corporate responsibility initiatives begin leading us to new product development, it brings a new energy to our efforts. Whole divisions in our company open up to the prospects. Eyebrows are raised. There are results already: We’re finding ways to eliminate the toxic chemicals commonly used in making products and materials and teams are creating business models for generating revenue from ground-up old shoes; designers are developing products made of recycled polyester or organic cotton.

Third, we believe young people should have the right to sport and physical activity. For us, this is deeply intuitive. We see real value in physical fitness, and can see its direct impact on mental and physical health. We see value in competition and in teamwork; the lessons gained on fields of play, the ones gained alongside trusted teammates, apply at work. We see value in the hard physical work of those sports that require us to surprise ourselves with new sources of energy and stamina. Sport matters to us, for all sorts of reasons, not the least of which is pure joy. Our efforts to engage young people in sport and physical activity has pushed us in new directions and has helped us see sport as a tool for positive social change. It can be a method of breaking down cultural barriers, or bringing people together on the proverbial level playing field.

Pros and Cons of these Alternatives

See above –

We believe that a strong corporate responsibility effort will be good for business. It helps us deliver value to our five core stakeholder groups: consumers, shareholders, business partners, employees and the community. It will help us build our capacity to achieve supply chain excellence, deliver superior and innovative products and deepen our relationship with consumers. It’s why our sourcing managers are beginning to bring corporate responsibility data into their decisions about which factories merit an increase, or a decrease, in production orders; it’s also why our corporate responsibility staff is spending time identifying future risks and opportunities for the company and why they are calculating the return on our social and environmental investments. We understand that a well-managed company must reflect the society in which it operates, and it is through these social relationships that we will continue to evolve our efforts in years to come.

Which Alternative to choose? How to implement the alternative? How to control the alternative?

Nike is establishing a norm of