This discussion focuses on the difficulties that apparel industry companies encounter in their supply chains when it comes to corporate social responsibility. In a corporation's supply chain, suppliers, customers, and logistics providers collaborate to deliver goods and services to the end customer (Simchi-Levi et al., 2002). Corporate social responsibility (CSR) pertains to a corporation's efforts in recognizing its environmental impact and influence on social welfare (investopedia).
The focus on Corporate Social Responsibility (CSR) has increased in the multinational corporation (MNC) environment. MNCs need to take into account their home country, host countries, and stakeholders in the supply chain. CSR plays a crucial role in different areas of a corporation's operations. Implementing effective CSR policies can assist in attracting suitable employees, reducing attrition rates by creating a positive perception,
...enhancing corporate image, preparing for future regulations, and empowering "soft" laws (Vogel, 2005, p.162).
Companies face numerous challenges in terms of CSR in the supply chain. There have been reports of workers being abused and children being exploited. Additionally, environmental concerns such as water pollution and the use of chemicals to reduce costs and produce cheaper clothing, such as using chemical and GMO seeds to accelerate cotton growth, which results in pollution of the earth and water. Despite the need to generate profits, companies must also navigate these challenges while acting ethically.
Customers had a negative reaction when they found out that the clothing industry used sweatshop labor to make clothes. The problem is that the countries where manufacturing is outsourced don't see the working conditions as an issue because of cultural reasons. This puts companies in an ethical dilemma
as they have to choose between following the host country's standards or setting higher ones even if it means more expenses.
Nike has chosen to strengthen their corporate social responsibility (CSR) efforts in the supply chain, presenting difficulties for suppliers and manufacturers in developing nations. The absence of assistance from retailers and buyers is a significant obstacle, forcing suppliers to shoulder the entire burden of implementing CSR. Additionally, manufacturers in these countries encounter challenges like a scarcity of skilled personnel and inadequate knowledge regarding CSR. Consequently, their managers often prioritize maximizing profits over fulfilling CSR obligations. These are all barriers that organizations must confront.
2. Analyzing a comment made by a Nike representative regarding consumers not rewarding the company for investments in improved social performance in supply chains is important. The reality is that incorporating corporate social responsibility (CSR) practices leads to higher costs for companies. Therefore, they have to decide between reducing their profit margin or potentially losing market share due to necessary price increases on their products. Consequently, the statement implies that customers are unwilling to pay extra for the product and as a result, the company's commitment to CSR standards goes unnoticed.
Nike is implementing a systemic change in the industry to prevent losing market share. This change aims to benefit the company and fulfill their corporate social responsibility (CSR). Nike actively engages with labor ministries, civil societies, and competitors worldwide, recognizing the importance of collective accountability. They aim to establish higher standards and raise the industry's benchmark through their involvement in the Multi-Fibre Agreement (MFA). Moreover, Nike commits to adopting eco-friendly practices and supporting environmental protection efforts.
justify">They have shifted their focus from viewing profits as the ultimate goal to regarding it as an indicator of their success in fulfilling society's needs, thereby creating a sustainable system that benefits all.
The concept of an industry open-systems approach to social responsibility involves considering the various parties and stakeholders involved. These parties include organizations, which are goal oriented and structured entities connected to the external environment (Daft, 2001, p.12).
Open-system companies have the freedom to determine their production and target audience, as well as where they operate. However, to ensure their survival, it is crucial for these businesses to interact with the environment. While profit remains their primary objective, they must also take into account society's needs and desires. Legal and implicit regulations exist to ensure that these companies generate profits without causing harm to society.
In business, an open system refers to a company that recognizes and considers all stakeholders. These stakeholders include both internal factors such as employees, managers, materials, equipment, production, and labors, as well as external factors like the environment, competitors, suppliers, distributors, governmental regulators, and citizenship. This model acknowledges that inputs come from the external environment and outputs are returned to it.
The future of the company is dependent on a range of stakeholders, including investors, employees, consumers, NGOs, suppliers, and government regulations. Investors play a significant role in driving the company's endeavors, while the success of the company heavily relies on employee performance. The company's profitability primarily stems from consumer satisfaction and their preferences greatly impact its future prospects. NGOs possess the ability to shape public opinion about the company. Establishing strong relationships with
suppliers is vital as they are responsible for providing raw materials. Additionally, complying with government regulations is essential for ensuring smooth operations.
