January 28, 2013
One of the world’s leading innovators in athletic products is Nike, Inc. It is popular for its athletic footwear, equipment, accessories and apparel. Nike’s mission: “To bring inspiration and innovation to every athlete* in the world” (Nike, Inc., 2011). Two visionary men, by the names of Bill Bowerman (Nike’s co-founder) and Philip H. Knight (Chairman of the Board of Directors), set out to revolutionize athletic footwear which later redefined the industry. Bowerman and Knight were first a partnership under the name, Blue Ribbon Sport. The goal of Nike, Inc. was to distribute Japanese quality shoes at a low-cost ...view middle of the document...
With the two types of directors, Nike benefits from those directly involved with Nike and those that are indirectly involved—a board that thinks “outside the box” (Enderle, Hirsch, Micka, Saving, Shah, & Szerwinski, 2000). Nike’s plan for sustainability means long-term vision that delivers profitable growth, unconstrained natural resources, and delivering value to its shareholders. Competitive advantages, connections with consumers, innovative products and retail experiences, and a strong NIKE, Inc. portfolio, do leverage this balance (Nike, Inc., 2011).
Analyzing the influences on the organization is based on legal issues, ethical climate, and corporate social philanthropic responsibilities. To avoid or handle legal conflicts, Nike Inc. established corporate governance in 2001, which is the responsibility of the Board of Directors. The purpose of its governance is to review policies and activities, and to make recommendations regarding: labor and environmental practices, community affairs, charitable and foundation activities, diversity and equal opportunity, and environmental and sustainability initiatives (Nike, Inc., 2011).
For the respect of employee rights, safety, and a healthy work environment, Nike, Inc. has a code of ethics and conduct that is referred to as, Inside the Lines—it implies to all its employees. The code of ethics is a guideline that employees must follow; it keeps employees accountable in his or her activity, ethical behavior, product safety, legal compliance, competition and use of resources (Nike, Inc., 2011). Inside the Lines gives employees the opportunity to confidentially report, to a global toll-free Alertline, concerns or suspected violation that is illegal or against its code of ethics. The Board’s Audit Committee determines the appropriate action. Suppliers share Nike’s standards to operate and legally and ethically, and contractors that manufacture Nike’s products are addressed in the company’s code of conducts as well (Nike, Inc., 2011).
Nike’s social and philanthropic responsibility addresses the community’s basic needs for health, safety, and vitality. The belief in power of human potential, Nike wants to empower and support its communities in which we live, work and play. With sports being a universal language, Nike sees it as an opportunity to improve the access of sport to help change the world. Nike is a big supporter on the impact of kid’s physical activity and has a large portfolio of community sports programs around the world. Another social responsibility is, The Nike Foundation. This foundation is a nonprofit organization that invests in adolescent girls—with education, sport and adult mentorship—to develop life skills to care for herself, family and community (Nike, Inc., 2011).
Three factors that influence Nike’s strategic, tactical, operational, and...