Nike acknowledges the significance of engaging all stakeholders in their corporate social responsibility (CSR) initiatives to ensure sustainable and financial success.
According to Deresky, "leadership beyond borders" refers to individuals who can surpass the limitations imposed by others, including those of their job. They actively collaborate and communicate with others to address broader issues.
The idea of leadership involves directing employees towards their company's objectives. Certain business leaders have embraced this notion and are dedicated to delivering efficient leadership. They develop initiatives to motivate and inspire leaders at all hierarchical levels to make a significant difference. Leadership beyond borders strives to promote worldwide leadership for a sustainable world by recognizing, supporting, and connecting visionary leaders who prioritize the welfare of their organizations and communities.
The Nike case study explores the idea of leadership that goes beyond boundaries, encompassing a leadership style that surpasses one's professional position and personal situation to involve others in working towards common goals. This type of leadership exceeds self-centeredness as leaders align themselves with larger entities and motivates individuals to expand their awareness and inspire them to take on leadership roles. As Gandhi famously stated, "be the change you want to see in this world".
5. Is it feasible to achieve a balance between profit, people, and planet? Who is accountable for reaching this goal? Profit is the core of business operations. Therefore, companies should possess the skills to identify opportunities, the eagerness to pursue them, and the capability to act upon them. Successful
businesses generate profits. On the other hand, individuals prioritize leading a meaningful life.
In a people environment, effective communication skills, strong leadership, and integrity at all levels are crucial. The concept of "Planet" serves as a metaphor for having a holistic perspective that encompasses both profit and people. Those who operate with this mindset prioritize progress and wholeness. They are capable of navigating the complexities of the world as it currently exists and possess the motivation and capabilities to transform it for the better. Establishing positive societal relations is beneficial not only for society but also for profitability.
Ian Davis suggests that profits should be viewed as an indication that a company is effectively meeting the demands of society, rather than being the ultimate goal. Nonetheless, Nike's experience highlights the inadequacy of current societal norms in promoting the harmonization of profits with the welfare of individuals and the environment. To address this issue, revisions to the existing framework are necessary. Given Nike's proficiency in corporate social responsibility, it should prioritize both people's interests and planetary health alongside profit.
Nike, along with its competitors, recognizes the importance of positive societal relationships for both society and profitability. Companies that prioritize the compatibility of profit, people, and the planet are the ones that thrive and achieve success. These organizations offer the most fulfilling work environments and are more efficient and competitive as they effectively address and reduce value conflicts. Their products and services are highly sought after because they meet all requirements, allowing them to build a lasting reputation that sets them apart from others.
- Professor essays
- Should College be Free essays
- Should college athletes be paid essays
- College Education essays
- College Tuition essays
- Graduation essays
- College Goals essays
- Personal Statement essays
- Online Classes Vs Traditional Classes essays
- Online Education essays
- Student Loan essays
- Study Abroad Scholarship essays
- Reasons To Go To College essays
- Paying College Athletes essays
- Technology In The Classroom essays
- Classroom essays
- College essays
- E-Learning essays
- Elementary School essays
- Examination essays
- Graduate School essays
- High School essays
- History Of Education essays
- Homeschooling essays
- Kindergarten essays
- Middle School essays
- Public School essays
- School essays
- Single Sex Schools essays
- Special Education essays
- Student essays
- Teacher essays
- University essays
- Vocational Education essays
- Accounting essays
- Andrew Carnegie essays
- Automation essays
- Business Cycle essays
- Business Intelligence essays
- Business Model essays
- Business Operations essays
- Business Software essays
- Cooperation essays
- Cooperative essays
- Corporate Social Responsibility essays
- Corporation essays
- Customer Relationship Management essays
- Family Business essays
- Franchising essays
- Harvard Business School essays
Unfortunately copying the content is not possible
Tell us your email address and we’ll send this sample there.
By continuing, you agree to our Terms and Conditions.